A Thrift Savings Plan annuity is one of your options for

withdrawing your TSP account after you separate from service.  A TSP

annuity is a benefit paid each month to you (or to your survivor) for

life. 

The TSP purchases the annuity on your behalf from its annuity

provider, Metropolitan Life Insurance Company (MetLife). 

If you elect an annuity with survivor benefits, it will

provide payments as long as you (or your joint annuitant) are alive.

Note: A TSP annuity is not the basic annuity that you will receive as a

result of your retirement coverage under FERS or CSRS.

If you want a guaranteed stream of payments for as long as you (or your

joint annuitant) are  alive, an annuity may be the right choice. You

can use your entire account balance to purchase a TSP annuity, or you can

use a portion of your account balance to purchase an annuity and choose a

different  withdrawal option or options to withdraw the rest.

Amount of your Thrift Savings Plan annuity

The factors that affect the amount of your monthly annuity payments

include:

• The annuity option you choose.

• Your age when your annuity is purchased (and the age of your spouse or other

  joint annuitant if you choose a joint annuity). For TSP annuity purposes, age is

  defined in whole years; months are not considered in the annuity calculation.

• The amount used to purchase your annuity.

• The interest rate index when your annuity is purchased.

You can use the annuity

calculator on the Thrift Savings

Plan website to try out any number of possibilities.  You can also

contact the TSP to obtain an annuity estimate.

If you choose a TSP annuity, the balance in the account to which your annuity

request applies must be at least $3,500 at the time your annuity is purchased.

If you are using only a portion of your account for an annuity, the percentage

you choose when requesting your withdrawal must equal $3,500 or more of your

vested account balance.