R 071035Z SEP 01 ZYW
FM CMC WASHINGTON DC//MP//
TO MARADMIN
BT
UNCLAS //N01900//
MARADMIN 423/01
MSGID/GENADMIN/CMC WASHINGTON DC/MPO-40//
SUBJ/THRIFT SAVING PLAN (TSP) 01-01//
REF/A/MSG/CMC/181145ZMAY01//
AMPN/REF A IS MARADMIN 241-01. THE REFERENCE DISCUSSES DELAYING THE
CAREER STATUS BONUS (CSB)/REDUX CHOICE TO ALLOW FOR ENROLLMENT IN
THE TSP//
POC/K.J. HACKBARTH/MAJ/COM 703-784-9387/DSN 278-9387//
RMKS/1. THE FISCAL YEAR 2001 NATIONAL DEFENSE AUTHORIZATION ACT
EXTENDED PARTICIPATION IN THE TSP TO MEMBERS OF THE UNIFORMED
SERVICES.
2. TSP IS A LONG-TERM SAVINGS AND INVESTMENT PLAN BASED ON PAYROLL
CONTRIBUTIONS. INCOME INVESTED IN THE TSP IS "PRE-TAX" AND SO
REDUCES THE TOTAL TAXABLE INCOME WHILE PROTECTING THIS INCOME AND
EARNINGS FROM TAXATION UNTIL THEY ARE WITHDRAWN FROM THE TSP
ACCOUNT. MONEY CANNOT BE WITHDRAWN FROM A TSP ACCOUNT WITHOUT
SIGNIFICANT PENALTIES (IN ADDITION TO TAXATION) UNTIL A MEMBER
REACHES AGE 59 ½-YEARS. A MEMBER CAN BORROW AGAINST THE
AVAILABLE BALANCE OF HIS/HER ACCOUNT TO A LIMIT NOT TO EXCEED THE
MEMBER'S TOTAL CONTRIBUTIONS.
3. MARINES MAY SIGN-UP FOR TSP ONLY DURING A TSP OPEN SEASON. THE
INITIAL TSP OPEN SEASON WILL RUN FROM 9 OCT 01 TO 31 JAN 02
(BEGINNING 9 DEC 01, ACCESSIONS WILL BE GIVEN 60 DAYS TO ENROLL FROM
THEIR FIRST DAY OF ACTIVE DUTY OR RETURN TO ACTIVE DUTY). SUBSEQUENT
OPEN SEASONS WILL RUN THAT SAME YEAR AND EACH YEAR THEREAFTER FROM
15 MAY TO 31 JUL, AND THEN AGAIN FROM 15 NOV TO 31 JAN. NOTE! NO
ELECTION TO PARTICIPATE IN THE TSP MAY BE MADE EFFECTIVE EARLIER THAN
THE LAST MONTH OF THE OPEN SEASON. (FOR EXAMPLE, FOR THE INITIAL OPEN
SEASON, ELECTIONS SUBMITTED BEFORE JAN 02 WILL BECOME EFFECTIVE THE
FIRST PAY PERIOD IN JAN; ELECTIONS SUBMITTED DURING JAN WILL BECOME
EFFECTIVE NO LATER THAN THE FIRST PAY PERIOD AFTER THE COMMANDING
OFFICER ACCEPTS THE ELECTION FORM.) TSP ENROLLMENT FORMS, TSP-U-1,
CAN BE DOWNLOADED FROM THE TSP WEB SITE AT WWW.TSP.GOV, AND WILL BE
ACCESSIBLE AT YOUR LOCAL ADMIN SECTIONS.
4. A MEMBER MAY STOP THEIR TSP CONTRIBUTIONS AT ANY TIME. THE STOP
IS EFFECTIVE AT THE END OF THE PAY PERIOD THAT THE MEMBER PROVIDES
THE TERMINATION DECISION TO THEIR ADMIN OFFICE. IF CONTRIBUTIONS ARE
TERMINATED BETWEEN OPEN SEASONS, A MEMBER MUST WAIT UNTIL THE SECOND
OPEN SEASON FOLLOWING THE TERMINATION TO REENROLL. MEMBERS MAY
TERMINATE CONTRIBUTIONS FROM SPECIAL AND INCENTIVE PAYS AND BONUSES
WITHOUT TERMINATING BASE PAY CONTRIBUTIONS. RESTARTING THESE
CONTRIBUTIONS FOLLOW THE SAME RULES AS NOTED ABOVE.
5. TO CONTRIBUTE SPECIAL AND INCENTIVE PAYS OR BONUSES, ONE MUST
BE CONTRIBUTING FROM THEIR BASE PAY (A MEMBER CAN ONLY ELECT TO
CONTRIBUTE SPECIAL AND INCENTIVE PAYS DURING AN OPEN SEASON). TSP
ENROLLMENT CAN ONLY OCCUR DURING A TSP OPEN SEASON. IF A MEMBER
ANTICIPATES RECEIVING A BONUS (SUCH AS A REENLISTMENT OR CAREER
STATUS BONUS) AND WANTS TO CONTRIBUTE ALL OR A PART OF THAT BONUS
TO THE TSP, THEY MUST HAVE AN ESTABLISHED TSP ACCOUNT AND BE
CONTRIBUTING FROM BASE PAY. A MEMBER CAN ELECT TO CONTRIBUTE ALL
OR PART OF A BONUS ANYTIME PRIOR TO RECEIVING IT, PROVIDED THE
MEMBER IS ALREADY CONTRIBUTING FROM BASIC PAY.
6. DOD HAS THE AUTHORITY TO PAY MATCHING FUNDS TO MEMBERS WITH
CRITICAL SKILLS, IN GENERAL, THOSE WHO RECEIVE REENLISTMENT
BONUSES. THE MARINE CORPS WILL NOT OFFER MATCHING FUNDS. THE
MARINE CORPS RELIES ON THE SRB PROGRAM TO MEET CRITICAL SKILL
REQUIREMENTS.
7. MARINES WHO ARE CONTRIBUTING TO A TSP ACCOUNT MAY ELECT TO
CHANGE THE AMOUNT THEY ARE CONTRIBUTING DURING A TSP OPEN SEASON.
8. RESERVISTS WHO ARE ADDITIONALLY EMPLOYED AS FEDERAL CIVILIAN
EMPLOYEES WILL HAVE TWO TSP ACCOUNTS IF THEY PARTICIPATE AS A
CIVILIAN AND A RESERVIST. THEIR TOTAL COMBINED ANNUAL ELECTIVE
DEFERRAL MAY NOT EXCEED $11,000 AS SPECIFIED IN THE INTERNAL
REVENUE CODE SECTION 402(G). ADDITIONALLY, MONIES DEFERRED FROM
MILITARY COMPENSATION MAY REDUCE THE AMOUNT ELIGIBLE FOR FEDERAL
MATCHING FUNDS IN THE MARINE'S CIVILIAN ACCOUNT.
9. THE TSP CURRENTLY OFFERS PARTICIPANTS FIVE INVESTMENT OPTIONS.
ALL NEW PARTICIPANTS ARE INITIALLY ENROLLED IN THE GOVERNMENT
SECURITIES INVESTMENT (G) FUND. ONCE A TSP ACCOUNT IS ESTABLISHED
(UPON RECEIPT OF THE FIRST CONTRIBUTION), THE MEMBER WILL RECEIVE
AN INTRODUCTORY LETTER AND A PERSONAL IDENTIFICATION NUMBER (PIN).
PARTICIPANTS CAN ALLOCATE ALL OR PORTIONS OF THEIR CONTRIBUTIONS
INTO THE FOLLOWING INVESTMENT FUNDS: GOVERNMENT SECURITIES
INVESTMENT (G) FUND, FIXED INCOME INDEX INVESTMENT (F) FUND,
COMMON STOCK INDEX INVESTMENT (C) FUND, SMALL CAPITALIZATION
STOCK INDEX INVESTMENT (S) FUND, OR THE INTERNATIONAL STOCK INDEX
INVESTMENT (I) FUND. AFTER RECEIPT OF A PIN, ALLOCATIONS CAN BE
MADE VIA THE TSP WEB SITE (WWW.TSP.GOV), THE THRIFT LINE
(504-255-8777), OR BY MAILING IN AN INVESTMENT ALLOCATION FORM
(TSP-U-50) TO THE TSP SERVICE OFFICE, NATIONAL FINANCE CENTER,
PO BOX 61500, NEW ORLEANS LA 70161-1500. THE TSP-U-50 WILL BE
AVAILABLE AT ADMIN OFFICES DURING JAN 02. SINCE THE FORM IS
SCANABLE, ONLY ORIGINAL FORMS CAN BE USED. DETAILS CONCERNING
HISTORIC RATES OF RETURN FOR THE ABOVE FUNDS CAN BE FOUND IN THE
"SUMMARY OF THE THRIFT SAVINGS PLAN FOR THE UNIFORM SERVICES"
WHICH WILL BE DISTRIBUTED TO COMMANDERS DURING SEP OR OCT 01.
THIS DOCUMENT CAN ALSO BE FOUND ON THE TSP WEB SITE.10. FUNDS
MAY BE WITHDRAWN FROM A TSP ACCOUNT WITHOUT PENALTIES UNDER TWO
CIRCUMSTANCES: 1) AGE-BASED IN-SERVICE WITHDRAWALS FOR MARINES
WHO ARE 59 1/2 OR OLDER, AND 2) FINANCIAL HARDSHIP [AS VARIFIED
BY THE COMMANDING OFFICER]. MONEY TAKEN FROM A TSP ACCOUNT FOR
THIS PURPOSE CANNOT BE RETURNED. ALSO, MONTHLY CONTRIBUTIONS TO
THE TSP WILL BE AUTOMATICALLY TERMINATED FOR SIX MONTHS AFTER
EACH FINANCIAL HARDSHIP WITHDRAWAL. BEFORE TAKING AN IN-SERVICE
WITHDRAWAL, MEMBERS SHOULD EVALUATE THEIR OPTIONS TO SEE IF A
TSP LOAN WOULD BE MORE BENEFICIAL.
11. TSP LOANS ALLOW MEMBERS TO BORROW THEIR OWN CONTRIBUTIONS
AND EARNINGS FOR A GENERAL PURPOSE LOAN OR A LOAN TO PURCHASE
A PRIMARY RESIDENCE. THE MINIMUM LOAN AMOUNT IS $1,000, THE MAX
IS $50,000. A MEMBER WILL PAY INTEREST ON THE LOAN, HOWEVER,
THE LOAN REPAYMENT AND THE INTEREST WILL GO INTO THEIR TSP
ACCOUNT. FAILURE TO REPAY A LOAN MAY RESULT IN THE LOAN BEING
TREATED LIKE AN IN-SERVICE WITHDRAWAL. THE MEMBER MAY BE
ASSESSED A 10% PENALTY AND NOT ALLOWED TO APPLY FOR
ANOTHER LOAN FOR 12 MONTHS. REFER TO HTTP://WWW.TSP.GOV/FEATURES.
12. WHEN MARINES SEPARATE FROM THE MARINE CORPS THEY MAY:
1) RECEIVE A SINGLE PAYMENT (ALL OR A PORTION OF THEIR TSP
ACCOUNT CAN BE TRANSFERRED INTO AN IRA OR OTHER ELIGIBLE
RETIREMENT PLAN); 2) REQUEST A SERIES OF MONTHLY PAYMENTS BASED
ON A DOLLAR AMOUNT, NUMBER OF MONTHS, OR THEIR LIFE EXPECTANCY
(ALL OR A PORTION OF THE MONTHLY PAYMENTS MAY BE TRANSFERRED TO
AN IRA OR OTHER ELIGIBLE RETIREMENT PLAN); 3) REQUEST A TSP
ANNUITY (REQUIRES AT LEAST A $3,500 TSP BALANCE); OR 4) THEY MAY
LEAVE THEIR MONEY IN A TSP ACCOUNT WHERE IT COULD CONTINUE TO
ACCRUE EARNINGS. MEMBERS WILL NOT BE ABLE TO MAKE CONTRIBUTIONS
AFTER RETIREMENT, BUT THEY WILL BE ABLE TO CONTINUE TO MAKE
INTER-FUND TRANSFERS. RETIREES CANNOT CONTRIBUTE TO THE TSP
UNLESS THEY ARE FEDERAL EMPLOYEES.
13. THE LAW GIVES CERTAIN RIGHTS TO MEMBER'S SPOUSES (INCLUDING
SEPARATED OR DIVORCED SPOUSES). TSP MUST TAKE THESE RIGHTS INTO
ACCOUNT WHEN A MEMBER WITHDRAWS OR BORROWS FROM THEIR ACCOUNT.
THE TSP WILL TAKE ACTION TO PROSECUTE ANY PARTICIPANT WHO DENIES
(OR ATTEMPTS TO DENY) HIS OR HER SPOUSE THESE RIGHTS BY.
ADDITIONALLY, TSP ACCOUNTS ARE SUBJECT TO CERTAIN MATRIMONIAL
COURT ORDERS. THESE ARE COURT DECREES OF DIVORCE, ANNULMENT,
LEGAL SEPARATION, OR THE TERMS OF COURT-APPROVED PROPERTY
SETTLEMENTS. A MEMBER'S ACCOUNT IS ALSO SUBJECT TO THE
ENFORCEMENT OF THEIR LEGAL OBLIGATION TO MAKE ALIMONY AND CHILD
SUPPORT PAYMENTS. ADDITIONAL INFORMATION CONCERNING SPOUSAL
RIGHTS CAN BE FOUND AT HTTP://WWW.TSP.GOV/FEATURES/CHAPTER15.HTML.
14. BOOKLETS AND POSTERS WILL BE AVAILABLE THROUGH THE MARINE
CORPS PUBLICATIONS DISTRIBUTION SYSTEM (MCPDS), WITH INITIAL
QUANTITIES PROVIDED TO THE FIELD DURING SEP 01. CURRENTLY, ONLY
THE "SUMMARY OF THE THRIFT SAVINGS PLAN FOR THE UNIFORMED
SERVICES" WILL BE ASSIGNED PERMANENT PUBLICATION CONTROL NUMBER
(PCN). ALL OTHER MATERIALS WILL BE ASSIGNED TEMPORARY PCNS. IT
IS CRITICAL DURING THIS INITIAL PERIOD THAT COMMANDERS PROVIDE
FEEDBACK TO THIS HQ CONCERNING QUANTITIES OF PUBLICATIONS
REQUIRED BY UPDATING MCPDS IN A TIMELY MANNER [NOTE: DO NOT
CORRESPOND DIRECTLY WITH THE POC OF THIS MESSAGE CONCERNING
QUANTITIES OF BOOKLETS AND OTHER MATERIALS - USE MCPDS.].
RECOGNIZING THE SURGE SUPPORT REQUIREMENT AT THE RECRUIT DEPOTS
AND TBS, FOR THOSE COMMANDS, SPECIAL DISTRIBUTION ARRANGEMENTS
WILL BE MADE TO PROVIDE THE "TSP-U-1 ELECTION FORM." ALL OTHER
COMMANDS WILL ACCESS THIS FORM ON LINE USING THE TSP WEB
SITE.
15. ADDITIONAL INFORMATION CAN BE FOUND ON MARINE ON LINE (MOL),
HTTPS://WWW.USMC.MOL.MIL (FROM MOL LOOK AT "NOTICES" AND CLICK
ON "THRIFT SAVINGS PLAN"), THE TSP BOARD'S WEB SITE IS LOCATED
AT HTTP://WWW.TSP.GOV/ (CLICK ON "UNIFORM SERVICES") OR BY
CONTACTING YOUR ADMIN OFFICE.//
BT