BRS vs High-3: Which Retirement System Is Better?

The High-3 retirement system gives you 50% of your highest 36 months' base pay at 20 years. BRS gives you 40% plus TSP matching. On paper, High-3 wins for anyone who serves 20+ years. But the real answer depends on whether you actually make it to 20, and how much you contribute to TSP.

The Core Difference

High-3 uses a 2.5% multiplier per year of service. At 20 years, that's 50%. At 30 years, 75%. BRS uses a 2.0% multiplier — at 20 years, that's 40%. However, BRS adds government TSP matching up to 5% of base pay throughout your career, plus a one-time continuation pay bonus at 12 years (2.5x-13x monthly base pay depending on service).

When BRS Actually Wins

BRS is better if you separate before 20 years. Under High-3, separating at 15 years means you get zero pension. Under BRS, you keep your TSP matching — potentially $100,000-$200,000 in retirement savings. Since roughly 83% of enlisted members don't reach 20 years, BRS is actually the better system for the majority of service members.

BRS also wins if you're a disciplined TSP investor. The 5% match compounding over 20 years in the C or S fund historically outperforms the $7,500/year pension gap, especially if you contribute your own 5%+ on top of the match.

When High-3 Clearly Wins

If you're going to serve 20+ years regardless, and especially if you'll serve 25-30 years, High-3 is mathematically superior. The pension gap grows with each year beyond 20 (2.5% vs 2.0% per additional year), and a guaranteed inflation-adjusted pension is worth more than a market-dependent TSP balance for risk-averse retirees.

The Bottom Line

If you entered after January 1, 2018, you're in BRS — the decision is made. If you opted in during the 2018 window, you made the right call if you weren't sure about 20 years. If you're High-3 and committed to 20+, you have the better deal. Either way, maximize your TSP contributions — that's the one lever you control regardless of system.