The DoD is rolling out perhaps the biggest change to military benefits in modern history. Are service members across the globe prepared? In this presentation, we’ll provide an overview of the coming changes and discuss how USAA is working to equip our workforce and military for the arrival of the new system in 2018.

1. Blended Retirement SystemPublic Information DID # 236341-1016
Blended Retirement System
The Next Generation of Military Benefits
J.J. Montanaro, CFP®
Relationship Director
Military Affairs
DigitalMilEx
Gregg Rivas, CRCP®, AAMS®
Executive Director, Retirement Solutions
Enterprise Advice Group

2. Blended Retirement System 2Public Information DID # 236341-1016
Agenda
Current Military Retirement
The New BRS
Potential Benefits of BRS
Who’s Affected?
USAA Study Results
USAA is here to serve
Service Member Considerations
Timeline
Q&A

3. Blended Retirement SystemPublic Information DID # 236341-1016 3
Current Military Retirement
20-Years of Service  Lifetime Pension
• Monthly Income
• Inflation Adjusted
• 100% DoD Funded
Thrift Savings Plan (TSP)
• Tax Advantage Employer Plan (Roth, Traditional)
• Similar to Civilian 401(k)
• Voluntary-no DoD Match

4. Blended Retirement System 4Public Information DID # 236341-1016
The New BRS
Four Components
20-Year Pension
DoD Contributions to the TSP
Continuation (Retention) Pay at 12 Years
New Lump Sum Option at Retirement

5. Blended Retirement System 5Public Information DID # 236341-1016
Potential Benefits of BRS
Greater portability of retirement benefits
Matching enables greater savings for retirement
No longer all-or-nothing retirement plan
Covers more service members
Potential recruiting incentive
Continuation pay adds incentive to stay for full career

6. Blended Retirement SystemPublic Information DID # 236341-1016 6
Who’s Affected?
1.1 Million Military
Members
650,000 USAA
Members

7. Blended Retirement SystemPublic Information DID # 236341-1016 7
USAA’s Study Results
“The most significant change in military retirement to date”

8. Blended Retirement SystemPublic Information DID # 236341-1016 8
USAA is here to serve
Provide education:
BRS provisions
Military retirement basics (TSP, TVM, etc.)
Frame BRS decision with two key questions:
How long do you plan to serve?
Which plan may benefit you the most financially?

9. Blended Retirement SystemPublic Information DID # 236341-1016 9
Education & Choices

10. Blended Retirement System
BRS Timeline
2016 2017 2018
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
USAA Launches BRS
Webpage
DoD
releases
Financial
Counselor
Educator
Course
November:
Eligible Opt-
in Members
Notified
DoD conducts Opt-in Training
Opt in Window:
Jan 1 – Dec 31
2018
12/31/17: Last
date of eligibility for
coverage under
legacy retirement
system
DoD
Timeline
USAA
Launches
Decision
Tool
DoD
Launches
BRS
Calculator
DigitalMilEx
USAA BRS Communications

11. Blended Retirement System
Q&A
J.J. Montanaro, CFP®
Relationship Director
Military Affairs
Gregg Rivas, CRCP®, AAMS®
Executive Director, Retirement Solutions
Enterprise Advice Group

12. Blended Retirement System 12Public Information DID # 236341-1016

13. Blended Retirement System 13DID # 236341-1016
• The Department of Defense will release more details of the plan before 2018. Details of the plan are subject to change pending National Defense Authorization Act (NDAA) approval.
• Information is accurate as of Aug. 2016 and is intended for use by USAA, its members and prospects.
• This material is for informational purposes and is not investment advice, an indicator of future performance, a solicitation, an offer to buy or sell, or a recommendation for any security.
It should not be used as a primary basis for making investment decisions. Consider your own financial circumstances and goals carefully before investing.
• Financial planning services and financial advice provided by USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California),
a registered investment adviser and insurance agency and its wholly owned subsidiary, USAA Financial Advisors, Inc., a registered broker dealer.
• USAA or its affiliates do not provide tax advice. Taxpayers should seek advice based upon their own particular circumstances from an independent tax advisor. The information is
provided for informational purposes only and is not intended to substitute for obtaining professional financial advice. Please thoroughly research and seek professional representation
before acting on any information you may have found in this article. This article is in no way attempts to provide advice that relates all personal circumstances.
• Any examples given during this presentation are hypothetical illustrations and not an indication of the benefits or features of any USAA product. You should seek policies and advice
based upon your own particular circumstances.
• USAA means United Services Automobile Association and its affiliates. Property and casualty insurance provided by United Services Automobile Association, San Antonio, TX. Each
company has sole financial responsibility for its own products. Investment provided by USAA Investment Management Company, and financial Advisors Inc., both registered broker
dealers. Life insurance and annuity products provided by USAA Life Insurance Company, San Antonio, TX, and in New York by USAA Life Insurance Company of New York,
Highland Falls, NY. Financial advice provided by USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California), and USAA
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• Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER TM in the United States, which it awards to individuals
who successfully complete CFP Board's initial and ongoing certification requirements.
• No Department of Defense or government agency endorsement.
Disclosures