Air Force

May 23, 2014

Take ‘FIVE’ to get free money for your TSP account

Janis El Shabazz
Air Force Personnel Center

JOINT BASE SAN ANTONIO-RANDOLPH, Texas-The Thrift Savings Plan has launched the “Take FIVE for Your Future” educational campaign encouraging civilian employees to take advantage of free government TSP matching contributions by putting at least 5 percent from each paycheck into their account.

“Employees who fail to do this are losing out on thousands of dollars that can help them down the road when they get ready to retire,” said Carlos Colon, AFPC Benefits and Entitlements technical oversight team lead.

The government provides matching contributions on the first 5 percent of pay contributed each pay period. All civilian employees automatically receive a government 1 percent contribution. The first 3 percent will be matched dollar-for-dollar; the next 2 percent will be matched at 50 cents on the dollar. If employees stop making regular employee contributions, the matching contributions will also stop.

The campaign which also includes a YouTube video highlights the plan’s five core funds and five lifecycle funds available for employee investments.

For employees who are unsure which funds to select, the TSP offers lifecycle funds which automatically manage TSP contributions based on an employee’s target retirement date. Each L fund is invested in a combination of the five individual TSP funds to maintain an optimal balance of investment risks and rewards for a particular time horizon.

Colon said a common reason for employees hesitating to make the 5 percent contribution stems from not understanding how TSP works or not wanting to part with the money from each paycheck.

“While wanting to keep the extra money each month is understandable,” he said, “Employees should consider the impact that these contributions can have over the course of a career working for the government.”

Colon said according to TSP, an employee earning $50,000 per year who contributes 5 percent to their TSP, about $95 per paycheck, and earns an average annual rate of return of 6 percent can potentially have a TSP account worth as much as $418,000 after 30 years.

“The old financial adage about ‘paying yourself first’ definitely applies to TSP contributions,” said Colon. “The earlier you begin to save for your retirement, the easier it will be to weather short-term market fluctuations and gain the maximum savings benefit.”

To learn more about the TSP “Take FIVE for Your Future” campaign, visit the following links:
Website: https://www.tsp.gov/whatsnew/plan/planNews.shtml#takefive
Video: http://www.youtube.com/watch?v=V9fy7oE5Af8

Air Force civilians can make TSP elections through the Employee Benefits Information System.

For more information about other personnel issues, visit the myPers website at https://mypers.af.mil . To access EBIS select the link under the ‘I would like to’ section. Log into the site with your social security number and EBIS personal identification number.

New users who do not have a PIN must click the ‘new user’ option to create one. Employees, who have forgotten their PIN can reset it by providing six pieces of previously established information. After answering the security questions select, the “forgot login” link and enter the requested information.




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


 
 

 

News Briefs January 23, 2015

Fitz-Gerald pedestrian crossing work Through next week, road work will be taking place near the Fitz-Gerald Blvd. and Doolittle Parkway intersections, which is located in the housing area near Chapel 2. This work will result in better visibility of the pedestrian crossings and make crossing at these locations easier and safer for all. Fitz-Gerald and...
 
 
juveniel-court

JIC aims to maintain good order, morale, discipline

In the Sept. 9, 2014, Desert Wings, an article titled Vandalism costs school district $12,000.î The story was about damage that occurred at Bailey Elementary School. The 412th Test Wing has taken to address not only that insta...
 
 
Air Force photograph by Scott M. Ash

SecAF, CSAF discuss future of the Air Force

Air Force photograph by Scott M. Ash Air Force Chief of Staff Gen. Mark A. Welsh III and Secretary of the Air Force Deborah Lee James deliver their, “State of the Air Force,” press conference Jan. 15, 2015, in Washi...
 

 
Air Force photograph by Rebecca Amber

Driving on base could make you eligible for gas tax refund

Air Force photograph by Rebecca Amber The state of California may refund taxes paid on gasoline to residents who use the gasoline while driving on a military installation. Claims must be submitted to the California State Contro...
 
 

Air Force senior leadership addresses need to stabilize RPA enterprise

During a State of the Air Force address held at the Pentagon, Jan 15, Secretary of the Air Force Deborah Lee James announced immediate preliminary steps to develop a get-well plan to improve the health of the MQ-1B Predator and MQ-9 Reaper enterprise in light of extensive combatant commander operational needs. (Intelligence, surveillance and reconnaissance)...
 
 

AFIMSC headquarters site announced

Joint Base San Antonio-Lackland, Texas,†was selected as the host base for the Air Force Installation and Mission Support Center Headquarters. Air Force officials chose the installation after analyzing operational considerations, installation attributes, economic and environmental factors at four candidate locations. “Following site surveys at the four candidate locations, we ultimately ...
 




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>