Resource Tag: Thrift Savings Plan
Sick Leave Counts in FERS Benefit Calculation
This provision would require that Federal Employee Retirement System (FERS) include workers’ unused sick leave in the calculation of their monthly benefit payments. Currently only workers covered by the old Civil Service Retirement System may count unused sick leave toward their pensions. The provision phases in the change so that workers retiring within three years of […]
Annual Report to Congress
This provision requires the Thrift Savings Board to submit an annual report to Congress on the operations of the Thrift Savings Plan. The report will be available online and will include the following information: Number of participants in the plan Median account balances Demographic information of the participants Percentage of the allocation of amounts in […]
New Investment Options
This provision gives the Thrift Savings Board the authority to add new investment options to the Thrift Savings Plan. Currently the Board may only offer investment options that are low-cost, diversified, passively managed index funds. The TSP web site has fact sheets on the current investment options. The Board will nowbe able to add other […]
Automatic Enrollment
This provision requires that all new hires, transfers, and reappointments be automatically enrolled in the Thrift Savings Plan (TSP). Before this bill, federal agencies allowed employees to choose to participate in TSP. Agencies were already required by law to automatically contribute one percent of a new employee’s pay into an individual TSP account. Employees then had […]
Roth Contribution Feature
The law adds a Roth contribution feature to the Thrift Savings Plan (TSP), while keeping its traditional tax deferral feature. TSP allows employees to make contributions from their salaries into their accounts and the amount contributed is deducted from the employee’s income in the year the contribution is made. Employees do not pay taxes on […]
Thrift Savings Plan Enhancement Act of 2009
The Thrift Savings Plan Enhancement Act of 2009 (H.R. 1984)* changes the federal retirement savings plan. The Thrift Savings Plan (TSP) is similar to a 401(k) plan and allows federal civil service employees to make voluntary tax deferred contributions into individual retirement accounts. For employees covered by the Federal Employee Retirement System, contributions are matched up […]
