by Kimberly H. Berry, Esq., www.retirementlaw.com
What is a TSP?
The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees, retirees, and members of the uniformed services. The TSP offers the same types of savings and tax benefits that private companies offer their employees under traditional 401(k) retirement plans. The TSP is a defined contribution plan, which means that the retirement income that an individual receives from his or her TSP account will depends on how much is contributed by the federal employee and the federal agency (if the individual is eligible to receive agency contributions) to the individual’s account during his or her working years as well as the earnings that accumulate over that time.
If a federal employee is covered under the Federal Employees Retirement System (FERS), the TSP is one of three components. The other two components are the FERS basic annuity and Social Security. If a federal employee is covered under the Civil Service Retirement System (CSRS) or happens to be a member of the uniformed services, the TSP is a supplement to the individual’s CSRS annuity or military pay.
If a federal employee is married, federal law grants a spouse certain rights regarding the federal employee’s TSP account under FERS. These rights can vary. More information on TSP federal agency programs can be found here. Following separation from federal employment, the federal agency becomes the primary point of contact for TSP issues that arise for former federal employees. Federal employees often need legal advice and/or legal representation in regards to TSP issues that arise. TSP issues can arise in many contexts, including court proceedings and before the Merit Systems Protection Board.
Conclusion
Berry & Berry, PLLC represents federal employees nationwide and abroad in matters involving Thrift Savings Plan (TSP) benefits. It is important to seek advice and representation from an attorney when issues involving TSP benefits arise. If a federal employees needs assistance with a retirement law issue, please contact our office at (703) 668-0070 or at www.retirementlaw.com to schedule a consultation. Please also visit and like us on Facebook at www.facebook.com/BerryBerryPllc.