As an aside, a Federal Employee has a GREAT benefit at their disposal called the “Thrift Savings Plan” or “TSP.”
Pre-Tax Dollars At Work
A Thrift Savings Plan is essentially a contribution plan for federal employees. Federal workers can contribute pre-taxed money into a number of savings accounts that can be matched by their employers if they meet specific qualifications. If employees are eligible for matching funds, their employer will be able to match up to 5 percent of their contributions. Members of the Civil Service Retirement System are not eligible for matching contributions.Withdrawal without penalty begins at age 70 1/2.
The TSP plan is open only to FERS members (members of the Federal Employee’s Retirement System). Active Federal employee-members of CSRS (an annuity plan, NOT a pension) are dwindling fast. In order to have been a Federal employee under the CSRS Retirement System, an employee would have had to have began their Federal “career” prior to 1983, worked continuously since then, and never elected to convert to FERS.
