BRS vs High-3 Calculator
Enter your High-3 annual basic pay and TSP return assumption to compare the Blended Retirement System (40% pension + TSP match) against the legacy High-3 system (50% pension) at 20 years of service.
Reviewed by Jonathan D., 20-year federal employee · Formulas verified against militarypay.defense.gov ·
BRS vs High-3 lifetime value at 20 years (2026 data)
FedTools 2026 original analysis using verified 2026 basic pay data (DFAS), an 8% return assumption, and monthly BRS contribution timing: member 5% from month 1 when selected, DoD 1% automatic after 60 days, and DoD 4% match after 2 years. Nominal 30-year pension gap (no COLA, no discount applied). All figures are projections, not guaranteed outcomes.
| Profile (High-3 avg) | TSP at 8% (match only) | TSP at 8% (match + own 5%) | 30-yr Pension Gap | Covers Gap? |
|---|---|---|---|---|
| E-7 (~$60,000/yr) | $121,100 | $263,400 | $180,000 | Yes (with own 5%) |
| O-3/O-4 (~$95,000/yr) | $191,800 | $417,000 | $285,000 | Yes (with own 5%) |
| O-5 (~$115,000/yr) | $232,100 | $504,800 | $345,000 | Yes (with own 5%) |
How BRS and High-3 compare at 20 years
The fundamental difference between BRS and legacy High-3 comes down to one number: the pension multiplier. Legacy High-3 uses 2.5% per year of service. BRS uses 2.0%. At 20 years, that translates to a 50% pension under High-3 and a 40% pension under BRS, a 10-percentage-point gap that persists for life.
BRS adds two features that legacy High-3 does not have: a DoD TSP match of up to 5% of basic pay per month (beginning at month 25 of service), and a continuation pay bonus between 7 and 12 years of service. Whether those additions overcome the pension gap depends on how much you contribute and how the TSP performs.
One important clarification: BAH (Basic Allowance for Housing) and BAS (Basic Allowance for Subsistence) do NOT count toward either the pension High-3 base or the TSP match calculation. Only basic pay is included. This is one of the most common BRS misconceptions.
The TSP match: how it accumulates over a career
Under BRS, the DoD contributes 1% of basic pay automatically after 60 days of service. Starting after 2 years of service, matching contributions begin: when you contribute 5% or more of basic pay, the DoD adds another 4%, bringing the mature total DoD contribution to 5%. The match requires a monthly 5% contribution in every single pay period. Front-loading your contributions and hitting the annual limit ($24,500 in 2026) before December means losing several months of match.
Over a 20-year career, an E-7 with a $60,000 High-3 accumulates about $55,100 in nominal DoD TSP contributions under the BRS start-date rules. At an 8% annual return, those contributions project to approximately $121,100 at retirement. Add the member's own 5% from month 1 and the projection rises to roughly $263,400. The 30-year nominal pension gap for the same profile is $180,000, so the full contribution strategy leaves about an $83,400 surplus.
The BRS lump-sum option
BRS members who retire with 20 or more years of service may elect a one-time lump sum equal to the present value of either 25% or 50% of their future pension through age 67. During the period between retirement and age 67, monthly pension is reduced proportionally. At 67, full pension resumes.
The math turns on the FY2026 lump-sum discount rate (LSDR) of 6.46%, which is how DoD values future pension dollars. If you expect to earn more than 6.46% annually on the lump sum, it may be mathematically favorable to take it. If your return expectation is below 6.46%, the steady monthly pension is the better deal mathematically. Most financial planners recommend the monthly income unless there are specific circumstances. The election is irrevocable.
This calculator shows informational lump-sum estimates based on a simplified present-value formula. For an authoritative figure, use the official DoD BRS Comparison Calculator.
Frequently asked questions
What is the pension difference between BRS and High-3 at 20 years?
Does the BRS TSP match close the pension gap at 20 years?
I joined the military after January 1, 2018. Am I in BRS automatically?
What is the lump-sum option in BRS and should I take it?
Does BAH or BAS count toward my BRS pension or TSP match?
- BRS pension formula: militaryonesource.mil 2.0% x years of service x High-3 annual average basic pay
- Legacy High-3 formula: navymutual.org 2.5% x years of service x High-3 annual average basic pay
- TSP match: Military OneSource / TSP BRS guidance: 1% automatic after 60 days + up to 4% matching after 2 years; mature maximum DoD contribution 5% of basic pay
- 2026 TSP deferral limit: $24,500 (IRS newsroom). DoD matching excluded from this limit.
- Lump-sum discount rate (LSDR): 6.46% for FY2026 per DASD(MPP) memo dated May 22, 2025, via militarytoolkit.com
- 2026 military basic pay: DFAS 2026 Pay Chart (3.8% increase effective January 1, 2026). Source: dfas.mil
- Official DoD BRS Comparison Calculator: militarypay.defense.gov/Calculators/BRS/