Employee Savings Investment Plan

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Employee Savings Investment Plan Powered By Docstoc
					Summary of the
Thrift Savings Plan

                  July 2009
Table of Contents
Welcome to the Thrift Savings Plan  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 1
Contributing to the TSP  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 2
           Employee Contributions  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 2
           Agency Automatic (1%) Contributions  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3
           Matching Contributions .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4
Contribution Limits  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5
Tax Advantages .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 6
Tax Liability  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 6
Moving Money from Other Plans into the TSP  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 7
Investing in the TSP  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 8
           The L Funds  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 8
           The Individual Funds  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9
           Comparison of TSP Funds (Chart)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 10
           Fund Risks  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 11
           Contribution Allocations and Interfund Transfers  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 11
           Administrative Expenses .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 12
TSP Loans and Withdrawals  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .13
           Loans  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .     13
           In-Service Withdrawals  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                              14
             .  .  .  . Types of In-Service Withdrawals  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                            14
           Withdrawals after You Separate  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                           15
                        Types of Post-Separation Withdrawals  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                                      16
Death Benefits  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 18
Other Information about the TSP  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .19
           TSP Web Site  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                19
           ThriftLine  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .         19
           Account Security  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                     19
             .  .  .  . TSP Account Number  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                 19
             .  .  .  . Custom User ID  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                      19
             .  .  .  . Web Password .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                   19
             .  .  .  . ThriftLine Personal Identification Number (PIN) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                                                       19
           Participant Statements  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                              20
           Bankruptcy  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .               20
           Court Orders  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                20
           TSP Administration  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                            20
                        Management  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                    20
             .  .  .  . Law  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   20
             .  .  .  . Audits  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .      20
Glossary of Terms  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 21
Appendix: Getting More Information  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 24
Contact Information  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 26

                     Information beginning and ending with ★★★ is for members of the uniformed services only .
Welcome to the Thrift Savings Plan                                                                                                    Tools to help you
                                                                                                                                      plan for your
As a Federal employee or member of                                   If you are covered by FERS, the TSP is one                       future:
the uniformed services, you have the op-                             part of a three-part retirement package                          Use the “Retirement
portunity to participate in the Thrift Sav-                          that also includes your FERS basic annu-                         Planning” calcula-
                                                                                                                                      tor on the TSP Web
ings Plan (TSP). This booklet provides                               ity and Social Security. If you are covered
                                                                                                                                      site to estimate how
an overview of the TSP. If you would like                            by the Civil Service Retirement System                           much you will need
more information, see the Appendix for                               (CSRS) or are a member of the uniformed                          to save each year
additional resources.                                                services, the TSP is a supplement to your                        to meet your retire-
                                                                     CSRS annuity or military retired pay.*                           ment goals. You can
The TSP is a retirement benefit that is                                                                                               also use the Web
                                                                                                                                      calculator, Project-
offered to employees of the U.S. Govern-                             TSP benefits differ depending upon your
                                                                                                                                      ing Your Account
ment. It is similar to “401(k)” plans avail-                         retirement system (FERS, CSRS, or uni-                           Balance, to see how
able to many private sector employees.                               formed services). Therefore, if you are                          your account can
The purpose of the TSP is to give you the                            not certain which retirement system you                          grow.
ability to participate in a long-term sav-                           belong to, you should check with your
ings and investment plan.                                            personnel or benefits office.                                    Overwhelmed?
                                                                                                                                      Check out the
Saving for your retirement through the                               Regardless of your retirement system,                            L Funds (page 8) to
TSP provides numerous advantages, in-                                participating in the TSP can significantly                       see how easy it is to
cluding:                                                             increase your retirement income, but                             invest for your
                                                                     starting early is important. Contributing                        future. It’s easier
• before-tax contributions and tax-                                                                                                   than you think.
                                                                     early gives the money in your account
  deferred investment earnings
                                                                     more time to increase in value through
• automatic payroll deductions                                       the compounding of earnings.

• low administrative and
  investment expenses                                                                Earnings Potential of
• a diversified choice of                                                             Your TSP Account**
  investment options, in-
  cluding professionally                                  $900,000
  designed lifecycle funds                                $800,000
                                  Total Account Balance

• agency contributions, if                                $700,000
  you are an employee
  covered by the Federal
  Employees’ Retirement                                   $500,000
  System (FERS)                                           $400,000

• under certain circum-                                   $300,000
  stances, access to your                                 $200,000                         173,914
  money while you are still                                                 57,785
  employed by the Federal                                 $100,000
  Government                                                    0
                                                                          After 10 yrs   After 20 yrs   After 30 yrs   After 40 yrs
• a portable retirement ac-
  count that can move with                                                           Contributions                 Earnings
  you when you retire or
  leave Federal service                                              *    See the Glossary for the definitions of FERS, CSRS,
                                                                          and uniformed services. These generic categories
                                                                          cover multiple retirement systems.
• a variety of withdrawal options.
                                                                     **   Information in this chart assumes a salary of $40,000,
                                                                          employee and agency contributions of 5% each, and
                                                                          a 7% rate of return.

                          Contributing to the TSP
Getting started:
1 To begin making         There are three sources of TSP contribu-         Your catch-up contributions will stop au-
contributions from        tions:                                           tomatically when you meet the applicable
pay, you need to
                                                                           IRS limit, when the amount of the catch-
make a contribution       • Employee Contributions                         up contributions you elected has been
election to let your
agency or service         • Agency Automatic (1%) Contributions            reached, or at the end of the calendar year,
know how much you                                                          whichever comes first. You must make a
want to contribute.       • Matching Contributions                         new election for each calendar year.
(Page 2) If you are
FERS, a TSP account
will automatically be     Employee Contributions
established for you                                                        If you are a member of the uniformed
when your agency          There are two types of employee contribu-        services, you can also contribute from
makes your first
                          tions:                                           1 to 100 percent of any incentive pay,
Agency Automatic
(1%) Contribution                                                          special pay, or bonus pay — as long as
                          • Regular employee contributions
whether or not you                                                         you elect to contribute from basic pay.
contribute from your      • Catch-up contributions                         However, you cannot contribute from
pay. (Page 3)                                                              resources such as housing or subsistence
2 Verify informa-         Regular Employee Contributions are pay-          allowances. Your total contributions from
tion and note your        roll deductions that any eligible Federal        all types of pay must not exceed the I.R.C.
account number in         civilian employee or member of the uni-
the “welcome let-
                                                                           section 415(c) limit (see page 5).
ter” you’ll receive
                          formed services can make from basic pay
when your account         before taxes are withheld. You can begin         You can elect to contribute from incentive
is opened.                making these contributions at any time.          pay, special pay, or bonus pay, even if you
3 Look for your                                                            are not currently receiving them. These
TSP Web password          Each pay period, your agency or service          contributions will be deducted when you
and Personal Iden-        will deduct your contribution to the TSP         receive any of these types of pay.
tification Number         from your pay in the amount you choose.
(PIN) in the mail.        Your agency or service will continue to          If you are receiving tax-exempt pay (i.e.,
You use your ac-
count number with
                          do so until you make a new TSP election          pay that is subject to the combat zone tax
your Web password         changing the amount of your contribu-            exclusion), your contributions from that
to access your ac-        tion or stopping it or until you reach the       pay will also be tax-exempt.
count on the TSP          IRS contribution limit (see page 5).
Web site and with                                                          You cannot make catch-up contributions
your PIN to access        Catch-Up Contributions are payroll de-           from tax-exempt pay, incentive pay, spe-
the ThriftLine (the
TSP’s automated
                          ductions that participants who are age 50        cial pay, or bonus pay.
telephone service).       or older may be eligible to make in addi-
4 Initial contribu-       tion to regular employee contributions.                             ★★★
tions will go to (and     These deductions are also taken from be-
stay in) the G Fund       fore-tax basic pay. To be eligible to make       To begin, change, or stop your em-
unless you make an        catch-up contributions, you must already         ployee contributions, you must make a
“interfund transfer.”     be contributing the maximum allowed              TSP contribution election through your
(Page 11)
                          amount of employee contributions.                agency or service. You should ask your
5 If you want fu-                                                          personnel or benefits office whether your
ture contributions        In the year in which you turn 50, you can        agency or service handles TSP enroll-
invested in funds
other than the
                          begin making catch-up contributions at           ments electronically through automated
G Fund, tell the TSP      any time. Each pay period, your agency           systems such as Employee Express, myPay,
how you want them         or service will make your contribution to        or PostalEase, or via paper forms.
invested by making        the TSP from your pay in the amount you
a “contribution allo-     choose.                                          If you need to submit a paper request,
cation.” (Page 11)
                                                                           use Form TSP-l, Election Form, for regular
6   If you wish, desig-                                                    employee contributions and Form
nate beneficiaries to
receive your account
in the event of your                                                   2
death. (Page 18)
TSP-1-C, Catch-Up Contribution Election,          Vesting. Agency Automatic (1%) Con-
for catch-up contributions. (Members of           tributions are subject to “vesting.” You      Submitting a
the uniformed services should use Form            become “vested” in (that is, entitled to      contribution
TSP-U-1 and Form TSP-U-1-C.) You can              keep) these contributions and any earn-       election:
obtain copies of these forms from the TSP         ings they accrue only after you have          Make certain that
Web site or from your agency or service.          completed a time-in-service requirement       you submit your
Return your completed form to your                — which is 3 years for most FERS em-          completed contribu-
agency or service.                                ployees and 2 years for FERS employees        tion election form
                                                  in Congressional and certain noncareer        to your agency or
                                                                                                service. Only your
Whether you submit your contribution              positions. All Federal civilian service       agency or service
election electronically or use a paper            counts toward vesting — not just service      can process con-
form, the election should be effective no         while you are a TSP participant.              tribution elections
later than the first full pay period after                                                      because it must cal-
your agency or service receives it.               The date your vesting period begins is        culate your contri-
                                                  determined by your TSP Service Com-           butions and deduct
                                                                                                them from your pay.
                                                  putation Date (TSP-SCD), which your
Agency Automatic (1%)                             agency reports to the TSP record keeper.      To verify the amount
                                                                                                you are contributing
Contributions                                     If you are a FERS participant, your           each pay period,
                                                  Service Computation Date is shown             check your earnings
If you are a FERS employee, beginning             along with the required vesting informa-      and leave statement.
the first time you are paid, your agency          tion on your quarterly and annual TSP
will contribute an amount equal to one            participant statements. The date will         Transferring to
percent of the basic pay you earn each pay        never be earlier than January 1, 1984.        another agency
period to your account. These contribu-                                                         or service?
tions are called Agency Automatic (1%)            If you leave Government service before        Be sure to notify
Contributions. To get these contributions,        satisfying the vesting requirement, the       your new person-
you do not need to be making employee             Agency Automatic (1%) Contributions           nel/payroll office
contributions. Note: Employees who be-            and their earnings will be forfeited to the   that you have been
gan working for the Federal Government            TSP. If you die before separating from        contributing to the
                                                                                                TSP. This will help
before June 22, 2009, had to complete a           service, you are automatically considered
                                                                                                ensure that your
waiting period before becoming eligible           vested in all the money in your account.      contributions (and
for agency contributions. This waiting                                                          any loan payments)
period was eliminated with the passage of         Note: You are immediately vested in your      can continue with-
new legislation (P.L. No. 111-31) on that         own contributions and in any earnings         out interruption.
date. So FERS employees who were still            they accrue. If you are receiving Matching    If contributions do
in their waiting period as of that date are       Contributions, you are also immediately       not start in a timely
now eligible for Agency Automatic (1%)            vested in those contributions and any         manner, it is your
                                                                                                responsibility to
and Matching Contributions.                       earnings they accrue.
                                                                                                notify your agency
                                                                                                or service. If you do
Agency Automatic (1%) Contributions                                                             not do so, it is pos-
are not taken out of your pay. Nor do they                                                      sible that you will
decrease the dollar amount of your pay                                                          not be able to make
for income tax or Social Security                                                               up all missed contri-

                       Matching Contributions                              Notes:
Don’t throw                                                                • CSRS participants do not receive
away free              If you are a FERS participant, you receive
money!                 Matching Contributions on the first five              Matching Contributions.

If you are a FERS      percent of pay that you contribute each             • There are no Matching Contributions
employee, your         pay period. The first three percent of                for catch-up contributions.
agency matches         pay that you contribute will be matched
your contributions     dollar-for-dollar; the next two percent             • Prior to June 22, 2009, FERS employees
— up to 4% if you      will be matched at 50 cents per dollar.               were required to complete a waiting pe-
contribute 5% each                                                           riod before becoming eligible for agen-
pay period. This is
                       Contributions above five percent will not
free money.            be matched. If you stop making regular                cy contributions. This waiting period
                       employee contributions, your Matching                 was eliminated with the passage of new
Remember — it
is important that      Contributions will also stop.                         legislation (P.L. No. 111-31) on that
you contribute 5%                                                            date. So FERS employees who were still
each pay period to     Like Agency Automatic (1%) Contribu-                  in their waiting period as of that date
receive the full 4%    tions, Matching Contributions are not                 are now eligible for Agency Automatic
match.                 taken out of your pay. They also do not               (1%) and Matching Contributions.
The result? If you     increase the dollar amount of your pay
add the Agency Au-     for income tax or Social Security pur-                                  ★★★
tomatic (1%) Con-
tributions to your
                       poses. Combined with the Agency Auto-
                                                                           Currently, members of the uniformed
Matching Contribu-     matic (1%) Contribution, they can help
                                                                           services do not receive matching contribu-
tions, you’ll double   add as much as five percent of basic pay
                                                                           tions. However, the law that extended par-
your 5% investment     to your TSP account. (See the chart
instantly.                                                                 ticipation in the TSP to members of the
                                                                           uniformed services allows the secretary
                                                                           of each individual service to designate
                                                                           particular critical specialties as eligible for
                                                                           Matching Contributions under certain cir-


                                                 Agency Contributions to Your Account
                                                        (FERS Employees Only)

                                  You put in:             Your agency puts in:               And the total
                                                                                             contribution is:
                                                    Automatic             Agency
                                                      (1%)               Matching
                                                   Contribution         Contribution

                                     0%                1%                     0%                   1%
                                     1%                1%                     1%                   3%
                                     2%                1%                     2%                   5%
                                     3%                1%                     3%                   7%
                                     4%                1%                   3.5%                 8.5%
                                     5%                1%                     4%                  10%
                                  More than 5%         1%                     4%       Your contribution + 5%

Contribution Limits
                                                                                                   Don’t lose out
The Internal Revenue Code (I.R.C. or                For 2009, the section 415(c) limit is
                                                                                                   on Matching
Tax Code) places limits on the dollar               $49,000.
amount of contributions you can make                                                               If you are a FERS
                                                                                                   employee and con-
to the TSP. These limits can change an-             The IRS catch-up contribution limit is
                                                                                                   tribute a percentage
nually. For ease of reference, we generally         the maximum amount of catch-up contri-         of pay or a dollar
call the limits the “IRS limits” because the        butions that can be contributed in a given     amount that will
Internal Revenue Service (IRS) is respon-           year by participants ages 50 and older. It     equal the IRS elec-
sible for calculating them each year. The           is separate from the elective deferral limit   tive deferral limit
                                                    imposed on regular employee contribu-          before the last pay
TSP announces the annual limits on the
                                                                                                   date of the year,
TSP Web site and the ThriftLine as well as          tions. For 2009, the limit for catch-up        you will not receive
through its various publications when the           contributions is $5,500 under I.R.C. sec-      all of the Matching
limits become available.                            tion 414(v).                                   Contributions to
                                                                                                   which you would
The IRS elective deferral limit is a limit                                                         otherwise be en-
                                                                       ★★★                         titled.
that the Tax Code (section 402(g)) places
on regular employee contributions. The              The elective deferral limit does not ap-       FERS participants
                                                    ply to contributions made from the tax-        who are contrib-
elective deferral limit applies only to regu-
                                                                                                   uting to both a
lar employee contributions that are made            exempt pay a member of the uniformed           civilian and a uni-
in before-tax (i.e., tax-deferred) dollars.         services may receive. If you are a member      formed services TSP
For members of the uniformed services,              of the Ready Reserve who is contributing       account should be
this includes all tax-deferred contribu-            to both a uniformed services and a civil-      particularly careful
tions from taxable basic pay, incentive             ian TSP account as a FERS employee, the        not to exceed the
                                                                                                   elective deferral
pay, special pay, and bonus pay. The IRS            elective deferral limit applies to the total
                                                                                                   limit too soon.
elective deferral limit for 2009 is $16,500.        amount of tax-deferred employee contri-
                                                                                                   For help —
                                                    butions you make in a calendar year.
The I.R.C. section 415(c) limit is an                                                              See the TSP Fact
                                                    If you are a member of the uniformed           Sheet: Annual Limit
additional limit that the IRS imposes
                                                                                                   on Elective Defer-
on the total amount of all contributions            services and have two TSP accounts, or         rals and use the
made on behalf of an employee to an                 if you are participating in other eligible     Elective Deferral
eligible retirement plan in a calendar year.        plans, you need to pay particular atten-       Calculator, both of
“All contributions” include employee                tion to the section 402(g) limit.              which are available
contributions (both tax-deferred and tax-                                                          on the TSP Web site
                                                                       ★★★                         at
exempt), Agency Automatic (1%) Contri-
butions, and Agency Matching

Members of the uniformed services
should pay particular attention to this
limit if they contribute from pay that is
subject to the combat zone exclusion be-
cause section 415(c) allows them to put
more into their TSP account(s) than the
elective deferral limit would permit.


                        Tax Advantages
exception to the
early withdrawal        You receive a number of tax benefits                   • Saver’s Tax Credit (also known as
penalty tax:            when you participate in the TSP:                         the Retirement Savings Contribu-
                                                                                 tions Credit). You may be able to
If you leave Federal    • Contributions in “before-tax” dol-
service in the year                                                              take a tax credit of up to $1,000 (up
                            lars. The money you contribute to the
you turn age 55                                                                  to $2,000 if filing jointly) for your TSP
or older, the 10%
                            TSP is taken out of your pay each pay
                                                                                 contributions. Eligibility depends on
penalty tax does not        period before Federal (and, in almost
                                                                                 the amount of your modified adjusted
apply to any with-          all cases, state) income taxes are calcu-
                                                                                 gross income (MAGI). For 2008, your
drawal you made             lated. As a result, the amount of pay
that year or later.                                                              MAGI must be no more than $53,000
                            used to calculate your taxes is reduced,
                                                                                 if married filing jointly, $39,750 if
However, par-               so less money is withheld from your
ticipants who are                                                                head of household, or $26,500 if sin-
                            pay for taxes.
eligible to retire                                                               gle, married filing separately, or quali-
before they turn                                                                 fying widow(er). (These amounts are
age 55 (such as air                                                              adjusted each year for inflation.) For
traffic controllers,        Before-Tax Savings Through the TSP                   more information, see your tax advisor
law enforcement
officers, firefight-      Annual pay (taxable income)           $40,000          or refer to IRS Form 8880.
ers, members of the
                          Minus TSP contributions
uniformed services,
                           (5% of $40,000)                      – 2,000
Foreign Service per-
sonnel and employ-        Net taxable income                     38,000
                                                                               Tax Liability
ees taking an “early
out” retirement
offer) and who want
                          Minus estimated Federal income
                           tax at 25%                           – 4,121        When you withdraw your money from
to withdraw their
                                                                               the TSP, you will owe tax on the contri-
                          Net spendable income                  $33,879
TSP accounts before                                                            butions and earnings that have accrued.
age 59½ need to                                                                However, you will most likely pay those
                             After-Tax Savings Outside the TSP
consider the early                                                             taxes after you retire, when your income,
withdrawal penalty        Annual pay (taxable income)           $40,000        and tax bracket, may be lower.
tax when choosing
a withdrawal              Minus estimated Federal income
option.                    tax at 25%                           – 4,621        In addition to the regular income tax you
                                                                               will have to pay on money you withdraw
In addition, dis-         Net income after taxes                 35,379
ability retirement
                                                                               from the TSP, you may also be subject to
approved by the           Minus savings (no tax advantage)                     an early withdrawal penalty tax of 10% if
Office of Personnel        (5% of $40,000)                      – 2,000        you make a withdrawal before you reach
Management may            Net spendable income                  $33,379        age 59½. However, see the sidebar on
not exempt you                                                                 this page to learn about the excep-
from the early with-
                                       The Difference                          tion to the penalty tax for people who
drawal penalty tax.
The IRS requirement                                                            separate from service in the year they
                        If you contributed before-tax money to the TSP,
is more stringent,      you would have $500 more in your pocket.
                                                                               turn age 55 or older and receive their
and you will have                                                              withdrawal in that year or later. The
to substantiate your               ($33,879 – $33,379 = $500)                  early withdrawal penalty tax and the ex-
claim of exemption      If you pay taxes at a higher rate than 25%, the        ceptions that apply to it are explained in
with the IRS.           advantage of before-tax contributions to the TSP       the tax notice “Important Tax Information
There are other         will be even greater.                                  About Payments From Your TSP Account,’’
exceptions to the
early withdrawal
                                                                               which is available from the TSP Web site,
penalty tax. See the    • “Tax-deferred” earnings. You defer                   your agency or service, or the TSP.
TSP tax notice re-          paying Federal income tax on the earn-
ferred to under “Tax        ings that your account accrues over the            The tax rules that apply to distributions
Liability” or check         years. Generally, the longer you keep              from the TSP and other tax-deferred plans
with the IRS or a tax       your money in the TSP, the more earn-              are complex, and you may also want to
advisor to see if any
of these exceptions
                            ings you accrue and the more you ben-              consult with a tax advisor or the IRS be-
apply to you.               efit from tax-deferred savings.                    fore you make any withdrawal decisions.

Moving Money from Other Plans into the TSP
                                                                                                            Moving money
                                                                                                            from an IRA or
The TSP can accept transfers and roll-             The money you move into the TSP, and                     another plan
overs of eligible distributions from a             the associated earnings, will be subject                 into the TSP?
traditional individual retirement account          to income tax when you eventually with-                  The Form TSP-60,
(IRA) or another eligible employer plan.           draw from your TSP account.                              Request for a Trans-
This is a way for you to consolidate a                                                                      fer Into the TSP,
401(k) or similar account and take advan-          Restrictions. The conditions under                       provides additional
tage of the TSP’s low costs.                       which the TSP will accept a transfer or                  information about
                                                   a rollover are strict.                                   transfers into the
                                                                                                            TSP, including in-
There are two ways to move money from                                                                       structions for the fi-
                                                   • The money must be considered an
an IRA or another eligible plan into the                                                                    nancial institutions
                                                     “eligible rollover distribution” for
TSP:                                                                                                        or plan administra-
                                                     Federal income tax purposes. (Verify                   tors disbursing the
                                                     this by checking with your tax advi-                   funds to the TSP.
• Transferring money directly into
                                                     sor or the administrator of the IRA or
  the TSP. You can have your IRA or plan                                                                    Make sure you (or
                                                     plan from which you are moving the                     your IRA or plan)
  send all or part of the money directly to
                                                     money.)                                                provide your name
  the TSP. This is referred to as a “trans-
                                                                                                            and Social Security
  fer” (or “direct rollover”); or                  • The TSP will only accept “before-tax”                  number (SSN) or
                                                     money from IRAs and eligible em-                       TSP account num-
• Rolling money over to the TSP. You                                                                        ber on or with the
                                                     ployer plans. You may not roll over
  can receive the money from your IRA                                                                       check.
                                                     money from a Roth account.
  or plan and put it into the TSP your-                                                                     If the TSP cannot
  self. This is referred to as a “rollover.”       • You can transfer money into the TSP                    identify a check it
  If you decide to do a rollover, you will           only if you have an existing TSP                       receives, the check
  have 60 days to complete it, begin-                account.                                               will not be deposit-
  ning on the date when you receive the                                                                     ed into the TSP par-
                                                   • You cannot open a TSP account by                       ticipant’s account;
  funds. You may roll over all or part of
                                                                                                            instead, the money
  the money you receive. However, your               transferring money into it. TSP ac-
                                                                                                            will be returned to
  IRA or former plan should have with-               counts can only be opened with                         the initiator of the
  held the appropriate amount for taxes              employee contributions or Agency                       check.
  before it sent the money to you. There-            Automatic (1%) Contributions.
  fore, if you want to roll over the entire
  amount of the distribution, you will
  have to make up the difference (i.e., the                                    Transfers and Rollovers
  amount withheld for taxes) from your                                             into the TSP
                                                                               Continue to Increase
  own funds. Any amount that you do
  not roll over will be subject to Federal
Your transfer or rollover will be invested                        400
in the TSP according to your latest contri-
                                                   ($) Millions

bution allocation (see page 11).

Money you move into the TSP from an                               300
IRA or another eligible plan does not
count toward any contribution limits.
                                                                        2004       2005     2006     2007

                     Investing in the TSP
L Fund Allocations
      as of
  October 2008       The TSP offers you two approaches to                  L 2010 — For participants who will
                     investing your money:                                 need their money between now and
                     • The L Funds — These are “lifecycle”
                       funds that are invested according to a              L Income — For participants who are
                       professionally-designed mix of stocks,              already withdrawing their accounts in
                       bonds, and Government securities. You               monthly payments.
                       select your L Fund based on your “time
     L 2040            horizon,” which is when you will need          The assumption underlying the L Funds
                       the money after you leave Federal              is that participants with longer invest-
                       service. Depending upon your plans,            ment time horizons are able to tolerate
                       this may be as soon as you leave or fur-       more risk while seeking higher returns.
                       ther in the future.                            The funds automatically adjust to reflect a
                                                                      lower tolerance for risk as the investment
                     • Individual Funds — You make your               time horizon approaches.
                       own decisions about your investment
     L 2030
                       mix by choosing from any or all of the         Each L Fund invests in a mix of the five
                       individual TSP investment funds (G, F,         individual TSP funds. The mix is chosen
                       C, S, and I Funds).                            by experts based on each fund’s time hori-
                                                                      zon. The L Funds are designed to achieve
                     These investment options are designed so
                                                                      the highest possible rate of return for the
                     you can choose either the L Fund that is
                                                                      amount of risk taken. If the time horizon
                     appropriate for your time horizon, or a
                                                                      is a long time from now, the L Fund will
     L 2020          combination of the individual TSP funds
                                                                      be more heavily weighted toward stocks
                     that will support your personal invest-
                                                                      (C, S, and I Funds). As that fund’s time
                     ment strategy. However, you may invest
                                                                      horizon shortens, the allocation will grad-
                     in any fund or combination of funds. Be-
                                                                      ually shift toward Government securities
                     cause the L Funds are already made up of
                                                                      and bonds (G and F Funds).
                     the five individual funds, you will dupli-
                     cate your investments if you invest simul-       The L Income Fund is designed to pre-
                     taneously in an L Fund and the individual        serve your account balance while protect-
     L 2010          TSP funds.                                       ing against inflation.

                     The L Funds                                      Here are the investment mixes for each
                                                                      L Fund as of October 2008 (rounded to
                     The L Funds are designed for participants        whole percentages).
                     who may not have the time, experience,
                     or interest to manage their TSP retirement                    Allocations for L Funds
    L Income         savings.                                                       as of October 2008
                                                                            L 2040   L 2030   L 2020   L 2010   L Income
                     The five L Funds are:
       G Fund                                                          G      9%      20%     32%      63%        74%
                       L 2040 — For participants who will              F     10%       9%      8%       6%         6%
        F Fund         need their money in the year 2035 or                           37%     32%      17%        12%
                                                                       C     41%      15%     11%       5%         3%
                                                                       S     17%      20%     18%       9%         5%
       C Fund          L 2030 — For participants who will
                                                                       I     24%
                       need their money between 2025 and
        S Fund
                                                                      Each L Fund is automatically rebalanced
        I Fund         L 2020 — For participants who will             each business day to restore the fund to
                       need their money between 2015 and              its intended investment mix. Each quar-
                       2024.                                          ter, the fund’s asset allocation is adjusted

to slightly more conservative investments.        The Small Capitalization Stock Index
When an L Fund reaches its designated             (S) Fund — The S Fund is invested in                    Not comfortable
time horizon, it will roll into the L In-         a stock index fund that tracks the Dow                  with your own
come Fund, and a new fund will be add-            Jones U.S. Completion Total Stock Market                level of experi-
ed with a more distant time horizon.              (TSM) Index. This is a broad market index               ence?
                                                  of small and medium-sized U.S. compa-                   Put your invest-
Investing in the L Funds does not elimi-          nies that are not included in the S&P 500               ments on cruise
nate risk, and the funds are not guaran-          index. It offers you the opportunity to                 control.
teed against loss. The L Funds are subject        earn potentially higher investment returns              1 Choose the
to the risks inherent in the underlying           over the long term than you would in the                L Fund with the
funds and can have periods of gain and            C Fund, but with greater volatility.                    time horizon closest
loss.                                                                                                     to the year you an-
                                                  International Stock Index Investment                    ticipate withdraw-
                                                                                                          ing your account.
                                                  (I) Fund — The I Fund is invested in a
The Individual Funds                                                                                      2 Make a contri-
                                                  stock index fund that tracks the Morgan
                                                                                                          bution allocation
The TSP has five individual investment            Stanley Capital International EAFE (Eu-                 and/or interfund
funds:                                            rope, Australasia, Far East) Index. This is a           transfer (see page
                                                  broad international market index, made                  11) to invest your
The Government Securities Invest-                 up of primarily large companies in 21                   contributions and/or
                                                  developed countries. It gives you the op-               current balance in
ment (G) Fund — The G Fund is invest-
                                                                                                          that L Fund.
ed in short-term U.S. Treasury securities.        portunity to invest in international stock
It gives you the opportunity to earn rates        markets with the potential to earn high                 3 Let the L Fund do
                                                                                                          the rest for you.
of interest similar to those of long-term         investment returns over the long term.
Government securities with no risk of
                                                  The chart on page 10 compares these five                Managing your
loss of principal. Payment of principal                                                                   investments:
and interest is guaranteed by the U.S.            funds and provides more information
Government. Interest on the G Fund is             about each.                                             Remember that your
                                                                                                          retirement strategy
calculated as the weighted average yield                                                                  may change. Peri-
of all U.S. Treasury securities with more         Because the TSP funds are trust funds
                                                                                                          odically, check the
than 4 years to maturity; the interest rate       that are regulated by the Office of the                 way you are invest-
changes monthly.                                  Comptroller of the Currency and not by                  ing in the TSP.
                                                  the Securities and Exchange Commission                  Also, if you‘re tak-
The Fixed Income Index Investment                 (SEC), they do not have ticker symbols                  ing charge of your
(F) Fund — The F Fund is invested in a            (i.e., unique identifiers assigned to securi-           own investments,
bond index fund that tracks the Barclays          ties (including mutual funds) registered                remember to rebal-
                                                  with the SEC). You can, however, obtain                 ance your account
Capital U.S. Aggregate Index.* This is a                                                                  periodically to keep
broad index representing the U.S. Gov-            additional information about the under-
                                                                                                          your investments
ernment, mortgage-backed, corporate,              lying indexes that certain TSP funds track              in line with your
and foreign government sectors of the             by visiting the following Web sites:                    strategy. If you’re in-
U.S. bond market. This fund offers you                                                                    vested in an L Fund,
                                                                                                          you can see how
the opportunity to earn rates of return            TSP Fund           Index TSP Fund Tracks               its investment mix
that exceed money market fund rates over                                                                  changes automati-
the long term (particularly during periods         F Fund             Barclays Capital U.S.
                                                                                                          cally each quarter
                                                                      Aggregate Bond Index*
of declining interest rates).                                         (                    at the TSP Web site,
                                                   C Fund             Standard & Poor’s 500
The Common Stock Index Investment                                     Stock Index
(C) Fund — The C Fund is invested in                                  (
a stock index fund that tracks the Stan-           S Fund             Dow Jones U.S. Completion
dard & Poor's 500 (S&P 500) Index. This                               Total Stock Market (TSM) Index
is a broad market index made up of the
stocks of 500 large to medium-sized U.S.           I Fund             Morgan Stanley Capital
                                                                      International EAFE Stock
companies. It offers you the potential to                             Index (
earn high investment returns over the
                                                  * Formerly Lehman Brothers U.S. Aggregate (LBA) Index
long term.
                                                   Comparison of the TSP Funds
The chart below provides a comparison of the available TSP funds. For more detailed information about each
fund, see the TSP Fund Information Sheets (available on the TSP Web site, from your agency or service, or
from the TSP).

                           G Fund                F Fund*                C Fund*                S Fund*                I Fund*             L Funds**

Description of        Government             Government,            Stocks of large       Stocks of small        International          Invested in the
Investments           securities (spe-       corporate,             and medium-           to medium-             stocks of 21           G, F, C, S, and
                      cially issued to       and mortgage-          sized U.S.            sized U.S.             developed              I Funds
                      the TSP)               backed bonds           companies             companies not          countries
                                                                                          included in the
                                                                                          C Fund
Objective of          Interest income        To match the           To match the          To match the           To match the           To provide
Fund                  without risk of        performance            performance           performance of         performance            professionally
                      loss of princi-        of the Barclays        of the Standard       the Dow Jones          of the Morgan          diversified port-
                      pal                    Capital U.S.           & Poor’s 500          U.S. Comple-           Stanley Capital        folios based on
                                             Aggregate Bond         (S&P 500)             tion TSM Index         International          various time
                                             Index                  Index                                        EAFE (Europe,          horizons, using
                                                                                                                 Australasia, Far       the G, F, C, S,
                                                                                                                 East) Index            and I Funds
Risk                  Inflation risk         Market risk,           Market risk,          Market risk,           Market risk,           Exposed to all
(See page 11)                                credit risk,           inflation risk        Inflation risk         currency risk,         of the types of
                                             prepayment                                                          inflation risk         risk to which
                                             risk, inflation                                                                            the individual
                                             risk                                                                                       TSP funds are
                                                                                                                                        exposed — but
                                                                                                                                        total risk is re-
                                                                                                                                        duced through
                                                                                                                                        among the
                                                                                                                                        five individual
Volatility            Low                    Low to moder-          Moderate              Moderate to            Moderate to            Asset alloca-
                                             ate                                          high —                 high —                 tion shifts as
                                                                                          historically           historically           time horizon
                                                                                          more volatile          more volatile          approaches
                                                                                          than C Fund            than C Fund            to reduce
Types of              Interest               Change in mar- Change in mar- Change in mar- Change in mar- Composite of
Earnings***                                  ket prices     ket prices     ket prices     ket prices      earnings in
                                                                                                          the underlying
                                             Interest       Dividends      Dividends      Change in rela- funds
                                                                                          tive value of

Inception Date April 1, 1987                 Jan. 29, 1988          Jan. 29, 1988         May 1, 2001            May 1, 2001            August 1, 2005

  * The F, C, S, and I Funds also have earnings from securities lending income and from temporary investments in G Fund securities. These amounts
    represent a very small portion of total earnings.
 ** Each of the L Funds is invested in the individual TSP funds (G, F, C, S, and I). The proportion of your L Fund balance invested in each of the indi-
    vidual TSP funds depends on the L Fund you choose.
*** Income from interest and dividends is included in the share price calculation. It is not paid directly to participants’ accounts.

                                                                            10               10
Fund Risks                                           Contribution Allocations. A contribution
                                                     allocation specifies how you want to in-       What is the
There are various types of risk associated           vest money going into your TSP account.        difference
with the TSP funds. There is no risk of              You may make one at any time.                  between a
investment loss in the G Fund. However,                                                             contribution
investment losses can occur in the F, C,             Your contribution allocation will apply to     allocation and
                                                     all future deposits to your account. These     an interfund
S, and I Funds. Because the L Funds are                                                             transfer?
invested in the individual TSP funds,                include: employee contributions; agency
they are also subject to the risks to which          contributions (if you are FERS); any           A “contribution al-
                                                     special pay, incentive pay, or bonus pay       location” tells the
those underlying funds are exposed.                                                                 TSP where to invest
These risks include:                                 that you contribute as a member of the
                                                                                                    the new money it
                                                     uniformed services; any money you move         receives from you or
• Credit risk — The risk that a borrower             into the TSP from other retirement plans;      your agency. It does
  will default on a scheduled payment                and any TSP loan payments. Your con-           not affect the invest-
  of principal and/or interest. This risk is         tribution allocation will not affect money     ment of money that
  present in the F Fund.                             that is already in your account.               is already in your
• Currency risk — The risk that the
                                                     Your contribution allocation will remain       An “interfund trans-
  value of a currency will rise or fall rela-                                                       fer” tells the TSP to
                                                     in effect until you submit another one.
  tive to the value of other currencies.                                                            move money that
  Currency risk occurs with investments              Interfund Transfers. An interfund trans-       is already in your
  in the I Fund because of fluctuations in           fer moves the money already in your ac-        account among the
  the value of the U.S. dollar in relation                                                          different TSP funds.
                                                     count among the TSP investment funds.          It does not affect the
  to the currencies of the 21 countries in           When you make an interfund transfer,           investment of future
  the EAFE index.                                    you choose the new percent you want            deposits.
• Inflation risk — The risk that your                invested in each fund. You cannot move         The Web and the
  investments will not grow enough to                specific dollar amounts among the funds.       ThriftLine are the
  offset the effects of inflation. This risk                                                        most efficient ways
                                                     Each calendar month, your first two inter-     to make contribu-
  is present in all five funds.
                                                     fund transfers may redistribute money in       tion allocations or
• Market risk — The risk of a decline                your account among any or all of the TSP       interfund transfers.
  in the market value of the stocks or               funds. After the first two, your interfund
  bonds. This risk is present in the F, C,           transfers can only move money into the         Confirmation of
  S, and I Funds.                                    Government Securities Investment (G)           transaction:
                                                     Fund (in which case, you will increase the     You will receive
• Prepayment risk — A risk associated
                                                     percentage of your account held in the         a confirmation of
  with the mortgage-backed securities in                                                            your contribution
                                                     G Fund by reducing the percentage held
  the F Fund. During periods of declin-                                                             allocation or inter-
                                                     in one or more of the other TSP funds). If
  ing interest rates, homeowners may                                                                fund transfer in the
                                                     you have both a civilian and a uniformed
  refinance their high-rate mortgages and                                                           mail. If you make
                                                     services account, these rules apply to each    your request on the
  prepay the principal. The F Fund must
                                                     account separately.                            Web site, you will
  reinvest the cash from these prepay-
                                                                                                    have the option of
  ments in current bonds with lower in-              Making a contribution allocation or            receiving your con-
  terest rates, which lowers the return of           interfund transfer. You can make either        firmation via e-mail.
  the fund.                                          of these transactions on the TSP Web site
                                                     or the ThriftLine (using the automated
Contribution Allocations and                         system or by speaking to a TSP participant
                                                     service representative). You can also submit
Interfund Transfers
                                                     an Investment Allocation form to the TSP.
There are two types of investment transac-           To make a contribution allocation or
tions you can make:                                  interfund transfer on the Web site, you
• A contribution allocation                          will need your TSP account number (or
                                                     custom user ID) and your Web password.
• An interfund transfer                              To make a contribution allocation or

                        interfund transfer on the ThriftLine, you                    cient to cover all of the TSP’s expenses —
When a little can       will need your account number and your                       earnings on participants’ accounts.
mean a lot:             4-digit Personal Identification Number
                        (PIN). Contribution allocations or in-                       The effect of administrative expenses
Costs are important
in saving for your      terfund transfers made on the TSP Web                        (after forfeitures) on the earnings of the
retirement. Even        site or the ThriftLine by 12 noon eastern                    G, F, C, S, and I Funds is expressed as the
small differences       time are generally processed as of the next                  expense ratio of each fund. The expense
in expenses can,        business day. A contribution allocation or                   ratio for a fund is comprised of the total
over time, have a       interfund transfer made by submitting an                     administrative expenses charged to that
dramatic effect on a
                        Investment Allocation form will generally                    fund during a specific period, divided by
fund’s performance
(and the size of your   take effect within 5 business days of the                    that fund’s average balance for that
account). Each year,    date the TSP receives the form. You will                     period.
the prior year’s ex-    receive a confirmation of your transaction.
pense ratio for each                                                                 The administrative expenses associated
of the TSP funds                                                                     with the L Funds are those associated
is provided on the
respective TSP Fund
                        Administrative Expenses                                      with the underlying G, F, C, S, and I
Information Sheet,                                                                   Funds, calculated in proportion to their
which is available      TSP expenses (i.e., the cost of administer-                  allocations in each L Fund. The L Funds
on the TSP Web site.    ing the program) include management                          do not have any additional charges.
                        fees for each investment fund and the
                        costs of operating and maintaining the                       Your share of TSP net administrative
                        TSP’s record keeping system, providing                       expenses is based on the size of your ac-
                        participant services, and printing and mail-                 count balance. For example, the G Fund’s
                        ing notices, statements, and publications.                   expense ratio for 2007 was .015%. There-
                                                                                     fore, if you invested in the G Fund in
                        These expenses are paid from the forfei-                     2007, earnings were reduced by $.015 per
                        tures of Agency Automatic (1%) Contri-                       $1,000 of your G Fund balance.
                        butions of FERS employees who leave
                        Federal service before they are vested, and                  The chart below shows the expense ratios
                        — because those forfeitures are not suffi-                   for each TSP fund over the last 10 years.

                                                             Administrative Expenses
                            Year           G Fund         F Fund          C Fund         S Fund          I Fund          L Funds
                            1998            .06%            .08%            .07%             –              –               –
                            1999            .05%            .07%            .06%             –              –               –
                            2000            .05%            .07%            .06%             –              –               –
                            2001            .06%            .06%            .06%           .05%*           .05%*            –
                            2002            .06%            .06%            .07%           .07%            .07%             –
                            2003**          .10%            .10%            .10%           .10%            .10%             –
                            2004            .06%            .05%            .06%           .06%            .06%             –
                            2005            .04%            .04%            .05%           .05%            .05%             ***
                            2006            .03%            .03%            .03%           .03%            .05%            .03%
                            2007            .015%           .015%           .015%          .015%           .015%           .015%
                                * The 2001 expense ratios for the S and I Funds are for the period beginning May 2001 (the
                                   inception of the S and I Funds) through December 2001.

                               ** The expense ratios for 2003 include the net result of the Agency’s settlement of litigation
                                   resulting from a termination of its contract with American Management Systems, Inc.

                              *** Based on administrative expenses of the G, F, C, S, and I Funds in proportion to their alloca-
                                   tion in the L Funds. These expenses ranged between .04% and .05%.

TSP Loans and Withdrawals
                                                                                                  Considering a
Because the purpose of the TSP is for               Before you take a loan, consider that your
                                                                                                  Consider carefully
you to save money for your retirement,              loan costs are not limited to the interest
                                                                                                  its impact on your
there are rules that restrict when and how          and fee that you pay. The cost of a loan      TSP account. (See
you may take money out of your account              can be much more far-reaching. When           the TSP booklet
while you are still employed.                       you borrow from your account, you miss        Loans.) You should
                                                    out on the earnings that might have ac-       borrow from your
Once you leave Federal service, however,            crued on the money you borrowed. Even         retirement account
you can take your money out at any time.            though you must pay the money back            only after you have
However, the IRS may impose an early                                                              exhausted all your
                                                    to your account with interest, the inter-     other options.
withdrawal penalty tax on the disburse-             est you pay to your account may be less
ment, depending upon your employment                than what you might have earned if you
status, when you take the disbursement,                                                           Want to make
                                                    had kept the money in the TSP. Further, if    additional pay-
and how you receive the funds.                      you have an outstanding loan when you         ments or make up
There are three ways to get your money              leave Federal service, you must pay it back   missed payments?
out of the TSP:                                     within 90 days or the outstanding balance     You can send extra
                                                    will be treated as taxable income.            payments directly
• A loan                                                                                          to the TSP to pay off
                                                    Types of Loans. There are two types of        your loan sooner or
• An in-service withdrawal (i.e., a with-           TSP loans:                                    to make up missed
  drawal while you are still employed by                                                          payments. To ensure
  the Federal Government)                           • A general purpose loan                      that your payments
                                                    • A loan for the purchase or construction     are properly identi-
• A post-separation withdrawal (i.e., a                                                           fied, be sure you
  withdrawal after you separate from                  of a primary residence                      put your TSP ac-
  service)                                                                                        count number and
                                                    You can have only one general purpose         loan number on
                                                    and one residential loan outstanding at a     your payment and
Loans                                               time.                                         attach a Loan Pay-
                                                                                                  ment Coupon. The
Loans are available only to participants            Loan amount. The total amount that            coupon is available
who are actively employed, who are in               you borrow is limited to your own con-        from the TSP Web
pay status, and who have contributed                tributions and the earnings on those          site or by calling the
their own money to the TSP.                         contributions. You cannot borrow less
                                                    than $1,000 or more than $50,000. You
When you take a loan, you are borrowing
                                                    can find out the amount you may be eli-
your own contributions and the earnings
                                                    gible to borrow from your TSP account
on those contributions. When your loan
                                                    by visiting the TSP Web site or calling the
is approved, the amount of the loan is
                                                    ThriftLine, the TSP‘s telephone response
removed from your TSP account. As you
                                                    system. You can also use the Loan Calcu-
repay your loan, your loan repayments
                                                    lator on the TSP Web site to estimate your
restore the amount of your loan, plus in-
                                                    loan payment amount before you request
terest, to your account.
                                                    a loan.
Cost of Taking a Loan. You repay your
                                                    Documentation. You do not need to
loan with interest. The interest rate is the
                                                    provide any type of documentation for a
interest rate for the G Fund at the time
                                                    general purpose loan. However, you will
your loan application is processed.
                                                    need to provide documentation for a resi-
The TSP also charges a processing fee of            dential loan.
$50 for each loan. This fee is used to cover
                                                    Waiting period between loans. You
the cost of processing and servicing your
                                                    must wait 60 days from the time you pay
loan. It is deducted from the amount of
                                                    off one loan until you are eligible to re-
the loan that you receive.
                                                    quest another loan of the same type.

                       Repaying a loan. Loan repayments are                For information about outstanding loans,
Considering an         made through payroll deductions. They               you can check your earnings and leave
in-service with-       are deducted from your pay each pay pe-             statement, your participant statements,
drawal?                riod in the amount on your Loan Agree-              the TSP Web site, or the ThriftLine, or
An in-service with-    ment. If your agency or service does not            contact the TSP.
drawal permanently     deduct your loan payment from your pay,
depletes your re-      you must submit the loan payment directly to
tirement savings
                       the TSP with a TSP Loan Payment Coupon.             In-Service Withdrawals
because you cannot
pay this amount        You are responsible for your loan payments.
back (as you can                                                           In-service withdrawals (i.e., withdrawals
with a loan).          You can also make additional payments               from your account while you are still em-
Be sure you under-     or pay off your loan early by check or              ployed) are available to all active partici-
stand the conse-       money order. And you can reamortize                 pants. The TSP does not charge a fee for
quences of an in-      your loan to change the amount of your              making an in-service withdrawal. Howev-
service withdrawal     payment, number of payments, or repay-              er, the overall impact on your retirement
before you take                                                            savings may be significant.
                       ment period.
money out of your
                       You must repay your general purpose                 Consequences of Making an In-Service
Read the TSP book-
                       loan within 5 years. Residential loans              Withdrawal. When you make an in-
let In-Service With-
drawals for more       must be repaid within 15 years.                     service withdrawal, you are removing
information.                                                               money from your account forever. It
                       Consequences of failing to repay your               cannot be put back or repaid to your ac-
                       loan. If you fail to repay your loan in ac-         count. This means that you permanently
                       cordance with your Loan Agreement or                deplete your retirement savings by the
                       you do not repay your loan when you                 amount of the withdrawal and any future
                       separate from service, the TSP will report          earnings you would have accrued on that
                       a taxable distribution to the IRS and you           money. You must pay Federal income tax
                       will owe income taxes on the outstanding            on the withdrawal, and you may also be
                       balance of the loan and possibly an early           subject to a 10% early withdrawal pen-
                       withdrawal penalty tax.                             alty tax. More importantly, if you make a
                                                                           financial hardship in-service withdrawal,
                       Spouses’ rights. If you are a married               the overall impact can be even greater
                       FERS or uniformed services participant,             because you cannot contribute to the TSP
                       your spouse must consent to your loan               for 6 months following your withdrawal.
                       by signing the Loan Agreement. If you are           If you are a FERS employee, that means
                       a married CSRS participant, your spouse             you will also not receive any Matching
                       will be notified of your loan. These rules          Contributions during that time.
                       apply even if you are separated from your
                       spouse.                                             Types of In-Service Withdrawals. There
                                                                           are two types of in-service withdrawals:
                       There are exceptions to these rights.
                                                                           • A financial hardship in-service with-
                       However, the conditions under which an
                       exception is made are very limited. More
                       information about exceptions is provided            • An age-based in-service withdrawal
                       on the form Exception to Spousal Re-
                       quirements.                                         Financial hardship in-service with-
                                                                           drawal. You can make a financial hard-
                       Getting information. For a detailed ex-             ship in-service withdrawal if you can
                       planation of the TSP loan program, your             certify, under penalty of perjury, that you
                       obligations if you take a loan, and the             have a financial hardship as a result of
                       consequences of not repaying a loan, read           a recurring negative cash flow, legal ex-
                       the TSP booklet Loans.                              penses for separation or divorce, medical
                                                                           expenses, or a personal casualty loss. You
                                                                           may withdraw your contributions and

any earnings those contributions have ac-           to an early withdrawal penalty tax if you
crued. You can request $1,000 or more;              are younger than age 59½ when you            Special exemp-
however, the amount that you request                make your withdrawal. For detailed in-       tion from the
cannot exceed the actual amount of your             formation about the tax rules that apply     early withdrawal
certified financial hardship. Further, you          to in-service withdrawals, see the TSP tax   penalty tax
may not make contributions to your ac-              notice “Important Tax Information About      for certain
count (and if you are FERS, you will not            Payments From Your TSP Account.”             Reservists:
receive the associated matching contribu-                                                        Relief from the 10%
tions) for 6 months after the disburse-             Getting information. For a detailed          early withdrawal
                                                    explanation of the TSP in-service with-      penalty is available
ment of your funds.
                                                                                                 to eligible Reserv-
                                                    drawal program, read the TSP booklet         ists called to duty
Age-based in-service withdrawal. You                In-Service Withdrawals. For information      for more than 179
can make an age-based in-service with-              about a specific in-service withdrawal       days and activated
drawal anytime after you reach age 59½,             request, check the TSP Web site or the       after September 11,
as long as you are still a civilian Federal         ThriftLine, or contact the TSP.              2001. See the TSP
                                                                                                 tax notice “Impor-
employee or a member of the uniformed
                                                                                                 tant Tax Information
services. You may withdraw part or all of                                                        About Payments
your vested account balance. You can re-            Withdrawals after You Separate               From Your TSP Ac-
quest a dollar amount of $1,000 or more,                                                         count” for addition-
or your entire account balance (even if it          If your vested account balance is $200 or    al eligibility rules.
is less than $1,000). You are permitted             more after you leave Federal service, you
only one age-based in-service withdrawal.           can leave your money in the TSP until        Ready to make a
If you make one, you will not be eligible           later (see page 17, “Withdrawal dead-        post-separation
to make a partial withdrawal from your              line”), or you can withdraw your account.    withdrawal?
account after you separate from service.                                                         Before you make
                                                    If your vested account balance is less       a withdrawal, read
Spouses’ rights for in-service with-                than $200 when you leave Federal             the booklet With-
                                                    service, the TSP will automatically send     drawing Your TSP
drawals. If you are a married FERS or                                                            Account After Leav-
uniformed services participant, your                you a check for the amount in your ac-       ing Federal Service
spouse must consent to your in-service              count. The check will be mailed to the       and the tax notice
withdrawal. If you are a married CSRS               address in your TSP account record. You      ‘‘Important Tax
participant, the TSP must notify your               cannot leave this money in the TSP or        Information About
                                                    make any other withdrawal election.          Payments From Your
spouse before an in-service withdrawal
                                                                                                 TSP Account.’’
can be made. These rules apply even if
you are separated from your spouse.                                   ★★★
There are exceptions to these rights. But           Combining accounts. If you decide to
the conditions under which an exception             leave money in the TSP after you sepa-
is made are very limited. Information               rate from either the uniformed services
about exceptions is provided on the form            or Federal civilian service, you will be
Exception to Spousal Requirements.                  able to combine your TSP accounts by
                                                    completing Form TSP-65, Request to
Taxes on in-service withdrawals. In-                Combine Uniformed Services and Civil-
service withdrawals are subject to Federal          ian TSP Accounts, and sending it to the
income tax when they are paid directly              TSP. However, restrictions about how and
to you. Age-based withdrawals may be                when accounts can be combined apply.
transferred to a traditional IRA or eligible        For example, you can only combine the
employer plan, thereby retaining their              money from the account related to your
tax-deferred status. You can also transfer          separation into your other account. Also,
an age-based withdrawal to a Roth ac-               tax-exempt contributions (i.e., contribu-
count, but you will be liable for the taxes         tions from combat zone pay) in your uni-
on the transfer for the year in which the           formed services TSP account may not be
transfer was made. Financial hardship in-           transferred to your civilian TSP account.
service withdrawals may also be subject
                       Types of Post-Separation Withdrawals.              An annuity pays a benefit to you (or to
Need help              There are two types of post-separation             your survivor) every month for life. The
estimating an          withdrawals:                                       TSP purchases the annuity on your be-
annuity or                                                                half from a private insurance company.
                       • A partial withdrawal
                                                                          You can have the TSP purchase an an-
payments?              • A full withdrawal                                nuity with all or any portion of your ac-
If you’re consider-                                                       count balance when you request a full
ing monthly pay-       Partial withdrawal. You can take out               withdrawal. The amount you use for the
ments or a TSP         $1,000 or more and leave the rest in your          purchase of an annuity must be $3,500
annuity, you should    account until you decide to withdraw it            or more. Once an annuity is purchased, it
compare these ben-     at a later date. You may make only one
efits to see which                                                        cannot be changed.
                       partial withdrawal from your account. If
one best fits your
situation. You can     you made an age-based in-service with-             You have a choice of three basic annuity
get help by visiting   drawal, you are not eligible for a partial         types:
the ‘‘Calculators’’    withdrawal.
section of the TSP                                                        • A single life annuity — paid only to you
Web site.              Full withdrawal. You can withdraw your               during your lifetime.
There are calcula-     account using one — or any combination             • A joint life annuity with your spouse —
tors to estimate the   — of three withdrawal options available
income you will                                                             paid to you while you and your spouse
                       to you:                                              are alive. When one of you dies, pay-
receive from an
annuity and to de-     • A single payment                                   ments are made to the survivor for the
termine how long                                                            rest of his or her life.
monthly payments       • A series of monthly payments
might last or how
                       • A TSP life annuity                               • A joint life annuity with someone (other
much you might                                                              than your spouse) who has an insurable
receive each month
(if you choose to      A single payment allows you to withdraw              interest in you — paid to you while you
receive payments       your entire TSP account at one time in               and the person you choose are alive.
based on life expec-   one payment. It is sometimes referred to             When one of you dies, payments are
                       as a “lump sum.”                                     made to the survivor for his or her life.

                                                                          If you elect a joint annuity, you may be
                       Monthly payments allow you to withdraw
                                                                          able to choose between a 50% or 100%
                       your entire account in a series of pay-
                                                                          payment option to the survivor.
                       ments. You can ask for a specific dollar
                       amount each month or you can have the
                                                                          Some additional annuity features may
                       TSP calculate a monthly payment based
                                                                          also be available, depending on the basic
                       on your life expectancy. If you choose a
                                                                          annuity type you choose. You may be
                       specific dollar amount, it must be at least
                                                                          able to request “cash refund,” “10-year
                                                                          certain,” or “increasing payment” fea-
                                                                          tures. The available annuities and their
                       At any time while you are receiving
                                                                          features are explained in detail in the
                       monthly payments, you can ask the TSP
                                                                          booklet Withdrawing Your TSP Account
                       to stop the monthly payments and pay
                                                                          After Leaving Federal Service.
                       you your remaining account balance in
                       a single payment. Also, once a year, you
                                                                          A mixed withdrawal allows you to com-
                       have the opportunity to make changes to
                                                                          bine any or all of the three withdrawal
                       the dollar amount of the monthly pay-
                                                                          options. However, if you request a mixed
                       ments you are receiving. You also have the
                                                                          withdrawal with an annuity, the percent-
                       opportunity to make a one-time switch to
                                                                          age of your account balance used to pur-
                       receiving monthly payments based on a
                                                                          chase the annuity cannot equal a dollar
                       dollar amount rather than monthly pay-
                                                                          amount of less than $3,500.
                       ments based on life expectancy.

Spouses’ rights for a partial with-                 aration withdrawals, you should read the
drawal. If you are a married FERS or uni-           TSP tax notice “Important Tax Information     Deferring taxes
formed services participant, your spouse            About Payments From Your TSP Account”         after you with-
must consent to your partial withdrawal.            and consult with your tax advisor.            draw:
If you are a married CSRS participant, the                                                        Some withdrawals
TSP must notify your spouse before a par-           Getting information. For a detailed           can be transferred
tial withdrawal can be made.                        explanation of the TSP’s post-separation      from the TSP di-
                                                    withdrawal program, you should read the       rectly to a tradi-
Spouses’ rights for a full withdrawal.              booklet Withdrawing Your TSP Account Af-      tional IRA or other
If your vested account balance at the                                                             eligible employer
                                                    ter Leaving Federal Service.
                                                                                                  plan. When this
time of your full withdrawal is more than                                                         is done, you defer
$3,500, your withdrawal will be subject to          For specific information about your with-     paying taxes until
the TSP‘s rules regarding spouses’ rights.          drawal request, check the TSP Web site or     you withdraw the
These rules apply even if you are sepa-             the ThriftLine, or contact the TSP.           money from the IRA
rated from your spouse:                                                                           or eligible plan.
                                                    Withdrawal deadline. You are required         The same withdraw-
• If you are a married FERS or uniformed            to withdraw your account balance in a         als can also be
  services participant, your spouse is              single payment, begin receiving monthly       transferred to a Roth
  entitled to an annuity with a 50% sur-            payments, or begin receiving annuity pay-
                                                                                                  IRA, which provides
  vivor benefit, level payments, and no                                                           for tax-free earn-
                                                    ments by April 1 of the later of:             ings, but requires
  cash refund feature. Your spouse must
                                                                                                  you to pay taxes on
  waive the right to this particular annu-          • the year following the year you become
                                                                                                  the withdrawal at
  ity unless you use your entire account              age 70½, or                                 the time it is trans-
  balance to purchase it.                           • the year following the year you separate    ferred.

• If you are a married CSRS participant,              from Federal service or the uniformed       Read the tax notice
                                                      services.                                   ‘‘Important Tax
  the TSP must notify your spouse before
                                                                                                  Information About
  it can process your withdrawal, regard-                                                         Payments From
  less of which withdrawal option you               If you do not withdraw (or begin with-
                                                                                                  Your TSP Account‘‘
  choose.                                           drawing) your account by the required         for more informa-
                                                    withdrawal deadline, your account bal-        tion and to find out
For both partial and full withdrawals, there        ance will be forfeited to the TSP. You can    which withdrawals
are exceptions to these rights. However,            reclaim your account; however, you will       can be transferred
                                                    not receive earnings on your account          and the tax rules
the conditions under which an exception
                                                                                                  that apply.
is made are very limited. More informa-             from the time the account was forfeited.
tion about exceptions is provided on the                                                          IRS Required
form Exception to Spousal Requirements.             At the same deadline, you will also be        Minimum Distri-
                                                    subject to the IRS required minimum dis-      butions (RMDs):
Taxes on withdrawals. Withdrawal pay-               tribution rules. These rules require you to   You may not re-
ments are subject to Federal income tax             receive a certain portion of your account     quest a payment of
when they are paid directly to you. Some            each year based on your life expectancy.      your RMD because
payments are eligible to be transferred             The TSP will send you information about       that is not one of
to a traditional IRA or other eligible em-          these rules if they apply to you. If you      the statutory TSP
                                                                                                  withdrawal op-
ployer plan, thereby retaining their tax-de-        leave your money in the TSP after you
                                                                                                  tions. However, if
ferred status. You can also transfer some           separate from service, be sure to keep        you chose monthly
payments to a Roth account, but you will            your address up to date so that the TSP       payments based on
be liable for the taxes on the transfer for         can reach you.                                life expectancy, the
the year in which it was made. Also, de-                                                          total dollar amount
                                                    For more information about the with-          of your annual pay-
pending upon your age when you leave
                                                                                                  ments will approxi-
Federal service as well as your withdrawal          drawal deadline and the IRS required
                                                                                                  mate your RMD,
option and its timing, you may be subject           minimum distribution rules, you can read      and the TSP will
to the IRS early withdrawal penalty tax.            the TSP tax notice “Important Tax Infor-      send you a supple-
(See pages 6 and 15 for important excep-            mation About Your TSP Withdrawal and          mental payment if
tions to this tax.) For detailed information        Required Minimum Distributions.”              necessary to ensure
                                                                                                  that you satisfy the
about the tax rules that apply to post-sep-                                                       requirement.

                       Death Benefits
Is your benefi-
ciary designation
up to date?            In the event of your death, your account                          beneficiary or beneficiaries, you must use
                       will be distributed to the beneficiary or                         the Designation of Beneficiary form. The
If you submit a
Designation of Ben-
                       beneficiaries you designate on the TSP's                          completed form must be received by the TSP
eficiary, review it    Designation of Beneficiary form.* If you                          on or before the date of your death.
when your personal     do not designate beneficiaries to receive
situation changes.     your account, it will be disbursed accord-                        Reviewing your beneficiaries. By law,
Otherwise, in the      ing to the following order of precedence                          the TSP must pay your properly desig-
event of your death,   required by law:                                                  nated beneficiary under all circumstances.
the money in your                                                                        For example, if you designated your
account may not be     • To your widow or widower;
                                                                                         spouse as your beneficiary, your TSP ac-
distributed accord-
ing to your wishes.
                       • If none, to your child or children                              count must be paid to the spouse des-
                         equally, and to descendants of de-                              ignated on your beneficiary form, even
                         ceased children by representation;                              if you are separated or divorced from that
                                                                                         spouse or have remarried. This is true even
                       • If none, to your parents equally or the
                                                                                         if the spouse you designated gave up all
                         surviving parent;
                                                                                         rights to your TSP account. Consequently,
                       • If none, to the appointed executor or                           if your life situation changes, you may
                         administrator of your estate;                                   want to file a new Designation of Benefi-
                       • If none, to your next of kin who is en-                         ciary form that cancels or changes your
                         titled to your estate under the laws of                         current beneficiary designation.
                         the state in which you resided at the
                                                                                         TSP distribution of death benefits. In
                         time of your death.
                                                                                         order for beneficiaries to receive your ac-
                       For this order of precedence, a child                             count balance after your death, they (or
                       includes a natural child or an adopted                            their representatives) must complete the
                       child, but does not include a stepchild                           form Information Relating to Deceased
                       who has not been adopted. A parent does                           Participant and send it to the TSP along
                       not include a stepparent, unless your                             with a copy of the certified death certifi-
                       stepparent has adopted you. “By repre-                            cate.
                       sentation” means that if your child
                       predeceases you, his or her share will                            Once the TSP processes this information
                       be divided equally among his or her                               and determines the beneficiaries for your
                       children.                                                         account, we will contact them with addi-
                                                                                         tional information and instructions.
                       A will or any other document (such as a
                       prenuptial agreement) is not valid for the                        For detailed information about death
                       disposition of your TSP account.                                  benefits and the disbursement options for
                                                                                         beneficiaries, read the TSP booklet Death
                       Designating a beneficiary. If you wish,                           Benefits and the TSP tax notice “Important
                       you can designate a person or persons,                            Tax Information About Thrift Savings
                       your estate, or a trust to receive your TSP                       Plan Death Benefit Payments.”
                       account after your death. To designate a

                       * Exception: If you separate from service and submit a Request for Full Withdrawal requesting an annuity and you die
                           before annuity payments begin, the amount used to purchase the annuity will be returned to the TSP. The TSP will, if
                           possible, distribute this money consistent with your annuity beneficiary designation.

Other Information about the TSP
                                                                                                  Some tips for
                                                                                                  keeping your
TSP Web Site (                         Custom User ID. If you find it difficult       account secure:
                                                   to remember your TSP account number
The TSP Web site has current TSP infor-                                                           • Never let anyone
                                                   when logging into your account in the            see or hear your
mation and materials (e.g., forms, rates of        Account Access section of the TSP Web            account number,
return, share prices, Plan News, and calcu-        site, you can create a custom user ID to use     password, PIN, or
lators). TSP participants can use their TSP        instead. However, to create your custom          custom ID.
account number or custom user ID and               user ID, you will first need to log into Ac-   • Never respond to
Web password to view personal account              count Access with your TSP account num-          an e-mail asking
information and perform transactions.              ber and Web password. Once you have              for any of these
                                                   established your custom user ID, you can
                                                   change it whenever you wish. Instructions      • Never provide
ThriftLine                                         are available on the TSP Web site. If you        these identifiers
                                                                                                    online when using
                                                   forget your custom user ID, you can enter        a computer other
The toll-free ThriftLine (1-TSP-YOU-FRST           Account Access with your TSP account             than your own
or 1-877-968-3778) is the TSP’s auto-              number and Web password and create a             home or office
mated telephone service. It has informa-           new custom user ID.                              machine unless
tion such as Plan News, share prices, and                                                           you know it is
loan and annuity rates. You can also opt                                                            secure.
                                                   You cannot use your custom user ID on
to speak with a service representative.            the ThriftLine.                                • Log out of the
Use your TSP account number and TSP                                                                 TSP Web site and
Personal Identification Number (PIN) to                                                             close your Internet
                                                                      ★★★                           browser after you
access your account and perform certain                                                             complete transac-
transactions.                                      If you have both a civilian and a uni-           tions in Account
                                                   formed services account, you may use the         Access.
                                                   same custom ID for both accounts.              • Do not perform
Account Security                                                                                    financial transac-
                                                                      ★★★                           tions on public
The TSP takes many steps to keep your                                                               computers.
account secure. We provide you with a              Web Password. As soon as your account          • Use up-to-date
TSP account number, a Web password,                is established, the TSP mails you an             anti-virus and
a ThriftLine PIN, and the opportunity to                                                            anti-spyware
                                                   8-digit Web password to use with your TSP        software on your
create a custom user ID to use instead of          account number (or custom user ID) when          home and office
your account number. It is important that          you log into the Account Access section          computers.
you also do your part to protect your ac-          of the TSP Web site or by contacting the
count by keeping these numbers secure.             TSP. You can change your password at any       Access to pass-
Do not reveal them to anyone or store              time, but you must first enter your TSP        words and PINs:
them where anyone can find them.                   account number or custom user ID and           Your TSP password
                                                   your existing password. If you forget your     and PIN are en-
TSP Account Number. The TSP provides                                                              crypted in the TSP
                                                   Web password, you can request a new one        system and are not
you with a 13-digit account number                 at the beginning of the Account Access         accessible to TSP
that you must use to identify your ac-             section of the TSP Web site or by contact-     representatives. For
count. Use this number when accessing              ing the TSP.                                   security reasons, the
your account on the TSP Web site or the                                                           TSP will only mail
ThriftLine or when filling in TSP forms.           ThriftLine Personal Identification Num-        your password or
Like a bank or credit union account num-                                                          PIN to your address
                                                   ber (PIN). As soon as your account is          of record. The TSP
ber, your TSP account number cannot be             established, the TSP mails you a 4-digit       will not send either
changed. If you forget it, you can use the         PIN to use with your TSP account number to     through e-mail.
TSP Web site or the ThriftLine to request          access account information and perform
to have it mailed to you. You can also find        certain transactions on the ThriftLine. You
your account number on your quarterly              can change your PIN at any time on the
and annual participant statements.                 ThriftLine. To do so, you must first enter

                        your TSP account number and existing                ruptcy Information — Petitions filed be-
Is your TSP re-         PIN. If you forget your PIN, you can re-            fore October 17, 2005.)
cord correct?           quest a new one on the ThriftLine or by
                        contacting the TSP. Note: Your ThriftLine
Keep your address
and other personal      PIN is not the same as PINs for other               Court Orders
information up to       agency or service systems (e.g., Employee
date. To correct        Express, PostalEASE, myPay).                        Your TSP account is subject to court or-
your address, con-                                                          ders issued in connection with divorce,
tact your agency or                                                         annulment, or legal separation, and by
service if you are
                        Participant Statements                              laws that enforce alimony and child sup-
                                                                            port payments and judgments against
If you are separated,   The TSP issues quarterly statements in              you for child abuse. For more details and
update your ad-
dress through the
                        January, April, July, and October, and an-          sample court order language, read the TSP
Account Access          nual statements for each year in February.          booklet Court Orders and Powers of Attor-
section of the TSP                                                          ney and the TSP tax notice “Tax Treatment
Web site, use a         Your quarterly statements cover all trans-          of Thrift Savings Plan Payments Made
TSP change of ad-       actions in your account during the previ-           Under Qualifying Orders.”
dress form, or call     ous 3 months. If you have any TSP loans,
the TSP. For other
changes or cor-
                        the statement also summarizes your loan
rections after you      activity. You can view or print these state-        TSP Administration
separate, contact       ments on the TSP Web site or request to
the TSP.                have them mailed to you.                            Management. The Federal Retirement
                                                                            Thrift Investment Board (Agency), is an
                        Your annual statement summarizes the                independent Government agency that
                        financial activity in your account for that         administers the TSP. It is managed by a
                        year and provides other important infor-            Presidentially appointed five-member
                        mation such as your personal investment             Board and an Executive Director chosen
                        performance and your primary beneficia-             by the Board.
                        ry information. The TSP posts this state-
                        ment on the Web and, unless you request             The Agency’s record keeper handles the
                        only electronic statements, also mails it           day-to-day maintenance and adminis-
                        to you.                                             tration of all TSP accounts and assists
                                                                            participants with specific types of TSP-
                        Check your statements carefully, and, if            related problems or questions.
                        you see any information you believe is
                        not correct, follow up with your agency             Law. The TSP is established under the
                        or service or the TSP.                              Federal Employees’ Retirement System Act
                                                                            of 1986 and is codified primarily under
                                                                            Chapter 84 of title 5, United States Code
                        Bankruptcy                                          (U.S.C.). By law, the assets in the TSP
                                                                            are held in trust for each individual par-
                        Your TSP account cannot be garnished to             ticipant. The TSP is treated as a qualified
                        pay debts. If you have a TSP loan, your             trust which is exempt from taxation (see
                        payments must continue because, for                 26 U.S.C. § 7701(j)). Its regulations are
                        bankruptcy purposes, a TSP loan is not              published in Chapter VI of title 5 of the
                        a debt, and the TSP is not your creditor.           Code of Federal Regulations.
                        So the bankruptcy court does not have
                        jurisdiction over your TSP loan. For more           Audits. By law, the TSP must be audited
                        information, see the TSP Fact Sheet:                annually. You can obtain a copy of the
                        Bankruptcy Information — Petitions filed            most current audited financial statement
                        on or after October 17, 2005. Different             from the TSP Web site or by writing to the
                        rules apply to bankruptcies filed prior to          TSP.
                        that date. (See the TSP Fact Sheet: Bank-

                                                Glossary of Terms

Account Access — The secure section of the TSP Web site,              Civil Service Retirement System (CSRS) — The term
where you can log into your account to find out your ac-              “CSRS” refers to the retirement system for Federal civilian
count balance or perform certain transactions.                        employees who were hired before January 1, 1984. CSRS
                                                                      refers to the Civil Service Retirement System, including
Account Balance — The sum of the dollar amounts in                    CSRS Offset, the Foreign Service Retirement and Disabil-
each TSP investment fund for an individual account. The               ity System, and other equivalent Government retirement
dollar amount in each investment fund on a given day                  plans.
is the product of the total number of shares in that fund
multiplied by the share price for that fund on that day.              Contribution — A deposit made to the TSP by a partici-
                                                                      pant through payroll deduction or on behalf of the par-
Account Number — The 13-digit number that the TSP                     ticipant by his or her agency or service.
assigns to a participant to identify his or her TSP account.
The participant must use this TSP account number (or a                Contribution Allocation — A participant’s choice that
custom user ID) in conjunction with his or her Web pass-              tells the TSP how contributions, rollovers, and loan pay-
word to log into the Account Access section of the TSP                ments that are going into his or her account should be
Web site, and must use this number with his or her Per-               invested among the TSP funds.
sonal Identification Number (PIN) to enter the Account
Menu of the ThriftLine.                                               Contribution Election — A request by a participant to
                                                                      start contributing to the TSP, to change the amount of his
Agency Automatic (1%) Contributions — Contribu-                       or her contribution to the TSP each pay period, or to ter-
tions equal to one percent of basic pay each pay period,              minate contributions to the TSP.
contributed to a FERS participant’s TSP account by his or
her agency.                                                           Credit Risk — The risk that a borrower will not make a
                                                                      scheduled payment of principal and/or interest.
Annuity — A payment to the participant (or to the par-
ticipant’s survivor if the participant elects a joint annuity)        Currency Risk — The risk that the value of a currency
each month. Payments continue as long as the participant              will rise or fall relative to the value of other currencies.
(or his or her survivor) is alive.                                    Currency risk could affect investments in the I Fund be-
                                                                      cause of fluctuations in the value of the U.S. dollar in
Basic Pay (Civilian) — This pay is defined in 5 United                relation to the currencies of the 21 countries in the EAFE
States Code (U.S.C.) 8331(3).                                         index.
Basic Pay (Uniformed Services) — This refers to com-                  Custom User ID — A combination of letters, numbers,
pensation payable under sections 204 and 206 of U.S.C.                and/or symbols that you can create to use instead of your
title 37. Section 204 pay is pay for active duty; section             TSP account number to log into the Account Access sec-
206 pay (e.g., inactive duty for training (IDT) pay) is pay           tion of the TSP Web site. The custom user ID cannot be
earned by members of the Ready Reserve (including the                 used on the ThriftLine as a substitute for the account
National Guard).                                                      number.
Before-Tax Contributions — Contributions of pay that                  Designation of Beneficiary — The participant’s formal
has not yet been taxed. Sometimes referred to as “tax-                indication of who should receive the money in his or her
deferred” contributions.                                              account in the event of his or her death. Participants must
                                                                      use the TSP Designation of Beneficiary form. (A will is not
Bond — A debt security issued by a government entity or a             valid for the disposition of a participant’s TSP account.)
corporation to an investor from whom it borrows money.
The bond obligates the issuer to repay the amount bor-                Disburse — To pay out money, as from the TSP.
rowed (and, traditionally, interest) on a stated maturity
date.                                                                 Elective Deferral Limit — An annual dollar limit, es-
                                                                      tablished under the Internal Revenue Code (I.R.C.), for
Bonus Pay (Uniformed Services) — Generally, a type of                 tax-deferred TSP employee contributions. “Catch-up” con-
special pay, with its own rules for TSP contribution elec-            tributions made by participants age 50 and older are not
tion purposes.                                                        subject to this limit, but have a separate I.R.C. limit.
Catch-Up Contributions — Contributions which are
made via payroll deductions by a participant age 50 or
older and are permitted to exceed the Internal Revenue
Code (I.R.C.) elective deferral limit.

Federal Employees’ Retirement System — The term                       Market Risk — The risk of a decline in the market value
“FERS” refers to the retirement system for Federal civilian           of stocks or bonds.
employees who were hired on or after January 1, 1984.
FERS refers to the Federal Employees‘ Retirement System,              Matching Contributions — Contributions made by
the Foreign Service Pension System, and other equivalent              agencies to TSP accounts of FERS employees who contrib-
Government retirement plans.                                          ute their own money to the TSP. (CSRS employees do not
                                                                      receive matching contributions. At present, members of
Fixed Income Investments — Generally refers to bonds                  the uniformed services also do not receive matching con-
and similar investments (considered debt instruments)                 tributions.)
that pay a fixed amount of interest.
                                                                      Mixed Withdrawal — A post-employment withdrawal of
Full Withdrawal — A post-separation withdrawal of a                   a participant’s entire account through any combination of
participant’s entire TSP account through an annuity, a                the following: an annuity, a single payment, or monthly
single payment, or monthly payments (or a combination                 payments.
of these three options).
                                                                      Monthly Payments — Payments that the participant
Incentive Pay (Uniformed Services) — Pay set forth in                 elects to receive each month from his or her TSP account
Chapter 5 of U.S.C. title 37 (e.g., flight pay, hazardous duty        after separating from service.
                                                                      Partial Withdrawal — A one-time post-employment
Index — A broad collection of stocks or bonds which is                distribution of part of a participant’s account balance. A
designed to match the performance of a particular market.             partial withdrawal is participant-elected and is made in a
For example, the Standard and Poor’s 500 (S&P 500) is an              single payment.
index of large and medium-sized U.S. companies.
                                                                      Participant Statements — Statements that are furnished
Index Fund — An investment fund that attempts to track                to each TSP participant after the end of each calendar
the investment performance of an index.                               quarter and after the end of each calendar year. Quar-
                                                                      terly statements show the participant’s account balance
Inflation Risk — The risk that investments will not grow              (in both dollars and shares) and the transactions in his
enough to offset the effects of inflation.                            or her account during the quarter covered. Annual state-
In-Service Withdrawal — A disbursement made from a                    ments summarize the financial activity in the participant’s
participant’s account which is available only to a partici-           account during the year covered and provide other im-
pant who is still employed by the Federal Government,                 portant account data such as the participant’s personal
including the uniformed services.                                     investment performance, primary beneficiary information,
                                                                      and an account profile.
Interfund Transfer (IFT) — An IFT allows the partici-
pant to redistribute all or part of his or her TSP account            Password — A secret eight-character code made up of let-
among the different TSP funds. For each calendar month,               ters and numbers that a TSP participant uses in conjunc-
the participant’s first two IFTs can redistribute money in            tion with his or her TSP account number (or custom user
his or her account among any or all of the TSP funds. Af-             ID) whenever accessing his or her account through the
ter that, for the remainder of the month, the participant’s           TSP Web site. For new participants, the initial password is
IFTs can only move money into the Government Securities               computer-generated and is sent to the participant shortly
Investment (G) Fund (in which case, the participant will              after his or her first contribution is received by the TSP.
increase the percentage of his or her account held in the             Participants can customize their passwords using the TSP
G Fund by reducing the percentage held in one or more                 Web site.
of the other TSP funds). This election does not change the            Personal Identification Number (PIN) — A four-digit
way new contributions, transfers or rollovers into the TSP,           number that the participant can use (in conjunction with
or loan payments are invested.                                        his or her TSP account number) to access his or her own
IRS Life Expectancy Tables — When you withdraw your                   account on the ThriftLine. The initial PIN is computer-
account, if you choose to have the TSP calculate monthly              generated and is sent to the participant shortly after the
payments based on life expectancy, the TSP will use these             participant's first contribution is received by the TSP.
tables. IRS Single Life Table, Treas. Reg. § 1.401(a)(9)-9,           Post-Separation Withdrawal — A distribution from
Q&A 1, is used for participants who are under age 70                  a participant’s account which is available only to par-
after June 30 of the calendar year in which the calcula-              ticipants who have left Federal service or the uniformed
tion is made. For participants who turn age 70 before                 services. Sometimes referred to as a “post-employment”
July 1 of that year, the Uniform Lifetime Table, Treas. Reg.          withdrawal. (See also “Withdrawal.”)
§ 1.401(a)(9)-9, Q&A 2, is used.

Reamortize — Adjust the terms of a loan to change the               ThriftLine — The TSP’s automated voice response sys-
loan payment amount or to shorten or lengthen the re-               tem. It provides general news about the TSP and allows
payment term.                                                       participants to access certain information and perform
                                                                    some transactions over the telephone. You can also use
Required Minimum Distribution — The amount of                       the ThriftLine to contact participant service representatives
money, based on a participant’s age and previous year’s             at the TSP. To access your account through the ThriftLine,
TSP account balance, that the IRS requires be distributed           you will need your TSP account number and ThriftLine
to a participant each year after the participant has reached        PIN.
age 70½ and is separated from service.
                                                                    Time Horizon — The investment time you have until you
Risk (Volatility) — The amount of change (both up and               need to use your money.
down) in an investment’s value over time.
                                                                    Traditional IRA — A traditional individual retirement ac-
Roth IRA — An individual retirement account that is de-             count described in § 408(a) of the Internal Revenue Code
scribed in § 408A of the Internal Revenue Code (I.R.C.).            (I.R.C.), or an individual retirement annuity described in
A Roth IRA provides tax-free earnings. You are not eligible         I.R.C. § 408(b), into which a TSP participant can transfer
to transfer money from your TSP account to a Roth IRA if            money from his or her TSP account. (It does not include
either of the following conditions applies: (1) your modi-          an inherited IRA, a Roth IRA, a SIMPLE IRA, or a Cover-
fied adjusted gross income is over $100,000 or (2) you are          dell Education Savings Account (formerly known as an
married and file a separate return. Further, you must pay           education IRA).)
taxes on the funds you transfer to a Roth IRA; the tax
liability is incurred for the year of the transfer.                 Uniformed Services — Uniformed members of the
                                                                    Army, Navy, Air Force, Marine Corps, Coast Guard, Public
Section 415(c) Limit — An Internal Revenue Code                     Health Service, and the National Oceanic and Atmospher-
(I.R.C.) limit on the amount of money that can be con-              ic Administration serving on active duty, and members of
tributed on behalf of a participant to an eligible retire-          the Ready Reserve or National Guard of those services in
ment plan.                                                          any pay status.
Securities — A general term describing a variety of finan-          Vesting — For a FERS participant, the time in service that
cial instruments, including stocks and bonds.                       he or she must have upon separation from service in order
Single Payment — A payment made at one time. Some-                  to be entitled to keep Agency Automatic (1%) Contribu-
times referred to as a “lump sum.”                                  tions and associated earnings. A participant is vested in
                                                                    (entitled to keep) the Agency Automatic (1%) Contribu-
Special Pay (Uniformed Services) — Pay set forth in                 tion in his or her account after completing 3 years of
chapter 5 of U.S.C. title 37 (e.g., medical and dental offi-        Federal service (2 years for most FERS employees in Con-
cer pay, hardship duty pay, career sea pay).                        gressional and certain noncareer positions).
Stocks — Equity securities issued as ownership in a pub-            Volatility — See “Risk.”
licly held corporation.
                                                                    Withdrawal — A general term for a distribution that a
Tax-Exempt Contributions — Contributions of money                   participant requests from his or her account. (Includes
that will never be taxed. Such contributions can be made            in-service withdrawal, partial withdrawal, full withdrawal,
to the TSP by members of the uniformed services from                etc.)
pay that is covered by the combat zone tax exclusion.

                                     Appendix: Getting More Information
TSP forms and materials are available from the Forms & Publications section of the TSP Web site at, from
your agency or service, or from the toll-free ThriftLine at 1-877-968-3778 or the TDD at 1-877-847-4385. (Callers out-
side the U.S. and Canada who cannot use the toll-free numbers should call 404-233-4400.)
Note: In some cases, members of the uniformed services may need to use a “U”-designated version of forms (e.g., Form
TSP-U-1 instead of Form TSP-1).
                                                                                                   Whom to contact if you are:
                                     Where to get                                                    An active       A separated
          Topic                      information                         How to do it               participant      participant
Account balance              TSP Web site, ThriftLine,          Use Web or ThriftLine Account      The TSP          The TSP
                             quarterly or annual participant    Access
Account number               Summary p. 19                      Use Web Account Access or          The TSP          The TSP
                                                                contact participant service rep.
Address (change of)          Summary p. 20                      Active participants: Contact       Your agency or   The TSP
                                                                your agency or service             service
                                                                Separated participants:
                                                                Web Account Access, Form
                                                                TSP-9, or the TSP
Annuity                      Summary p. 16; Web Calculator:     Use appropriate sections of        The TSP          The TSP before
                             Annuities; Booklet, Withdrawing    Form TSP-70                                         purchase; an-
                             Your TSP Account After Leaving                                                         nuity vendor
                             Federal Service                                                                        afterwards
Bankruptcy                  Fact Sheet: Bankruptcy Informa-                                        Your agency or   The TSP
                            tion                                                                   service
Basic annuity for FERS      Your personnel office or the                                           Your Personnel   Office of
and CSRS employees          Office of Personnel                                                    or Benefits      Personnel
                            Management (                                               Office           Management
Basic annuity for the       Your service                                                           Your service     Your service
uniformed services
Combining a uniformed       See info. and instructions on       Use Form TSP-65                    The TSP          The TSP
services and a civilian TSP Form TSP-65
Contribution allocations    Summary p. 11; info. and instruc-   Use Web or ThriftLine Account      Your agency or   The TSP
                            tions on Form TSP-50                Access or Form TSP-50              service or the
Contribution limits         Summary p. 5; Web Calculator:                                          Your agency or
                            Elective Deferral; Fact Sheet:                                         service
                            Annual Limit on Elective
Contributions               Summary p. 2; info. and instruc-    Use Form TSP-1 or your agency      Your agency or
                            tions on Form TSP-1                 or service’s electronic version    service
Contributions (catch-up)    Summary p. 2; Fact Sheet:           Use Form TSP-1-C or your           Your agency or
                            Catch-Up Contributions              agency or service’s electronic     service
Court orders                TSP Booklet: Court Orders and       Send qualifying court order to     The TSP          The TSP
                            Powers of Attorney; Tax Notice:     the TSP to begin process
                            Tax Treatment of TSP Payments
                            Made Under Qualifying Orders
Custom user ID              Summary p. 19                       Web Account Access                 The TSP          The TSP

Death benefits              TSP Booklet: Death Benefits; Tax    Beneficiaries should use Form      Your agency or   The TSP
                            Notice: Important Tax Informa-      TSP-17, Information Relating to    service or the
                            tion About TSP Death Benefit        Deceased Participant               TSP

                                                                                                      Whom to contact if you are:
                                      Where to get                                                      An active        A separated
             Topic                    information                          How to do it                participant       participant
Designation of              TSP Booklet: Death Benefits; info.    Use Form TSP-3, Designation of      The TSP            The TSP
beneficiary                 and instructions on Form TSP-3        Beneficiary
Fund information for        Summary pp. 8–9; Fund Informa-                                            The TSP            The TSP
TSP funds                   tion Sheets (Web)
In-service withdrawals      Summary p. 14; TSP Booklet: In-       Use Web Account Access or           The TSP
                            Service Withdrawals; Tax Notice:      Form TSP-75 for age-based
                            Important Tax Info. About Payments    withdrawal, Form TSP-76 for
                            From Your TSP Account                 financial hardship withdrawal
Interfund transfers         Summary p. 11; info. and instruc-     Use Web or ThriftLine Account       The TSP            The TSP
                            tions on Form TSP-50                  Access or Form TSP-50
Loan payments               Summary p. 13; TSP Booklet:           For payments in addition to         Your agency or
                            Loans; Fact Sheet: Effect of Nonpay   those made by your agency or        service
                            Status on TSP Participation; Web      service, use the TSP’s Loan
                            Calculator: Loans                     Payment Coupon
Loans (general)             TSP Booklet: Loans                    Use Web Account Access or           The TSP
                                                                  Form TSP-20
Name changes                TSP Web site                          Separated participants only:        Your agency or     The TSP
                                                                  Use Form TSP-15                     service
Participant statements      Summary p. 20; Leaflet: A Guide to    Through Account Access on the       Agency or          The TSP
(quarterly and annual)      Understanding Your TSP Participant    TSP Web site, or use the Web        service for per-
                            Statements (for quarterly state-      to request mailed quarterly         sonal, contribu-
                            ments); Leaflet: How to Read Your     statements or Web-only annual       tion, and loan
                            Annual TSP Participant Statement      statements                          payment info.;
                            (for annual statements)                                                   the TSP for
                                                                                                      other info.
Password                    Summary p. 19                         Use Web Account Menu or con- The TSP                   The TSP
                                                                  tact participant service rep.
Personal Identification     Summary p. 19                         Use ThriftLine Account Menu or      The TSP            The TSP
Number (PIN)                                                      contact participant service rep.
Required minimum            Tax Notice: Important Tax Info.                                           The TSP            The TSP
distribution                About Your TSP Withdrawal and
                            Required Minimum Distributions
Shares/share prices         Fact Sheet: Your Shares               Obtain current prices from Web
                            in the TSP Funds                      or ThriftLine; Web for historical
                                                                  share prices
ThriftLine                  Web/ThriftLine Information Card       1-877-968-3778
                                                                  TDD: 1-877-847-4385
Transfers into the TSP      Summary p. 7; info. and instruc-      Use Form TSP-60                     The TSP            The TSP
                            tions on Form TSP-60
Web site                    Web/ThriftLine Information Card                         The TSP            The TSP

Withdrawals after you       Booklet: Withdrawing Your TSP         Use Web Account Access or, for      The TSP            The TSP
leave service               Account After Leaving Federal         a full withdrawal, use Form TSP-
                            Service; Tax Notice: Important Tax    70; for a partial withdrawal, use
                            Info. About Payments From Your        Form TSP-77
                            TSP Account
Withholding on in-service   Tax Notice: Important Tax Info.       IRS Form W-4P                       The TSP            The TSP
and post-separation with-   About Payments From Your TSP
drawals                     Account

                                        Contact Information
T here are numerous sources of information about              Federal Government is your agency or service. It is
the Thrift Savings Plan (TSP or Plan).                        responsible for correcting or changing your personal
                                                              TSP-related information and resolving any issues
The most up-to-date information about the Plan                regarding your contributions and loan payments. If
in general, and your account in particular, is on the         necessary, it will also be able to contact the TSP on
TSP’s Web site. You can also obtain limited informa-          your behalf.
tion about the Plan and your account from the TSP’s
automated voice response system, the ThriftLine.              If you are separated from Federal service, your pri-
                                                              mary resource is the TSP.
If you need clarification about the Plan’s features or
have additional questions about your account, your            The Appendix on pages 24 and 25 can direct you to
best resource while you are still employed by the             the best sources of information on specific topics.

                                       TSP Web Site:

                                           ThriftLine:        1-TSP-YOU-FRST (1-877-968-3778)
                                                              (For calls outside the U.S., Canada, and
                                                              most U.S. territories, use 404-233-4400.)

                                                  TSP:        Thrift Savings Plan
                                                              P.O. Box 385021
                                                              Birmingham, AL 35238

                                           Telephone:         Call the ThriftLine to speak to a
                                                              Participant Service Representative.
                                                              (7 a.m. – 9 p.m. eastern time)

                             Text Telephone (TDD):            1-TSP-THRIFT5 (1-877-847-4385)

                                              TSP Fax:        1-866-817-5023

Federal Retirement Thrift Investment Board

                                  TSPBK08 (7/09)

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