What is the main purpose of the Blended Retirement System?

The main purpose of the Blended Retirement System is to offer a combination of traditional retirement benefits and a savings plan, thus providing a more flexible and comprehensive retirement package for service members. This system blends the traditional pension benefits with a defined contribution plan, typically involving automatic contributions to a Thrift Savings Plan (TSP), which encourages members to save for their retirement while still receiving a basic pension after a certain number of years of service.

This combination allows service members to have the stability of a guaranteed income from the pension while also benefitting from the potential growth of their personal savings through investments. This approach addresses the diverse financial needs and retirement preferences of military personnel, particularly as they may transition into civilian life at various stages in their careers. Hence, this flexibility and the dual benefits of savings and pension are central to the purpose of the Blended Retirement System.