Retired pay, maximized.

Military retirement, in two systems

If you served on active duty before 2018 and didn't opt into the Blended Retirement System, you're on the Legacy retirement system — 2.5% per year of service of base pay, payable immediately on retirement after 20+ years. If you joined after 2018 or opted in, you're on BRS — 2.0% per year plus government TSP matching up to 5%.

Both systems pay out fundamentally different amounts. Both interact with VA disability, federal civilian service, and Social Security in ways most retirees don't realize until it's too late to optimize.

What this pillar covers

Legacy vs BRS math. The Survivor Benefit Plan (SBP) election decision — the most expensive 6.5% premium most retirees never reconsider. Concurrent receipt rules (CRDP and CRSC). Reserve and Guard retirement at age 60. Military service deposit (buying back military time for federal civilian retirement). The interaction between military pension, VA disability, and federal civilian retirement.

Veterans who go on to federal civilian service have a unique stack: military pension + federal civilian pension + VA disability + TSP + Social Security. Five income streams, each with different tax treatment. The optimization is real money.

The high-leverage decisions

• SBP election — 6.5% of retired pay for life, in exchange for spouse 55% of base. Most retirees should elect; some shouldn't. The math depends on your spouse's age, your health, and your other survivor benefits.
• Concurrent receipt — if you're rated 50%+ by the VA, you can receive both retired pay and VA disability. Below 50%, the offset cuts your retired pay dollar-for-dollar.
• Military service deposit — buying back military time for FERS counts that service toward your federal civilian pension. Almost always worth it.
• Reserve/Guard retirement — reservists with 20+ qualifying years get a pension starting at age 60 (or earlier for post-2008 active duty time).