What is the High-3 (High-36) Retirement System?

The High-3 system is the legacy military retirement plan for those who joined before 2018 (and chose not to opt into BRS). Your pension is calculated by averaging your highest 36 months of basic pay, and multiplying it by 2.5% for every year of service. At exactly 20 years, your multiplier is 50% (20 x 2.5%).

What is the Blended Retirement System (BRS)?

The BRS was implemented in 2018. It reduces the defined-benefit pension multiplier from 2.5% to 2.0% per year (meaning at 20 years, you get 40% of base pay instead of 50%). To compensate, the DoD provides a matching contribution up to 5% into your Thrift Savings Plan (TSP) throughout your career, and offers a mid-career continuation pay bonus.

Can I collect VA Disability and my Retirement Pension at the same time?

It depends on your VA rating. Under the Concurrent Retirement and Disability Pay (CRDP) program, if you have a service-connected disability rating of 50% or higher, you are allowed to receive both your full DoD retirement pension AND your full tax-free VA compensation check concurrently.

What happens if my VA rating is under 50%?

If your VA rating is 40% or lower, you are subject to the VA Waiver (often called the offset). Your DoD retirement pension is reduced dollar-for-dollar by the amount of VA compensation you receive. Because VA money is tax-free and retired pay is taxable, the net result is actually a slight tax advantage, but your gross monthly flow does not double up.

Does this calculator include TSP balances?

No. This calculator exclusively projects the defined-benefit pension directly issued by the Defense Finance and Accounting Service (DFAS). Your Thrift Savings Plan (TSP) balance is a distinct defined-contribution account that fluctuates with the stock market and acts entirely separately from your pension math.

What is the maximum multiplier I can earn?

Historically, the multiplier was capped at 75% for 30 years of service. However, under the 2007 NDAA updates, service members who serve past 30 years can accrue multipliers exceeding 100% of their base pay, though this is exceedingly rare for non-flag officers.

Does deployment pay count towards my High-36?

No. Only standard 'Basic Pay' counts toward your high-36 average. BAH (Housing Allowance), BAS (Sustenance), hazardous duty pay, flight pay, and deployment imminent danger pay are completely excluded from pension calculations.

When does my military retirement pay begin?

For Active Duty personnel, your retirement pay begins compiling exactly on the first day of the month following the date of your official retirement. If you are Guard or Reserve, standard retirement pay does not typically activate until you turn age 60, though certain deployments can reduce this age requirement.

How does inflation affect my pension over time?

Military pensions are fully protected against inflation. DFAS applies an annual Cost of Living Adjustment (COLA) to your monthly pension check, usually announced every October based on the Consumer Price Index (CPI), ensuring your purchasing power is maintained throughout your retirement.

What happens if I serve slightly over a full year increment?

DFAS credits you for fractional years! Your multiplier is mathematically extended to account for specific months served. For example, exactly 20.5 years in the High-3 system would yield a 51.25% multiplier, not just 50%.

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Military & Veterans

Military Retirement Calculator (High-3 vs BRS)

Use our free military retirement calculator to project your exact monthly pension under the legacy High-3 system or the new Blended Retirement System (BRS). Evaluate the mathematical cliff of the VA CRDP offset rules.

Last updated: February 2026

High-3 and BRS dual compatibility

Mathematical VA Offset projections

Exact percentage multiplier tracking

Are you a financial coach moving to a custom platform? Get Custom Tools

Military Retirement Calculator

Estimate your monthly defined-benefit pension under the High-36 Legacy system or the new Blended Retirement System (BRS).

Retirement Plan System

Years of Active Service

High-36 Avg Monthly Base Pay

Average basic pay over highest 36 months

Expected VA Disability Rating

Used for concurrent receipt (CRDP) offset

DoD Pension Dynamics

Retirement System Router

Flawlessly map multipliers between BRS and High-3

Algorithm

2.5% vs 2.0% Core Math

Calculates exact basis points per year of active service to construct the multiplier envelope.

High-36 Pay Averages

Project your highest earning window

Calculations

Base Pay Only

Filters out BAH and BAS allowances, applying the multiplier strictly to terminal base pay averages.

VA Disabliity Concurrency

Map the 50% CRDP threshold

Financial Flow

Offset Rules

Predicts exactly whether your VA rating will offset your retirement pay or stack securely on top of it.

The CRDP Cliff: 40% vs 50% VA Rating

The most pivotal financial junction for retiring military personnel is the Concurrent Retirement and Disability Pay (CRDP) cutoff. Hitting 50% structurally alters your net worth.

Under 50% (The VA Waiver)

If your rating is 0% to 40%, you do NOT get both checks. DFAS reduces your military retirement check dollar-for-dollar by the amount the VA sends you. Your total gross cash flow stays the same, but the VA portion is shielded from taxes.

50% or Higher (Concurrency)

If the VA grants you 50% or higher, the waiver vanishes. You receive your massive DFAS pension check in full, AND a separate tax-free deposit from the VA on the 1st of every month. This mathematically doubles your post-military stability.

Quick Example: E-7 Retiring at 20 Years

An E-7 averages ~$5,800/mo base pay in their final 3 years. Under High-3 (50% multiplier) they get $2,900/mo. Under BRS (40% multiplier) they get $2,320/mo.

High-3 Pension

$2,900/mo

BRS Pension

$2,320/mo

GAP

$580/mo loss built to be offset by TSP Match

How The Defense Finance Algorithms Work

Our military retirement calculator uses DoD public formulas to map your defined benefit. The government restricts the formula logic rigidly around active duty time served; there is no variance based on age or rank alone (beyond how rank influences base pay).

The Defined Benefit Master Equation

High-3: (Average 36mo Pay) × (Years of Service × 0.025) = Monthly CheckBRS: (Average 36mo Pay) × (Years of Service × 0.020) = Monthly Check

The Blended Retirement System intentionally penalizes the rigid pension (cutting it from 50% to 40% at the 20-year mark) to afford the expensive 5% TSP match offered earlier in a troop's career.

Sources & References

Defense Finance and Accounting Service (DFAS) - High-3 vs BRS DirectivesCore architectural framework for U.S Military Pensions.
Veterans Affairs (VA.gov) - Concurrent Receipt (CRDP)Documentation detailing the 50% barrier required to stop dollar-for-dollar DFAS offsets.

Calculate your Thrift Savings Plan growth alongside your pension with our TSP Growth Calculator.

Frequently Asked Questions

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Military & Veterans

Military Retirement Calculator (High-3 vs BRS)

Last updated: February 2026

High-3 and BRS dual compatibility

Mathematical VA Offset projections

Exact percentage multiplier tracking

Are you a financial coach moving to a custom platform? Get Custom Tools

Military Retirement Calculator

Estimate your monthly defined-benefit pension under the High-36 Legacy system or the new Blended Retirement System (BRS).

Retirement Plan System

Years of Active Service

High-36 Avg Monthly Base Pay

Average basic pay over highest 36 months

Expected VA Disability Rating

Used for concurrent receipt (CRDP) offset

DoD Pension Dynamics

Retirement System Router

Flawlessly map multipliers between BRS and High-3

Algorithm

2.5% vs 2.0% Core Math

Calculates exact basis points per year of active service to construct the multiplier envelope.

High-36 Pay Averages

Project your highest earning window

Calculations

Base Pay Only

Filters out BAH and BAS allowances, applying the multiplier strictly to terminal base pay averages.

VA Disabliity Concurrency

Map the 50% CRDP threshold

Financial Flow

Offset Rules

Predicts exactly whether your VA rating will offset your retirement pay or stack securely on top of it.

The CRDP Cliff: 40% vs 50% VA Rating

The most pivotal financial junction for retiring military personnel is the Concurrent Retirement and Disability Pay (CRDP) cutoff. Hitting 50% structurally alters your net worth.

Under 50% (The VA Waiver)

50% or Higher (Concurrency)

Quick Example: E-7 Retiring at 20 Years

An E-7 averages ~$5,800/mo base pay in their final 3 years. Under High-3 (50% multiplier) they get $2,900/mo. Under BRS (40% multiplier) they get $2,320/mo.

High-3 Pension

$2,900/mo

BRS Pension

$2,320/mo

GAP

$580/mo loss built to be offset by TSP Match

How The Defense Finance Algorithms Work

The Defined Benefit Master Equation

High-3: (Average 36mo Pay) × (Years of Service × 0.025) = Monthly CheckBRS: (Average 36mo Pay) × (Years of Service × 0.020) = Monthly Check

The Blended Retirement System intentionally penalizes the rigid pension (cutting it from 50% to 40% at the 20-year mark) to afford the expensive 5% TSP match offered earlier in a troop's career.

Sources & References

Defense Finance and Accounting Service (DFAS) - High-3 vs BRS DirectivesCore architectural framework for U.S Military Pensions.
Veterans Affairs (VA.gov) - Concurrent Receipt (CRDP)Documentation detailing the 50% barrier required to stop dollar-for-dollar DFAS offsets.

Calculate your Thrift Savings Plan growth alongside your pension with our TSP Growth Calculator.