BLENDED RETIREMENT SYSTEM CONTINUATION PAY (CP)
BACKGROUND
Starting January 1st, 2018, eligible Army National Guard Soldiers entering service are automatically enrolled in the modernized retirement plan, known as the Blended Retirement System. The plan provides:
- Monthly retired pay for life after 20 years of eligible service starting at the age of 60
- Government automatic and matching contributions to a member's Thrift Savings Plan (TSP)
- A retention incentive called Continuation Pay (CP)
- Lump Sum option at retirement
CONTINUATION PAY ELIGIBLITY
Continuation Pay is a one-time, mid-career financial incentive payable to Soldiers who meet the following criteria:
- Must be enrolled in the Blended Retirement System
- Must have at least eight but no more than 12 years of service as determined from their Pay Entry Basic Date (PEBD)
- Must be a member of the Selected Reserves (SELRES) in a status to receive basic pay or inactive duty pay
- Must agree to an additional four-year service obligation in the component in which they are serving at the time CP is requested
CONTINUATION PAY BENEFITS
- Soldiers may receive the BRS-CP in a lump sum, two equal installments, three equal installments, or four equal installments
- CP can be invested into your Thrift Savings Plan (TSP) account, up to the annual maximum allowed by the Internal Revenue Service (IRS)
- This one-time incentive is in addition to any other career field specific incentives or retention bonuses
- The CP amount for all eligible Soldiers is 2.5 times the monthly basic pay for active duty. The CP amount will be computed using the eligible Soldier's current pay grade and years of service as listed on the Defense Finance and Accounting Service (DFAS) monthly basic pay table in effect on the date of the Soldier′s signature on the BRS-CP Election Form.
HOW TO APPLY
- All Soldiers may submit their Continuation Pay request through the BRS-CP Request Form once they become eligible. Contact your unit S1 and your State Incentive Manager to initiate the process.
- Take the required financial education training online, or in-person with a credentialed financial counselor, and/or group training with an approved financial educator.
- The Soldier's CAC signature date on the BRS-CP Request Form establishes the start of the 4-year service obligation
Note: Army National Guard programs and benefits are subject to change. For the latest information, please contact your local recruiter. Find out more about BRS at https://militarypay.defense.gov/blendedretirement.
FAQS
How is continuation pay determined?
All service members who are enrolled in BRS are eligible for continuation pay. However, each service will determine when and at what rate service members will receive continuation pay. The continuation pay multiplier may be based on factors such as hard-to-fill positions, retention rates and specialty skill, among others. Per the ARNG CY25 Guidance, the rate multiplier for all Soldiers is 2.5 times the monthly basic pay for active duty. The CP amount will be computed using the eligible Soldier′s current pay grade and years of service as listed on the Defense Finance and Accounting Service (DFAS) monthly basic pay table in effect on the date of the Soldier's signature on the BRS-CP Election Form.
How is the required 8 to 12 years of service calculated?
Active- duty service members and Reserve service members in a pay status are eligible for continuation pay when they complete no less than 8 and not more than 12 years of service, which is calculated from the service member's Pay Entry Base Date (PEBD). Continuation pay may be paid at any time during this period as determined by the service.
Can you receive continuation pay more than once?
No, continuation pay is a one-time payout to a service member, regardless of whether they change service, component, or career specialty.
Can you receive continuation pay in the reserve component and then complete your obligation in another service or component?
Soldiers agree to a 4-year service obligation in the component in which they are serving at the time CP is requested. Example: If you request CP while serving in the National Guard, you can move between units and states within the National Guard. You cannot change components to the Army Reserves, Active Duty Army, or another branch of service (Marines, Air Force, etc.).
Can continuation pay be contributed to the Thrift Savings Plan (TSP)?
Yes, entitlements (such as continuation pay), as well as incentives and special pay can all be contributed to your TSP. It is important to note, each year the IRS determines the maximum amount you can contribute to tax-deferred savings plans like the TSP ($23,000 for calendar year 2024). You should keep the annual contribution limit in mind when deciding how much you will contribute to your TSP account from your continuation pay. If you reach the annual maximum too quickly, you could lose some government matching contributions, because you only receive government matching contributions on the first 5% of your basic pay that you contribute each pay period. If you reach the annual limit before the end of the year, your contributions (and consequently your government matching contributions) will stop. If you contribute some or all of your continuation pay to your TSP and go over the IRS limit, be aware it could result in you meeting the IRS limit earlier in the year, causing you to lose out on additional government matching contributions.
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