Blended Retirement System Public Information DID # 236341-1016

Blended Retirement System The Next Generation of Military Benefits

J.J. Montanaro, CFP®

Relationship Director

Military Affairs

DigitalMilEx

Gregg Rivas, CRCP®, AAMS®

Executive Director, Retirement Solutions

Enterprise Advice Group

Blended Retirement System 2 Public Information DID # 236341-1016

Agenda

Current Military Retirement

The New BRS

Potential Benefits of BRS

Who’s Affected?

USAA Study Results

USAA is here to serve

Service Member Considerations

Timeline

Q&A

Blended Retirement System Public Information DID # 236341-1016 3

Current Military Retirement

20-Years of Service Lifetime Pension

• Monthly Income

• Inflation Adjusted

• 100% DoD Funded

Thrift Savings Plan (TSP)

• Tax Advantage Employer Plan (Roth, Traditional)

• Similar to Civilian 401(k)

• Voluntary-no DoD Match

Blended Retirement System 4 Public Information DID # 236341-1016

The New BRS

Four Components

20-Year Pension

DoD Contributions to the TSP

Continuation (Retention) Pay at 12 Years

New Lump Sum Option at Retirement

Blended Retirement System 5 Public Information DID # 236341-1016

Potential Benefits of BRS

Greater portability of retirement benefits

Matching enables greater savings for retirement

No longer all-or-nothing retirement plan

Covers more service members

Potential recruiting incentive

Continuation pay adds incentive to stay for full career

Blended Retirement System Public Information DID # 236341-1016 6

Who’s Affected?

1.1 Million Military

Members

650,000 USAA

Members

Blended Retirement System Public Information DID # 236341-1016 7

USAA’s Study Results

“The most significant change in military retirement to date”

Blended Retirement System Public Information DID # 236341-1016 8

USAA is here to serve

Provide education:

BRS provisions

Military retirement basics (TSP, TVM, etc.)

Frame BRS decision with two key questions:

How long do you plan to serve?

Which plan may benefit you the most financially?

Blended Retirement System Public Information DID # 236341-1016 9

Education & Choices

Blended Retirement System

BRS Timeline

2016 2017 2018

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

USAA Launches BRS

Webpage

DoD

releases

Financial

Counselor

Educator

Course

November:

Eligible Opt-

in Members

Notified

DoD conducts Opt-in Training

Opt in Window:

Jan 1 – Dec 31

2018

12/31/17: Last

date of eligibility for

coverage under

legacy retirement

system

DoD

Timeline

USAA

Launches

Decision

Tool

DoD

Launches

BRS

Calculator

DigitalMilEx

USAA BRS Communications

Blended Retirement System

Q&A

J.J. Montanaro, CFP®

Relationship Director

Military Affairs

Gregg Rivas, CRCP®, AAMS®

Executive Director, Retirement Solutions

Enterprise Advice Group

Blended Retirement System 12 Public Information DID # 236341-1016

Blended Retirement System 13 DID # 236341-1016

• The Department of Defense will release more details of the plan before 2018. Details of the plan are subject to change pending National Defense Authorization Act (NDAA) approval.

• Information is accurate as of Aug. 2016 and is intended for use by USAA, its members and prospects.

• This material is for informational purposes and is not investment advice, an indicator of future performance, a solicitation, an offer to buy or sell, or a recommendation for any security.

It should not be used as a primary basis for making investment decisions. Consider your own financial circumstances and goals carefully before investing.

• Financial planning services and financial advice provided by USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California),

a registered investment adviser and insurance agency and its wholly owned subsidiary, USAA Financial Advisors, Inc., a registered broker dealer.

• USAA or its affiliates do not provide tax advice. Taxpayers should seek advice based upon their own particular circumstances from an independent tax advisor. The information is

provided for informational purposes only and is not intended to substitute for obtaining professional financial advice. Please thoroughly research and seek professional representation

before acting on any information you may have found in this article. This article is in no way attempts to provide advice that relates all personal circumstances.

• Any examples given during this presentation are hypothetical illustrations and not an indication of the benefits or features of any USAA product. You should seek policies and advice

based upon your own particular circumstances.

• USAA means United Services Automobile Association and its affiliates. Property and casualty insurance provided by United Services Automobile Association, San Antonio, TX. Each

company has sole financial responsibility for its own products. Investment provided by USAA Investment Management Company, and financial Advisors Inc., both registered broker

dealers. Life insurance and annuity products provided by USAA Life Insurance Company, San Antonio, TX, and in New York by USAA Life Insurance Company of New York,

Highland Falls, NY. Financial advice provided by USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California), and USAA

Financial Advisors, Inc., a registered broker dealer. Credit cards provided by USAA Savings Bank. Other banking products provided by USAA Federal Savings Bank. Both Member

FDIC.

• Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER TM in the United States, which it awards to individuals

who successfully complete CFP Board's initial and ongoing certification requirements.

• No Department of Defense or government agency endorsement.

Disclosures