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Frequently Asked Questions (FAQs)

Updated 29 Sep 04

For TSP Catch-Up Contributions Information - click here

When are Thrift Savings Plan Open Seasons held?

Thrift Savings Plan Open Seasons are held each year on the following dates:

            15 April through 30 June

            15 October through 31 December

How is the TSP Loan program changing and when do the changes become effective?

Effective 1 July 2004, the TSP will make three changes to the loan program:

·         A $50 fee will be deducted from the amount of each new loan.

·         You will no longer be able to have two general purpose loans at the same time.  (You will still be able to have one general purpose loan and one residential loan.)

·         When you pay off a TSP loan, you will not be eligible for another loan of the same type for 60 days.

For additional information on the loan program changes, see the questions and answers posted on the TSP website at www.tsp.gov/curinfo/loanprogram.html.

What are some of the major features of the Thrift Savings Plan?

• Immediate employee contributions
• Before-tax savings and tax-deferred investment earnings
• Low administrative and investment expenses
• Transfers or rollovers of eligible distributions into the TSP
• A choice of five investment funds
  • Government Securities Investment (G) Fund
  • Fixed Income Index Investment (F) Fund
  • Common Stock Index Investment (C) Fund
  • Small Capitalization Stock Index Investment (S) Fund
  • International Stock Index Investment (I) Fund
• Ability to make interfund transfers daily
• Ability to make contribution allocations daily
• Loans from your own contributions and earnings while you are in Federal service
• In-service withdrawals for financial hardship or after you reach age 59½
• Catch-up contributions for participants age 50 or older
• Portable benefits and a choice of withdrawal options after you separate from Federal service
• Ability to designate beneficiaries for your account balance
• Protection of spouses’ rights for loans and withdrawals and recognition of qualifying court orders
• TSP Website with account information, capability for requesting interfund transfers and contribution allocations, the option of initiating (and in some cases completing) loan and withdrawal requests on-line, up-to-date TSP materials and information, on-line TSP participant statements, and calculators to estimate account growth, loan payments, monthly payments, and annuity amounts and an elective deferral calculator.
• An automated telephone service (the ThriftLine) for account information and certain transactions
• For additional information on the major features of the TSP, go to the TSP Homepage, click on “TSP Features,” then on the topic “The Thrift Savings Plan.”

How much money can I contribute to a regular Thrift Savings Plan account?

The maximum employee contribution to a regular Thrift Savings Plan (TSP) account is shown in this table.  However, employee contributions are also subject to an annual limit set by the Internal Revenue Service (IRS) (see next question).  Elections submitted 15 Oct - 30 Nov are effective the first full pay period in December, regardless of the year.   (The table does not include catch-up contributions as they are separate from regular TSP contributions.)

            * The employee contribution will be limited only by the Internal Revenue Service (IRS) annual limit on elective deferrals.

What is the maximum amount I may contribute to my Thrift Savings Plan account each year?

The maximum amount you may contribute is set by the Internal Revenue Service, and is called the “annual limit on elective deferrals.”  For regular Thrift Savings Plan (TSP) account purposes, the term “elective deferral” refers to employee contributions made on a tax-deferred basis.  This limit will affect highly paid employees whose contributions reach the limit before the end of the year, as well as those who are contributing to both TSP and another tax-deferred retirement plan or plans (such as 401K).  Read the TSP Fact Sheet “Annual Limit on Elective Deferrals” for more information.  The following chart shows the annual limit on elective deferrals for the next few years.

            * After 2006, increases will be indexed to the annual cost-of-living adjustment referred to in the Tax Code.

How do I submit an election to make Thrift Savings Plan contributions?

Air Force-serviced employees will submit elections to contribute, change the amount of contributions, or terminate contributions electronically through the Employee Benefits Information System (EBIS) web application or the Benefits and Entitlements Service Team (BEST) automated telephone system.  Hardcopy elections forms will not be accepted.  Once you complete an election in EBIS or the BEST phone system, you can change it as many times as you like until it becomes effective.  Once it becomes effective, you cannot make another TSP election even if the TSP open season hasn’t closed.  (For information on catch-up contributions, click the link at the top of this page.)

EBIS is a secure web program.  As a result, before you can access EBIS you must log into the AFPC Secure Web via CAC card or regular UserID and password.  To get started, go to www.afpc.randolph.af.mil/dpc/BEST_GRB/EBIS.htm and click on "Enter the AFPC Secure Web Site Login."  Follow the prompts, and after logging into AFPC Secure, click on EBIS.  Within EBIS, enter your social security number (SSN) and BEST personal identification number (PIN) -- another method of ensuring the security of your personal records and benefits transactions.  Your BEST PIN is the same for both EBIS and the BEST phone system.  Detailed information on how to access AFPC Secure and EBIS is contained in our brochure “How to Access the Benefits and Entitlements Web Automated System.”

Stateside employees, including those located in San Antonio, Texas, will reach the BEST phone system by dialing toll-free 1-800-616-3775 (press 2 for Air Force-serviced civilian, then 2 again for BEST benefits and entitlements, and follow the prompts).  Overseas employees will first dial a toll-free AT&T direct access number for the country in which located, then 800-997-2378.  (Click on “Contact B&E” at the top of the page to find a link to AT&T direct access numbers.)  When the BEST phone system answers, you’ll be required to enter your SSN and BEST PIN in order to access your personal records and conduct benefits transactions.  Detailed instructions on how to access the BEST phone system and how to reach a Benefits Counselor is contained in our brochure “How to Access the Benefits and Entitlements Automated Telephone System.”

How do I select the Thrift Savings Plan funds for investment of my contributions?

Selecting the funds you wish to invest your Thrift Savings Plan (TSP) contributions in, as well as the percentage you wish to go into each fund, is called making a “Contribution Allocation.”  You’ll use the TSP Website and/or TSP ThriftLine to make your contribution allocation among the investment funds. The good news is you can change your contribution allocation as often as you like.  If you’re a new participant, however, your contributions are placed in the Government Securities Investment (G) Fund.  You’ll receive your TSP Personal Identification Number (PIN) in the mail approximately 7 to 10 days after TSP receives your first contribution.  On receipt of your TSP PIN, you can access the TSP Website or ThriftLine and designate how you wish your contributions allocated among the five funds.

How do I access the TSP Website or the TSP ThriftLine?

The TSP Website is located at www.tsp.gov (click on Account Access to see your participant statement, your account balance, to make interfund transfers or make a contribution allocation).

The ThriftLine has a new toll-free number for callers located in the 50 United States, District of Columbia, the Virgin Islands, Puerto Rico, Guam, American Samoa, and Canada: 1-877-968-3778.  Other international callers will continue to use the old ThriftLine number, 1-504-255-8777, which unfortunately is not toll-free.  Hearing impaired callers may call the ThriftLine's new toll-free TDD number, 1-877-847-4385; however, TDD callers outside the United States and Canada must continue to call the old TDD number, 1-504-255-5113 (not toll-free).

If I lose or forget my TSP PIN, how do I get another one?

If you lose or forget your TSP PIN, you may request a new one via the TSP Website (Account Access) or ThriftLine - it will normally arrive at your home address within 10 business days.

What are the features of the new Thrift Savings Plan record keeping system?

The new record keeping system was implemented 16 Jun 03.  The major features are:

·         Daily valuation of accounts and processing of transactions each business day

·         Ability to make contribution allocations and interfund transfers daily

·         Ability to initiate (and in some cases complete) loan and withdrawal requests on-line; pay off or make additional loan payments by personal check

·         Participant statements issued quarterly instead of twice a year

·         Account balances and transactions shown in dollar amount, shares, and share prices

·         Loan information included on quarterly participant statements

When are Thrift Savings Plan Participant Statements issued?

Under the old record keeping system, participant statements were issued twice a year.  Under the new record keeping system, statements are issued on a quarterly basis, for the quarters ending 31 March, 30 June, 30 September, and 31 December.  Each statement will include cumulative account balance information and detailed account activity for the statement period, expressing financial information in both dollar amounts and shares.  Quarterly statements will also show loan information for participants with TSP loans.  Statements for the quarter ending 30 September 03 were issued by the TSP in November 2003, and they are also the first statement available for review on the TSP Web site under Account Access.

Are Thrift Savings Plan Participant Statements automatically mailed to my home address each quarter?

No.  On 5 Nov 03, the Federal Retirement Thrift Investment Board announced the following new procedures for participant statements:

·         Effective with the statement for the quarter ending 30 Sep 03, participant statements are now available through the Account Access module of the TSP Web site (www.tsp.gov).  You’ll need your SSN and TSP PIN to login to the Account Access area.

·         Statements will no longer be mailed unless participants submit a request to have the statement mailed.  As a result, statements for the quarter ending 30 Sep 03, mailed early in Nov 03, are the last statements participants will automatically receive by mail.

·         Participants who want to receive statements by mail must submit a request in one of the following ways:

o        TSP Website (Account Access, Account Transactions.

o        The ThriftLine (press 1 to access TSP account, enter SSN and TSP PIN at the prompt, then press 8 to request or cancel a request for a mailed statement).

·         Participants may change the method of receiving statements as often as necessary by using the TSP Website or the ThriftLine.

Why is it necessary to review each and every Leave and Earnings Statement and Thrift Savings Plan Participant Statement?

Your Leave and Earnings Statements (LES) show the money you contribute to your Thrift Savings Plan (TSP) account each pay period.  Although usually rare, mistakes do happen.  As a result, you should carefully review your LES each pay period to ensure the proper contribution amount is withheld.  Errors should be reported immediately.  In addition, if you have a TSP loan, it’s important to check your LES to ensure loan payments are being properly withheld from your pay.

Each quarter, you should carefully review your TSP participant statement to ensure your contributions were properly contributed to your TSP account each pay period.  In addition, if you are covered under the Federal Employees Retirement System (FERS), check that correct agency contributions were made each pay period.  Compare the beginning balance with the ending balance of the previous statement -- they should match.  Lastly, make sure the statement reflects your correct address, SSN, date of birth, and retirement coverage (either FERS or the Civil Service Retirement System-CSRS).  Errors should be reported immediately.

What should I do if I find an error in my Thrift Savings Plan contributions or contribution allocation?

If you find an error in the amount of Thrift Savings Plan (TSP) contributions shown on your Leave and Earnings Statement (LES) or quarterly participant statement, report them promptly to the Benefits and Entitlements Service Team (BEST) so we can initiate the necessary corrections.  You should also report errors in your retirement coverage (that is, FERS or CSRS) or if you received contributions that do not belong to you.

Errors in the allocation of your contributions among the investment funds should be reported to the TSP Service Office immediately.

Should I keep the final statement issued under the old Thrift Savings Plan record keeping system?

Yes.  The last participant statement, and loan statement, under the old monthly-valued record keeping system covered the period 1 - 31 May 03 and was mailed to you during Jun/Jul 03.  You should keep this/these statement(s) as a permanent record of your account status at the close-out of the old record keeping system.  If you did not receive these statements, you should contact the Thrift Savings Plan (TSP) Service Office via the ThriftLine.

Where can I find additional information on the Thrift Savings Plan?

The Thrift Savings Plan (TSP) Website contains a wealth of information, including rates of return, and many booklets, fact sheets, and other documents concerning TSP loans, investments, in-service withdrawals, just to name a few.  Check out the links listed below.

TSP Home Page  www.tsp.gov

Rates of Return  www.tsp.gov/rates/index.html

TSP Booklets available at www.tsp.gov/forms/pubintro.html include:

• Summary of the Thrift Savings Plan for Federal Employees
• Managing Your TSP Account
• Guide to TSP Investments
• TSP Loan Program
• TSP In-Service Withdrawals
• Withdrawing Your TSP After Leaving Federal Service
• TSP Annuities
• Information About Court Orders

Calculator programs available at www.tsp.gov/calc/index.html include:

• Projecting Your Account Balance
• Loan Calculator
• Annuity Calculator
• Monthly Payments Calculator
• Elective Deferral Calculator

TSP Features page at www.tsp.gov/features/index.html contains useful information including the following:

• Interfund Transfers
• Spouses’ Rights
• Tax Advantages of the TSP
• Understanding Your TSP Account
• Understanding Agency Contributions
• Projecting Your TSP Account Balance

TSP Fact Sheets available at www.tsp.gov/forms/pubintro.html include:

• Annual Limit on Elective Deferrals
• Bankruptcy Information
• Catch-Up Contributions
• The Thrift Savings Plan and IRAs
• TSP Benefits That Apply to Members of the Military Who Return to Federal Civilian Service
• Effect of Nonpay Status on TSP Participation
• Your Shares in the TSP Funds
• Important Information Regarding Transfers From the Thrift Savings Plan to Eligible Retirement Plans

Other documents available at www.tsp.gov/forms/pubintro.html include:

• Important Tax Information About Payments From Your TSP Account
• Important Tax Information About TSP Death Benefit Payments
• Important Tax Information About TSP In-Service Withdrawal Payments
• Important Tax Information About Your TSP Withdrawal and Required Minimum Distributions
• Tax Treatment of TSP Payments Made Under Qualifying (Court) Orders
• Tax Treatment of TSP Payments to Nonresident Aliens and Their Beneficiaries
• TSP Open Season Update
• Understanding Your TSP Participant Statement
• Web/ThriftLine Information Card
• TSP Fund Information Sheets
• Loan Payment Coupon
• The Cost of TSP Loans
• Sample Retirement Benefits Court Order
• Sample Legal Process: Order for Garnishment of a TSP Account
• Sample Special Power of Attorney

 
Last Updated:  10/15/2004 02:13 PM (jll)

For specific questions concerning programs on this site, please address to the POC listed on the respective pages.  For information on Air Force Employment, see the Employment Homepage or send E-Mail to the Recruitment Center. For all benefit and entitlements related issues, contact the BEST at 1-800-616-3775 (TDD 1-800-382-0893, or (210) 565-2276 in the San Antonio, Texas area).  Send comments or questions concerning the website structure to the Webmaster  For other comments, recommendations and questions, please e-mail our Director's Office.