Thrift Savings Plan (TSP) for Uniformed Services

DFAS-DEM 7073 Thrift Savings Plan Election - What kind of pay is this? Here is a list of all types of incentive pay, bonuses, and special pay to help fill out your TSP-U-50 election form.

TSP FOR MILITARY

On 30 October 2000 legislators extended to members of the uniformed services the opportunity to join civilian Federal employees in a Thrift Savings Plan (TSP). TSP is designed to help provide sufficient retirement income to members of the uniformed services. TSP has the same types of savings and tax benefits as “401(k)” plans. This page provides TSP information for Air Force members considering enrollment in TSP and for Air Force employees who are responsible for implementing the TSP program.

INFORMATION FOR AIR FORCE MEMBERS ABOUT ENROLLMENT IN TSP

How to make a contribution election. Air Force active duty, Reserve and Air National Guard members may make an election to begin contributing to the Thrift Savings Plan (TSP) during the open season period. Members may enroll in TSP by completing a Form TSP-U-1 (Election Form) available from three sources.

1. Electronic Submission from your PC: The best way to sign up is through DFAS’s Employee Member Self Service, E/MSS web site - www.dfas.mil/emss. After completing your secure entry procedure, this site will provide the enrollment form and automatically submit it for you. E/MSS will show a confirmation screen (only shown at time of enrollment) that tells you your enrollment was accepted. If you make errors or you later change your mind about percentages etc., complete a new E/MSS TSP enrollment screen--the system will override your old submission and accept the most current one. Note: Although DFAS is working to improve E/MSS, at present you will not be able to review your previous E/MSS TSP enrollment screen.

2. Download Enrollment form from web. The official enrollment form TSP-U-1 may be downloaded, and printed at your PC. Completed TSP-U-1 forms should be delivered to your installation Financial Servicing Office (FSO) for input into the pay system. The forms are at http://www.tsp.gov/uniserv/forms/index.html. You can also download a copy of the TSPBK-U-08 booklet, "Summary of the Thrift Savings Plan for Uniformed Services" containing an extensive explanation of the TSP.

3. Get Enrollment form on base. Paper copies of enrollment forms (TSP-U-1) and other TSP materials may be picked up at three installation locations: the FSO, the Military Personnel Flight (MPF), and at the Family Support Center (FSC). Members complete and deliver them to the FSO. To contribute from basic pay, you must specify the percentage of pay you want to contribute each pay period. You may specify any whole number up to 8 percent. Once you elect to contribute from basic pay, you then have the option to elect to contribute from incentive pay, Bonuses and/or special pay. You may elect to contribute from one to one hundred percent of the incentive pay, special pay, or bonus pay that you receive. You may make this election on the E/MSS enrollment form or the paper TSP-U-1 form. To determine which category (incentive pay, bonus or special pay) a particular pay falls under please use DFAS-DEM 7073-1, Table 51-2 (available at this site).

When elections become effective. Your TSP account will not actually be created until your first deposit is made from your pay. Therefore, as an example, if your election is received before May 1, 2003, it will become effective the first full pay period in May. Elections submitted after May 1, 2003, will become effective no later than the first full-pay period after your service accepts your TSP election form.

Managing my TSP account. When DFAS sends your first deposit to TSP, the TSP record keeper will establish your account and mail notification and a PIN number that will allow you direct access to your account to manage your TSP funds. Your fund management actions will be conducted directly between you and the TSP. Even after separation or retirement you will have direct access to your TSP account. When TSP notifies you that your account has been opened, there are two management actions you may want to take immediate action on -- allocation of funds and interfund transfers.

How to make a contribution allocation. You may invest your contributions in any of the five TSP investment funds. To direct the investment of the contributions that will be made to your account each pay period, you must make a contribution allocation by using the TSP Web site or the Thrift Line (1-877-968-3778), or by submitting Form TSP-U-50 (Investment Allocation) to the TSP record keeper. If you use the Web site or the Thrift-Line, you will need your TSP Personal Identification Number (PIN). Your contribution allocation will remain in effect until you request a different allocation. The TSP record keeper will notify you when your account is established and this notification will include your TSP PIN. After you receive this notification, you may request a contribution allocation at any time, and your request will be processed within 2 business days. Until your contribution allocation is processed, your contributions will be invested in the Government Securities Investment (G) Fund.

(NOTE: If you also have a TSP account as a result of a civilian appointment, you will receive a different PIN to access your uniformed services account. You must make separate contribution allocations for each account.)

How to change the investment of your account balance. You may also use the TSP Web site, the Thrift Line, or Form TSP-U-50 to request an interfund transfer. An interfund transfer will change the way money already in your account is invested. Please note that an interfund transfer is different from a contribution allocation, which changes only the investment of future contributions to your account. If you want to change the investment of both your account balance and future contributions to your account, you must request both an interfund transfer and a contribution allocation. You may request an interfund transfer at any time. However, interfund transfers are processed only once a month and affect your account balance as of the end of the relevant month.

(NOTE: If you also have a TSP account as a result of a civilian appointment, you must request separate interfund transfers for each account.)

WHERE TO GET MORE INFORMATION ABOUT THE TSP

TSP Booklet (TSPBK-U-08) Summary of the Thrift Savings Plan for Uniformed Services. This booklet discusses participation and contribution rules, investment options, loans, withdrawals, and other important TSP information (e.g., designating TSP beneficiaries or the actions you must take to manage your accounts if you have both a uniformed services and a civilian account). Please read this booklet before you make a TSP contribution election and retain it for future reference. MPFs will be providing each member with a copy of this detailed booklet. It is also available on the web at http://www.tsp.gov/uniserv/forms/index.html.

Family Support Center Financial Counselors. Installation FSC counselors have additional information about the TSP investment funds, contribution allocations, and interfund transfers, including the TSPBK03 booklets Guide to TSP Investments or (will also be available on the TSP Web site).

The TSP Web site. The TSP Web site, www.tsp.gov/ contains information about the TSP for both civilian employees and military members. Specific information for military members can be accessed by choosing the "Uniformed Services" button, or you may contact the TSP Thriftline toll free at 1-877-968-3778.

The AFPC Call Center. The call center at the Air Force Personnel Center is prepared to answer most of your questions on TSP. Call DSN 665-5000, commercial (210) 565-5000 or toll free long distance at 1-800-616-3775.

BULLETINS PROVIDE INFORMATION FOR REPRESENTATIVES RESPONSIBLE FOR IMPLEMENTING THE TSP

Bulletins for Service TSP Representatives (Military Personnel Flight, Family Support Financial Counselors, and Accounting and Finance Offices are available at http://www.tsp.gov/uniserv/bulletins/index.html.

AIR FORCE RESERVES (AFR) AND AIR NATIONAL GUARD (ANG) PARTICIPATION:

AFR and ANG members are fully eligible to enroll in TSP. Care has been taken to create a TSP enrollment process that will be almost identical for ANG, Reserve and active duty components. Any special requirements will be covered in guidance from your component OPRs.

AF Reserves: HQ USAF/REPX, DSN 425-6064

Air National Guard: ANG/DPFP, DSN 327-0868

Air Force Personnel Center | Randolph AFB, TX 78150