Blended Retirement System At a Glance
The Blended Retirement System (BRS) was implemented as required by law on January 1, 2018. All members entering service for the first time on or after this date are automatically enrolled in BRS. The NDAA for FY16 authorized an enrollment period for certain already-serving members to “opt into” BRS. The BRS opt-in process was designed to provide eligible Service members a choice for their own futures.
In BRS, the retirement benefit consists of a reduced monthly retired pay benefit, supplemented by government contributions to a portable retirement savings account through the TSP. Under BRS, nearly all members who separate before becoming eligible for retirement now have a portable, government-provided retirement benefit. Those members who continue to serve for a whole career and become eligible to receive monthly retired pay after serving for 20 years will also receive monthly retired pay. BRS has several components. To learn more, go to: A Guide to the Uniformed Services BRS December 2017.pdf
Continuation Pay
In addition, the legislation enacting BRS included a provision for a continuation bonus (Continuation Pay) paid during the midpoint of a member’s career in exchange for a commitment for additional service. Similar to retention bonuses, Continuation Pay allows the Military Services to adjust the amount and timing of the payment to ensure they can retain a sufficient number of Service members for force management purposes. Congress implemented the Continuation Pay bonus provision as a means to ensure the continued retention and maintenance of sufficient force levels.
Military Services have the flexibility to set Continuation Pay rates, the timing of that payment, and the length of obligated service, as they deem necessary, in order to meet their retention and manpower needs, although statute requires a minimum payment for any Service member who is able to enter into an agreement for the additional obligated service. The minimum payments required in law are 2.5 months’ pay for members of the AC and 0.5 months’ active duty pay for members of the RC. In 2020, when the Army National Guard multiplier was 4.0, the multipliers for all other reserve components (Marine Corps, Navy, Air Force, and Coast Guard) were 0.5. In 2025, the ARNG multiplier decreased to 2.5, while all other reserve components remained at 0.5.
Continuation Pay Changes
Effective 1 January 2026, Headquarters Department of the Army (HQDA) has published the new rates and eligibility windows in which BRS-CP will be paid.
o The CP amount for AGR Soldiers will be 2.5times (no change) the AD basic pay.
o The CP amount for ARNG Soldiers will be 0.5 times (previously 2.5 times) the AD basic pay.
o The CP amount will be 2.5 times for those ARNG Soldiers who have served 270 or more days of involuntary mobilization during a 730-day period. This is a new addition.
o The available timeframe to apply for CP will be no less than 7 years and no more than 12 years. The previous policy was 8 to 12 years. This is projected to change again in FY27 to 7 to 10 years, which means a lower AD base pay.
What’s the Bottom Line?
Let’s talk numbers. Under the current 2.5x multiplier, an E6 with 10 years of service could receive $11,462.50 in 2025. Come 2026, that same Soldier may only see $2,380.00—a difference of over $9,000.
Here are a few more examples:
| Grade | CY25 (2.5x) | CY26(0.5x) | Difference |
| E5 | $10,585.00 | $2,197.50 | $8,387.50 |
| E7 | $12,765.00 | $2,650.00 | $10,115.00 |
| CW2 | $15,131.25 | $3,026.25 | $12,105.00 |
| O3 | $20,172.50 | $4,188.00 | $15,984.50 |
⚠️ Note: These figures are based on projected 2026 pay scales and are subject to change.
We were led to believe that there was a significant financial benefit to remaining in service in order to enter the initial payout bracket. Many soldiers were guided to manage their service obligations accordingly, only to have this financial benefit drastically reduced on numerous occasions, ultimately to what we see now, where it’ll be almost nothing compared to where we started. All the guidance and career management decisions were made in good faith, and now that faith has been marred.
What Should You Do?
If you’re nearing 7–12 years of service, act now. Soldiers currently eligible for CP under the 2025 rates can still sign their agreement before the policy change takes effect.
Reach out to your Career Counselor, State Incentive Manager, or HR professional to understand your eligibility and options.
The Future Outlook
It is too early to make a full econometric assessment of methods to increase the effectiveness or efficiency of Continuation Pay. Similar to the “wait and see” approach on adjusting the rates, the Department of War will gather data over the coming years to determine what impacts BRS and Continuation Pay have on force management. The Department has already initiated a multi-year study that will gather multiple years of retention data across career fields to properly assess whether the bulk of BRS members are influenced in their career-mindedness by either a decreased defined benefit or the influence of the Continuation Pay retention bonus