WEBVTT

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Financial security. We all want it. For us
and our family, changes to the military's

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retirement system could have a big impact
on the way you invest in your future.

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Service members that have less than 12 years
of service as of the 31st of December of 2017

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will have an option to either opt-in to the
new blended retirement system. Or they can

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continue under their current system that they
have.

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For those that are in prior to that 12 years
and have been serving for several years, like

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myself for 29 years, I stay under the current
system.

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Those service members that entered the service
after January 1st of 2018 will all be under

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the new Blended Retirement system.

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The big difference is that you'll now have
an automatic Department of Defense contribution

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to your Thrift Savings Plan of one percent.

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So that's a change compared to the TSP program
and under this new retirement system. The

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other great thing about that is -- is which
we've never had -- is matching funds for our

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service members. So a service member can put
in five percent, and the government will match

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-- or the Department of Defense will match
up to 4% for that service member.

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So this is a huge change for us. Right now,
currently 81%, we estimate, of service members

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that join, if they don't serve their full
20 years, they walk away with nothing.

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Under blended retirement that same service
member can walk away with a retirement benefit

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after just two years.

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Those service members that serve to 20 years
on active duty will collect their retirement

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at an annuity of 2% versus the current 2.5%
after 20 years of creditable service. And

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for our Reserve component service members,
the same rules will apply that currently exist

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today. After 20 years of creditable service
and at age 60, they'll collect their annuity

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or retirement check at a 2.0% versus the current
2.5%.

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We're keeping up with looking at what the
force of the future will look like for the

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Department of Defense, and part of that is
we need to keep up with our civilian counterparts

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out there. We ensure leadership. We answer
every question for them. We educate them on

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their choices. And we're there to support
them and their family members and we try to

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guide them in the best direction. But again,
at the end of the day, it's going to be their

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personal decision to make.

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The 2018 Blended Retirement System: Financial
security for you and your family.