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Max out your Thrift Savings Plan (TSP) Account

Similar to a 401(k) plan, the TSP permits you to make pre-tax contributions every time you get paid. You decide how much to allocate to your TSP, up to a certain limit. The TSP allocation is taken out of your gross pay, and your paycheck is reduced by that amount. The allocated amount goes directly into your TSP account, which you can invest in various funds. In 2015, FERS and CSRS employees can contribute up to $18,000 of their basic pay to the TSP. Be aware that President Bush signed legislation (P.L. 107-304) on November...

Voluntary Contributions to Federal Employee Retirement Funds

Voluntary contributions are payments made to the retirement fund in addition to the deductions that are withheld from pay. You can make these contributions only if you are covered by the Civil Service Retirement System (CSRS) and do not owe a deposit for a period of time when deductions were not withheld from your pay. To make voluntary contributions, you should submit a Standard Form 2804 to your employer. You can make voluntary contributions in multiples of $25. Total contributions cannot exceed 10 percent of your pay. You...

How Federal Employee Annuities Are Computed

Your basic annuity is computed based on your length of service (which includes unused sick leave if you retire on an immediate annuity) and “high-3” average pay. To determine your length of service for computation, add all your periods of creditable service, and the period represented by your unused sick leave, then eliminate from the total any fractional part of a month. Your “high-3” average pay is the highest average basic pay you earned during any 3 consecutive years of service. Generally, your basic...

Errors in Withholdings and Contributions

Payroll offices must adjust errors in withholdings and contributions on a subsequent payroll and must include the adjustments in a subsequent withholdings and contributions report. Your employing office must ensure that your individual payroll record shows not only the regular (current) deductions for health benefits withholdings, but also the adjustments. Where annual appropriations are involved and the fiscal year changes between the processing of the erroneous withholdings and/or contributions and the processing of the adjustment,...

Senate Ends Tax Penalty for Retired Federal Officers

Federal law enforcement officers and firefighters will soon be able to withdraw funds from their Thrift Savings Plan (TSP) after the age of 50 without a tax penalty. The legislation cutting the penalty was passed unanimously by the Senate June 4. The House passed a similar version of the legislation last month, but must now take up the Senate's amended version of the bill. Under current law, federal law enforcement officers are eligible to retire after 20 years of service at age 50 and must retire in many cases...

Cyber Security Breach at the OPM

News Release FOR IMMEDIATE RELEASE Thursday, June 04, 2015 Contact: Sam Schumach Tel: (202) 606-2402 OPM to Notify Employees of Cybersecurity Incident WASHINGTON, DC – The U.S. Office of Personnel Management (OPM) has identified a cybersecurity incident potentially affecting personnel data for current and former federal employees, including personally identifiable information (PII). Within the last year, the OPM has undertaken an aggressive effort to update its cybersecurity posture, adding numerous...

Repost from OPM Director: Celebrating Every Member of our Federal Family

June 3, 2015 As we celebrate LGBT Pride Month, I want to proudly reinforce my continued commitment to the lesbian, gay, bisexual, and transgender members of our Federal family, and recognize the incredible contributions this community has made in service to the American people. We better serve the American people when our Federal workforce draws from and honors the unique talents and experiences of individuals from every community across this great country. Though we tackle tough challenges each and every day, the diversity...

FEHB Enrollment With Military Service

Federal employees who elect to serve in the military can continue their FEHB coverage during their service. Entry into Military Service For 30 days or Less If you enter one of the uniformed services for 30 days or less, your FEHB enrollment will continue without change. Withholdings and Government contributions will also continue, as long as you are in pay status or until your military orders are changed so that your period of duty is more than 30 days. Entry into Military Service For More Than 30 Days If you enter...

Enrolling in FERS

New Employees Most new employees hired after December 31, 1983, are automatically covered by the Federal Employees Retirement System (FERS). The exceptions are employees in appointments that are limited to 1 year or less, most intermittent employees, anyone who is not eligible for Social Security coverage, or certain persons with non-Federal service which is creditable under the Civil Service Retirement System (CSRS). Rehires and Conversions  The general rules on whether you are covered by CSRS, CSRS Offset, or FERS...

Working at the DoD

As the single largest employer on the planet, with more than 3 million employees and responsibility for more than one half of the entire federal budget, the Department of Defense is a prime target of any exiting service member who wishes to continue to use their talents to defend our country. The role of the Department of Defense is to oversee agencies responsible for national security and armed forces, which means it holds opportunity for a wide variety of people. It is, according to their own reports, the largest employer...

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