Frequently Asked Questions: Blended Retirement System (BRS) Facts/Referral Sources Customer Care Center Representatives Dated: December 4, 2018

Transcription

1 Frequently Asked Questions: Blended Retirement System (BRS) Facts/Referral Sources Customer Care Center Representatives Dated: December 4, 2018 Providing information on BRS to callers It is important that Call Centers not provide information that can be interpreted as counseling or advocating for any decision a member may make. The representative s sole responsibility with regards to customer calls is to answer inquires related to the (mypay/marine Online/Direct Access) opt in process. Members/spouses may seek information on various components of the Blended Retirement System. These components may include Service Automatic (1%) Contributions and Service Matching Contributions, continuation pay and retired pay (active service for 20 or more years or compiling sufficient RC service points). If a caller s question is not about the (mypay/marine Online/Direct Access) Opt In process, members/spouses should be referred to the following: Financial assistance and counseling o Installation s Personal Financial Managers or Counselors. Search online (for active duty military installations) or (for National Guard/Reserve Resources) o Additionally, Military OneSource s accredited financial counselors are available by calling at any time 24/7. Military OneSource can also refer service members to local financial assistance, including budgeting, debt management, tax assistance, and retirement planning. Eligibility, training and/or policy: Instruct service member s to contact their local HR/personnel servicing office. Opting In to BRS via DFAS mypay/marine Online/Direct Access BRS Opt In decisions cannot be changed once submitted. Any calls regarding BRS should include this statement (or a similar statement): You should be certain about your retirement system election when using the (mypay, Marine Online, or Direct Access) BRS Opt In function, as your decision to opt into BRS cannot be changed once it s been submitted it. Members of the Army, Navy, Air Force, Coast Guard, NOAA and USPHS, eligible for BRS, but who want to remain in the legacy High 3 retirement system, do not need to take any action. By command direction, Marines must elect either the current legacy high 3 retirement system or BRS. Marines are required by their command to indicate selection of the legacy high 3 retirement system. However, Marines will still remain in the legacy high 3 system should they not indicate this choice. All service members who are BRS eligible and wish to change from the legacy high 3 system to BRS must physically make the opt in election in their service s respective pay portal. 1

2 Military Members Eligible for BRS Service members in the active component with more than 12 years of service and those in the National Guard/Reserve with more than 4,320 retirement points on or before Dec. 31, 2017, are grandfathered under the legacy retirement system (see FAQ 1.2). Active Component (AC) service members with fewer than 12 years of service based on Pay Entry Base Date (PEBD), and Reserve Component (RC) members (National Guard/Reserve) with fewer than 4,320 retirement points as of December 31, 2017, will be eligible to Opt Into BRS once they complete the BRS Opt In course and it is verified by their service component. In general, all members of the Uniformed Services entering service on or after Jan. 1, 2018, will automatically be enrolled in BRS. o Members who have a Date of Initial Entry in Military Service (DIEMS) date prior to Jan 1, 2018, and who don t begin their service until after that date, may be eligible to Opt In to BRS (see FAQ 1.5, 1.19, 7.7). Each service is responsible for determining eligibility for BRS (both automatic enrollment and Opt In Eligible). BRS does not impact members who are already retired. 2

3 Frequently Asked Questions: Blended Retirement System (BRS) Facts/Referral Sources Customer Care Center Representatives Dated: December 4, 2018 A: Why can t I find a link to opt into BRS on my pay portal? (mypay/marine Online/Direct Access)? A: If your service component has designated you as BRS opt in eligible, you should find a Blended Retirement System opt in option within your active or reserve component pay account menu. If you don t find this menu option you should contact your HR/personnel servicing office or chain of command to address this issue (see trouble shooting matrix for simple trouble shooting resolution before referring). You should be certain about your retirement system election when using the (mypay, Marine Online, Coast Guard, or Direct Access) BRS opt in function, as your decision to opt into BRS cannot be changed once it s been submitted it. B: I accidently submitted my BRS opt in election. Can (DFAS/Marine Online/Direct Access) reset this? B: No. If you have submitted your retirement system election via the BRS opt n process, that election is permanent and CANNOT be changed. C: I want to remain in the legacy high 3 retirement system. What do I do? C: If you are already in the legacy high 3 retirement system, you do not need to do anything to remain you re your retirement system. Marines are required by their command to indicate selection of the legacy high 3 requirement. However, Marines will still remain in the legacy high 3 system should they not indicate this choice. All service members who are BRS eligible and wish to change from the legacy high 3 system to BRS must physically make the opt in election. D: What happens if I don t submit my BRS opt in election on or before Dec. 31, 2018? D: Failure to make a BRS opt in election will keep you in the legacy high 3 retirement system. There are certain circumstances in which service members will be allowed a 30 day hardship extension. For example, if you entered a paid service on or after Dec. 1, 2018, you are in the Standby Reserve or IRR, you are a delayed entry service member, an Academy or ROTC cadet prior to Dec. 31, 2017, you should contact your HR/personnel servicing office for more details about the possibility of a 30 day hardship extension. E: Is there an advantage to making a selection at the beginning of 2018? E: Any advantages or disadvantages resulting from your financial decisions must be determined by yourself. Some members use financial counseling services provided at your installation or command or by calling Military OneSource at You should be certain about your retirement system election when using the (mypay, Marine Online, Coast Guard, or Direct Access) BRS opt in function, as your decision to opt into BRS cannot be changed once it s been submitted it. F: If I do not choose to opt into BRS during 2018, separate from the service and re enlist later, what retirement system will I be a part of? Will I be able to select BRS when I re enter the military? F: The BRS Frequently Asked Questions on the BRS Resource webpage at address re affiliation with the Uniformed Services (FAQs number 1.5, 1.19, and 7.6). 3

4 G: Can you confirm the claims made regarding the Blended Retirement System? Will 85% of military members receive some sort of retirement benefits and, on average, how much will those benefits be worth? G: According to the DoD Office of the Actuary s annual report on Valuation of the Military Retirement System, approximately 85% of service members will receive a government retirement benefit. For a comparison of benefits under both the legacy high 3 retirement system and BRS, visit the official DoD BRS Comparison Calculator at H: Once I have opted into BRS, when will my pay account reflect this information and when will service contributions to my TSP account begin? H. Your BRS election will be reflected in your pay account the first full pay period following your opt in selection. Service contributions will also begin at that time. Review your future LES to monitor contributions to your TSP account. You should be certain about your retirement system election when using the (mypay, Marine Online, Coast Guard, or Direct Access) BRS Opt In function, as your decision to opt into BRS cannot be changed once it s been submitted it. I: Do I need to establish a TSP.gov online account before opting in to BRS? A9. No, if you do not have an existing TSP.gov online account when you opt into BRS, the Federal Retirement Thrift Investment Board (FRTIB), who manages the TSP, will create one once contributions are received from your pay office. You may make future adjustments to your TSP contributions using (mypa/marine Online/Direct Access). You must use your TSP account login at (provided by the FRTIB) to make any other changes. J: What is the process for opting into BRS? J. For Army, Navy and Air Force: Log into your mypay account and select the Blended Retirement System Opt In option available in your active or reserve pay menu. You will be asked to: 1. Verify completion of the mandatory BRS Opt In course 2. Confirm your understanding that a selection may not be changed once submitted 3. Update your TSP address and your date of birth 4. Confirm that you understand you are opting in to the BRS 5. Print or save your submission You ll receive a confirmation from mypay to your on file. Your opt in decision will be reflected in 3 7 business days and on your next Leave and Earning Statement. Opting into BRS does not start TSP contributions. After making your election decision, you will need to visit your service s pay portal s TSP contribution section and designate your contribution percentage in any whole percentage. You should be certain about your retirement system election when using the mypay BRS opt in function, as your decision to opt into BRS cannot be changed once you submit it. For Marine Corps: Under the MOL home menu, select Personal Info and click Blended Retirement System/Thrift Savings Plan, under the Personal Reports section. You ll need to have taken the mandatory BRS opt in training MOL will automatically validate that you have completed the training. If you have not, you will receive a message directing you to MarineNet to complete the mandatory BRS opt in training. Once training is complete and updated in the Marine Corps Total Force System, you ll need to return to MOL to complete the opt in process. 4

5 Next, you ll need to certify that you understand the opt in election decision is irreversible, even if you change your mind before the Dec. 31, 2018 deadline. You ll then need to establish or verify your mailing address for the TSP. Finally, you ll be able to review your current TSP contributions. You ll receive a confirmation from Direct Access to your on file. Your opt in decision will be reflected in 3 7 business days and on your next Leave and Earning Statement. After making your election decision, you will need to visit your pay portal s TSP contribution section and designate your contribution percentage in any whole percentage. You should be certain about your retirement system election when using the Marine Online BRS opt in function, as your decision to opt into BRS cannot be changed once it s been submitted it. For Coast Guard and NOAA: Under the main menu, click on Tasks in the Employee pagelet. In the Tasks folder, select My BRS Elections. The system will ask you three questions, which you must positively affirm before you can proceed with enrollment. You ll confirm you ve taken the mandatory BRS Opt In Training, certify you understand the opt in election decision cannot be reversed, and finally certify your opt in election date. After making your opt in decision, don t forget to review your TSP election options. To review your current TSP elections go back to the main menu and select Thrift Savings Plan. You ll receive a confirmation from Direct Access to your on file. Your opt in decision will be reflected in 3 7 business days and on your next Leave and Earning Statement. After making your election decision, you will need to visit your pay portal s TSP contribution section and designate your contribution percentage in any whole percentage. You should be certain about your retirement system election when using the Direct Access BRS opt in function, as your decision to opt into BRS cannot be changed once it s been submitted it. K. I have a Roth TSP account. Can I use that to receive government contributions? K. While you can contribute to your Roth (after tax) TSP account, Service Automatic (1%) Contributions and Service Matching Contributions must go into your TSP traditional (pre tax) account. L. I am currently serving in a combat zone or in a location without a local personnel or finance office. Who do I talk to about BRS or other concerns I have? L. You should contact your chain of command or your HR/personnel servicing office to see if an country financial manager or counselor is available. Additionally, connecting with a financial counselor is simple with Military OneSource. Each country has a different set of instructions for making international calls. Visit the International Dialing Instructions page for instructions by country at calling options. M. How does BRS affect those who are already retired from the military? M. BRS does not impact members who are already retired. Referrals/Resources: Questions beyond the scope of the mypay/marine Online/Direct Access BRS optin process should refer the member to their chain of command or local HR/personnel servicing offices. There are a number of online resources available for service members to review BRS information. BRS Resource webpage: DoD BRS Comparison Calculator: Army (reserve): Retirement/ National Guard: / Navy (active/reserve): Navy Personnel Command: Financial Management.aspx 5

6 Air Force (active/reserve): Air Force Personnel Command: TSP: Military OneSource: /retirement planning theessentials Military Compensation (DoD): 6