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Home > About USPS & News > Forms & Publications > Postal Periodicals and Publications > Manuals > Employee and Labor Relations Manual - Issue 18 > 5 Employee Benefits > 590 Thrift Savings Plan
590 Thrift Savings Plan
591.11 Administration
The Thrift Savings Plan (TSP) is a retirement savings and investment plan for
federal employees. It was authorized by Congress in the Federal Employees'
Retirement System Act of 1986. The plan is administered by an independent
government agency, the Federal Retirement Thrift Investment Board, whose
sole purpose is to operate the plan for the benefit of the participants. Policies
and regulations of the board are controlling in the event of conflict with the
information contained in this subchapter.
591.12 Further Information
TSP has established a TSP Web Site at http://www.tsp.gov to provide
employees with general information, forms, and publications. Two telephone
response systems are available for general information as well as personal
account information. The TSP ThriftLine at (504) 255-8777 is an automated
voice response system, and the Text Telephone at (504) 255-5113 is
designed for hearing impaired employees. The TSPBK08, Summary of the
Thrift Savings Plan for Federal Employees, and other TSP materials are
available at local personnel services offices and on the web site.
591.2 Open Season
Open season is the period during which employees may make an election
with respect to the TSP.
a. There are two open seasons each year.
b. Each open season lasts for 2 and 1/2 months with the election period
being the last month of the open season.
c. Open seasons are from May 15 through July 31 and from November 15
through January 31.
591.3 Eligibility to Contribute
591.31 General
All career employees are permitted to contribute to the TSP. The earliest date
career employees may begin contributing is determined by their date of
employment.
591.32 New Career Employees
A career employee is eligible to make an election to begin contributing to
TSP beginning with the second open season after the career appointment.
An employee who is hired during an open season, but before the election
period, has the current open season counted as one of the required two. For
example:
a. Career employees hired from January 1 through June 30 are first
eligible to make an election during the open season from the following
November 15 through January 31.
b. Career employees hired from July 1 through December 31 are first
eligible to make an election during the open season from the following
May 15 through July 31.
591.33 Rehired Employees
A career employee who is reemployed and who was eligible to contribute to
the TSP during a previous appointment may make an election during the first
open season after being reemployed. An employee rehired to a career
position who was not eligible to contribute during a previous appointment is
treated as a new employee. For example:
a. Previously eligible employees rehired as career employees from
January 1 through June 30 may make an election that July.
b. Previously eligible career employees rehired as career employees from
July 1 through December 31 may make an election that January.
591.34 Reemployed Annuitants
Reemployed annuitants are eligible to participate in TSP as follows:
a. CSRS reemployed annuitants may participate regardless of the
retirement code in the reemployed position (Code 1, 5, 4 or 2), unless
reemployed under Public Law 101-509 (Federal Employees' Pay
Comparability Act of 1990).
b. FERS reemployed annuitants may participate only if reemployed under
FERS. Appointments to intermittent positions or under Public Law
101-509 are not covered by FERS.
c. A reemployed annuitant's first eligible date to participate is determined
by whether the reemployment follows a TSP break in service
(separation from federal service of 31 or more full calendar days), as
follows:
(1) If no break in service of 31 days or more has occurred, the TSP-1
election on file is immediately effective, with contributions and
loan payments, if any, resuming upon reemployment. For FERS
annuitants, the automatic 1 percent contribution and matching
contributions, if any, resume.
(2) If a break in service of 31 days or more has occurred and the
reemployed annuitant was ever previously eligible to participate in
TSP, the reemployed annuitant is eligible to make an election
during the first open season following the appointment. If not
previously eligible, the reemployed annuitant must wait until the
second open season following the appointment to make an
election.
(3) A reemployed annuitant who elects to transfer to FERS is eligible
to participate in TSP immediately, regardless of whether a break
in service has occurred.
Contributions made by a reemployed annuitant are based on the basic salary
for the position prior to the required reduction for the annuity she or he is
receiving.
591.35 Transfers From Another Agency
CSRS and FERS employees who transfer from other federal agencies must
have their TSP loan payment, automatic (1 percent) contributions, and
employee and matching contributions (if any) continue without interruption.
Personnel services offices must submit TSP-19, Transfer of Information
Between Agencies, to the Eagan Accounting Service Center (ASC).
591.36 Dual Appointments
Federal or Postal Service employees serving in an appointment covered by
CSRS or FERS who receive another federal appointment, career or
noncareer, are eligible to participate in TSP under each appointment.
Pursuant to Office of Personnel Management (OPM) regulations, an
employee covered by a retirement system under any one appointment must
be covered by the same retirement system under all other appointments.
Personnel service offices must submit TSP-19 to the Eagan ASC to advise of
current enrollment elections. Participation rules for dual appointments include
the following:
a. Employees covered by FERS receive the automatic (1 percent)
contribution under both appointments.
b. An employee's TSP-1 on file under the first appointment determines
TSP contributions and fund allocations for a subsequent appointment
until the next TSP election period. The employee is not permitted to
make a new election outside an open season as a result of the
subsequent appointment. If the employee's contribution election is
expressed as a percentage of pay, each agency deducts this
percentage. If the employee's contribution election is expressed as a
dollar amount, only the first appointing agency deducts this amount
from the employee's pay.
c. Beginning with the first open season following the second appointment,
agencies treat the employee separately for purposes of TSP elections.
591.4 Permitted Actions
During an open season an eligible employee may submit an election to:
a. Begin contributions.
b. Change the dollar amount or percentage of current contributions.
c. Reallocate current contributions to different investment funds.
d. Terminate contributions.
591.42 Interfund Transfers
An interfund transfer is the movement of money already in the employee's
account among the investment funds. This movement does not affect
contributions from future payroll deductions. Employees are allowed one
interfund transfer per month, using the TSP ThriftLine or submitting TSP-30,
Interfund Transfer Request, to the TSP Service Office.
591.51 Form Required
To submit an election an eligible employee must complete Form TSP-1, Thrift
Savings Plan Election Form, and submit it to the personnel office.
591.52 Number Permitted
Except for an election to terminate contributions, an employee may make
only one election during an open season.
591.53 Effective Dates
TSP-1 open season election forms submitted to personnel services offices
become effective as follows:
a. Forms received May 15 through June 30 become effective in the first
full pay period in July. Forms received in the month of July become
effective the earliest possible pay period, subject to Distributed Data
Entry and Distributed Reporting (DDE/DR) processing guidelines.
b. Forms received November 15 through December 31 become effective
in the first full pay period in January. Forms received in the month of
January become effective the earliest possible pay period, subject to
DDE/DR processing guidelines.
c. Forms to terminate elections are effective the first full pay period
beginning after receipt.
591.54 Election Period
The election period is the last calendar month of an open season and is the
earliest period during which an open season election, other than a
termination, can become effective.
591.55 Belated Elections
If it is determined that an employee was unable for reasons beyond the
employee's control to make an election within the time limits, a belated
election may be accepted within 30 calendar days after such determination.
The belated election is effective the first pay period after the personnel office
accepts the election form.
591.6 CSRS Transfers to FERS
CSRS or CSRS Offset employees who transfer to FERS are permitted 30
days from the effective date of the transfer to submit a TSP election. The
election becomes effective the pay period following receipt of the TSP-1.
The booklet TSPBK08, Summary of the Thrift Savings Plan for Federal
Employees, contains additional information and is available to employees at
personnel services offices and on the web site.
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