16 Things Seniors Born Between 1941-1969 Could Take Advantage OfThe Thrift Savings Plan (TSP) published a bulletin yesterday outlining the effect of the retroactive 2019 pay raise on the plan participant’s contributions from payroll.
Below is the full text of the bulletin.
April 4, 2019
Effect of the retroactive pay increase on the Thrift Savings Plan
On February 15, 2019, President Donald J. Trump signed Public Law 116-6, “The Consolidated Appropriations Act, 2019”, which authorizes appropriations to fund the operation of a number of agencies in the federal government through September 30, 2019. This legislation mandates a 1.9 percent average pay increase for most federal civilian employees retroactive to January 1, 2019. President Trump signed Executive Order on Adjustments of Certain Rates of Pay on March 28, 2019, setting forth the pay rate schedules.
This bulletin is to inform agency payroll offices that although this pay increase will be retroactive to the first pay period in January, it is not considered a late contribution under 5 CFR § 1605.15, a missed contribution under 5 CFR § 1605.11, or a retroactive pay adjustment under 5 CFR § 1605.13.
If you need to submit contributions associated with the retroactive pay increase, you should submit these contributions to the TSP recordkeeper on current payment records (12 or 16-Record) using the current pay date, not the as of date. Using the as of date for these contributions could result in breakage.
If you have any questions regarding the above, please contact Agency Technical Services at 1-888-802-0179.
Tee Ramos
Director, Office of Participant Services
Office of Participant Services