The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees. It was established in 1986, with the Federal Employees’ Retirement System Act. Its purpose was to assist federal employees in adding an additional source to provide retirement income.

This federal version of a “401(k)” is managed by the Federal Retirement Thrift Investment Board, which is nominated by the president and approved by the Senate. The board consists of five, part-time members who are directed to manage the TSP prudently and solely in the interest of the participants and their beneficiaries.

Eligibility & Matching

Currently, there is no waiting period to participate in the Thrift Savings Plan (TSP) for CSRS and FERS employees. There is a maximum contribution amount for the plan, but catch-up contributions are allowed after the participant turns 50. Employees covered under the CSRS are allowed to participate in the TSP program, but their contributions are not matched.

FERS participants are matched 100 percent on the first 3 percent of their pay contributed and 50 percent on the next 2 percent of their pay. FERS also contributes 1 percent automatically for their participants1. Currently, an employee is immediately vested in their contributions and the agency matching, but may have to wait up to three years to be vested in the agency automatic contributions of 1 percent.

Currently, there are six different fund choices within the TSP. They are as follows:

  1. G Fund: This consists of investments in short-term, non-marketable U.S. Treasury securities. The Thrift Board directly manages this fund.
  2. F Fund: This is a bond fund invested primarily in the Barclays U.S. Debt Index Fund.
  3. C Fund: This fund is designed to replicate the Barclays Equity Index Fund.
  4. S Fund: This fund tracks the Wilshire 4500 index of smaller U.S. company stocks.
  5. I Fund: This fund tracks the Morgan Stanley EAFE Index of mostly large companies in 20 countries throughout Europe, Australia, Asia and the Far East.
  6. L Funds: This provides a way for the participant to diversify their accounts among the five other funds, using professional management to fit different time horizons.

Knowing exactly what should be allocated to a retirement income plan such as TSP takes careful consideration and planning. Contact Benefit Resource Partners to better understand the differences between the fund choices offered.

1https://www.tsp.gov/PlanParticipation/EligibilityAndContributions/typesOfContributions.html

Receive Your Federal Benefit Workbook

Please fill out the form to the right with your information to receive your personalized federal benefit workbook.  This workbook will help you understand when you are eligible to retire, compute your monthly pension, show you how Social Security works and explain the options available to you with FEGLI and TSP.

By providing your information, a licensed insurance representative may contact you.