Oct. 8, 2004
Release No. 108Air Force
announces Thrift Savings Plan open season
By Master Sgt. Randy L. Mitchell
AFPC Public Affairs
RANDOLPH AIR FORCE BASE, Texas -- Civilian and military
employees can sign up for, or change, their Thrift Savings Plan contribution
amounts during the “open season” Oct. 15 -
Dec. 31.
“TSP is a long-term retirement savings plan,
which everyone should consider,” said Senior Master Sgt. Felipe Ortiz,
superintendent of the Air Force Personnel Contact Center here. “It's a great
supplement to military and civilian retirement plans.
“It's also important to note that TSP is not
limited to investing in stocks,” said Sergeant Ortiz. “People can choose
safer government securities as well.”
This open season applies only to regular TSP contributions. It does not
include TSP catch-up contributions, as they are not tied to open seasons,
according to Janet Thomas, of AFPC's civilian benefits and entitlements service
team.
TSP offers investors the chance for lower taxes each year they contribute
while not having to pay taxes on earnings until
they reach retirement.
“Eligible employees can take out loans and
make in-service withdrawals from their TSP accounts,” said Ms. Thomas. “And
you can keep your account, even if you leave military or federal civilian
service.”
Investment money is deposited directly from
each paycheck “so you never have to think about it,” said Sergeant Ortiz.
“That makes it easy to 'pay yourself first' while only investing what you
deem appropriate.”
The five TSP funds are: the Government Securities Investment (G) Fund;
the Common Stock Index Investment (C) Fund; the Fixed Income Index
Investment (F) Fund; the Small Capitalization Stock Index Investment (S)
Fund; and the International Stock Index
Investment (I) Fund.
“As with any individual retirement account,
the sooner you begin contributing, the better,” said Ms. Thomas.
Contribution elections/changes made between Oct. 15 and Dec. 11 will take
effect Dec.12, for both military and civilian personnel. Changes made on or
after Dec. 12 will become effective at the beginning of the pay period
following the one in which the election is made for civilians and the
following month for military.
Some of the specifics of the program include:
Military
-- Military members can contribute up to 10
percent of their base pay, as long as the annual total of
tax-deferred investment doesn't exceed $14,000 for 2005.
Airmen also have the ability to invest all or part of their bonuses or
special pay.
-- Those serving in tax-free combat zones are allowed up to $41,000 in
annual contributions.
-- Military members can enroll through the Defense Finance and Accounting
Service web site at
http://www.dfas.mil/emss/. They can also enroll by filling out a form
TSP-U-1 at local military personnel flights, finance offices and family
support centers.
-- Contribution allocations (how an employee chooses to invest money among
the five funds) can be made by calling the TSP automated ThriftLine (1-877-
968-3778 for employees in the 50 States, Virgin Islands, Puerto Rico, Guam,
American Samoa and Canada; 1 (504)-255-8777 for employees elsewhere), or on
the TSP web site at http://www.tsp.gov/.
-- For general TSP questions, call the Air Force Personnel Contact Center
at (800) 616-3775. Specific TSP information is available for Air Force
military personnel at
http://www.afpc.randolph.af.mil/mpf/TSP/thrift_savings_plan.htm.
Civilian
Contribution limits are based on which retirement system an employee
has. For the current open season, the following contribution rates apply:
-- Federal Employees' Retirement System employees may contribute up to 15
percent of basic pay each pay period. Once eligible, the government provides
matching funds of up to four percent as well as an automatic one percent
each pay period, whether the employee contributes or not, making the
government's contribution five percent.
-- Employees covered by the Civil Service Retirement System may contribute
up to 10 percent of basic pay, but do not receive
any agency contributions.
-- Beginning the open season Oct. 15 to Dec. 31, 2005, there will no longer
be percentage limits on how much FERS and CSRS employees may contribute each
year, said Ms. Thomas. Contributions will be restricted only by the Internal
Revenue Code’s annual limit, which is currently $13,000 for 2004 and $14,000
for 2005. In 2006, the limit will be $15,000, and after 2006 increases will
be indexed to the annual cost-of-living adjustment referred to in the tax
code.
-- Specific information is available for civilian employees from
the Thrift Savings Plan web site at
http://www.tsp.gov/ and the BEST homepage at
http://www.afpc.randolph.af.mil/dpc/BEST/menu.htm.
-- All Air Force-serviced civilian employees will make their TSP
contribution elections or changes electronically through the Web-based
Employee Benefits Information System at
http://www.afpc.randolph.af.mil/dpc/BEST_GRB/EBIS.htm or through the
BEST automated phone system at (800) 616-3775. Hearing impaired employees
may contact BEST by calling TDD (800) 382-0893 or commercial 565-2276 within
San Antonio, Texas. Overseas employees will dial the AT&T Direct Access
Number for the country they are calling from and then enter 800-997-2378.
AT&T access instructions can be obtained from
http://www.att.com/business_traveler/guides_and_access/dialing_instr.html#outside.
Counselors are available weekdays from 7 a.m. - 6 p.m. Central Time.
-- Contribution allocations (how an employee chooses to invest their money
among the five funds) are made via the “Account Access” section of the TSP
website (www.tsp.gov), or by calling the
ThriftLine (1-877- 968-3778 for employees in the 50 States, Virgin Islands,
Puerto Rico, Guam, American Samoa and Canada; 1 (504)-255-8777 for employees
elsewhere).
More information about the Thrift Savings Plan can be found in the
booklet "Summary of the Thrift Savings Plan" on the TSP home page
under civilian or uniformed services TSP Forms and Publications.
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