Air Force Retirement: BRS Guide
Anyone who entered the Air Force on or after January 1, 2018 is under the Blended Retirement System. It’s called “blended” because it combines two things: a traditional pension for those who serve 20 or more years, and a Thrift Savings Plan with government matching that goes with you if you leave before 20 years.
The old system (called “High-3” or “Legacy Retirement”) gave nothing to anyone who left before 20 years. Under BRS, even a member who serves only 4 years walks away with a funded TSP account.
The Pension Component
The BRS pension formula is straightforward. You earn 2% of your high-36 basic pay average for each year of service. “High-36” means the average of your 36 highest months of basic pay, typically your last three years.
At 20 years, that equals 40% of your high-36 average, paid monthly for the rest of your life. At 30 years, it’s 60%.
What this looks like in practice:
An E-7 retiring at 20 years who earns roughly $5,500/month in basic pay for their final three years has a high-36 average of approximately $5,500. Their monthly pension would be:
$5,500 x 40% = $2,200/month
That pension is indexed to inflation through annual cost-of-living adjustments (COLA). For an officer retiring as a Lieutenant Colonel (O-5), the numbers are considerably higher given the larger basic pay base.
The pension begins the day after you retire and continues for life. It does not require reaching a civilian retirement age.
Comparison to the Old System
The legacy system used 2.5% per year instead of 2%, so 20 years produced 50% of high-36 rather than 40%. The BRS trade-off is that the multiplier is lower, but you gain the TSP matching and a partial benefit if you separate early. Members who entered before 2018 were given the choice to opt in to BRS or remain under legacy rules.
The TSP Component
The Thrift Savings Plan is the federal government’s version of a 401(k). BRS requires the government to make contributions to your TSP whether you contribute anything or not.
The Government Contribution Schedule
| Action | Government Contribution |
|---|---|
| Automatic (no contribution required) | 1% of basic pay, begins at 60 days, vests at 2 years |
| You contribute 1% | Government matches 1% (total 2% government) |
| You contribute 2% | Government matches 2% (total 3% government) |
| You contribute 3% | Government matches 3% (total 4% government) |
| You contribute 4% | Government matches 3.5% (total 4.5% government) |
| You contribute 5%+ | Government matches 4% (total 5% government) |
The maximum government contribution is 5% of basic pay: the 1% automatic plus up to 4% in matching. To get the full 5%, you must contribute at least 5% yourself.
Vesting
The 1% automatic contribution vests after 2 years of service. Matching contributions vest immediately. This means a member who separates after 2 years keeps the automatic contributions. One who separates after 6 months of service forfeits the automatic contribution because it hasn’t vested yet.
Why You Should Contribute at Least 5%
Leaving the government match on the table is giving up guaranteed compensation. An E-4 earning $3,303/month in base pay who contributes 5% invests $165.15/month. The government adds another $165.15/month in matching (5% total). The combined $330.30/month grows in the TSP over a career.
Over 20 years with market returns, the TSP balance can rival the pension value itself. See the TSP guide for details on fund options and how to invest.
Continuation Pay
BRS includes a one-time Continuation Pay bonus for members who agree to additional active service. This is paid between 8 and 12 years of service, and requires committing to at least 3 additional years on active duty.
The amount is set by service branch and career field. It’s expressed as a multiple of monthly basic pay. Minimum amounts are set by law (at least 0.5x for enlisted, at least 1x for officers), but the Air Force can offer more for high-demand AFSCs and career fields.
Continuation Pay in Practice
The Air Force typically offers Continuation Pay in the 2.5x to 13x range of monthly basic pay, depending on career field and current manning needs. A Technical Sergeant with 10 years in a high-demand career field earning $4,759/month in basic pay could receive Continuation Pay of roughly $11,900 (2.5x) on the low end or significantly more in a critically manned specialty.
Officers receive higher minimums, at least 1x monthly basic pay, and can receive considerably more in aviation and cyber fields where retention competition with the private sector is intense.
Continuation Pay is taxable income. Members receiving it can contribute a large portion directly to TSP to reduce the immediate tax burden and accelerate retirement savings. The IRS contribution limit for TSP is $23,500 in 2026 (standard) or $70,000 including all government contributions for members in combat zones under the combat zone exclusion rules.
The key timing consideration: Continuation Pay is only available between 8 and 12 years of service. Miss that window and it’s gone. If you are approaching 8 years under BRS and have not discussed Continuation Pay with your finance office or career field manager, do that now.
Survivor Benefit Plan (SBP)
If you retire and have a spouse or dependent, you’ll face a decision about the Survivor Benefit Plan. SBP is an annuity that continues payments to your survivor after you die. Without SBP, your pension stops when you die.
SBP costs a percentage of your retirement pay (up to 6.5% for full spouse coverage). If you elect it, your survivor receives 55% of your covered base amount for life after your death. It’s inflation-adjusted.
The decision is made at retirement and is difficult to reverse. Spouses must consent in writing if a retiring member declines coverage. This is worth careful analysis, the break-even point depends on how long you and your survivor live.
The 20-Year Decision Point
The pension creates a powerful incentive to reach 20 years. The difference between 19 years and 20 years is the entire pension. Many Airmen who would otherwise separate at 12-16 years recalculate when they see how close they are to the lifetime benefit.
That said, BRS softens the all-or-nothing nature of the old system. The TSP matching ensures members who serve 4, 6, or 10 years still leave with something. The pension is still the major financial event if you reach 20, but it’s no longer the only financial event.
The Pension Calculation With Numbers
It helps to see the pension math at multiple retirement ranks to understand what the benefit is actually worth.
Example: E-7 retiring at exactly 20 years
An E-7 with 20 years of service in 2026 earns between $5,268 and $5,537 per month in basic pay (depending on years of service bracket). Take a high-36 average of approximately $5,300/month.
$5,300 x 2% x 20 = $2,120/month pension
That is $25,440 per year, indexed to inflation for life. Starting at age 40 and living to 80 means 40 years of payments, a total lifetime value of roughly $1 million or more when accounting for COLA increases.
Example: O-5 retiring at 20 years
A Lieutenant Colonel in their final three years earns roughly $10,715 to $11,714 per month in basic pay. Using a high-36 average of $11,000:
$11,000 x 2% x 20 = $4,400/month pension
That is $52,800 per year before COLA adjustments. Officers retiring at O-6 after 24-26 years receive proportionally larger pensions.
Effect of serving beyond 20 years:
Every year past 20 adds 2% to the multiplier. An E-7 who stays to 24 years earns 48% of high-36 instead of 40%. For many members, those extra years also push them into higher pay brackets, raising the high-36 base as well.
TSP Fund Options
The Thrift Savings Plan offers five core funds and a suite of Lifecycle (L) Funds:
| Fund | What It Holds | Risk Level |
|---|---|---|
| G Fund | Government securities (guaranteed, no loss) | Lowest |
| F Fund | Bond index (Bloomberg US Aggregate) | Low-Medium |
| C Fund | S&P 500 index | Medium-High |
| S Fund | Small/mid-cap stocks (Dow Jones US Completion TSM) | High |
| I Fund | International stocks (MSCI EAFE) | High |
The L Funds are target-date funds that hold a mix of the above five, automatically shifting toward more conservative allocations as the target date approaches. L 2060 is the most aggressive; L Income is the most conservative and is used by current retirees drawing on their TSP.
For most members in the early years of service, a common allocation strategy is to direct contributions toward C, S, and I funds in some combination, capturing equity growth over a long time horizon. The G Fund is useful for members nearing retirement who want to protect existing balances from a market downturn.
The TSP has no fund management fees in the traditional sense, the expense ratios are extremely low compared to most civilian 401(k) plans, which is a structural advantage over a career.
Reserve Retirement
Reservists and Air National Guard members who serve 20 qualifying years are eligible for a pension, but it doesn’t begin until age 60. Each year of satisfactory reserve service earns points, and retirement pay is calculated based on total points accumulated.
The formula is different from active duty: points are divided by 360 and multiplied by 2.5% (under the legacy system) or 2% (under BRS) of equivalent basic pay. Reserve retirement is valuable but structured differently from active duty retirement.
How Reserve Points Accumulate
Points are earned through:
- Inactive duty training (IDT) / drill weekends: 1 point per day of authorized training (typically 2 days per month = 24 points per year at minimum)
- Annual training (AT): 1 point per day of active duty training (typically 14-15 points per year)
- Active duty orders (deployments, activations): 1 point per day of active duty
- Membership points: 15 points per year for maintaining satisfactory reserve membership
A reservist who drills regularly, completes annual training, and deploys occasionally can accumulate 50-75+ points per year. A year with a 6-month activation contributes roughly 180+ points.
Example Reserve pension calculation (BRS):
A Reserve TSgt who retires with 4,800 total points after 26 years of reserve service:
4,800 points / 360 = 13.33 equivalent years
13.33 x 2% = 26.67% multiplier
At the O-4 equivalent pay rate used for Reserve retirement calculations, monthly pay might be around $7,000, yielding a pension of roughly $1,867/month, starting at age 60.
Reserve members can reduce their retirement age below 60 by earning “early retirement credit” through deployments. Each 90-day period of qualifying active duty after January 28, 2008 reduces the retirement age by 3 months, down to a floor of age 50.
For a complete picture of your compensation package, also review the TSP guide and pay overview.
This site is not affiliated with the U.S. Air Force or any government agency. Verify all information with official Air Force sources before making enlistment or career decisions.