R 211449Z MAY 24
MARADMIN 229/24
MSGID/GENADMIN/CMC WASHINGTON DC MRA MP//
SUBJ/CALENDAR YEAR 2025 CONTINUATION PAY PROGRAM FOR BLENDED RETIREMENT SYSTEM PARTICIPANTS//
REF/A/DOC/USC/2016//
REF/B/DOC/ASN/20170426//
REF/C/DOC/MCBUL/20210615/Extended 20240615//
REF/D/MSGID: MARADMIN/20221208//
REF/E/MSGID: MARADMIN/20170428//
REF/F/MSGID: DOC/MCTFS-PRIUM/20221121//
REF/G/MSGID: DOC/DODFMR, VOL 5 AND VOL 7A//
AMPN/ REF A IS TITLE 37 U.S. CODE SECTION 356. REF B IS THE ASSISTANT SECRETARY OF THE NAVY (MANPOWER AND RESERVE AFFAIRS) MEMORANDUM, IMPLEMENTATION OF THE BLENDED RETIREMENT SYSTEM. REF C IS MCBUL 1800, THE MARINE CORPS BRS POLICY. REF D IS MARADMIN 638/22, CALENDAR YEAR 2024 CONTINUATION PAY PROGRAM. REF E IS MARADMIN 210/17, DISCONTINUED CAREER STATUS BONUS AND REDUX RETIREMENT. REF F IS MCTFS-PRIUM CH 9 SECTION 18. REF G IS THE DEPARTMENT OF DEFENSE FINANCIAL MANAGEMENT REGULATIONS, VOLUME 5 AND VOLUME 7A//
POC/MPO/TEL: 703-784-9386/EMAIL: [email protected]//
GENTEXT/REMARKS/1.  Purpose.  To announce the Blended Retirement System (BRS) Continuation Pay (CP) Program for Calendar Year (CY) 2025.  Only Marines enrolled in the BRS are eligible to receive CP.
2.  Background.  Per the references, CP serves as a financial incentive strategically positioned at the midpoint of a Marine’s career.  This incentive aims to bolster their commitment to continuous service within the Marine Corps.  By recognizing the dedication and expertise of mid-career Marines, CP acts as a pivotal tool in retaining experienced personnel.
3.  CP Eligibility.  Marines enrolled in the BRS and who complete 12 years of service (YOS) from their Pay Entry Base Date (PEBD) may qualify for a one-time CP Payment.  For those participating in the BRS and reaching 12 YOS in CY 2025, eligibility notifications will be disseminated through Marine-On-Line (MOL) and Leave and Earnings Statement (LES) messages.  These LES and MOL notifications will be sent consecutively each month, starting one full year in advance of the Marine’s 12 YOS, up until the Marine reaches 12 YOS, or until the Marine Corps Total Force System (MCTFS) receives a CP election (either lump sum payment, installment payment, or decline CP election), whichever occurs first.  Marines have one full year to make a CP election and can make their election as early as one year in advance of reaching 12 YOS, up until reaching 12 YOS.  By law, CP elections cannot be made after 12 YOS.  Once the Marine reaches 12 YOS, they are no longer eligible to make a CP election.
3.a  Active Component (AC) Marines enrolled in the BRS who complete 12 YOS, calculated from their PEBD, during CY 2025 may qualify for the BRS CP.  In exchange for receiving CP, the Marine agrees to commit to an additional four (4) years of service in the AC.  This commitment will run concurrently with any existing service obligation they may have.  Enlisted Marines are not required to have the time on contract prior to making their election.
3.b.  Active Reserve (AR) Marines enrolled in the BRS who complete 12 YOS, calculated from their PEBD, during CY 2025 may qualify for the BRS CP.  In exchange for receiving CP, the Marine agrees to commit to an additional four (4) years of service in the AR.  This commitment will run concurrently with any existing service obligation they may have.
3.c  Reserve Component (RC) Marines other than AR, who complete 12 YOS, calculated from their PEBD, during CY 2025, may qualify for the BRS CP.  To qualify:  RC Marines must be in a paid status, and they must agree to serve an additional four (4) years in the Selected Reserves.  This commitment will run concurrently with any existing service obligation they may have.  For CP purposes, RC Marines are considered in a paid status if they are affiliated with the Selected Reserves, which includes the Selected Marine Corps Reserve and the Individual Mobilization Augmentee, or if they are on active-duty orders on the day they complete 12 YOS.  RC Marines are not required to be performing duty on the day they complete 12 YOS to qualify for CP.
3.d  Eligibility for CP is contingent upon meeting specific conditions.  In this regard, participants in the BRS who have completed 12 YOS but have received orders to separate from the Marine Corps are not eligible to receive CP.  The issuance of separation orders typically takes place following the approval of the MOL Outbound Interview by the local commander.  This ensures that CP is granted to Marines who continue their commitment to the Marine Corps and are not in the process of separating from service.
4.  CP Pay Rate
4.a  AC and AR Marines who are eligible for CP will receive a CP multiplier of 5.0 times the monthly basic pay at the over 12 years basic pay rate.  This multiplier is applied to the monthly basic pay rate to determine the total CP payment for eligible Marines.
4.b  RC (excluding AR members) Marines who are eligible for CP will receive a CP multiplier of 1.0 times the monthly basic pay at the over 12 years basic pay rate.  This multiplier is applied to the monthly basic pay rate to determine the total CP payment for eligible Marines.
5.  CP Training.  Eligible Marines are encouraged to make a CP election after completing CP training, ideally no later than three months before reaching 12 YOS.  The preferred method for CP training is through the Marine’s installation Personal Financial Manager (PFM), who offers both in-person and virtual training options.  PFMs provide these services to Marines at no cost and offer additional financial education resources and counseling.  For Marines whose permanent duty station (PDS) is not located near a Marine Corps installation, they should contact the PFM closest to their PDS for assistance with CP training.  PFMs points of contact can be found by visiting https:(slash)(slash)www.usmc-mccs.org/marine-family-support/financial-management. 
6.  Election Process.  Eligible Marines must sign a statement of understanding (SOU) to either accept or decline CP.  For AC, this can be accomplished using the Navy and Marine Corps Form (NAVMC 11905), while the AR and RC Marines can use the Navy and Marine Corps Form (NAVMC 11908).  The SOU, along with a witness signature, must be completed and dated before the Marine reaches 12 YOS from their PEBD.  Marines have the option to submit their SOU as early as one year in advance of their 12 YOS.  The SOU election form must be submitted to their unit administration section via Electronic Personnel Action Requests (EPAR) in MOL, and the unit diary actions complete no later than the Marine’s 12 YOS.  Participants are allowed to modify their decision regarding CP election at any time before their 12 YOS.  Administrative guidance and CP election procedures remain unchanged and are outlined in reference (c), providing Marines with clear instructions on how to navigate the CP election process effectively.
7.  Timing and Method of Payment.  The disbursement of CP is authorized to occur upon or after completing 12 YOS, with the objective of distributing payment within 30 days.  CP can be disbursed as either a single payment or in two, three, or four equal installments, scheduled on the anniversary of the initial payment.  Payment will be disbursed via Electronic Funds Transfer as applicable during normal pay cycles.  It is crucial for Marines to comprehend that the payment option chosen is irrevocable and should be decided upon when completing the SOU.  Once a Marine has opted to receive CP and the unit diary entry is recorded, they can access information regarding payment amounts, status updates, and obligated service dates by visiting the MOL portal.  To access this information on MOL, follow these steps:  login to MOL, navigate to ‘Personal Information,’ select ‘BRS/TSP Report,’ click on ‘BRS-CP.  This ensures that Marines have access to pertinent details regarding their CP disbursement and can stay informed about their financial benefits within the Marine Corps.
8.  Tax Considerations:  Understanding the tax implications of CP payments is crucial for Marines.  CP payments are subject to federal and state income tax withholding unless the recipient qualifies for Combat Zone Tax Exclusion during the month, until they reach 12 YOS.
9.  Relationship to Other Pays and Allowances.  CP payments are supplementary to any other pays or allowances to which the Marine is entitled.  Receiving CP does not render a Marine ineligible for other pays and allowances they may be entitled to.  Marines will continue to remain eligible for any other entitlements or benefits as per their service agreements, and CP serves as an additional financial incentive without affecting their eligibility for other forms of compensation.
10.  Effect of CP Payment on Military Retired Pay.  A Marine’s receipt of CP payment, whether received in annual installments or a single lump sum, does not cause a change in the dollar amount or timing of retired annuity pay that the Marine would receive if they were qualified for retired annuity pay.  CP payments do not impact the amount or timing of retirement benefits that a Marine may be entitled to receive upon retirement.
11.  Distinguishing CP from Career Status Bonus (CSB).  It is important to note that BRS CP should not be confused with the CSB that was offered under the REDUX Retirement Plan.  The CSB program was discontinued on January 1, 2018, as announced in reference (f).  Unlike CSB, CP does not cause a reduction in a Marine's retired annuity pay.  CP serves as a separate financial incentive designed to encourage Marines to continue their military service without affecting the retirement benefits, they are entitled to receive.  This distinction is important for Marines to understand to avoid confusion regarding their benefits and entitlements.
12.  Recoupment of CP.  It is important for Marines to fully understand the implications of receiving CP, particularly regarding the obligation for additional service.  The additional obligated service incurred by opting to receive CP must be fulfilled within the same component where the Marine is currently serving at the time of election.  For example, if a Marine accepts CP while serving in the AC, they are obligated to serve an additional four (4) years in the AC.  Similarly, if CP is accepted in the AR, the Marine is obligated to serve an additional four (4) years in the AR.  Likewise, if CP is accepted while in the RC, the Marine is obligated to serve an additional four (4) years in the Selected Reserves.  Understanding these component specific obligations is essential for Marines to make well informed decisions regarding their CP benefits.
13.  For RC Marines who are involuntarily transferred to the Individual Ready Reserve, such as at the end of an assignment tour, a 6-month grace period will be provided from the date of transfer to be assigned to a Selected Reserve billet.  During this grace period, efforts should be made to facilitate the transition to a Selected Reserve billet.  However, if a Marine fails to secure a Selected Reserve billet within this grace period, recoupment action will be initiated in accordance with the regulations and guidelines outlined in reference (c).  This may involve the recoupment of any unearned portion of CP that was received by the Marine.
14.   Thrift Savings Plan (TSP).  When contemplating your TSP contributions using CP funds members can optimize their retirement savings strategy and work towards achieving long-term financial goals, while staying within the Internal Revenue Service (IRS) contribution limits.  Once a Marine's maximum IRS contribution amount is reached, contributions will be suspended for the remainder of the year.  This suspension also applies to Marine Corps matching contributions.  However, the monthly 1 percent automatic contribution by the Marine Corps, equal to 1 percent of the Marine's monthly basic pay, will continue regardless of the contribution limits being reached.  For further details concerning these limits and contribution guidelines, Marines can visit the TSP website at https:(slash)(slash)www.tsp.gov/making-contributions/contribution-limits/.  This resource provides comprehensive information to help Marines manage their TSP contributions effectively and optimize their retirement savings strategy
15. Additional information regarding BRS CP can be found at the Manpower & Reserve Affairs (M&RA), Manpower Plans and Policy (MPO) webpage at https:(slash)(slash)www.manpower.usmc.mil/wordpress/?active_marine=active-marines-home/manpower-plans-and-policy-mp/manpower-military-policy-mpo/military-compensation#BRS.
16.  This MARADMIN will remain in effect until superseded or canceled, whichever occurs first.  This MARADMIN applies to the Marine Corps Total Force.
17.  Release authorized by Lieutenant General James F. Glynn, Deputy Commandant for Manpower and Reserve Affairs.//