TSP - Thrift Savings Plan - TSP.Gov

What is Thrift Savings Plan (or) TSP:

Thrift Savings Plan (TSP) is the one part of your retirement that you can control and TSP is a retirement saving and investment plan for Federal employees and members of the uniformed savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. You can work longer to increase your pension, but by contributing more to your TSP you might not have to! TSP is a retirement saving and investment plan for federal employees, similar to a 401(k). There are a lot of benefits to contributing to your TSP - and keeping your money thereafter you retire.

In TSP You have the Plan participation was set up and manage the TSP account. Investments funds you have the Fund comparison, Lifecycle Funds, Share Prices, and Monthly Returns. And Planning Tools Where you have the retirement planning and tools for all career stages where you can Invest and Maximize your TSP Saving. Life Events you have the life events affecting your TSP account and entering Government service and called to Active Duty and Family changes.

In TSP you have the option where you can participate in Plan Participation and Investment funds, Planning tools, and life events.

How Does the TSP Fit into Retirement Package?

If you are covered by the Federal Employees' Retirement System (FERS), the TSP.gov is one part of a three-part retirement package that also includes your FERS basic annuity and Social Security.  If you are covered by the Civil Service Retirement System (CSRS), the TSP is a supplement to your CSRS annuity. The TSP has a selection of individual and lifecycle funds that offer broad market diversification. You can choose to have your retirement dollars invested in everything from a short-term U.S. Treasury security to index funds comprised of domestic and international stocks. The TSP is made up of five core funds. They are:

1) G Fund
2) F, C, S, and I Funds
3) L Funds

G Fund: The G Fund assets are managed internally by the Federal Retirement Thrift Investment Board. The G Fund buys a nonmarketable U.S. Treasury security that is guaranteed by the U.S. Government. This means that the G Fund will not lose money.

F, C, S, and I Funds: The Federal Retirement Thrift Investment Board currently contracts BlackRock Institutional Trust Company, N.A. (BlackRock) to manage the F, C, S, and I Fund assets. The F and C Fund assets are held in separate accounts. The F, C, S, and I Funds are index funds, each of which is invested in order to replicate the risk and return characteristics of its appropriate benchmark index. For example, the C Fund is invested in a stock index fund that fully replicates the Standard and Poor's 500 (S&P 500) Index, a broad market index made up of the stocks of 500 large to medium-sized U.S. companies. The C Fund's objective is to match the performance of the S&P 500. The F, C, S, and I Funds remain invested regardless of the performance of the securities markets or the overall economy for official tsp see: https://www.tsp.gov

L Funds: The L Funds are invested in the five individual TSP funds based on professionally determined asset allocations.

Performance Measurements: The F, C, S, and I Funds are intended to track the performance of their respective indexes. The returns of the TSP funds may, from time to time, differ from the index returns. Also, some of the money in the F, C, S, and I Funds are temporarily invested in the G Fund and earns the G Fund return.

TSP fund share prices are calculated daily. The prices reflect returns on investments, accrued administrative expenses, and trading costs. Net rates of return are calculated monthly. Fund return information can also be found in the TSP Fact Sheet TSP Funds Monthly Returns that the Board publishes every month. In addition, the TSP's quarterly newsletter, Highlights, published in January, May, July, and October, shows the recent monthly performance of the TSP Funds and provides a 10-year history of the funds.

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Eligibility: If you are a career employee, you may enroll in or change your TSP.gov at any time. There is no open season for TSP.

If you are a career employee hired after July 31, 2010, you are automatically enrolled in the TSP, and 3% of your basic pay is deducted from your paycheck each pay period and deposited in the traditional balance of your TSP account unless you have made an election to change or stop your contributions.

Agency Automatic and Matching Contributions for FERS: If you are covered by FERS and you contribute 5% of your basic pay to your Thrift Savings Plan (TSP) account, the Postal Service will contribute an additional 5% through Agency Automatic and Matching Contributions. So you'll have twice as much going into your TSP as you contributed!  You will be paving the way to a more comfortable retirement.

Agency Automatic Contributions: If you are covered by FERS, you automatically receive 1% of your basic pay from your agency each pay period. You get these contributions whether or not you contribute to the TSP from your own pay.

Matching Contributions: If you are covered by FERS and you contribute 5% of your basic pay to the TSP each pay period, your agency will contribute an additional 4% of your basic pay to your TSP account.