IN THE CASE OF:  

		BOARD DATE:  24 February 2022

		DOCKET NUMBER:  AR20200009558


APPLICANT REQUESTS:  correction of her record to show she did not enroll in the 
Blended Retirement System (BRS) and a personal appearance before the Board.

APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD:

*	DD Form 149 (Application for Correction of Military Record)
*	Government Retirement Benefits Letter, dated 5 December 2018
*	Government Retirement Benefits Letter, dated 14 August 2019
*	Thrift Savings Plan (TSP) Summary
*	Memorandum: Subject: Request to Appeal Enrollment in the BRS, undated
*	Email, dated 1 September 2020

FACTS:

1.  The applicant did not file within the three-year time frame provided in Title 10, United 
States Code (USC), section 1552(b); however, the Army Board for Correction of Military 
Records (ABCMR) conducted a substantive review of this case and determined it is in 
the interest of justice to excuse the applicant's failure to timely file.

2.  The applicant states she wants to appeal her enrollment in the BRS in December 
2018. She believes the error to be unjust for the following reasons:

a.	The BRS calculator is misleading and does not accurately reflect projections for 
both retirement systems. The calculator for the Legacy Retirement system does not 
include the Government TSP contributions like the BRS calculation, which is 
misleading.

b.	The BRS calculator also does not accurately calculate Reservist pay and is built 
for active duty. Active duty personnel were protected and not allowed to enroll at 12 
years of service; however, the U.S. Army Reserve (USAR) could enroll with more than 
12 years, never being able to catch-up. Soldiers should have been required to meet with 
a financial advisor to discuss.

c.	A financial advisor with Merrill Lynch discovered the discrepancy, and as a 
financial professional, found the calculator inaccurate and misleading. He was not 
accurately able to input her information because the system is not for the USAR, but he 
found that she would lose approximately $300,000 in retirement benefits.

3.The applicant provides:

a.	Government Retirement Benefits Letter, dated 5 December 2018, which shows 
under the Legacy Retirement (High-3), her government benefit is $0; however, under 
the BRS, with $131,297 in government TSP contributions, her total benefit would be 
$131,297. Her Total Retirement Package shows under the High-3, the TSP is not part of 
the Legacy Retirement System and the BRS with $131,297 and $525,190 in Service 
Member TSP would total $656,487 for a BRS retirement. Her present value is $93,743 
total BRS Retirement.

b.	Government Retirement Benefits Letter, dated 14 August 2019, which shows 
under the High-3, her government benefit is $687,626; however, under the BRS, with 
$550,101 in her pension and $25,406 in Government TSP Contributions, would give her 
$575,507 for a total Government Retirement Benefit. Her Total Retirement Package 
shows under the High-3, the TSP is not part of the Legacy Retirement System and the 
BRS with $550,101 in her pension and $25,406 in Government TSP Contributions, and 
$101,624 for Service Member TSP, gives her a Total BRS Retirement of $677,131.

c.	She provides a summary for her Thrift Savings Plan (TSP), which lists her total 
contributions, maximum account value and annualized payment.

d.	Memorandum: Subject: Request to Appeal Enrollment in the BRS, issued by 
Headquarters, First Army Division West, undated, signed by a Major General, supports 
the applicant’s request. He states as his justification, “The BRS training and calculator 
for the 2018 opt-in did not accurately calculate contributions for Reservists. The BRS 
calculator computed TSP contributions for both retirement systems. However, the 
calculator did not include service members' TSP contributions in the basic summary of 
retirement benefits for the legacy total, where it did include the TSP contributions in the 
BRS totals. There should have been a requirement to review the calculator with a 
financial advisor prior to receiving the opportunity to opt-in. Furthermore, Reserve 
Component Soldiers with more than 20 years of service were allowed to opt in where 
Active Component Soldiers were protected and not allowed to opt in if they had more 
than 12 years of service. Since the USAR opt-in was point based, Reservists with more 
than 20 years of service could opt-in causing them to lose a significant amount of 
retirement benefits.”

e.	Email, dated 1 September 2020, from the applicant’s financial advisor with Merrill 
Lynch. He states:

(1)	I have been a Financial Advisor with Merrill Lynch for over 10 years as well as 
a Military Intelligence Officer in the USAR. [Applicant] asked me to look at her decision 
regarding the selection of her retirement benefits as she grew increasingly concerned 
that opting out of the legacy pension system and into the BRS would have a negative 
impact on her retirement. She asked my advice on this and showed me the BRS 
Calculator that was the foundation for her decision to opt in to the BRS. I found this 
calculator confusing and misleading regarding hypothetical returns vs. actual, 
quantifiable pension numbers in the legacy system.

(2)	In my opinion, the BRS Calculator makes a lot of assumptions based on 
future hypothetical returns which are not guaranteed in any way. However, the thing I 
found most troubling is that it lumped in the service member contribution with the match 
and implied that was an apples-to-apples comparison to the legacy pension system 
(which of course it is not because the legacy system does not require a deferral of 
salary, which the BRS clearly does in order to get the maximum benefit). This is 
troubling because it requires the service member to contribute around $5,000.00 of their 
pay every year (or in the case of [applicant], around $75,000) in total to arrive at a 
number that is even close to comparable to what she would receive by simply staying in 
the legacy system. The calculator is what blurred the lines into her making a flawed 
decision and opting in to BRS.

(3)	She realized this early on and has been working to reverse this decision ever 
since, but apparently this decision is non-revocable. A decision that can be made online 
based on confusing calculators and no financial advisors helping Soldiers that cannot 
be revoked is stunning. This decision will have a $150,000 to $200,000 negative impact 
on [applicant’s] retirement. If this can happen to her, I can only imagine who else has 
been impacted.”

4.  A review of the applicant’s service record shows:

a.	DA Form 71 (Oath of Office) shows she was commissioned as a Reserve 
Commissioned (RC) Officer, effective 8 May 2005.

b.	Memorandum, issued by the Army Reserve Officers’ Training Command 
(ROTC), dated 5 May 2005, shows she was appointed as a RC Officer, in the rank of 
second lieutenant (2LT), effective 5 May 2005.

c.	DD Form 214 (Certificate of Release or Discharge from Active Duty) shows she 
was honorably released from active duty due to the completion of her required service 
on 1 June 2018. She completed 7 months and 9 days of net active service this period, 
with 5 years, 1 month and 22 days of total prior active service with 7 years, 3 months, 
and 23 days of total prior inactive service.

d.	DD Form 214 shows she was honorably released from active duty due to the 
completion of her required active service on 30 September 2020. She completed 2 
years of net active service this period, and 5 years, 9 months, and 1 day of total prior 
active service, with 7 years, 7 months, and 22 days of total prior inactive service. 

e.	Orders C-12-112613, issued by U.S. Army Human Resources Command (HRC), 
dated 2 December 2021, shows she was reassigned in the USAR, effective 
29 November 2021.

f.	DA Form 5019 (Chronological Statement of Retirement Points), dated     
18 February 2022, shows she completed 14 qualifying years for retirement.


BOARD DISCUSSION:

1.  After reviewing the application and all supporting documents, the Board found relief 
is warranted.

2.  The Board concurred with the finding of the applicant's financial advisor that she had 
inadvertently forfeited a significant amount of potential retirement income by opting into 
the BRS.  The Board found her argument regarding the flaws in the BRS calculator 
compelling.  Based on a preponderance of evidence, the Board determined the 
applicant's record should be corrected to show she did not opt into the BRS.


BOARD VOTE:

Mbr 1	Mbr 2	Mbr 3

:X	:X	:X	GRANT FULL RELIEF

:	:	:	GRANT PARTIAL RELIEF

:	:	:	GRANT FORMAL HEARING

:	:	:	DENY APPLICATION


?
BOARD DETERMINATION/RECOMMENDATION:

The Board determined the evidence presented is sufficient to warrant a 
recommendation for relief.  As a result, the Board recommends that all Department of 
the Army records of the individual concerned be corrected by showing she did not opt 
into the Blended Retirement System.

		  
I certify that herein is recorded the true and complete record of the proceedings of the 
Army Board for Correction of Military Records in this case.


REFERENCES:

1.  Title 10, USC, section 1552(b), provides that applications for correction of military 
records must be filed within 3 years after discovery of the alleged error or injustice. This 
provision of law also allows the ABCMR to excuse an applicant's failure to timely file 
within the 3-year statute of limitations if the ABCMR determines it would be in the 
interest of justice to do so.

2.  Department of Defense Memorandum, issued by the Deputy Secretary of Defense, 
Subject: Implementation of the BRS, dated 27 January 2017, states, this memorandum 
implements guidance for the BRS for the Uniformed Services, which was authorized in 
sections 631 through 635 of Public Law 114-92, the National Defense Authorization Act 
(NDAA) FY 2016, as modified by sections 631 through 633 of Public Law 114-328, the 
NDAA for FY 2017. This policy supplements existing issuances and regulations 
pertaining to military retirement and annuity programs to provide guidance specifically 
for the BRS. The policy outlined in the attachments will be incorporated into all 
applicable issuances and regulations to ensure an effective and efficient transition to 
this new retirement system when the BRS becomes effective on 1 January 2018. The 
implementation of a new retirement system is a monumental change for the 
Department, requiring significant involvement from the leadership of our Uniformed 
Services. 

3.  Army Regulation 15-185 (Army Board for Correction of Military Records) prescribes 
the policies and procedures for correction of military records by the Secretary of the 
Army acting through the ABCMR. The ABCMR begins its consideration of each case 
with the presumption of administrative regularity. The ABCMR will decide cases on the 
evidence of record.  It is not an investigative body. The applicant has the burden of 
proving an error or injustice by a preponderance of the evidence. Paragraph 2-11 states 
applicants do not have a right to a formal hearing before the ABCMR. The Director or 
the ABCMR may grant a formal hearing whenever justice requires.

//NOTHING FOLLOWS//
ABCMR Record of Proceedings (cont)	 AR20200009558


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ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

RECORD OF PROCEEDINGS


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