Tsp Annuity

TSP stands for "Thrift Savings Plan" and refers to a retirement savings and investment plan for federal employees. Congress established the TSP in the Federal Law on Civil Servants' Pension Plan in 1986. The purpose of the TSP is to provide retirement income. The TSP offers federal employees the same type of savings and tax benefits that many private corporations offer their employees under "401 (k)" plans.

In the civilian component of the TSP, employees covered by Federal Employees Retirement Plan (FERS) and Civil Service Retirement Plan (CSRS) can contribute to the TSP. The participation rules are different for CSRS and FERS employees.

The TSP is a defined contribution plan. Retirement income you receive from your TSP account will depend on how much you (and your body, if you are a FERS employee) have contributed to your account during your working years and the earnings on contributions.
The contributions you make to your TSP account are voluntary and are separate from your contributions to your FERS basic pension or annuity CSIS. The money you save and earn through your TSP account will provide an important source of retirement income.

Saving for your retirement through the TSP offers many benefits including: pre-tax contributions and investment earnings tax-deferred automatic payroll deduction, administrative expenses and lower investment, a diversified choice of investment options, including including lifecycle funds professionally designed, with input from the Agency, If you are an employee covered by Federal Employees Retirement System (FERS), in certain circumstances access to your money while you're still employed by the federal government, a portable retirement account that can travel with you when you retire or leave government service, and a variety of withdrawal options.

If you are covered by FERS, the TSP is one part of a pension in three parts which also includes your FERS basic pension and Social Security. If you are covered by the system of Civil Service Retirement (CSRS) or a member of the uniformed services, the TSP is a supplement to our pension CSIS or the balance of military pensioners.

TSP benefits differ depending on your retirement system (FERS, the CSRS or uniformed). Therefore, if you're not sure which retirement system you belong, you should check with your personnel or benefits.

Whatever your retirement system, participating in the TSP can significantly increase your retirement income, but starting early is important. Contributing early gives the money in your account more time to increase in value due to revenue mix.