ADSO
ADLS
AGR
ANG
ARNG
BRS
CNGB
CAC
CG

DANG
DARNG
DFAS
DoD
DTMS
HQDA
IAW
IRS
JKO
NG
NGB
NGB/A1

NGB/A1P
NGB/A1Q
NGB/A1X
NGB-J1
NIPRNET
NLT
PEBD
PFC
PFM
RPAM
SBP
TAG

TSP

VA

CNGBI 1901.01
21 August 2017

GLOSSARY
PART I. ACRONYMS

Additional Duty Service Obligation

Advanced Distributed Learning System

Active Guard and Reserve

Air National Guard

Army National Guard

Blended Retirement System

Chief of the National Guard Bureau

Common Access Card.

Commanding General of the District of Columbia
National Guard

Director of the Air National Guard

Director of the Army National Guard

Defense Finance and Accounting System

Department of Defense

Digital Training Management System

Headquarters, Department of the Army

In accordance with

Internal Revenue Service

Joint Knowledge Online

National Guard

National Guard Bureau

Manpower, Personnel, Recruiting, and Services
Directorate

Personnel Division

Data Systems Division

Plans and Integration Division

Manpower and Personnel Directorate

Non-classified Internet Protocol Router Network

No later than

Pay Entry Basic Date

Personal Financial Counselor

Personal Financial Manager

Retirement Points Account Management System

Survivor Benefit Plan

The Adjutant General

Thrift Savings Plan

Veterans Administration

GL-1 Glossary


CNGBI 1901.01
21 August 2017

APPENDIX C TO ENCLOSURE A

BLENDED RETIREMENT SYSTEM INFOGRAPHIC FOR THE ACTIVE
COMPONENT

The U.S. Uniformed Services

Active Component
Blended Retirement System sin ete

Pre-2018 Retirement System:

military force with a modemized retirement plan built for retirement Sow

savings. Beginning In 2018, service members can get automatic and “a Annuity
matching Thrift Savings Plan contributions, as well as a mid-career

‘compensation Incentive, in addition to monthly ratired pay for life. All service 2.594 Yours Served sfatired Pay Base

members under the current system are grandfathered into today's retirement system, lp dopinaiaiol

bbut may choose to opt-in to the new Blended Retirement Syste.

42 ‘The Fiscal Year 2016 National Defense Authorization Act provides our
2)

Blended Ret mponents
‘Automatic and Matching Continuation Pay Full Retired Pay

0 Contributions ( 5 2) Seceted atthe ) Aecetad ster competing
ae pS) oie Speier

rnesatly
‘uCennture z
TM cH TM
TM TM cs »
Es * Ey x
* TM * ~
* TM om om
* TM me mn
‘The DoD: contributes 13% of your basic pay to

automaticaly
‘your Thrift Savings Plan after 60 days of service.

You'l see matching contributions ot the stort of 3 years through
the compietion of 25 years of service, and.

‘You're fully vested—it's yours to keep—after completing 2 years
‘farvicn andl goes wth ou when you eave.

Your Retirement System

Options for Collecting Ifyou Joined the service or signed a contract to serve:
Your Retired Pay
eos BEFORE AFTER AFTER
Fett retired py as arporthtyancaity Samuary 1, 2006 December 31,2005 December 31,2017
BUT BEFORE
Youll be grandfathered January ‘You'l be autorratically
o Into the pre 2018 128 grotedinthe blend

nal information at hrtp.

Figure 3. Blended Retirement System Infographic for the Active Component

Appendix C
A-C-1 Enclosure A


CNGBI 1901.01
21 August 2017

upon eligibility to draw retired pay. The amount of the lump sum is a
percentage of the estimated amount of retired pay that would be paid from the
day that member is eligible to begin receiving retired pay through the first day
of the month following the month during which the retiree attains full
retirement age. The lump sum amount will be reduced by a certain percentage
referred to as the “discount rate.” The initial discount rate applied in
computing the amount of the lump sum is set by actuaries and estimated to be
6.9 percent to 7.3 percent. Full retirement age for all born in 1962 or later is
age 67 IAW reference v.

(1) A non-regular retiree at age 60 would receive a lump sum payment
approximately 78 percent of what the gross payment would have been if paid
monthly through age 67. This is an overall discount of 22 percent at the 6.99
percent discount rate. A NG AGR member or other regular retiree who retires
at age 47 or earlier would receive a lump sum payment approximately 50
percent of what the gross payment would have been if paid monthly through
age 67. This is an overall discount of over 50 percent at the 6.99 percent
discount rate.

(2) The discount rate is subject to change on an annual basis. The
discount rate will be calculated and published no later than 30 June of each
year and will be applicable for NG members that elect to receive the lump sum
during the following calendar year. A NG member may elect to receive either
25 percent or 50 percent of their retired pay for the period as a lump sum. A
NG member may receive the lump sum benefit as one payment, or up to four
annual installments. If the NG member dies before reaching age 67, the lump
sum payment will not be recouped.

k. Veterans Administration (VA) Disability Compensation. Concurrent
receipt of retired pay and disability compensation is prohibited, except under
certain specified conditions IAW reference u. The VA will withhold disability
payments to any retiree who elects to receive a portion of their retired pay as a
lump sum until the amount withheld equals the amount of the lump sum
payment received by that retiree. The VA will continue to withhold disability
even after the retiree reaches age 67 and begins receiving full retired pay if the
lump sum has not yet been fully off-set. Only after the amount of disability
compensation withheld equals the amount previously received as a lump sum
will the retiree be able to waive a portion of retired pay in order to receive the
tax-free disability compensation.

1. Survivor’s Benefit Plan (SBP). The SBP is a separate annuity purchased
by the NG member. It is anticipated that the amount of the benefit, the dollar
amount of the SBP annuity, and the SBP premium will not be affected by the
NG member requesting lump sum retired pay. However, the NG member and
spouse should consider the SBP when making any retirement decisions.


CNGBI 1901.01
21 August 2017

PART II, DEFINITIONS

Blended Retirement System Financial Counselor/Educator Course -- This
course provides counseling scenarios to equip financial professionals and
retirement counselors to advise eligible National Guard members on financial
matters pertaining to the Blended Retirement System. This course does not
train counselors on the specifics of the non-regular retirement which the
majority of reserve component service members need to make informed
decisions.

Blended Retirement System Leader Training Course -- This course provides a
basic familiarity of the Blended Retirement System, an understanding of the
major milestones for implementation, and an understanding of the choice faced
by eligible National Guard members.

Blended Retirement System Opt-In Course -- This course provides basic
information on the Blended Retirement System to enable eligible National
Guard members to make an informed decision about opting-in to the Blended
Retirement System.

Civil Service Retirement System -- The retirement system for federal civilian
employees who were hired before 01 January 1984. This retirement system
includes the Civil Service Retirement System Offset, the Foreign Service
Retirement and Disability System, and other equivalent government retirement
plans.

Federal Employees’ Retirement System -- The retirement system for federal
civilian employees who were hired on or after 01 January 1984. This
retirement system includes the Foreign Service Pension System, and other
equivalent government retirement plans.

Survivor’s Benefit Plan -- An annuity plan to provide eligible beneficiaries a
monthly payment for the lifetime of the beneficiary. Enrollment for this benefit
is not automatic and there are costs. Enrollees pay premiums based on the
amount of coverage they elect.

Thrift Savings Plan -- A retirement savings plan similar to 401(k) plans offered
to private sector employees that gives government employees and members of
the uniformed services the ability to participate in a long-term retirement
savings and investment plan.

Uniformed Services Thrift Savings Plan -- A Thrift Savings Plan account to
supplement the military retirement pay for uniformed members of the Army,
Navy, Air Force, Marine Corps, Coast Guard, Public Health Service, the
National Oceanic and Atmospheric Administration, and members of the Ready
Reserve or National Guard of those services.

GL-2 Glossary


CNGBI 1901.01
21 August 2017

1. Department of Defense, Military Compensation, Calculators,
<http: / /militarypay.defense.gov/Calculators/> (NIPRNET - accessed: 18 July
2017)

m. National Guard Bureau, Blended Retirement System,
<http:/ /www.nationalguard.mil/Features/brs/> (NIPRNET - accessed: 18 July
2017)

n. Joint Staff, Joint Knowledge Online, Blended Retirement System (BRS) OPT-
IN Course,

<https: / /jkodirect.jten.mil/html/COI.xhtml?course_prefix=J3O0&course_numb
er=P-US1332/> (NIPRNET - accessed: 18 July 2017)

o. Department of the Air Force, Advanced Distributed Learning Service (ADLS),
<https: / /golearn.adls.af.mil/kc/rso/login/ADLS_login.asp/> (NIPRNET —
accessed: 18 July 2017)

p. Joint Staff, Joint Knowledge Online, Leader Training to Introduce the
Blended Retirement System (BRS) For the Uniformed Services,

<https: / /jkodirect.jten.mil/html/COI.xhtml?course_prefix=J30&course_numb
er=P-US1330/> (NIPRNET - accessed: 18 July 2017)

q. Joint Staff, Joint Knowledge Online, Blended Retirement System (BRS)
Financial Counselor-Educator Course,

<https: / /jkodirect.jten.mil/html/COI.xhtml?course_prefix=J30&course_numb
er=P-US1331/> (NIPRNET - accessed: 18 July 2017)

r. Public Law 114-92, 25 November 2015, “The National Defense Authorization
Act for Fiscal Year 2016”

s. DoD Instruction 1344.07, 30 March 2006, “Personal Commercial
Solicitation on DoD Installations”

t. DoD Instruction 1342.22, 03 July 2012, “Military Family Readiness”

u. The Federal Retirement Thrift Investment Board (FRTIB), Thrift Savings
Plan, <https://www.tsp.gov/> (NIPRNET - accessed: 18 Jul 2017)

v. Title 38 United States Code (U.S.C.), “Veteran’s Benefits”

w. Headquarters USAF/A1P Memorandum, 10 February 2017, “Blended
Retirement System (BRS) Opt-in Group Training”

B-2 Enclosure B


CNGBI 1901.01
21 August 2017

BRS once the eligible pool is identified. The notification will provide general
information regarding the BRS, along with resources available for ANG
members to use in reaching a decision on the BRS. ANG members will
recognize their option to opt-in to the BRS by reviewing and acknowledging the
marketing message.

c. NGB/A1 Data Systems (NGB/A1Q) will identify new accessions meeting
the opt-in eligibility criteria each month. NGB/A1Q will send a follow-up
reminder every 30 days to ANG members who do not respond to the original
notification. NGB-A1Q will identify ANG members who still have not
acknowledged the BRS notification through myPers after release of the 90 day
follow-up message and will post the results on the Report Application Website
module of the Air Force Personnel Center Secure website. NGB/A1Q will
identify ANG members who have completed the acknowledgement and prepare
a batch update for Military Personnel Data System.

d. NGB/A1 Personnel (NGB/A1P) will send a change management message
to the field announcing the availability of the updated roster. The Military
Personnel Section will download the overdue listings and distribute them to the
units for follow-up action. As such, unit commanders and civilian leaders
must ensure ANG members complete the notification by the established
suspense. The Military Personnel Section will work with the commanders and
civilian leaders to ensure all notifications are made and advise leadership of the
reason for any delays.

e. ANG members are encouraged to take the BRS Opt-In Course via the
Advanced Distributed Learning System (ADLS) which is the preferred method of
training IAW reference 0. This is a CAC enabled system. ANG units will track
mandatory BRS course completion through ADLS. When training is
accomplished using alternative methods (for example, JKO), or in a group
setting, unit training managers must manually update ADLS and ensure proof
of training is maintained in ANG personnel records. Group training must be
completed IAW reference w.

7. State Public Affairs Personnel. State Public Affairs Officers, working in
conjunction with the Office of Public Affairs and Strategic Communication, will
ensure current Public Affairs guidance is available when conducting any public
affairs activities related to the BRS IAW reference h. Public Affairs guidance
will contain themes, messages, information on education and training, and
Frequently Asked Questions for unit commanders and Public Affairs Officer
use. State Public Affairs products should utilize the BRS websites and social
media account pages located at references i through m.

8. State Family Program Personnel. State Family Program Directors and
Airmen and Family Readiness Program Managers will provide financial literacy

A-4 Enclosure A


CNGBI 1901.01
21 August 2017

ENCLOSURE A

RESPONSIBILITIES

1. Chief of the National Guard Bureau (CNGB). The CNGB will ensure the NG

is in compliance with reference a.

2. Directors of the Army (DARNG) and the Air National Guard (DANG). The
DARNG and DANG will:

a. Identify the ARNG/ANG opt-in eligible population.

b. Ensure the ARNG/ANG opt-in eligible population is notified of their
eligibility.

c. Ensure a continued emphasis on financial literacy training. This is
mandatory for ARNG/ANG members and provided to spouses upon request.

d. Monitor BRS training statistics on a monthly basis to include the total
number of ARNG/ANG members who are in the opt-in population, the total
number of eligible ARNG/ANG members who have completed the mandatory
training, and the percentage of eligible ARNG/ANG members who have
completed the mandatory training.

e. Provide monthly ARNG/ANG BRS training statistics to the Manpower
and Personnel Directorate (NGB-J1) NLT the 13th of each month. Continue
monthly updates through 31 January 2019.

f. Synchronize the impacts of the BRS with ARNG/ANG force readiness.

3. The Adjutant Generals (TAG) and Commanding General of the District of
Columbia National Guard (CG). TAGs and the CG will:

a. Ensure eligible NG members are identified and encouraged to make a
decision in a timely manner using Appendix A, B, or C of this enclosure.

b. Ensure eligible NG members complete the mandatory BRS Opt-In
Training NLT 31 December 2017.

c. Ensure newly accessed NG members receive mandatory BRS Opt-In
Training upon return from initial military training.

d. Ensure eligible NG members and their spouses have the opportunity to
receive financial literacy training according to Appendix D of this enclosure.

A-1 Enclosure A


CNGBI 1901.01
21 August 2017

m. Continuation Pay. Eligible NG members who opt-in to the BRS may be
eligible for a one-time “mid-career” bonus payable between the 8th and 12th
year of service. Continuation pay timing, amounts, and the length of additional
obligated service will be determined by the member’s respective Service based
on the needs of the Service by occupational specialty, unit strength, or other
Service criteria. A NG member may elect to receive continuation pay as a
single payment or up to four annual installments. Payments for traditional
guardsmen will be at least one half and not more than six times the monthly
active duty base pay for their grade and time in service. Payments for NG AGR
members in career status will be paid at the rate of an active component
member. Active component continuation pay will be at least 2.5 and not more
than 13 times their current monthly base pay. For 2018, the Services will use
12 years of service. In 2019 and beyond, this may be adjusted based upon the
needs of the Service.

n. Active Duty Service Obligation (ADSO). ADSO service time will be not

less than three years, can be longer based on Service needs; and will be
calculated from PEBD. For BRS continuation pay, the ADSO is concurrent
with other incentive programs. Failure to complete obligated service may be
subject to repayment of a pro-rated amount. The decision to recoup payment
is determined by the Service. For 2018, the Services will use a 4 year ADSO.
In 2019 and beyond, this may be adjusted based upon the needs of the Service.

5. Definitions. See Glossary.
6. Responsibilities. See Enclosure A.
7. Summary of Changes. This is the initial publication of CNGBI 1901.01.

8. Releasability. This instruction is approved for public release; distribution is
unlimited. Obtain copies through <http://www.ngbpdc.ngb.army.mil>.

9. Effective Date. This instruction is effective upon publication and will be
reissued, revised or certified current every five years.

JQSEPH Jf. /LENGYEL
General, USAF
Chief, National Guard Bureau
A -- Responsibilities
B -- References
GL - Glossary


CNGBI 1901.01
21 August 2017

PART II. RELATED

x. DoD 7000-R, Volume 7B, November 2015, “DoD Financial Management
Regulations”

y. DoD Instruction 1215.07, 24 May 2016, “Service Credit for Non-Regular
Retirement”

z. DoD Directive 1235.09, 12 February 2014, “Management of the Standby
Reserve”

aa. DoD Directive 5124.02, 23 June 2008, “Under Secretary of Defense
(Personnel and Readiness)”

bb. 5 U.S.C. Section 8432, “Contributions”
cc. 10 U.S.C., “Armed Forces”
dd. 37 U.S.C., “Pay and Allowances of the Uniformed Services”

ee. 42 U.S.C., “Social Security”

B-3 Enclosure B


CNGBI 1901.01
21 August 2017

f. ARNG members will log directly in to JKO with a CAC or Military
OneSource (Non-CAC) to complete the BRS Opt-In Course and earn a
certificate. Regardless of the access route to the class, the certificate of
completion are the same. ARNG members must maintain a copy of their BRS
Opt-In Course training certificate. ARNG members will also email or provide a
hard-copy of the certificate to unit training personnel who will upload the
certificate into the DTMS and selects “TaskID 301914 HQDA EXORD 163-17”
in the drop-down task label.

g. For group training, States should load their BRS opt-in population at
the unit level so the Digital Training Management System (DTMS) can properly
track the eligible BRS opt-in population as training continues IAW reference f.
States should also ensure ARNG members are informed during the BRS
training effort IAW reference d.

h. States identify opt-in population and record names into DTMS which
will produce a class attendance roster. When the class is in place and
accountability established, the results are compared to the list of names from
DTMS. Once training is successfully completed the ARNG members sign by
their name on the DTMS roster.

i. Upon completion of group training, unit training personnel will log onto
DTMS and mark “complete” for the ARNG members that attended the group
training. Training personnel will upload the scanned and signed roster into
DTMS. A copy of the roster will be compared against each ARNG member’s
name that is marked “complete” in DTMS.

j. The classroom based group training does not generate a completion
certificate. Instead, a scanned copy of the attendance roster will be used as
verification of training. Reporting training in DTMS establishes the long-term
record a ARNG member was trained on the BRS before making their BRS opt-in
decision.

k. ARNG member training completions are tracked real-time via DTMS
capability by the ARNG Operations and Training Directorate who will provide
weekly updates to leadership.

6. ANG Personnel. ANG Manpower, Personnel, Recruiting, & Services
Directorate (NGB/A1) will provide oversight of ANG BRS Opt-In.

a. ANG members must obtain a retirement point summary report at the Air
Force Portal, Virtual Military Personnel Flight, “Air National Guard & Air Force
Reserve General Point Credit Information” website located at reference g.

b. NGB/A1 Plans and Integration (NGB/A1X) will generate an email
message to ANG members to notify them of the opportunity to opt-in to the

A-3 Enclosure A


GUARD BUREAU
INSTRUCTION

NGB-J1 CNGBI 1901.01
DISTRIBUTION: A 21 August 2017

UNIFORMED SERVICES BLENDED RETIREMENT SYSTEM
References: See Enclosure B.

1. Purpose. This instruction establishes policy and assigns responsibilities for
National Guard (NG) members transitioning from the Legacy/High 36
Retirement System (legacy) to the Uniformed Services Blended Retirement
System (BRS) during the opt-in window from 01 January 2018 through 31
December 2018; and to implement all other aspects of the BRS in accordance
with (IAW) references a through w.

2. Cancellation. None.
3. Applicability. This instruction applies to all NG elements.

4. Policy. It is NG policy for eligible NG members to have the opportunity to
voluntarily opt-in to the BRS. The BRS blends a 20 year cliff vested defined
benefit annuity and a defined contribution plan that allows eligible NG
members to contribute to a Uniformed Services Thrift Savings Plan (TSP)
account with one percent automatic and up to four percent matching
contributions in exchange for a 20 percent reduction in the retirement annuity
payment provided under the legacy retirement system. Retirement age and
eligibility rules do not change. Eligible NG members should use the retirement
calculators available for individual comparisons IAW reference 1.

a. Eligibility Determination and Notification. All NG members in a current
pay status, who joined the military service prior to 31 December 2017, and
have less than 4,320 retirement points (as of 31 December 2017) are eligible to
opt-in to the BRS. All eligible NG members will be identified no later than
(NLT) 31 September 2017 and notified NLT 31 October 2017.

UNCLASSIFIED


CNGBI 1901.01
21 August 2017

APPENDIX A TO ENCLOSURE A

BLENDED RETIREMENT SYSTEM INFOGRAPHIC FOR THE NATIONAL GUARD

The Blended Retirement
System Opt-In Decision The National Guard
Traditional Guardsmen

Non-Regular Retirement

Irrevocable Member Decision
TSP Comparison

‘code limit per person ($18,000 for 2017) of the income you may elect to defer
Lundder all employer sponsored retirement plans during a tax year.

Current TS?
No goverment matching
Blended TSP
‘Government matching and automatic contribution of 19
‘100% vested with 2 years of servic
(Over 26 years of service not eligible for match

veuconmoute Doo Mathes el
Onna eon ee 3 a os oy
Blended Retirement System * * TM ~

e trainer hgh tb fs Let fe He
sTetmote ened on £7 rt wth 20 “quaDyiog pa” nd = im can rm

Aetral oun ty be bigbrer lower based pon enka = at a ion

Blended Retirement O.
Lump Sun

The Lump Sum a cash acvance ogainst your retired pay. ‘Members ofthe Urtdermed Services are eighle to receive a one-time. id-coresr
Decision made ot etiernent, ‘bons payment in exchange for an ogreernent to perform odktional obligated
service. Thi one-time bonas paymentisin addition to any other carer
Optional advance of 25% or 50% of retirement pay ‘eld-<pecthc Incentives or retention bonuses.
with reduced pension through age 67
Option available at age 60 or reduced age at retirement ‘Window of eligibility 8-12 years of service
Discounted present value, not ful value. ‘Minimum 3 years of service commitment.
Initial discount rate 6,99% for 2018 retirees f eee
‘VA disability compensation could be offset. (Drill status: 5 to 6 months of equivalent active duty base pay

AGR/ Career status: 2.5 to 13 months base

Find your nearest Personal Financial Counselor: www militaryinstallations dod mil

ago Finandal counseling by phone, chat, and in-person: wnitaryonesource mill
‘Take the mandatory “Opt in” course on JKO or through Military One Source,
hittp?/jiko,ten.mil/courses/brs/optin/aunch himl
& ‘Visit wrwrw-cifas. mall for miltary pay charts and military TSP contributions
‘Toleam more about the Thift Savings Program, elgibilty and contributions,
Professional Advice Vet vor tsp 0%

For mora information on your benefits visit https/myarmybenefits.us army.mil

Figure 1. Blended Retirement System Infographic for the National Guard

Appendix A
A-A-1 Enclosure A


CNGBI 1901.01
21 August 2017

counseling to eligible NG members and, upon request, to their spouses. They
will also provide required BRS Opt-In training for eligible NG members or
request community resources to provide support to NG unit commanders to
include financial educators from Federal and community partner organizations.

a. Financial educators from Federal and community partner organizations
may be a resource provided they have a Service-level Memorandum of
Understanding in place and not represent commercial financial services IAW
reference s. They must also meet financial accreditation requirements IAW
reference t.

b. Office of the Secretary of Defense (OSD) PFCs provide group and one-on-
one education and counseling that meets the mandatory training requirement
for the BRS opt-in. However, PFCs may not know or be as familiar with non-
regular retirement, retirement points, and State unique benefits. State NG
trainers may need to augment the training provided to ensure eligible NG
members are fully informed when making the BRS opt-in decisions. Citizen
Soldier for Life Counselors are an ARNG resource that will augment the efforts
of the OSD PFCs.

A-3 Enclosure A


CNGBI 1901.01
21 August 2017

e. Ensure eligible NG members who choose to opt-in to the BRS use the
myPay application to enroll NLT 31 December 2018 IAW reference b.

f. Ensure the eligible NG member’s record is documented with the
member’s proof of training and the member’s opt-in decision. Records must
meet audit standards and be available decades into the future.

g. Syncronize the timing and dollar amounts of existing NG retention
programs to work in conjunction with the new BRS continuation pay policy.

4. NGB-J1. NGB-J1 will:

a. Publish processes and procedures to implement the BRS consistent with
this instruction and governing statutes, policy, and regulatory guidance.

b. Provide monthly BRS training statistics to the CNGB NLT the 15th of
each month.

5. ARNG Personnel. ARNG Personnel:

a. New accession training at the training base begins in 2018. State
leadership should ensure ARNG members who enlist during 2017 are included
in the eligible population and receive notification and training at home station.

b. All ARNG leaders must complete the leaders’ training, identify their opt-
in population, and ensure their opt-in population completes mandatory BRS
training IAW reference c.

c. All opt-in eligible ARNG members must complete mandatory BRS
training and have access to financial literacy counseling IAW reference d.

d. ARNG unit leaders are required to provide ARNG members an annual
retirement points update IAW reference e. A BRS Opt-In message should be
provided during these regulatory updates. The ARNG member should also be
told how many points they have accrued in order to make a more informed
decision on the BRS. The DoD BRS Calculator asks the ARNG member to
input their current total retirement points. The ARNG member should use,
“Total points for retired pay” in their calculation.

e. Unit leaders should follow-up for those ARNG members whose annual
birth month record review has already passed to ensure all ARNG members are
properly notified of the requirement for the BRS decision. ARNG members
must coordinate with an Retirement Points Account Management System
Administrator, typically located within a NG Joint Force Headquarters-State, to
receive the report.

A-2 Enclosure A




CNGBI 1901.01
21 August 2017

separate from the elective deferral and annual addition limit imposed on
regular employee contributions. While deployed to a designated combat zone,
traditional catch-up contributions from tax-exempt pay will not be allowed;
Roth catch-up contributions from tax-exempt pay are allowed. All
contributions as a military member to the Uniformed Services TSP and asa
civilian employee to the Federal Employee’s Retirement System or Civil Service
Retirement System TSP count towards the elective deferral limit and catch-up
contribution limits IAW reference u.

h. Matching Contributions. Eligible NG members who opt-in to the BRS
will be vested immediately and will begin to receive the matching contributions
the first pay period after opting in and contributing to the TSP. The NG
member can elect to contribute from their base pay up to five percent or higher
to receive the available five percent government match. The matching
contribution does not count towards the annual investment limit under IRS
code. The matching contribution is tax-deferred and will go into a traditional
TSP account. Any TSP contributions made prior to opting-in to the BRS will
not earn a matching contribution. Current NG members who opt-in to the BRS
will immediately receive matching contributions based on their personal
contributions to the TSP. See Table 2.

Member DoD Auto Government Total
Contributes: | Contribution: Matches

0% 1% 0% 1%
1% 1% 1% 3%
2% 1% 2% 5%
3% 1% 3% 7%
4% 1% 3.5% 8.5%
5% 1% 4% 10%

Table 2. BRS Government Matching Contribution Calculation

i. NG Members With No Uniformed Services TSP Account. Eligible NG
members who opt-in to the BRS will establish a TSP account upon election to
opt-in, if they do not already have one. Any NG members who already
contribute to a TSP account are required to re-affirm their contribution
percentage upon election to opt-in. The TSP contributions and earnings are
the NG member’s property and, unlike the annuity, are fully heritable, so they
can be willed to any person or entity of the NG member’s choosing. The NG
member may, under certain circumstances, borrow from the TSP account while
still in an active status. The TSP contributions and earnings may be accessible
without penalty at age 59% IAW reference u.

j. Lump Sum Retired Pay. Eligible NG members who opt-in to the BRS and
qualify for a regular retirement (active duty) or non-regular retirement
(traditional) may receive a portion of their retirement annuity as a lump sum


CNGBI 1901.01
21 August 2017

APPENDIX D TO ENCLOSURE A

COMMANDER'S QUICK REFERENCE FOR PERSONAL FINANCIAL
COUNSELING

PERSONAL FINANCIAL COUNSELING

Commander's Quick Reference

Personal Financial Counseling is
free confidential, short-term
PFC Services counseling designed to identify
immediate and long-range
measures to increase income,

¥ Money management techniques reduce household expenditures,
¥ Credit counseling and avoid additional financial
burdens. Clients have access to
free FICO credit scores and per-

Y Personal budgevfinancial planning

¥ Debt repayment options

¥ Retirement and Estate Planning sonalized credit report reviews.
¥ Saving and Investing Units can request training on financial topics with approved materials.

_ Personal Financial Counselors (PFCs) are available worldwide for active
Y Tax planning

duty and reserve components.
¥ Student loan/tuition assistance

¥ Consumer Awareness FLEXIBLE DELIVERY

Y Financial planning for deployment >> Face-to-Face
¥ Youth Financial Education > Financial Briefings
Y Blended Retirement System (BRS) > Resource Table
Opt-In Course Training PFCs provide services at: Drill and Strong Bond weekends, Yellow
Ribbon events, FRG meetings, unit locations, and community agencies
frequented by families, All PFCs are tasked to educate and counsel all

PFCs CANNOT Service members and families in the geographic area regardless of

ri jt.
Y Offer personal services TEA

Y Give specific investment advice OUT-OF-SCOPE SERVICES

Personal financial counseling is not intended to address issues requiring
long-term counseling; referrals to outside resources will be made.
Counseling sessions are confidential, however, counselors are
mandated reporters of situations that include harm to self or others,
domestic violence, child abuse or neglect, violence against any person,
and any present or future illegal activity.

Figure 4. Commander’s Quick Reference for Personal Financial Counseling

¥ Endorse products or companies
Y Keep written records

Appendix D
A-D-1 Enclosure A


CNGBI 1901.01
21 August 2017

ENCLOSURE B

REFERENCES

PART I. REQUIRED

a. Office of the Secretary of Defense Memorandum, 27 January 2017, “Blended
Retirement System (BRS) Implementation”

b. Department of Defense, Defense Finance and Accounting Service, MyPay,
<https: / /www.dfas.mil/> (NIPRNET - accessed: 18 Jul 2017)

c. ARNG PPOM 17-012, 22 February 2017, “Blended Retirement System (BRS)
Leader Emphasis and Training Requirement”

d. Headquarters, Department of Army (HQDA) Execution Order 163-17, 23
March 2017, “Support to the Blended Retirement System (BRS) Opt-In
Training”

e. National Guard Regulation 680-2, 19 August 2011, “Automated Retirement
Points Accounting Management”

f. HQDA Execution Order 081-17, 13 January 2017, “Digital Training
Management System”

g. Department of the Air Force, Air Force Portal,
<https: //www.my.af.mil/afpc2ww3/vmpf/Hub/Pages/ConfirmInfo.asp/>
(NIPRNET - accessed: 18 July 2017)

h. DoD Public Affairs Guidance for Uniformed Service’s Blended Retirement
System, 25 August 2016

i, Department of Defense, Military Compensation, The Uniformed Services
Blended Retirement System,

<http: / /militarypay.defense.gov/BlendedRetirement/> (NIPRNET - accessed:
18 July 2017)

j. Department of the Army, My Army Benefits, Benefit Calculators,
<http: / /myarmybenefits.us.army.mil/Home.htm1/> (NIPRNET - accessed: 18
July 2017)

k. Department of Defense, Military One Source,
<http: / /www.militaryonesource.mil/> (NIPRNET - accessed: 18 July 2017)

B-1 Enclosure B


CNGBI 1901.01
21 August 2017

lar (Active Duty/Active Service/Active Guard Reserve (AGR
Retirement. Under the BRS, the retirement multiplier is 2 percent of base pay
for each year of active federal service provided the NG member has 20
qualifying years of service (20 years of active service = 40 percent base pay and
30 years of active service = 60 percent base pay).

e. Non-Regular (Traditional Service) Retirement. Under the BRS, the
retirement multiplier is 2 percent of base pay for every 360 retirement points
provided the NG member has 20 qualifying years of service. See table 1 for the
legacy and the BRS retirement formulas.

Total Points Per Formula (Total Years of Service
Retirement Year Factor Points/Factor) (YOS) Multiplier
Points
3,780 360 3,780/360 10.5 years
System Formula (YOS x %) Retirement %
Legacy/High 36 10.5 x 2.5% 26.25%
BRS 10.5 x 2.0% 21%

Table 1. Legacy and BRS Retirement Formulas

f. Automatic Contributions. Eligible NG members who opt-in to the BRS
will receive the Department of Defense (DoD) automatic contribution to the TSP
starting with the first pay period following their selection of the BRS through
the MyPay application located at reference b. The DoD automatic contribution
is equal to one percent of (but does not come out of) the base pay earned
during the pay period. DoD automatic contributions vest automatically for
currently serving NG members and upon completion of two years of service for
new assessions on and after 01 January 2018. DoD automatic contributions
stop during the pay period after the NG member reaches 26 years of service as
calculated from the Pay Date or Pay Entry Base Date (PEBD). The DoD
automatic contribution is tax-deferred and does not count towards the annual
investment limit under the Internal Revenue Service (IRS) code.

g. NG Member Contributions. Eligible NG members who opt-in to the BRS
may voluntarily contribute to the TSP. NG member contributions and any
earnings on those contributions are vested immediately. NG member
contributions to the TSP count toward the elective deferral limit (under) and
apply to the combined total of traditional and Roth contributions. The limit
includes all traditional and Roth contributions from taxable basic pay,
incentive pay, special pay, and bonus pay, but does not apply to traditional
contributions made from tax-exempt pay earned in a combat zone. Roth
contributions are subject to the elective deferral limit even if they are
contributed from tax-exempt pay. NG member contributions to the TSP count
towards the catch-up contribution limit (participants age 50 and older) and is


CNGBI 1901.01
21 August 2017

(1) Eligible NG members who opt-in to the BRS must use the myPay
application to enroll IAW reference b. Specific opt-in instructions will be
available NLT 30 November 2017. Eligible NG members, who choose to opt-in
to the BRS, are encouraged to make their selection as close to 01 January
2018 as possible to benefit from government matching contributions to the
TSP. Eligible NG members who do not opt-in to the BRS during the opt-in
window will remain in the legacy retirement system.

(2) Eligible NG members who opt-in to the BRS may qualify for
Continuation Pay if they have less than 12 years of service and agree to
additional obligated service. Those who opt-in to the BRS after attaining 12
years of service are ineligible to receive this incentive. The Army National
Guard (ARNG) and the Air National Guard (ANG) have separate notification
processes aligned with their respective parent Service notification procedures.
See Enclosure A for specific responsibilities.

b. Required Training. Eligible NG members who choose to stay under the
legacy retirement system must still complete the mandatory BRS Opt-In
Training. After completing the training, no further action is required unless
the NG member elects to opt-in to the BRS. All eligible NG members will be
trained NLT 31 December 2017.

(1) Online Training. The BRS Opt-In Course is available online through
Joint Knowledge Online (JKO), course number J3OP-US1332 and can be
accessed with a Common Access Card (CAC) or by non-CAC use IAW reference
n. Non-CAC users can also access the course through JKO by following the
link on Military OneSource located at reference k. A Compact Disk is also
available through the local Family Support Office or Family Assistance Center
for those who do not have online access.

(2) Group, Leader and Financial Training. Group training using JKO
course number J3OP-US1332 slides requires documentation of the course
completion by the course instructor as the certificate is only generated from the
on-line course. Completion of training using the group method does not
preclude NG members from re-taking the online BRS Opt-In Course on an
individual basis. Leaders at all levels should receive BRS Leader Course
training located at reference p. All certified Personal Financial Counselors
(PFC) and Personal Financial Managers (PFM) must receive BRS Financial
Counselor/Educator Course training located at reference q.

c. Financial Literacy/Counseling. Financial literacy training and financial
services for NG members and their spouses (upon request) will be provided IAW
reference r. For eligible NG members, this includes discussions about which
retirement system will suit the fiscal needs of the NG member and their family.


APPENDIX B

CNGBI 1901.01
21 August 2017

TO ENCLOSURE A

BLENDED RETIREMENT SYSTEM INFOGRAPHIC FOR THE RESERVE
COMPONENT

‘Act provides our military force with a modemized
retirement pian built fr retirement savings.
Beginning in 2018, Resorve Component service

compensation incentive, and I they obtain 20
years of service, monthly retired pay for ie
starting at age 60. All service members under
‘the current systom are grandfathered into today’s
rutrement system.

PEEP Er) ©

‘YouTl gain this monthly anmuiy for be after completing
‘Za.qualiying years of service and attaining age GO"
‘wearer based on quaktyng ectveseric,
You can find additional information mili
Sources: Pisce! Year 2016 National Defen

The U.S. Uniformed Services
Blended Retirement System

‘The DoD automaticaly contributes Mb of your banic pay or inactive Duty Pay

‘atthe mig-caroer mark, you may rece a cash
eenteateuntonee aaron ‘payment in exchange for addtional service,
pre re ees a
Retired Reservists and Guardsmen Eligible for Retirement Pay
Monthly Annuity for Life Collecting Your Ratired Pay
OPTION Full retired pay annuity begining at age
(exter based on credited active service

ar ypay.def

Reserve Component

ctive Date: January 1. 2018

Retirement System Selection
‘Reserve Component members with more than 4,320 retirement.
‘Points will remain under the legacy retirement system.

Reserve Component members with less than 4,320 retirement
points 2s of December 31,2017, wil have tha choice of whather to
OPA Into the new Blended Retirement System or remain in the legacy
retement system.

festacesdors a ey UN se ae ost
thenew Blended Retirement

VOOe

Lamp sum

2 or DR hang sen and reduced marth amrsky et 09e
‘Monthly anmuty burps Bock op to W0O% et fll retement ope
(Whmatase)

0v/BlendedRetirement
634.and 635

Figure 2. Blended Retirement System Infographic for the Reserve Component

Appendix B

A-B-1 Enclosure A


CNGBI 1901.01
21 August 2017

Highlights

Deploy to CONUS and OCONUS.
locations to meet on-demand, surge,
and rotational requirements.

PFC Requests

For unit events, go to:
ittps//supportrequest.militaryonesource.rnll

*Blended Retirement System Opt-In
mandatory training

*Financial briefings on various topics
(ex. Thrift Savings Plan, deployment
savings, investing)

*Face-to-Face financial counseling

*Resource Table

Current as of March 2017

PROGRAM ELIGIBILITY

All active-duty, National Guard and reserve service members (regardless
of activation status), their immediate family members, and survivors are

eligible.
OTHER RESOURCES

Personal Financial Manager

Military OneSource

Army Emergency Relief

Navy ~Marine Corps Relief Society
Air Force Aid Society

Consumer Financial Protection Bureau
Thrift Savings Plan

Military Saves

Consumer Federation of America
FINRA Investor Education Foundation
National Military Family Association
Council of Better Business Bureaus

JumpStart Coalition for Financial Literacy

National Endowment for Fin. Education
Defense Credit Union Council

USAA Educational Foundation
Securities and Exchange Commission
InCharge Institute of America

National Foundation for Credit Counseling www.nfcc.org

PFC QUALIFICATIONS

All Personal Financial Counselors hold a minimum of a bachelor’s
degree coupled with 2+ years of experience in financial counseling or
education and possess a national certification as an Accredited
Financial Counselor (AFC), Certified Financial Planner (CFP) or

Chartered Financial Consultant (ChFC).

www.militaryinstallations.dod.mil
www.militaryonesource mil
wwww.aerhq.org
wW.nmers.org
www.afas.org

www consumerfinance. gov
www.tsp.gov
www militarysaves.org,
www.consumerfed.org
‘www finrafoundation.org,
www.nmfa.org

www bbb.org/us/Military
‘www jumpstart.org,

wow nefe.ong,
woww.deuc.org
wwwausaaefong
www.sec.gov

www incharge.org

(Figure 4 continued).

Appendix D
Enclosure A