If you’re serving in the National Guard under the Blended Retirement System (BRS), there’s an important change coming that could significantly impact your pocketbook—and your future plans.
Starting 1 January 2026, the Department of the Army is implementing a new policy affecting Continuation Pay (CP)—a one-time, direct cash incentive offered in exchange for a four-year service agreement. Think of it like a retention bonus meant to encourage mid-career Soldiers to stay in the fight.
Here’s what you need to know:
What’s Changing?
-
M-Day (Drilling Status) Guardsmen:
The CP multiplier is dropping from 2.5x to just 0.5x your monthly active duty base pay—matching what most other reserve components already offer. -
AGR Soldiers:
No change. CP remains at 2.5x monthly base pay. -
Exception for Mobilized Guardsmen:
If you’ve served 270+ days of involuntary mobilization within a 730-day window, you still qualify for the 2.5x multiplier—a newly added benefit. -
Eligibility Window:
You can now elect CP as early as 7 years of service (previously 8), up to 12 years. But heads up—this window is expected to shrink to 7–10 years in FY27, which could reduce the bonus even further due to lower base pay.
What’s the Bottom Line?
Let’s talk numbers. Under the current 2.5x multiplier, an E6 with 10 years of service could receive $11,462.50 in 2025. Come 2026, that same Soldier may only see $2,380.00—a difference of over $9,000.
Here are a few more examples:
| Grade | CY25 (2.5x) | CY26 (0.5x) | Difference |
|---|---|---|---|
| E5 | $10,585.00 | $2,197.50 | $8,387.50 |
| E7 | $12,765.00 | $2,650.00 | $10,115.00 |
| CW2 | $15,131.25 | $3,026.25 | $12,105.00 |
| O3 | $20,172.50 | $4,188.00 | $15,984.50 |
⚠️ Note: These figures are based on projected 2026 pay scales and are subject to change.
Why This Matters
This shift could have a major impact on mid-career retention, especially for part-time Guard Soldiers. Inconsistent policies year-to-year may also foster mistrust and confusion, making long-term planning more difficult for Soldiers and families alike.
What Should You Do?
If you’re nearing 7–12 years of service, act now. Soldiers currently eligible for CP under the 2025 rates can still sign their agreement before the policy change takes effect.
Reach out to your Career Counselor, State Incentive Manager, or HR professional to understand your eligibility and options.
Final Word
EANGUS is committed to ensuring every enlisted Guard member has the tools and information they need to make informed career decisions. While this change aligns the ARNG with other reserve components, it also underscores the need for predictable and equitable policies across the Total Force.
If you believe these changes could affect you or your Soldiers, get informed, speak up, and take action.
