DoD

May 23, 2014

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

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.


 
 

 
U.S. Air Force photo by Senior Airman Thomas Spangler

Weapons School fleet grows with arrival of second F-35

The second F-35 Lightning II assigned to the U.S. Air Force Weapons School lands at Nellis Air Force Base, Nev., Feb. 18. The integration of the F-35 into the syllabus will better prepare Weapons School students for future conf...
 
 
U.S. Air Force photo by Staff Sgt. Victoria Sneed

B-2 integration enhanced at Red Flag

U.S. Air Force photo by Staff Sgt. Victoria Sneed A B-2 Spirit, “The Spirit of Louisiana” from Whiteman Air Force Base, Mo., sits on the flightline prior to taxi during Red Flag 15-1 at Nellis AFB, Nev., Feb. 5. The B-2 is ...
 
 

I wanted to die

JOINT BASE LANGLEY-EUSTIS, Va. — Two months ago, I wanted to die. Allow me to clarify — I was not suicidal on that dark, August night when I hit rock bottom. I did not want to take a razor to my wrists. I did not want to swallow a bottle of pills. I did not want to...
 

 

What I’ve learned, an Airman’s perspective

ELLSWORTH AIR FORCE BASE, S.D.  — When I raised my right hand and swore to defend my country, I wanted to travel the world and continue my education. I managed to accomplish the first, spending the first two years of my enlistment at Kadena Air Base, Japan, and Osan Air Base, South Korea, but my ever-changing...
 
 
U.S. Air Force photo by Staff Sgt. Darlene Seltmann

Red Flag: evolution

U.S. Air Force photo by Airman 1st Class Joshua Kleinholz F-16 Fighting Flacons assigned to the 134th Fighter Squadron, Burlington Air National Guard Base, Vt., stand ready on the flightline overlooking the Las Vegas strip prio...
 
 
U.S. Air Force photo by Staff Sgt. Kristina Overton

Birds of a feather may flock together — but not all of them fly

U.S. Air Force photo by Staff Sgt. Kristina Overton Staff Sgt. Jose Ibarra, U.S. Air Force Air Demonstration Squadron flight equipment specialist, conducts a 30-day breakdown inspection of helmets and oxygen masks at the Thunde...
 




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