CSRS / FERS Federal Retirement Planning Tools and Resources: Thrift Savings - TSP, FEGLI, FEHB and more.
Home     Articles     News     Resources     CSRS     FERS     Thrift Savings Plan     Find A Professional     FREE NEWSLETTER    
 Financial Professionals Directory

Find a financial professional in your area. Click here


 Top 5 Resources

1. 2010 Federal Pay Raise
2. 2010 Federal Retiree COLA
3. Best Dates to Retire
4. Latest TSP Returns
5. High-3 Average Salary

 CSRS Retirement
 Overview - CSRS
 Eligibility - CSRS
 Creditable Service -CSRS
 Survivor Benefits - CSRS
 Annuity Calculation-CSRS
 FERS Retirement
 Overview - FERS
 Eligibility - FERS
 Creditable Service -FERS
 Survivor Benefits - FERS
 Thrift Savings Plan
 Thrift Savings -Overview
 TSP Investment Choices
 TSP Loan Program
 TSP Contributions
 TSP Withdrawals
 TSP Returns
 Access Your TSP Account
 Insurance
 FEGLI - Life Insurance
 FEHB - Health Benefits
 Medicare
 FEDVIP - Dental/Vision
 FLTCIP - Long-Term Care
 FSAFEDS - Flex Spending
 Financial Planning
 Calculators
 Tax Tips
 Find A Professional
 Retirement Living
 Relocation / Real Estate
 Retirement Jobs
 Directory of Financial Professionals
Use this directory to find a financial professional in your area that specializes in the needs of federal and postal employees. Click here

_

Home | Thrift Savings -Overview | Thrift Savings Plan (TSP) for FERS Employees

Thrift Savings Plan (TSP) for FERS Employees

Printer-Friendly Format

The Thrift Savings Plan (TSP) for FERS employees is one of the three parts of your retirement package, along with your FERS Basic Annuity and Social Security. 

Participating in the TSP does not affect the amount of your Social Security benefit or your FERS Basic Annuity.

The money that you save and earn through your TSP account will provide an important source of retirement income.  The TSP is especially important to FERS employees because the formula used to compute your FERS Basic Annuity is less generous than the formula used to compute the CSRS annuity. 

As a FERS employee, you may elect to contribute any dollar amount or percentage (1 to 100) of your basic pay to the Thrift Savings Plan.

However, your annual dollar total cannot exceed the Internal Revenue Code limit, which is $15,500 for 2007.

Agency Contributions

Once you are eligible as a FERS employee, you are entitled to receive agency contributions.  If you are a FERS employee, your agency makes two different types of contributions to your TSP account as part of your FERS benefits.  These contributions are not taken out of your pay, nor do they increase your pay for income tax or Social Security purposes.

1.  Agency Automatic 1% Contributions

When you become eligible for agency contributions, your agency will automatically contribute to your TSP account an amount equal to 1 percent of your basic pay each pay period.  These are your agency automatic (1%) Contributions.  You will receive these contributions whether or not you contribute your own money to your TSP account.

2.  Agency Matching Contributions

If you are contributing to your TSP account, your agency also makes agency matching Contributions once you are eligible for them.  If you do not contribute your own money, you will not receive agency matching contributions.  Matching contributions apply to the first five percent of pay that you contribute each pay period.  Your contributions are matched dollar-for-dollar on the first three percent of pay you contribute each pay period and 50 cents on the dollar for the next two percent of pay.  Your agency will not match the contributions that you make above five percent of your pay.  However, you will still benefit from before-tax savings and tax-deferred earnings on those contributions.

The fact that your agency adds to your contributions will make your TSP account grow faster.  Your Agency Automatic (1%) and Matching Contributions can add up to five percent of your basic pay.  To see how it works, click here to view the table on Agency Contributions to the Thrfit Savings Plan for FERS Employees



·  How Does the TSP Differ from the FERS Basic Annuity and the CSRS Annuity?
·  What Does It Mean To Be "Vested" in the Thrift Ssvings Plan (TSP)?
·  Agency Contributions to Thrift Savings Plan for FERS Employees (Automatic 1% and Matching)



Featured Columnist
Read articles written by federal benefits expert and Certified Financial Planner, Edward Zurndorfer

Recent Articles & Resources
 Federal Employee Salaries Continue to Be a Hot Topic of Debate
 NARFE Disappointed With Senate's Rejection of $250 Payment to Retirees
 Federal Employees 50 and Older Are Encouraged to Make TSP "Catch-Up" Contributions