ALCOAST 462/24 - DEC 2024 BLENDED RETIREMENT SYSTEM (BRS) - UPDATE TO CONTINUATION PAY MULTIPLIERS

R 131454Z DEC 24   MID120001628951U
FM COMDT COGARD WASHINGTON DC
TO ALCOAST
BT
UNCLAS
ALCOAST 462/24
SSIC 1000
SUBJ: BLENDED RETIREMENT SYSTEM (BRS) - UPDATE TO CONTINUATION PAY
MULTIPLIERS
1. As part of the Commandant's ongoing Talent Management
Transformation efforts to improve workforce retention and attract
new talent, the Coast Guard is increasing BRS Continuation Pay (CP)
and providing CP earlier in a member's career. This ALCOAST
announces the BRS changes that will take effect 1 January 2025.
2. BRS is the retirement plan in place for all military members who
entered the Service on or after 1 January 2018. Many additional
members, based on time in service, were given an opportunity to
opt-in to the BRS. BRS combines the traditional 20-year retirement
pension, at a reduced rate, along with matching Thrift Savings Plan
(TSP) contribution and the early CP payment. To date over 21,000
Coast Guard men and women are already under BRS, and every new
member is accessed under this system. The CP component of the
retirement benefit has a number of unique features, and
commands/members are encouraged to make informed decisions to
maximize this payment and ensure it is most beneficial for members
and families. There are tax implications based on how the payment is
received, and there are retirement investments options with the
potential to overcome the reduction in retirement pension percentage
that is part of BRS. Education is essential to the financial success
of service members, and resources for BRS education are listed in
paragraph 10 below.
3. Under BRS, CP is offered to active-duty and reserve members
enrolled in BRS as a one-time direct payout and can be disbursed as
either a single lump-sum payment or in two, three, or four equal
instalments, scheduled on the anniversary of the initial payment for
those who agree to obligate a set number of additional years of
service. This CP payment is a one-time benefit, separate from any
other career field-specific incentives or retention bonuses.
4. The individual Services may adjust the CP pay-rate multipliers,
years of service, and amount of obligated service required. These
may be adjusted to address specific service retention needs,
specialty skills, and hard-to-fill positions. CP is typically
targeted for mid-career service members, payable between completing
7 years of service and before completing 12 years of service.
5. The updated CP multipliers, timing, and obligated service
requirements are listed below for members who agree to obligate at
least 4 years of additional service, and have reached 8 years of
service (YOS):
     a. Enlisted members CP is 9 times the monthly basic pay for a
member who has reached 8 YOS.
     b. Officers CP is 6 times the monthly basic pay for a member who
has reached 8 YOS.
     c. The Reserve Component CP is 2 times the monthly basic pay for
a member who has reached 8 YOS.
6. On 1 January 2025, any member who previously opted-in to BRS and
has between 8 and less than 12 years of service, will be offered the
updated CP in accordance with this message. Opt-in BRS members with
CP dates changed due to this policy update, or those with dates less
than 180 days after 1 January 2025 will be notified by PPC. Members
will be provided 180 days to submit the CG-7430A and meet the
criteria listed in Paragraphs 9 and 10 from date of notification.
7. A member who does not fulfill the service obligation is subject
to full or partial repayment of CP.
8. The CP rates will remain in place until new rates are published.
9. PPC will notify the member and unit admin of the member's
eligibility to receive CP approximately 180 days before the member
reaches 8 YOS. The member must return the signed CP election form
CG-7430A and have the form witnessed by their commanding officer or
command designee at least 30 days prior to their CP date. A member
failing to return the CP election form prior to 8 YOS will no longer
be eligible for CP Waivers will not normally be approved for
failing to make the CP election prior to 8 YOS.
     a. A member's CP date is defined as that date 8 years from the
member's Pay Entry Base Date (PEBD) as indicated on the member's pay
slip found within Direct Access, as established by the Coast Guard
and deemed to be the point at which a member has met all eligibility
requirements for CP. For example, additional obligated service would
commence on the 8th anniversary of the members PEBD regardless of
when the member's election to receive CP is completed.
     b. A member may reverse their decision to receive CP, and their
obligation to complete four additional years of service, provided
such a reversal occurs at least 30 days before the member's CP date.
10. Commands are reminded that all members who elect CP, must
acknowledge they were counseled on their eligibility and understand
the terms of the agreement by signing the appropriate
Administrative Remarks, Form-3307 SEP-34, for their personnel record
by visiting:
(Copy and Paste URL Below into Browser)

https://www.dcms.uscg.mil/ppc/pd/page7/

11. Commands and members are encouraged to capitalize on BRS
learning opportunities available by visiting:
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https://finred.usalearning.gov/Benefits/Retirement

and contacting their nearest Personal Financial Manager (PFM)
located at each Health, Safety, and Work-Life Regional Practice
(HSWL-RP) for financial education, counseling, and resources. CG
SUPRT Money Coaches are also available for specific tax questions
at: 1-855-CG SUPRT (248-8778) or at:
(Copy and Paste URL Below into Browser)

http://www.cgsuprt.com/

A list of PFMs may be found at:
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https://www.dcms.uscg.mil/Our-Organization/Assistant-Commandant-for
-Human-Resources-CG-1/Health-Safety-and-Work-Life-CG-11/Office-of-
Work-Life-CG-111/Personal-Financial-Management-Program-PFMP/

12. Continuation Pay Election Form CG-7430A and appropriate
Administrative Remarks at:
(Copy and Paste URL Below into Browser)

https://www.dcms.uscg.mil/forms/

13. Questions regarding the BRS or related items should be directed
to your P&A offices who may then contact COMDT (CG-1M12) on behalf
of their members by email to SMB-COMPENSATION@USCG.MIL.
14. CAPT Ryan. P. Matson, Acting Assistant Commandant for
Military Personnel (CG-1M), sends.
15. Internet release is authorized.