#blendedretirement
DoD Office of Financial Readiness
Ms. Kim Myers
Office of the Assistant
Secretary of Defense
(Force Readiness)
PERSONNEL AND READINESS
UNCLASSIFIED
PERSONNEL AND READINESS
The Uniformed Services Blended
PERSONNEL AND READINESS
Retirement System
UNCLASSIFIED
Questions
http://militarypay.defense.gov/BlendedRetirement
2
What We’ll Discuss
• Why it’s critical to save for retirement
• What is the Blended Retirement System
(BRS)?
• Who may opt-in to BRS
• How the blended system encourages
retirement saving
• Choosing between the
blended and legacy systems
4
Blended Retirement System
• Replaces legacy pension-only system
• Offers chance to opt-in with immediate benefits
• Combines tax-deferred savings with a smaller
pension
• Adds automatic and matching DoD
contributions
5
Nuts and Bolts of the BRS
• You’re always vested in your own
contributions
• You’re immediately vested in
DoD matching contributions
• Your account value is portable:
You can take it with you
6
BRS or Legacy
CAREER TIMELINE
Joined service before
1/1/2006
RETIREMENT SYSTEM
Grandfathered to legacy
system, eligible to
contribute to TSP
Joined service between
1/1/2006 and 12/31/2017
Opt-in to BRS 1/1/2018
to 12/31/2018 or remain
in legacy system
Join service after
1/1/2018
Automatically enrolled
in BRS
7
Benefits of Opting-In
1. Continued eligibility for
pension after 20 years
2. Automatic and matching DoD
contributions to TSP account
3. Immediate vesting in all
contributions and earnings
4. Career continuation pay
between 8th and 12th year
8
Factors to Consider
1. Willingness to contribute regularly and at
high enough rate
2. Appetite for investment risk
3. Likelihood of your serving 20 years
9
Wrapping Up
Military retirement on cusp of a new era
Each of you is in a position to make an
important choice
Acting thoughtfully can give you the
confidence you’ve done what’s right for you
10
Federal Trade Comminssion
Military.Consumer.gov
Carol Kando-Pineda
America Saves Campaign
Update
America Saves Communications Director
Madeline Daniels
Summary of Insights
Coping with unexpected expenses tops the list of reasons why people make
a commitment to save but several other forces play important roles.
• Two-thirds of people who recently committed to saving more cite unexpected
expenses as a major influence in that decision.
• When asked for the specific trigger that led to the decision to save more, recently
committed savers often focus on specific goals (education, retirement, major
purchases); some focus on their internal aspirations (desire to gain financial
flexibility) or challenges (having difficulty staying on top of financial affairs; and
the need for an emergency fund). Some are driven by negative life events (less
income, or the need to get out of debt).
• While positive changes in circumstances are a recognized force triggering
increased savings, events that have had a negative influence are a savings trigger
for a surprisingly large portion of these recent savers. Almost one-third (30%)
report that an event creating less available income had a major
influence on their decision to focus on saving.
• The decision to save is not an impulse one for most people. A majority (56%)
came to their decision over a relatively long period of time. The
remainder are relatively evenly split between those who made a decision based
largely on an internal commitment and those who were triggered by an external
event.
Source: America Saves Committed Savers Study, October 2016
Summary of Insights
• Committed Savers are taking steps to become more knowledgeable
•
about personal finances, and saving for an emergency fund more than
the general population; reflecting their aspiration to feel more confident, in
control, and ultimately more satisfied with their financial situation.
The most successful savers are more likely to have taken a number
of actions to ensure their success. These include opening an account
specifically for saving, monitoring accounts carefully, and learning more
about saving.
Source: America Saves Committed Savers Study, October 2016
Military Saves Advisory Meeting
1 February 2017
Military Saves Week
February 27-March 4, 2017
MilitarySaves.org
16
 Military Saves is part of the Department of Defense’s Financial Readiness
Campaign and has been a partner with DoD since 2003.
 Military Saves is a research-based campaign using the principles of
behavioral economics and social marketing to change behavior.
 Military Saves seeks to motivate, support, and encourage military families to
save money, reduce debt, and build wealth.
 Military Saves is a part of America Saves, the larger nation-wide campaign
for all Americans.
 Military Saves encourages all servicemembers, their families, and civilian
employees to take the Military Saves pledge.
 Military Saves promotes access to a range of financial readiness resources
that can help them with their debt reduction and savings goals.
MilitarySaves.org
17
Military Saves encourages servicemembers to:
1.
2.
Set savings goals & make a financial plan
Get in the savings habit:

Save automatically through direct deposit, automatic
transfer from checking to savings or allotment

Spend less than you earn and save the difference

Set up a separate savings account for emergencies
MilitarySaves.org
18
Encouraging servicemembers and families to take the
pledge! Savers who take the pledge receive the
following benefits:

Access to monthly Military Saves e-blogs and challenges with savings
advice from financial experts

Opportunity to sign up for text message saving tips, reminders

Free credit score, courtesy of FINRA Investor Education Foundation
MilitarySaves.org & BRS
January-February 2017
•
Topic: Military Saves Week 2017: Get in
the retirement savings habit now
(automatically). The
#BlendedRetirementSystem is one year
away.
•
Key messages: Save for retirement
automatically. Will the change to the
Blended Retirement Plan affect me?
Highlight websites/resources. What are
you planning to do with your pay raise?
Save your refund, find more ways to save
(change withholdings). Getting a pay raise?
Amount of pay increase, illustrate how
much that will grow if put into retirement
savings for a young servicemember.
19
MilitarySaves.org & BRS (Reserves)

Timing of “non-regular retirement” annuity does not change –
eligible to begin receiving annuity at age 60, or *earlier with
creditable service

RC members may elect the lump sum when eligible to receive
retired pay at approximately age 60*

TSP contribution elections carry over when activating and deactivating

JKO BRS courses will be available through MilitarySaves.org
without CAC access; easier for Reserve and National Guard
service members and families
20
MilitarySaves.org & BRS

BRS Opt-In Course provides various
scenarios for active and Reserve
component members and factors to
consider in the opt-in decision
making process.

The course is available on non-CAC
computers

The course includes graphical
elements, interactive leaning tools
and real-world videos of service
members discussing retirement
options and asking questions.
21
The Uniformed Services
Blended Retirement System
UNCLASSIFIED
PERSONNEL AND READINESS
Comparison Calculator
 Online BRS Comparison
Calculator will allow Service
members to compare estimated
benefits under both plans prior
to making a decision
 Walks Service members through
key information needed to make
an effective comparison
 Users can adjust data to see
how changes to their career and
savings will impact retirement
benefits
 Available Spring 2017
22
MilitarySaves.org
23
Each year, a Memo from the Office of the Secretary of Defense is issued
supporting Military Saves Week .
MilitarySaves.org
50,000 Military Savers take the pledge
 Army 20,000 Pledges
 Air Force 15,000
 Navy 10,000 Pledges
 Marines 5,000 Pledges
 Coast Guard, National Guard, and Reserves 1,000 Pledges
Military Saves 2016
 Total pledges/re-pledges:
More than 32,335
 More than 800 orgs. participated
 Let’s go for 50,000 in 2017!
24
How to Participate: Three Steps
1. Sign up your installation to participate,
receive the latest news
2. Partner with financial institutions,
installation leadership, other PFCs and
organizations to increase participation, host
event(s)
3. Encourage servicemembers, their families
and DoD civilians to take the Military Saves
Pledge
25
MilitarySaves.org
26
MilitarySaves.org
27
MilitarySaves.org
28
America Saves Designation of
Excelence
29
•
12 military-affiliated banks and credit
unions (34 total) were recognized for
encouraging servicemembers and families
to save
•
The online application will open on March
6, 2017 and will close on April 3, 2017.
•
Please help us spread the word! Look to
partner with financial institutions on your
installation.
•
Learn more!
#MSW2017 Reporting Survey
Contact Information
1. What is the name of your organization?
2.Which of these descriptions best fits your organization?
a.Financial Institution
b.Installation
c.Non-Profit Organization
3.Who can we contact for more information?
Name _______________
State _______________
Email Address _______________
Phone Number ______________
4.How many branches are included in this report? _______________
30
#MSW2017 Reporting Survey
31
5.Through your events and promotion of Military Saves Week, did you
encourage your audience to take the Military Savers Pledge? Yes /No
6.Which of the following did you offer during Military Saves Week (select all
that apply)
Gifts or bonus incentives for opening accounts
Yes/No
Gifts or bonus incentives for adding to accounts Yes/No
Special interest rates for opening accounts
Yes/No
Prizes of drawings
Yes/No
Other (please specify)
#MSW2017 Reporting Survey
7.How would you describe account activity during Military Saves Week 2017?
(please select all that apply)
Higher number of savings accounts (or similar) opened Yes/No
Greater deposits to existing savings accounts
Yes/No
No noticeable change in savings activity
Yes/No
Do not know
Yes/No
8.How much account activity was there during Military Saves Week 2017?
Number of savers opening new account
Dollars saved in new accounts
Number of savers adding to existing accounts
Additional dollars saved in existing accounts
Number of automatic savings deposits established
32
#MSW2017 Reporting Survey
Promotional Methods
9. Tell us about your promotional methods. Did you use each of these
techniques this year?
Social media (Facebook, Twitter, etc.)
Information on website
Financial education workshops
Press releases or press events
Community events
1-on-1 financial counseling
Obtained Commander’s proclamation
Other (please specify)
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
33
#MSW2017 Reporting Survey
34
10. Tell us about your audience reach. What is your best guess of
how many people you reached with each of the following
methods?
11.
We like to feature stories that show the impact of your work
during Military Saves Week. Please share in the space below your
Military Saves Week story or success that illustrates the impact
of your work:
MilitarySaves.org
35
Key Messages for #MSW2017

Encourage Financial Readiness Program participation during the
week

Engage Senior Leadership to sign Proclamations and Support the
week

Collaborate with installation Marketing offices, Public Affairs
Offices, on-post financial institutions, Banking Liaison Officers,
youth centers, etc.

Promote mass participation to reach
pledge goals
MilitarySaves.org
36
Key Messages for #MSW2017

The financial readiness of servicemembers and their families is a
priority.

Military Saves Week is a call-to-action to promote saving money,
reducing debt, and building wealth within the military population.

Military Saves provides support and information year-round
within a saving community to help servicemembers and their
families build their personal savings and provide for their
immediate and long-term financial needs.

Please sign up, partner and encourage the pledge to make
#MSW2017 a success!
THANK YOU
37
James Lander
Military Saves Director
[email protected]
(202) 939-1013
Alecia Blair
Military Saves Project Manager
[email protected]
Lani Poblete
Military Saves Project Manager
[email protected]
[email protected]
MilitarySaves.org
Like Us:
https://www.facebook.com/MilitarySaves
Follow Us:
https://twitter.com/MilitarySaves