THRIFT SAVINGS PLAN
The Thrift Savings Plan is a retirement savings plan for both FERS (Federal Employees' Retirement
System) and CSRS (Civil Service Retirement System) employees.
TSP offers all participants: - Tax deferral on contributions of your basic pay each pay period
- Choice of five investment funds
- Daily valuation
- A loan program
- Portable benefits if you leave Government service
- A choice of withdrawal options
If you are a FERS employee, you are also eligible for: - Agency Automatic (1%) Contributions to your TSP account. When you become eligible, your agency opens your TSP account and automatically deposits an amount equal to 1% of your basic pay each pay period, even if you elect not to participate in the program. After three years of Federal
civilian service, you are vested in these contributions and their earnings.
- Agency Matching Contributions on your own contributions. When you contribute your own money, the agency matches dollar for dollar on the first 3% of basic pay you contribute each pay period. Each dollar of the next 2% of basic pay that you
contribute is matched 50 cents on the dollar. You are immediately vested in all of your own contributions, the matching contributions, and earnings on both.
If you are a CSRS employee:
CSRS employees can take advantage of the TSP to provide a source of retirement income in addition to your CSRS annuity. You can contribute up to 10% of your basic pay
each pay period. Although CSRS employees do not receive any agency contributions, CSRS employees receive the benefit of tax deferral, an opportunity to invest in all five TSP funds, and participation in the TSP Loan Program. FEDERAL EMPLOYMENT RETIREMENT SYSTEM (FERS)
FERS is a three-tiered retirement plan. The three Components are: - Social Security Benefits
- Basic Benefit Plan
- Thrift Savings Plan
You pay full Social Security taxes and a small contribution to Basic Benefit Plan. In addition, your agency puts an amount equal
to 1% of your basic pay each pay period into your Thrift Savings Plan account. You are able to make tax-deferred contributions to the Plan and a portion is matched by the Government. The three components of FERS work together to give you a strong financial foundation for your retirement.
RETIREMENT REQUIREMENTS
Employees must meet the following requirements to be eligible for retirement under the Federal Employees Retirement System (FERS).
Type of Retirement | Age | Years of Service | Immediate | 55 | 30 | | 60 | 20 | | 62 | 5 | | MRA | 10* | Early** | 50 | 20 | (Involuntary or Voluntary RIF) | Any | 25 | Deferred | 62 | 5
| Disability Retirement | Any | 18 months | * Reduced Benefit: 5/12 of 1% for each month (5% per year) for each year under age 62.
** No reduction for age. |
CIVIL SERVICE RETIREMENT SYSTEM (CSRS) Employees contribute 7% per pay period into the CSRS Retirement Fund. CSRS employees do not pay into Social Security
Benefits. However, employees are eligible to participate in the Thrift Savings Plan. Employees participating in the Thrift Savings Plan can contribute up to 10% of their basic pay each pay period. Although CSRS employees do not receive any agency contributions, CSRS employees receive the benefit of tax deferral.
RETIREMENT REQUIREMENTS
Employees must meet the following requirements to be eligible for retirement under Civil Service Retirement System (CSRS). Type of Retirement | Age | Years of Service | Immediate | 55 | 30 | | 60 | 20 | | 62 | 5 | Early | 50* |
20 | (Involuntary or Voluntary RIF) | Any* | 25 | Deferred | 62 | 5 | Disability Retirement | Any | 5 months | * Reduced Benefit: 1/6 of 1% for each month (2% per year) for each year under age 55. |
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