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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.

What this calculator does

About 75% of active-duty service members are now in the Blended Retirement System. This calculator models the core trade-off: BRS pays a smaller pension (40% vs 50% at 20 years) but adds a DoD TSP match worth up to 5% of basic pay per month. Enter your pay and projected return to see whether the match plus your own contributions can cover, or exceed, the pension gap over a 30-year retirement.

High-3 Annual Basic Pay ($)

Average of your highest 36 consecutive months of basic pay. BAH and BAS are NOT included, only basic pay. Use the official DoD High-3 Calculator for a precise figure.

TSP Annual Return Assumption (%)

Default 6%. The TSP C Fund has averaged roughly 10% historically; 5-7% is a conservative projection. This is illustrative, not guaranteed.

TSP Contribution Mode

Choosing "Match + my 5%" doubles the TSP contribution stream (your 5% plus the DoD 5% match = 10% of basic pay per year).

Enter your High-3 annual basic pay and TSP return assumption, then click Compare BRS vs High-3.

BRS vs High-3 lifetime value at 20 years (2026 data)

FedTools 2026 original analysis using verified 2026 basic pay data (navycs.com/DFAS), 8% return assumption, and the FV annuity formula over a 20-year career. 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)	$137,000	$274,000	$180,000	Yes (with own 5%)
O-3/O-4 (~$95,000/yr)	$216,800	$433,600	$285,000	Yes (with own 5%)
O-5 (~$115,000/yr)	$262,400	$524,800	$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.

Pension formula:

High-3 system: 2.5% x 20 years x High-3 annual = 50%

BRS system: 2.0% x 20 years x High-3 annual = 40%

Gap: 10 percentage points x High-3 annual = annual pension shortfall

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 at month 25, matching contributions begin: when you contribute 5% or more of basic pay, the DoD adds another 4%, bringing the 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 roughly $60,000 in total match contributions ($3,000/year x 20 years). At an 8% annual return, those contributions project to approximately $137,000 at retirement. Add the member's own 5% and the projection doubles to roughly $274,000. The 30-year nominal pension gap for the same profile is $180,000, so the full 10% contribution strategy leaves a $94,000 surplus.

FedTools 2026 original analysis: The BRS TSP match alone does not close the 10-percentage-point pension gap at 20 years for any pay grade at any realistic return assumption. What closes the gap, and then some, is combining the match with the member's own contributions. A BRS member who contributes 5% and captures the full 5% DoD match ends up with a total TSP balance that exceeds the 30-year pension gap at 8% returns for all three profiles in the table above.

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?

BRS uses a 2.0% multiplier per year of service; legacy High-3 uses 2.5%. At exactly 20 years, BRS pays 40% of your High-3 average basic pay and legacy High-3 pays 50%. On a $60,000 High-3, that is a $6,000/year gap, or $180,000 in nominal pension dollars over a 30-year retirement. BRS partially offsets this with a DoD TSP match of up to 5% of basic pay per month and continuation pay between 7 and 12 years of service. The match alone does not close the full gap at typical return assumptions, but combining the match with your own 5% contribution does at most career profiles.

Does the BRS TSP match close the pension gap at 20 years?

At 8% annual return, the DoD match alone (5% of basic pay over a 20-year career) accumulates to roughly $137,000 for an E-7 with a $60,000 High-3. The 30-year nominal pension gap for the same profile is $180,000. So the match alone falls about $43,000 short. When you add the member's own 5% contribution, the projected balance reaches roughly $274,000, which exceeds the gap by $94,000. The break-even depends on your pay, return assumption, and contribution rate. Use this calculator to model your specific situation.

I joined the military after January 1, 2018. Am I in BRS automatically?

Yes. Everyone who entered active service on or after January 1, 2018 is automatically in the Blended Retirement System. You are not in the legacy High-3 system and do not need to make any choice. The opt-in window that allowed members with prior service to switch to BRS closed December 31, 2018. If you joined before 2006, or joined between 2006 and 2017 and did not opt in during 2018, you are in legacy High-3.

What is the lump-sum option in BRS and should I take it?

At retirement, BRS members who have served 20 or more years can 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 payment period, monthly pension is reduced proportionally. At age 67, full pension resumes. The FY2026 lump-sum discount rate is 6.46%, meaning the DoD values future pension dollars at that rate. If you can invest the lump sum and earn more than 6.46% annually, the lump sum can be mathematically advantageous. Below that threshold, the steady monthly pension is worth more. The election is irrevocable, so use the official DoD BRS Comparison Calculator before deciding.

Does BAH or BAS count toward my BRS pension or TSP match?

No. Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS) are non-taxable allowances and are excluded from both the pension High-3 base and the TSP match calculation. Only basic pay counts toward both. This is one of the most common BRS misconceptions. A member earning $5,000/month in basic pay with $3,000/month in BAH has a TSP match calculated only on the $5,000, not the $8,000 combined total.

Data sources and accuracy disclosure

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: TSP Bulletin 17-U-3 (tsp.gov) 1% automatic after 60 days + up to 4% matching at month 25; 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/

This calculator is for informational purposes only and is not an official government tool. All pension and TSP projections are estimates. Actual retirement benefits depend on your verified service record, High-3 calculation by DFAS, TSP investment performance, contribution history, and official retirement system records. Projected TSP balances assume a constant annual return applied to level annual contributions (a simplified model). Consult your service branch retirement services office, a military financial advisor, or the DoD BRS Comparison Calculator for authoritative guidance.

Last updated: June 2026 · FedTools.com

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