1 / 37

Maximizing Retirement Savings with Blended Retirement System

Learn about the Blended Retirement System (BRS) and how it can help you save for retirement. Discover who is eligible to opt-in, the benefits of choosing BRS, and factors to consider. Make a thoughtful choice for your future.

bumgardner
Télécharger la présentation

Maximizing Retirement Savings with Blended Retirement System

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. #blendedretirement DoD Office of Financial Readiness January 1 Ms. Kim Myers Office of the Assistant Secretary of Defense (Force Readiness) 2018 PERSONNEL AND READINESS

  2. Questions January 1 http://militarypay.defense.gov/BlendedRetirement 2018

  3. What We’ll Discuss • Why it’s critical to save for retirement • What is the Blended Retirement System (BRS)? • Who may opt-in to BRS • How the blended system encourages retirement saving • Choosing between the blended and legacy systems

  4. Blended Retirement System • Replaces legacy pension-only system • Offers chance to opt-in with immediate benefits • Combines tax-deferred savings with a smaller pension • Adds automatic and matching DoD contributions

  5. Nuts and Bolts of the BRS You’re always vested in your own contributions You’re immediately vested in DoD matching contributions Your account value is portable: You can take it with you

  6. BRS or Legacy CAREER TIMELINE RETIREMENT SYSTEM Grandfathered to legacy system, eligible to contribute to TSP Opt-in to BRS 1/1/2018 to 12/31/2018 or remain in legacy system Automatically enrolled in BRS Joined service before 1/1/2006 Joined service between 1/1/2006 and 12/31/2017 Join service after 1/1/2018

  7. Benefits of Opting-In • Continued eligibility for pension after 20 years • Automatic and matching DoD contributions to TSP account • Immediate vesting in all contributions and earnings • Career continuation pay between 8th and 12th year

  8. Factors to Consider • Willingness to contribute regularly and at high enough rate • Appetite for investment risk • Likelihood of your serving 20 years

  9. Wrapping Up • Military retirement on cusp of a new era • Each of you is in a position to make an important choice • Acting thoughtfully can give you the confidence you’ve done what’s right for you

  10. Federal Trade Comminssion Military.Consumer.gov Carol Kando-Pineda

  11. America Saves CampaignUpdate America Saves Communications Director Madeline Daniels

  12. Coping with unexpected expenses tops the list of reasons why people make a commitment to save but several other forces play important roles. Two-thirds of people who recently committed to saving more cite unexpected expenses as a major influence in that decision. When asked for the specific trigger that led to the decision to save more, recently committed savers often focus on specific goals (education, retirement, major purchases); some focus on their internal aspirations (desire to gain financial flexibility) or challenges (having difficulty staying on top of financial affairs; and the need for an emergency fund). Some are driven by negative life events (less income, or the need to get out of debt). While positive changes in circumstances are a recognized force triggering increased savings, events that have had a negative influence are a savings trigger for a surprisingly large portion of these recent savers. Almost one-third (30%) report that an event creating less available income had a major influence on their decision to focus on saving. The decision to save is not an impulse one for most people. A majority (56%) came to their decision over a relatively long period of time. The remainder are relatively evenly split between those who made a decision based largely on an internal commitment and those who were triggered by an external event. Summary of Insights Source: America Saves Committed Savers Study, October 2016

  13. Committed Savers are taking steps to become more knowledgeable about personal finances, and saving for an emergency fund more than the general population; reflecting their aspiration to feel more confident, in control, and ultimately more satisfied with their financial situation. The most successful savers are more likely to have taken a number of actions to ensure their success. These include opening an account specifically for saving, monitoring accounts carefully, and learning more about saving. Summary of Insights Source: America Saves Committed Savers Study, October 2016

  14. Military Saves Advisory Meeting1 February 2017 Military Saves Week February 27-March 4, 2017

  15. MilitarySaves.org • Military Saves is part of the Department of Defense’s Financial Readiness Campaign and has been a partner with DoD since 2003. • Military Saves is a research-based campaign using the principles of behavioral economics and social marketing to change behavior. • Military Saves seeks to motivate, support, and encourage military families to save money, reduce debt, and build wealth. • Military Saves is a part of America Saves, the larger nation-wide campaign for all Americans. • Military Saves encourages all servicemembers, their families, and civilian employees to take the Military Saves pledge. • Military Saves promotes access to a range of financial readiness resources that can help them with their debt reduction and savings goals.

  16. MilitarySaves.org Military Saves encourages servicemembers to: • Set savings goals & make a financial plan • Get in the savings habit: • Save automatically through direct deposit, automatic transfer from checking to savings or allotment • Spend less than you earn and save the difference • Set up a separate savings account for emergencies

  17. MilitarySaves.org Encouraging servicemembers and families to take the pledge! Savers who take the pledge receive the following benefits: • Access to monthly Military Saves e-blogs and challenges with savings advice from financial experts • Opportunity to sign up for text message saving tips, reminders • Free credit score, courtesy of FINRA Investor Education Foundation

  18. MilitarySaves.org & BRS January-February 2017 • Topic: Military Saves Week 2017: Get in the retirement savings habit now (automatically). The #BlendedRetirementSystem is one year away. • Key messages: Save for retirement automatically. Will the change to the Blended Retirement Plan affect me? Highlight websites/resources. What are you planning to do with your pay raise? Save your refund, find more ways to save (change withholdings). Getting a pay raise? Amount of payincrease, illustrate how much that will grow if put into retirement savings for a young servicemember.

  19. MilitarySaves.org & BRS (Reserves) • Timing of “non-regular retirement” annuity does not change – eligible to begin receiving annuity at age 60, or *earlier with creditable service • RC members may elect the lump sum when eligible to receive retired pay at approximately age 60* • TSP contribution elections carry over when activating and de-activating • JKO BRS courses will be available through MilitarySaves.org without CAC access; easier for Reserve and National Guard service members and families

  20. MilitarySaves.org & BRS • BRS Opt-In Course provides various scenarios for active and Reserve component members and factors to consider in the opt-in decision making process. • The course is available on non-CAC computers • The course includes graphical elements, interactive leaning tools and real-world videos of service members discussing retirement options and asking questions.

  21. Comparison Calculator • Online BRS Comparison Calculator will allow Service members to compare estimated benefits under both plans prior to making a decision • Walks Service members through key information needed to make an effective comparison • Users can adjust data to see how changes to their career and savings will impact retirement benefits • Available Spring 2017

  22. MilitarySaves.org Each year, a Memo from the Office of the Secretary of Defense is issued supporting Military Saves Week .

  23. MilitarySaves.org 50,000 Military Savers take the pledge • Army 20,000 Pledges • Air Force 15,000 • Navy 10,000 Pledges • Marines 5,000 Pledges • Coast Guard, National Guard, and Reserves 1,000 Pledges Military Saves 2016 • Total pledges/re-pledges:More than 32,335 • More than 800 orgs. participated • Let’s go for 50,000 in 2017!

  24. How to Participate: Three Steps • Sign up your installation to participate, receive the latest news • Partner with financial institutions, installation leadership, other PFCs and organizations to increase participation, host event(s) • Encourage servicemembers, their families and DoD civilians to take the Military Saves Pledge

  25. MilitarySaves.org

  26. MilitarySaves.org

  27. MilitarySaves.org

  28. America Saves Designation of Excelence • 12 military-affiliated banks and credit unions (34 total) were recognized for encouraging servicemembers and families to save • The online application will open on March 6, 2017 and will close on April 3, 2017. • Please help us spread the word! Look to partner with financial institutions on your installation. • Learn more!

  29. #MSW2017 Reporting Survey Contact Information •  What is the name of your organization? • Which of these descriptions best fits your organization? • Financial Institution • Installation • Non-Profit Organization • Who can we contact for more information? Name _______________ State _______________ Email Address _______________ Phone Number ______________ • How many branches are included in this report? _______________

  30. #MSW2017 Reporting Survey • Through your events and promotion of Military Saves Week, did you encourage your audience to take the Military Savers Pledge? Yes /No • Which of the following did you offer during Military Saves Week (select all that apply) Gifts or bonus incentives for opening accounts Yes/No Gifts or bonus incentives for adding to accounts Yes/No Special interest rates for opening accounts Yes/No Prizes of drawings Yes/No Other (please specify)

  31. #MSW2017 Reporting Survey • How would you describe account activity during Military Saves Week 2017? (please select all that apply)   Higher number of savings accounts (or similar) opened Yes/No Greater deposits to existing savings accounts Yes/No No noticeable change in savings activity Yes/No Do not know Yes/No • How much account activity was there during Military Saves Week 2017? Number of savers opening new account Dollars saved in new accounts Number of savers adding to existing accounts Additional dollars saved in existing accounts Number of automatic savings deposits established

  32. #MSW2017 Reporting Survey Promotional Methods •  Tell us about your promotional methods. Did you use each of these techniques this year? Social media (Facebook, Twitter, etc.) Yes/No Information on website Yes/No Financial education workshops Yes/No Press releases or press events Yes/No Community events Yes/No 1-on-1 financial counseling Yes/No Obtained Commander’s proclamation Yes/No Other (please specify)

  33. #MSW2017 Reporting Survey • Tell us about your audience reach. What is your best guess of how many people you reached with each of the following methods? • We like to feature stories that show the impact of your work during Military Saves Week. Please share in the space below your Military Saves Week story or success that illustrates the impact of your work:

  34. MilitarySaves.org Key Messages for #MSW2017 • Encourage Financial Readiness Program participation during the week • Engage Senior Leadership to sign Proclamations and Support the week • Collaborate with installation Marketing offices, Public Affairs Offices, on-post financial institutions, Banking Liaison Officers, youth centers, etc. • Promote mass participation to reach pledge goals

  35. MilitarySaves.org Key Messages for #MSW2017 • The financial readiness of servicemembers and their families is a priority. • Military Saves Week is a call-to-action to promote saving money, reducing debt, and building wealth within the military population. • Military Saves provides support and information year-round within a saving community to help servicemembers and their families build their personal savings and provide for their immediate and long-term financial needs. • Please sign up, partner and encourage the pledge to make #MSW2017 a success!

  36. THANK YOU James Lander Military Saves Director jlander@consumerfed.org (202) 939-1013 Alecia Blair Military Saves Project Manager ablair@consumerfed.org LaniPoblete Military Saves Project Manager lpoblete@consumerfed.org info@militarysaves.org MilitarySaves.org Like Us: https://www.facebook.com/MilitarySaves Follow Us: https://twitter.com/MilitarySaves

More Related