BRS: Secure Your Military Retirement & VA Pay

The military retirement and disability pay system has undergone significant changes to military retirement and disability pay in recent years, directly impacting thousands of veterans and their families. Understanding these shifts isn’t just beneficial; it’s absolutely essential for securing your financial future and maximizing your earned benefits. Are you truly prepared for what these modifications mean for your household?

1. Understand the Blended Retirement System (BRS) vs. Legacy Retirement

The biggest shake-up for military retirement came with the introduction of the Blended Retirement System (BRS) on January 1, 2018. If you entered military service on or after that date, you are automatically enrolled in BRS. If you joined before, you likely fall under the traditional Legacy Retirement System (often called the “High-3” system), though some had a choice to opt into BRS. This distinction is critical because it dictates how your retirement pay is calculated and what savings opportunities you have.

Under the Legacy system, after 20 years of service, you receive an annuity equal to 2.5% of your average highest 36 months of basic pay, multiplied by your years of service. It’s a defined benefit plan – straightforward and predictable. BRS, however, offers a reduced multiplier (2.0% per year of service) for the defined benefit, but it adds a government contribution to your Thrift Savings Plan (TSP), which is similar to a 401(k).

I had a client last year, a Staff Sergeant who separated after 22 years. He was under the Legacy system. His retirement pay calculation was simple: his high-3 average basic pay was $4,800. So, $4,800 x 2.5% x 22 years = $2,640 per month. If he had been under BRS, that same calculation would have yielded $4,800 x 2.0% x 22 years = $2,112 per month, a significant difference. However, a BRS service member would have had years of government matching contributions to their TSP, potentially growing into a substantial nest egg. It’s not necessarily “worse,” just different.

Pro Tip: For those under BRS, maximizing your TSP contributions, especially to receive the full government match (up to 5% of your basic pay), is non-negotiable. It’s free money for your retirement!

Common Mistake: Many BRS members fail to contribute enough to their TSP to get the full government match. This is leaving thousands of dollars on the table over a career. Don’t be that person. Set your contributions from day one.

2. Navigate Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC)

This is where things can get incredibly confusing, but understanding CRDP and CRSC is paramount for veterans with service-connected disabilities. Historically, if you received military retired pay and VA disability compensation, your retired pay would be reduced dollar-for-dollar by the amount of your VA compensation – this was known as the “VA Waiver” or “offset.” CRDP and CRSC were designed to eliminate or mitigate this offset.

Concurrent Retirement and Disability Pay (CRDP) allows eligible military retirees to receive both their full military retired pay and their full VA disability compensation. To qualify for CRDP, you generally need to have 20 or more years of service and a VA disability rating of 50% or higher. There’s no application process for CRDP; if you meet the criteria, it’s automatically applied by the Defense Finance and Accounting Service (DFAS).

Combat-Related Special Compensation (CRSC) is different. It’s a special entitlement for retirees whose disabilities are directly caused by combat, hazardous duty, an instrumentality of war, or simulated combat operations. Unlike CRDP, you must apply for CRSC through your branch of service. CRSC is tax-free and restores retired pay that was offset by VA disability for combat-related injuries. You cannot receive both CRDP and CRSC for the same period; DFAS will pay you whichever benefit is more advantageous to you.

Let me give you a concrete example: Master Sergeant Smith retired with 24 years of service and a military retired pay of $3,000/month. He has a 70% VA disability rating, which pays him $1,716.28/month (as of 2026, for a single veteran). Without CRDP, his military retired pay would be reduced by $1,716.28, leaving him with $1,283.72 from DFAS plus $1,716.28 from VA, totaling $3,000. With CRDP, he receives the full $3,000 from DFAS and the full $1,716.28 from VA, for a total of $4,716.28. That’s a huge difference!

If MSgt Smith’s 70% disability was due to a combat injury, he could apply for CRSC. If his CRSC amount was, say, $1,000, then DFAS would restore $1,000 of his retired pay, and he’d still get his $1,716.28 from VA. DFAS would then automatically determine if CRDP (which would restore the full $1,716.28) or CRSC (restoring $1,000) is better for him. In this case, CRDP is clearly superior.

Pro Tip: Always apply for CRSC if you believe your disabilities are combat-related, even if you think CRDP will be more beneficial. The determination process can sometimes uncover nuances, and it never hurts to have the option considered. Your branch of service will have specific forms and instructions.

3. Understand the VA Disability Rating Process and Its Independence

Many veterans mistakenly believe their military medical board findings directly translate to their VA disability rating. This is absolutely false. The Department of Veterans Affairs (VA) operates under a completely separate system for determining service-connected disability compensation. Your VA rating is based on the VA Schedule for Rating Disabilities (38 CFR Part 4), which assigns percentages based on the severity and impact of your conditions on your earning capacity, not solely on your physical limitations during military service.

When you file a claim, the VA will schedule you for Compensation and Pension (C&P) exams. These exams are crucial. The examiners (doctors contracted by the VA) will assess your conditions, review your medical records, and provide an opinion on the nexus (link) between your service and your current health issues. Their findings, combined with all other evidence, are what the VA raters use to assign your disability percentage.

We ran into this exact issue at my previous firm. A former Marine, Sergeant Rodriguez, came to us after being discharged with a 30% DoD rating for his knees. He assumed his VA rating would be similar. After reviewing his comprehensive medical history, including multiple deployments and significant physical training, we helped him file a claim for his knees, back, tinnitus, and PTSD. The VA, using their rating schedule and specific C&P exam findings, ultimately granted him a 70% rating. The DoD rating was for retention/separation purposes; the VA rating was for compensation. Two entirely different beasts.

Common Mistake: Relying solely on your military medical records without providing current evidence of your symptoms and limitations to the VA. Your condition might have worsened since separation, and the VA needs to see that documented.

4. Leverage Veterans Service Organizations (VSOs) and Professional Guidance

Navigating the complex world of VA claims and understanding the nuances of military retirement can be overwhelming. This is where Veterans Service Organizations (VSOs) become your most powerful allies. Organizations like the Veterans of Foreign Wars (VFW), American Legion, and the Paralyzed Veterans of America (PVA) provide free, accredited representation. These individuals are experts in VA law, regulations, and the claims process.

They can help you:

• Identify all potential service-connected conditions.
• Gather necessary medical evidence and service records.
• Fill out complex VA forms correctly.
• File appeals if your initial claim is denied or rated too low.
• Understand the interaction between military retired pay and VA disability.

Frankly, trying to do this alone is a fool’s errand for most veterans. The VA system is designed to be thorough, but it’s not always intuitive. A good VSO representative has seen thousands of cases and knows what evidence the VA needs to see. They also have access to internal VA systems and can track your claim’s progress more effectively than you can as an individual claimant.

Pro Tip: Don’t just pick the first VSO you find. Interview a few. Ask about their experience with claims similar to yours. A good relationship with your VSO representative can make a world of difference in the outcome and speed of your claim.

5. Regularly Review Your Records and Stay Informed

The system, while stable in its core, can have regulatory updates or new interpretations. Your benefits aren’t set in stone forever, especially if your health conditions change. It’s your responsibility to stay informed and proactive.

Here’s what I advise every veteran:

1. Keep a comprehensive file: Maintain copies of your DD-214, all VA rating decision letters, medical records (both military and civilian), and any correspondence with DFAS or the VA.
2. Understand Your Decision Letter: When you receive a VA rating decision, don’t just look at the percentage. Read the entire letter. It explains which conditions were granted, which were denied, and why. This information is vital for understanding your benefits and for any future appeals.
3. Monitor for Changes: The VA and DoD occasionally update regulations or benefit amounts. For example, VA disability compensation rates are adjusted annually based on the Cost of Living Adjustment (COLA). You won’t get a personal email every time, so checking official sources like the VA.gov website or trusted veteran news outlets is important.
4. Consider Reopening Claims: If your service-connected condition worsens, you can file for an increased rating. This is a critical opportunity to ensure your compensation reflects your current health status.

Editorial Aside: One thing nobody tells you is how much of this process relies on YOU being organized. The VA is a massive bureaucracy. While VSOs help immensely, they can’t create documents you don’t have or remember details you’ve forgotten. Your personal meticulousness is a superpower here.

Case Study: In 2024, I worked with a retired Army Lieutenant Colonel, Sarah, who had a 60% VA disability rating for several conditions, including migraines. She’d received that rating in 2015. Over the last three years, her migraines had become significantly more frequent and debilitating, impacting her ability to work and her quality of life. She had meticulously kept a migraine log using the Migraine Buddy app on her phone, detailing frequency, severity, and associated symptoms. We used this data, along with updated civilian neurologist reports, to file a claim for an increased rating. The VA scheduled a C&P exam, and because of her detailed records, the examiner had clear evidence of the progression. Within six months, her migraine rating increased from 30% to 50%, bumping her overall rating from 60% to 70%, which meant an additional $280 per month in tax-free compensation. This wasn’t a complex legal battle; it was a matter of diligent record-keeping and proactive engagement with the system.

Understanding these changes and actively managing your benefits means you won’t leave money on the table. Your service earned these benefits, and it’s your right to receive every penny.