171221-N-N0101-391

A graphic for stories about the Department of Defense Blended Retirement System. 

WASHINGTON

The Navy released the calendar year 2021 Blended Retirement System (BRS) continuation pay (CP) rates for eligible Sailors, in NAVADMIN 172/20, June 18.

Under BRS, Sailors participate in a modernized retirement program.

Throughout their career, Sailors who opt-in or were auto-enrolled in the Thrift Savings Plan receive a matching contribution of up to five percent of their base pay from the Navy. Those who stay until retirement after 20 years, still get retired pay at a two percent of base pay for every year of service (YOS) vice the two and a half percent multiplier they would receive under the legacy retirement system.

One additional benefit of BRS is continuation pay. All Sailors enrolled in BRS qualify for the incentive, which currently comes at the 12-year “mid-career point.”

To collect the incentive, eligible Sailors must do two things. They must request the pay before they arrive at their 12th pay anniversary and they must agree to obligate for another four years of service via NSIPS before they can collect.

If the Sailor has a correct email on file in the Navy Standard Integrated Personnel System (NSIPS), notification that this milestone is approaching will come at the 12, six, three and one-month dates prior to reaching their 12th year of service.

For Active Duty and Full-Time Support (FTS) Sailors, the calendar year 2021 payout is two and a half times their monthly base pay. For drilling reservists, it is half of one month’s salary. This is the same amount as the calendar year 2020 payout.

For example, an Active Duty or FTS E-5 or E-6 with 12-years of service is eligible for a one-time payout of roughly $9,000 and $10,000, respectively. In the Selected Reserve, those payouts would be approximately $1,800 for the E-5 and close to $2,000 for the E-6.

The incentive is taxable income, but for Sailors who obligate for the pay while in an eligible Combat Tax Exclusion Zone, the entire amount is tax-free. Sailors get to choose the payment method and can elect either a lump-sum or in equal installments, which can't exceed four annual payments over four consecutive years.

Sailors can also collect this pay in addition to any other career-specific or retention incentives.

Sailors can update their email and elect CP through NSIPS at https://my.navy.mil/quick-links.html. Those unable to choose CP through NSIPS can manually select the pay through their command career counselor.

More CP information, including instructions on electing CP in NAVADMIN 302/17 and MILPERSMAN 1810-081. For any other CP issues, Sailors can contact MyNavy Career Center (MNCC) at 833-330-MNCC or askmncc@navy.mil.

Sailors eligible for the mid-career CP can view the CY 2021 pay rates memorandum at https://www.mnp.navy.mil/group/pay-and-benefits.

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