Military retirement pay: BRS vs High-3

Active-duty military retired pay is years of service × a multiplier × your High-36, the average of your highest 36 months of basic pay. Under the Blended Retirement System (BRS) the multiplier is 2.0% per year; under the legacy High-3 system it's 2.5%. At 20 years, that's 40% of High-36 under BRS and 50% under High-3. BRS makes up part of the difference with TSP matching, which members keep even if they leave before 20 years.

Try your own numbers in the military retirement pay calculator.

Who is under which system

Legacy High-3: entered service from September 8, 1980, through December 31, 2017, and didn't opt into BRS.
BRS: entered service on or after January 1, 2018, or opted in during the 2018 enrollment window.

The formula

	BRS	Legacy High-3
Multiplier per year	2.0%	2.5%
At 20 years	40% of High-36	50% of High-36
At 30 years	60% of High-36	75% of High-36
Years needed (active duty)	20	20
TSP automatic 1% + up to 4% match	Yes	No
Continuation pay (8–12 years)	Yes	No
Lump-sum option at retirement	Yes	No

High-36 counts basic pay only. BAH, BAS and special pays aren't included.

Examples at 20 years (2026 pay tables)

These assume the same grade for the final three years, using the 2026 DFAS basic pay table: 12 months at the "over 16" rate and 24 months at the "over 18" rate.

Grade	High-36 (monthly)	BRS (monthly)	High-3 (monthly)
E-6	$5,243.00	$2,097.20	$2,621.50
E-7	$6,118.50	$2,447.40	$3,059.25
E-8	$6,690.20	$2,676.08	$3,345.10
W-3	$7,988.90	$3,195.56	$3,994.45
O-4	$10,473.80	$4,189.52	$5,236.90
O-5	$11,606.30	$4,642.52	$5,803.15

These are estimates, before taxes and any Survivor Benefit Plan cost. Future pay raises would raise your actual High-36, and retired pay gets a yearly cost-of-living adjustment.

What BRS adds

TSP contributions from the government: an automatic 1% of basic pay after 60 days, plus matching up to 4% more from your 25th month. See how the military TSP match works.
Continuation pay: a one-time payment offered between 8 and 12 years of service in exchange for additional service. Each service sets the amount, from 2.5 to 13 times monthly basic pay for active duty.
Lump-sum option: at retirement, you can take a discounted lump sum in exchange for 25% or 50% of your retired pay until full Social Security retirement age. Your full retired pay resumes after that.

Leaving before 20 years

Active-duty members who leave before 20 years generally get no retired pay under either system. Under BRS they keep their TSP balance, including the government's matching and, once vested, the automatic 1%. Guard and Reserve retirement uses a points system with its own rules and usually starts at age 60.

See the whole picture

The Retirement Planner combines your pension estimate with a TSP projection, key dates and a separation checklist. The TSP returns by year page shows how each fund has done historically.

Common questions

How is military retirement pay calculated?

Years of service × 2.0% (BRS) or 2.5% (legacy High-3) × your High-36, the average of your highest 36 months of basic pay. At 20 years, BRS pays 40% of High-36 and High-3 pays 50%.

How much does an E-7 get in retirement pay at 20 years?

Using 2026 pay tables, an E-7's High-36 at 20 years is about $6,119 a month. That's about $2,447 a month under BRS or $3,059 under High-3, before taxes and any Survivor Benefit Plan cost.

Is BRS or High-3 better?

Neither is better for everyone. High-3 pays a larger pension to those who reach 20 years. BRS pays a smaller pension but adds TSP contributions that members keep even if they leave early. Your years of service, TSP contributions and returns all affect the comparison.

Does military retired pay count BAH and BAS?

No. High-36 uses basic pay only. Allowances and special pays aren't included.

Can I get military retirement pay before 20 years?

Not under the standard active-duty rules. Exceptions include medical retirement and, when offered, temporary early retirement authority. Guard and Reserve members earn retirement through points instead.

Sources

Educational information, not financial advice. Your service's retirement office and official statements are the authority for your situation. Not affiliated with the Department of War or the U.S. government.