Important Points

U.S. Office of Personnel Management
FERS Election Opportunities

You are participating in the Thrift Savings Plan and want to get matching contributions

CSRS employees do not receive Agency Matching or Automatic (1%) Contributions.

Thrift Savings Plan for FERS

The Thrift Savings Plan is an important part of the total FERS retirement package. It gives you a way to save extra money for the future and to get a tax break today.

When you join FERS, your agency sets up a Thrift Savings Plan account in your name. Every pay period, your agency automatically puts in an amount equal to 1% of your basic pay. This money is called your Agency Automatic (1%) Contribution. It is not a deduction from your basic pay. It is an amount your agency contributes for you based on your basic pay per pay period.

In addition, you can contribute up to 10% of your basic pay per pay period to your Thrift Savings Plan account. If you contribute to your Thrift Savings Plan account, you will also receive Agency Matchings Contributions as follows:

The first 3% you save each pay period will be matched dollar for dollar, and
The next 2% you save each pay period will be matched 50 cents on the dollar.

Your own contributions and your Agency Matching Contributions as well as the earnings attributed to these contributions belong to you right away. There is no waiting (vesting) period. You are vested in the Agency Automatic (1%) Contributions and attributable earnings after you have completed 3 years of Federal (generally, civilian) service (2 years for some noncareer participants).

The following chart shows how your agency matches your contributions:

Percent of Basic Pay Contributed to Your Account (FERS Participants Only)

If you Put In: Then Your Agency Puts In: And the Total Contribution Is:

0% 1% 0% 1%

1% 1% 1% 3%

2% 1% 2% 5%

3% 1% 3% 7%

4% 1% 3.5% 8.5%

5% 1% 4% 10%

6-10% 1% 4% 5%
Plus the percentage you contribute

Percent of Basic Pay Contributed to Your Account (FERS Participants Only)
If you Put In:	Then Your Agency Puts In:	And the Total Contribution Is:
0%	1%	0%	1%
1%	1%	1%	3%
2%	1%	2%	5%
3%	1%	3%	7%
4%	1%	3.5%	8.5%
5%	1%	4%	10%
6-10%	1%	4%	5% Plus the percentage you contribute

TSP publications, forms, and rates of return are available from the TSP Web site at http://www.tsp.gov/.

To read more about this:
Thrift Savings Plan under FERS

Updated 26 May 1998