Social security

Military overhauls retirement system in biggest shift since World War II

The military is overhauling its retirement system next year, and members should be prepared for the biggest structural changes since World War II.

“[The reforms] came about over the last seven years or so, both to try to continue to retain outstanding people in the military while reducing the overall costs of military retirement for taxpayers,” retired Brig. Gen. Michael Meese, current COO of the American Armed Forces Mutual Aid Association (AAFMAA), told FOX Business.

The new so-called “Blended Retirement System” (BRS) goes into effect on Jan. 1, 2018.

Here’s what will change and how members can take advantage of those changes.

What’s changing?

Under the legacy retirement system, military members receive no retirement benefits unless they serve for 20 years, at which point they get a pension that’s equal to 50% of their last pay.