What is the blended retirement system?

The blended retirement system is designed to provide service members with a combination of annuity benefits and an opportunity to save for retirement through the Thrift Savings Plan (TSP). Specifically, this system integrates a traditional defined benefit component, which is an annuity based on the service member's years of service (typically available after 20 years of service), with a defined contribution component allowing service members to invest in TSP.

This structure is advantageous because it not only supports those who serve for a full career with a pension but also addresses the needs of service members who may leave service earlier, as they can still benefit from their contributions to the TSP and any government matching contributions. This dual approach encourages savings and provides flexibility, helping personnel prepare for retirement in varying service scenarios.

The other options do not accurately reflect the features of the blended retirement system. For instance, some refer to offering immediate pensions, which is not the case as the pension is contingent on years served. Others may suggest a retirement plan solely based on TSP contributions or completely eliminating pension benefits, neither of which aligns with the blended retirement framework that includes both pension and TSP elements.