Air Force

October 10, 2013

TSP to continue operations during shutdown

Airman 1st Class Alexander W. Riedel
Air Force News Service

FORT GEORGE G. MEADE, Md. (AFNS) – As the closure of government offices and activities continues, the Thrift Savings Plan, the retirement savings program for federal employees and members of the uniformed services, will carry on operations.

Since neither the TSP nor the Federal Retirement Thrift Investment Board depend on congressional appropriations, investment activities will continue as usual, according to a TSP news release. In addition, current investments and resulting gains are held in trust for the participants and neither congress nor the administration has access to the funds.

If military pay and allowances for uniformed members will continue, so will any scheduled contribution allotments to the TSP funds. Civilian employees, on the other hand, have options to consider when it comes to additional furlough days.

Because the shutdown is expected to last only a short time, government agencies should not send a Form TSP-41, Notification to TSP of Nonpay, the release stated.

While federal employees are not paid during a furlough, TSP contributions from pay deductions will also stop and any contributions to Federal Employees’ Retirement System accounts will likewise be halted.

For those needing to access their previous TSP contributions to supplement for missing income during the furlough, TSP hardship withdrawals, limited to the individual’s financial need, are possible. While such withdrawal may seem like a convenient way to fill a short-term gap in income, premature withdrawals will prevent members to contribute income for six months and may incur a 10 percent early withdrawal penalty. This type of withdrawal cannot be repaid and will permanently reduce TSP accounts.

Alternatively, participants may be eligible to apply for a TSP loan, which enables the borrower to repay their own TSP account and therefore still accrue earnings on their contributions once they are repaid – with interest on the loan. The loans generally require a repayment through payroll deductions, with the first payment due before the 60th day after the issue of the loan. Employees may therefore only take a loan against their TSP if a furlough (and time without pay) is expected to last less than 30 days; borrowers would still be responsible for payment if the a shutdown were to extend beyond 60 days.

Existing TSP loans, meanwhile, may be adjusted to allow for longer repayment periods.

For more information about the effects of a sustained furlough, please view the TSP factsheet Impact of a Government Shutdown on the TSP and options to manage your savings, visit http://www.tsp.gov.




All of this week's top headlines to your email every Friday.


 
 

 

Air Force Enlisted Village: Not just a place to live, a place to call home

I first visited the Air Force Enlisted Village as a young first sergeant in 2009, when I was stationed at Tyndall Air Force Base, Florida. I went to visit with the Tyndall Active Airmen’s Association, Tyndall’s E-1 to E-4 Professional Association, and was amazed at what I saw. This was also the first time I...
 
 

Enlisted evaluation and promotion systems implementation timeline

WASHINGTON (AFNS) — In July, the chief of staff and chief master sergeant of the Air Force announced a series of incremental changes to the Enlisted Evaluation and Weighted Airman Promotion Systems scheduled for implementation from August 2014 through January 2017. The evaluation and promotion systems changes are slated for implementation in a phased manner...
 
 
AFBirthday

67 plus years of airpower

DOVER AIR FORCE BASE, Del. (AFNS) — What does the Air Force want for its 67th birthday; new state of the art fighter jets, more unmanned aircraft, new maintenance facilities or how about additional satellites to launch in...
 

 

Tuition assistance program changes Oct. 1

LUKE AIR FORCE BASE, Ariz. — Effective Oct. 1, new changes will go into effect that impact the Air Force Tuition Assistance Program. Personnel using the TA program will now be required to pass all undergraduate courses with a grade of “C” or higher. A grade of “D” will be considered a failing grade and...
 
 

Air Force revamps AEF

WASHINGTON (AFNS) — The Air Force will deploy Agile Combat Support Airmen under its redesigned air expeditionary force construct October 1. The primary purpose of the redesign was to look at ways to deploy more ACS Airmen with their units and standardize dwell times across the Air Force as much as possible to present a...
 
 

Air Force reveals newest recruiting campaign

JOINT BASE SAN ANTONIO-RANDOLPH, Texas  — The U.S. Air Force is bringing back its “Aim High” advertising slogan after a 15-year hiatus with the launch of the “I am an American Airman” recruiting campaign today. The integrated campaign, created by the Air Force’s advertising agency, GSD&M, includes three commercial spots as well as new video...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


Directory powered by Business Directory Plugin