UNITED STATES MARINE CORPS: THE CONFLUENCE OF LEADERSHIP, THE BLENDED RETIREMENT SYSTEM, AND THE THRIFT SAVINGS PLAN
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Authors
Joseph, Kenneth M.
Subjects
BRS
TSP
financial education
retirement savings
Roth versus traditional
future value equation
conceptual financial models
leadership
TSP
financial education
retirement savings
Roth versus traditional
future value equation
conceptual financial models
leadership
Advisors
Sullivan, Ryan S.
Tick, Simona L.
Date of Issue
2024-03
Date
Publisher
Monterey, CA; Naval Postgraduate School
Language
Abstract
The Department of Defense's transition to the Blended Retirement System (BRS) in 2018 marked a significant shift in military retirement planning, allowing service members for the first time to receive matching contributions to their Thrift Savings Plan (TSP). This thesis delves into the financial implications of default settings within the BRS, focusing on outcomes for three distinct groups: opt-in members, automatic 3% enrollees, and automatic 5% enrollees. Developing a conceptual framework to construct various financial models, this thesis examines the differences in TSP portfolio earnings based on default settings and assesses the appropriateness of Roth and traditional TSP account options for enlisted personnel and officers. This thesis illustrates differences in service member contributions, government matching contributions, TSP portfolio balances at the end of different service lengths, and the projected TSP account balances at age 60 given an annual 8% rate of return. Current data shows that not all BRS members are actively contributing to the TSP or receiving the full government match. This highlights a missed opportunity for current active-duty service members. Moreover, the complexity of TSP account selection is underscored, emphasizing the importance of informed decision-making. Leadership intervention and enhanced financial education are needed to correct these issues and raise awareness of retirement entitlements among all BRS participants.
Type
Thesis
Description
Series/Report No
Department
Department of Defense Management (DDM)
Organization
Identifiers
NPS Report Number
Sponsors
Funder
Format
Citation
Distribution Statement
Distribution Statement A. Approved for public release: Distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.