Department of Navy Human Resources Service Center Benefits Bulletin No. 2003-13

THRIFT SAVINGS PLAN (TSP) CATCH-UP CONTRIBUTIONS ELECTION

ABOUT TSP CATCH-UP CONTRIBUTIONS

Public Law 107-304 permits eligible TSP participants who are age 50 or will be age 50 in calendar year 2004 to make tax deferred “catch-up” contributions from their basic pay to their TSP accounts. These contributions are a supplement to the participant’s regular employee contributions and do not count against either the statutory contribution percentage limitations or the Internal Revenue Code’s elective deferral limit. However, the catch-up contributions have their own annual limit and eligibility criteria. The annual TSP catch-up contribution limit is $3000 in calendar year 2004 and $4000 in 2005. In 2006 and thereafter, this amount will be subject to increases to reflect inflation.

ELIGIBILITY CRITERIA FOR PARTICIPATION IN THE TSP CATCH-UP CONTRIBUTIONS

Catch–up contributions are made by payroll deductions. To be eligible to make contributions, TSP participants must:

· Be in a pay status.

· Be contributing either the maximum TSP contribution percentage or an amount which will result in his or her reaching the elective deferral limit by the end of the relevant year.

· Be at least 50 years old in the year the catch-up contributions are made (even if the participant’s birthday is December 31 of that year).

Employees who are within the 6-month non-contribution period following receipt of a financial hardship in-service withdrawal are not eligible to make contributions.

IMPORTANT INFORMATION CONCERNING THE TSP CATCH-UP CONTRIBUTIONS

Catch-up contributions are not subject to the TSP open season rules, and more than one election may be made in any given year (so long as the annual catch-up limit is not exceeded). There are no Agency (1%) Automatic Contributions associated with catch-up contributions and catch-up contributions are not eligible for matching contributions. Also, your catch-up contributions will be invested in your account based on the most current contribution allocation on file with the TSP Board.

Catch-up contributions are made based on a requested whole dollar amount. Contributions will be deducted from the participant’s basic pay each pay period until: (1) the annual catch-up limit is reached; or (2) the calendar year ends; or (3) the participant elects to stop the contribution. Employees must make a new election each year because the annual limit changes.

HOW TO DETERMINE THE BI-WEEKLY AMOUNT TO CONTRIBUTE

FOR CALENDAR YEAR 2004

The maximum amount you can contribute in calendar year 2004 is $3,000. You are not required to contribute the maximum amount if you want to participate in catch-up contributions. You can contribute any amount as long as it doesn't exceed $3,000 per year. The biweekly amounts shown below have been rounded up. Once you reach the annual limit for the calendar year, your biweekly deductions will be adjusted accordingly not to exceed the annual IRS limit.

Beginning 30 November 2003, eligible employees can make their TSP catch-up elections for tax year 2004 by using the automated benefit systems. Since calendar year 2004 is a leap year there are 27 pay periods in the year. The chart below illustrates how to determine the amount to elect each pay period to contribute the $3,000 maximum. Remember that catch-up contribution changes can be made at any time because they’re not tied to an open season (but the annual catch-up limit may not be exceeded). If you later discover your contribution amount will result in contributing less than the maximum allowable amount by the end of the calendar year, you can always increase your contribution amount.

TSP Catch-up Elections Received	Then The Effective Date Of TSP Catch-up Election Is	You Will See The Deduction For The TSP Catch-up Election In The Paycheck You Receive	You Should Elect To Contribute This Amount Per Pay Period To Contribute A Total Of $3,000 Per Year
30 November - 13 December 2003	14 December 2003	2 January 2004	$112
14 December - 27 December 2003	28 December 2003	16 January 2004	$116
28 December 2003 - 10 January 2004	11 January 2004	30 January 2004	$120
11 January - 24 January 2004	25 January 2004	13 February 2004	$125
25 January - 7 February 2004	8 February 2004	27 February 2004	$131
8 February - 21 February 2004	22 February 2004	12 March 2004	$137
22 February - 6 March 2004	7 March 2004	26 March 2004	$143
7 March - 20 March 2004	21 March 2004	9 April 2004	$150
21 March - 3 April 2004	4 April 2004	23 April 2004	$158
4 April - 17 April 2004	18 April 2004	7 May 2004	$167
18 April - 1 May 2004	2 May 2004	21 May 2004	$177
2 May - 15 May 2004	16 May 2004	4 June 2004	$188
16 May - 29 May 2004	30 May 2004	18 June 2004	$200
30 May - 12 June 2004	13 June 2004	2 July 2004	$215
13 June -26 June 2004	27 June 2004	16 July 2004	$231
27 June - 10 July 2004	11 July 2004	30 July 2004	$250
11 July - 24 July 2004	25 July 2004	13 August 2004	$273
25 July - 7 August 2004	8 August 2004	27 August 2004	$300
8 August - 21 August 2004	22 August 2004	10 September 2004	$334
22 August - 4 September 2004	5 September 2004	24 September 2004	$375
5 September - 18 September 2004	19 September 2004	8 October 2004	$429
19 September - 2 October 2004	3 October 2004	22 October 2004	$500
3 October - 16 October 2004	17 October 2004	5 November 2004	$600
17 October - 30 October 2004	31 October 2004	19 November 2004	$750
31 October - 13 November 2004	14 November 2004	3 December 2004	$1,000
14 November - 27 November 2004	28 November 2004	17 December 2004	$1,500
28 November - 11 December 2004	12 December 2004	31 December 2004	$3,000

HOW TO MAKE YOUR TSP CATCH-UP CONTRIBUTION ELECTION?

Navy civilian employees who meet the eligibility criteria and want to make a TSP catch-up election can do so by using one of the automated benefit applications below. Paper TSP-1C forms will not be accepted.

· EBIS is an Internet based application located at http://www.donhr.navy.mil/. Click on EBIS to access the application. Your Social Security Number (SSN) and password are used to log into EBIS. If you are a new EBIS user it is helpful to have a copy of your last SF 50, Notification of Personnel Action, or your Leave and Earnings Statement (LES). The following information can be found on these documents and is needed to create your EBIS password: Service Computation Date for Leave, Pay Plan, Grade and Step. You must also establish a Personal Identification Number (PIN) if you have not previously created one in EBIS or The Benefits Line. Your initial PIN is your month and year of birth (MMYY). The system will require you to change the 4-digit PIN to a 6-digit PIN of your choosing.

· The Benefits Line is a telephone interactive voice response system. You access The Benefits Line by calling 1-888-320-2917. To log into The Benefits Line you use your SSN and PIN. This is the same PIN that you created in EBIS. If you have not created a PIN, your initial PIN is your month and year of birth (MMYY). The system will require you to change the 4-digit PIN to a 6-digit PIN of your choosing. This 6-digit PIN will also be used to access EBIS.

WHOM DO I CONTACT FOR INFORMATION?

If you have questions regarding TSP catch-up or questions on any other benefit matter please call The Benefits Line at 1-888-320-2917, select option 4 to talk to a benefits counselor. Counselors are available 7:30 a.m. to 7:30 p.m., Monday through Friday (Eastern Time). Hearing impaired employees should call the TTY line number for their servicing HRSC.

Overseas employees who have access to DSN service can connect to The Benefits Line by dialing the DSN number to Randolph AFB (RAFB), 487-1110. Once the RAFB operator answers please indicate that you want to make an "official off net call" and give the operator The Benefits Line telephone number, 888‑320-2917.