'Open Season' Continues for Thrift Depositors

The current open season, which began Nov. 15, is one of two annual periods (the other is May 15 July 31), during which employees can participate in the taxdeferred savings plan. Depending on their category of hire, employees can contribute up to 10 percent of their basic pay each pay period. Federal Employee Retirement System civilians receive automatic agency contributions of 1 percent, whether or not they contribute their own money to the fund. In addition, they receive agency matching contributions of up to 5 percent of personal contributions.

Employees can contribute money to three growth funds:

• The C fund, which diversifies investments in stock markets, is the riskiest but potentially the highest yielding fund.
• The F fund invests in notes, bonds and other obligations that return the amount invested and pay interest at a specified rate over a given period of time.
• The G fund invests in short-term nonmarketable U.S. Treasury securities specifically issued to the Thrift Savings Plan. Investments earn interest at a rate equal to average market rates of return on outstanding U.S. Treasury marketable securities with four or more years of maturity.

Civilian personnel offices have details.