The Navy has released the 2022 Blended Retirement System (BRS) continuation pay rates, which affect participating sailors. Under the BRS, sailors who either voluntarily participate or were enrolled automatically in the Thrift Savings Plan get a matching contribution of up to five percent of their basic pay.
These sailors who stay in uniform until they qualify for retirement at the 20-year mark qualify for retirement pay at a two-percent multiplier for each year of service. (Under the legacy retirement system, the multiplier is two and a half percent for each year of service.)
All BRS sailors also qualify for continuation pay at the 12-year mark, providing they meet two criteria. First, each sailor must request the pay before that 12th anniversary of service. Also, they must agree to serve four more years under the Navy Standard Integrated Personnel System.
The payout varies by pay grade. Active-duty and full-time support sailors in pay grades E-5 or E-6 who reach the 12-year mark in 2022 would get a one-time payout between $9,000 and $10,000. Selected reservists in pay grade E-5 would get roughly $1,800, while E-6s in this category would collect nearly $2,000.
The income is taxable for everyone except those who serve in a Combat Exclusion Tax Zone. Recipients can opt to collect the continuation pay in a lump sum or equal installments. Sailors also still can collect this pay and other “career-specific or retention incentives,” the Navy said in a press release.