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Sailor 2025 and Blended Retirement System

MCPO Tyrone Jiles Fleet Career Counselor

(808) 474-5848/DSN 315 474-5848Tyrone.jiles@navy.mil

Presented to all Navy Counselors, on 8 Nov 16UNCLASSIFIEDOverall Classification of this Briefing is

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Preparing for the Sailor of 2025Time for a New Approach

The Sailor of 2025

Industrial Personnel System

An Opportunity to Act Now

• Values career agility, choice• Autonomy, Mastery and Purpose• Family, Fitness, Dignity and

Respect

• Up or Out – Wait your turn• Rigid career path• Quantity over Quality

• Health of force, good and improving

• High retention and quality of new Sailors

• Stable environment• BCA/BBA/Sequestration• Increasing costs of manpower

Why Now?

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PSM Lead – RDML BrownEC Lead – RADM NowellRRL Lead – RADM White

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Modernized Personnel System

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Agile and TransparentIndustrial and Centralized

Current System

• Up or Out – Wait your turn• Rigid career path• Quantity over Quality• Process centric• IT Constrained• Centralized career decisions• Bureaucratic• Limited options to reward

talent

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Learning VisionContinuous learning across the Sailor’s career that results in increased Fleet readiness

and provides more efficient and affordable solutions

Mobile

Ready, RelevantModular

AdaptiveProgressive

Distributed

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Preparing for the Sailor of 2025

Learning Alignment

• Aligned across all Stakeholders

• Common solutions• Coordinates reuse,

repurpose of content• Single source oversight

Responsive IT

• Integrated capability• Tracks Sailor progression• Linked to evaluations• Adaptive assessments• Dashboards at multiple

levels – ISIC, Command, Sailor

Learning Continuum

• Training in DEP• Specialty Schools• Progressive NEC• Tailored solutions• Multiple learning modes –

Distance, Avatar, YouTube, Serious games

• Remote access• Integrated Values training

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FY17 and beyond Actions

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Ready, Relevant Learning

Expand the number of CAP quotas; use for both Sea and Shore

Pilot increased TYCOM involvement to identify top-performers – opportunity of EARLY promotion

Consider increasing the number of available CIVINS quotas for TYCOM distribution

Pilot monetized service selection at USNA to incentivize top talent

Implement JOIN interest inventory in the recruiting process

Personnel System Modernization

Pillar Specific Actions

Enriched Culture

Pilot "block learning" using existing curriculum to establish learning continuum for select ratings. Reengineer content to support mobile/modular learning across the continuum, eventually migrating away from the block learning

Begin transition of enlisted ratings to a modularized learning continuum increasing fleet time and Operational manning

Propose options to strengthen maternity, paternity and adoption programs

Ensure gender-neutral berthing on ships by 2025

Consider revision of the body composition standards to be more reflective of modern lifestyles

Set a goal for all operational units have >10% women, & increase by 20% the number of units with >20% women (enlisted by 2020; chiefs & officers 2025)

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History of Military Retirement

• 1973 - All Volunteer Force• 1980 - “Hi Three” retirement• 1986 - REDUX• 1999 - REDUX Repealed• 2000 - Thrift Savings Plan• 2018 - Blended Retirement System

Military retirement remained a “cliff-vested” (all or nothing), Defined Benefit (pension) based retirement while civilian world has transitioned to a Defined Contribution (401k)

based retirement

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The Case for Change

• Current system is expensive• Personnel costs increasing as

numbers are decreasing

• Current system is not fair• 83% of enlisted members do not

reach retirement

• Current system is outdated• Most retirement plans have moved

to 401k type

• Current system is not flexible• Member has no control over

retirement

COST OF AN OFFICER

COST OF AN ENLISTED

PENSION

PENSION

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Military Compensation and Retirement Modernization Commission (MCRMC)

15 Recommendations (3 categories)1. PAY and REQUIREMENTS2. HEALTH3. QUALITY of LIFE

PAY and REQUIREMENTS1. Help more members save for retirement,

leverage retention power of retirement, give Services greater flexibility to retain quality people

2. Provide more options for members to protect pay for their survivors

3. Promote members’ financial literacy4. Increase efficiency within RC status

system

“Thus, reforms to the current compensation package should be judicious, targeted improvements that “do no harm” to the bulk of the system…”

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Blended Retirement SystemHIGHLIGHTS

Current Retirement System:• All or nothing defined benefit

• 2.5% x YOS at 20 YOS

Blended Retirement System:• Hybrid System

• 2.0% x YOS at 20 YOS• Automatic 1% TSP gov’t

contribution at 60 days• Additional 4% TSP gov’t match

vested after 2 YOS*• Continuation Pay at 12 YOS• Lump sum option at retirement

All members with initial entry before 1 January 2018 are grandfathered• Members with less than 12 YOS on

31 December 2017 may OPT-IN

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Education and Draft TimelineEducation and Tools

• 4 Courses• Leadership • Financial Educators• OPT IN Eligible• New Accessions

• Calculators• Financial Counselling

Draft Timeline (subject to change as policy is developed)• Nov 2016: OPT IN eligible notification• NLT 1 Oct 2017: All Leadership complete training• NLT 1 Oct 2017: All Financial Counselors complete training• NLT 31 Dec 2017: All OPT IN Eligible complete training• 1 Jan 2018 – 31 Dec 2018: OPT IN window• 1 Jan 2018: All new accessions automatically enrolled in BRS• After 31 Dec 2018: OPT IN window for those with break in service, DIEMS

before 1 Jan 2018

BRS Training is a portion of Financial Literacy as described in NAVADMIN 161/16

JKO

Navy E-Learning

Military One Source

DVD

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Responsibilities• Notify• OPT IN and CP eligible

• Know the Resources• Financial Counselling• Websites• Calculators

• Educate and Train• Ensure you are informed and trained• Ensure your personnel are informed and

trained• Document

• Ensure Notification and Training is documented

BRS requires significant thought and decision making by the member

Assist members in making an informed decision, but do not provide advice!!!

• http:militarypay.defense.gov/BlendedRetirement/• JKO• Navy E-learning• Military One Source

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Summary

• BRS is an option to those that enter prior to 1 JAN 2018

• Some training already available, more coming in next few months

• Commands will be instrumental in helping Sailors make the right choice for their own decision

• BRS starts 1 JAN 2018, but preparation starts NOW!!!!

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Discussion & Questions?

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