Air Force

May 30, 2014

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

TSP_Home2
 
JOINT BASE SAN ANTONIO-RANDOLPH, Texas (AFNS) — The Thrift Savings Plan (TSP) 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 five 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, The Air Force Personnel Center benefits and entitlements technical oversight team lead.

The government provides matching contributions on the first five percent of pay contributed each pay period. All civilian employees automatically receive a government one percent contribution. The first three percent will be matched dollar-for-dollar; the next two 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 five 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 five percent to their TSP, about $95 per paycheck, and earns an average annual rate of return of six 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,” Colon said. “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 TSP website.

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

For more information about other personnel issues, visit the myPers website. 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.


 
 

 
square

‘Retired Air Force Reservist finds inspiration through loss’ addendum

Angela Alexander was a member of the 56th Aerial Port Squadron, March Air Reserve Base and on annual tour in Japan when she was notified that her family had been in a severe car crash. She was told her husband, Suri and two dau...
 
 

Alcohol: how much is too much?

Alcohol is a part of the American culture — civilian and military. Many of us drink with others to socialize and celebrate important events. Or we sometimes drink alone to relax and unwind from a hard day at work. But along with the good times and good feelings associated with alcohol, there are well-known health...
 
 
BC3---women-in-combatswuare

AF begins testing phase for women in combat roles

U.S. Marine Corps photo by Cpl. Marionne T. Mangrum Cpl. Daisy Romero (left) and Sgt. Jessica Dmoningo, assigned to a female engagement team (FET), speak with an Afghan man in his compound during a patrol in Marjah, Helmand pro...
 

 
U.S. Air Force photo/Senior Airman Ashley J. Thum

Ten ways to help kids conquer military life challenges

U.S. Air Force photo/Senior Airman Ashley J. Thum Capt. Adam Luber, a 334th Fighter Squadron pilot, and Jeremiah Seaberry, the 334th FS pilot for a day, watch F-15E Strike Eagles on the flightline during a 4th Fighter Wing Pilo...
 
 
BC4---wildfire

922nd Civil Engineer Flight, small unit, worldwide impact

U.S. Air Force photo/Capt. Jason Saberin Members of the Army’s Northwest Division Field Engineer Support Team join the 922nd Civil Engineer Flight’s Staff Augmentation Team (S-Team) at March Air Reserve Base, Calif., Feb. 2...
 
 

AF sexual assault prevention: moving in the right direction

“I was raised in a household where you take responsibility for your own actions and don’t blame others for your downfalls,” said Tech. Sgt. Kathleen Thorburn. “Instead of seeing a crime that had occurred, all I could see were my mistakes. Why did I go to that party? Why did I accept the drink? Why...
 




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