Thrift Savings Plan: 

The Thrift Savings Plan (TSP) is a tax-deferred retirement savings and investment plan that offers Federal employees the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans. By participating in the TSP, Federal employees have the opportunity to save part of their income for retirement, receive matching agency contributions, and reduce their current taxes.

Additional Information on the Thrift Savings Plan:

Read more about the Thrift Savings Plan by visiting the Federal Retirement Thrift Investment Board's website at www.tsp.gov. You can reach them by telephone on 1-877-968-3778.

Withdrawing money from the Thrift Savings Plan (TSP)

It may take up to eight weeks to process a withdrawal after all properly completed withdrawal forms and separation data have been received by the TSP Service Office. Further, the TSP Service Office cannot process a withdrawal election until they receive an Employee Data Record from your payroll office indicating that you have separated. An unpaid TSP loan may delay disbursement of the TSP account balance.Your employer will provide you with information about your withdrawal options and the option to keep your money in the TSP. If you choose not to withdraw your funds, in the event of your death the TSP Service Office would pay the funds based on your written designation form on file.

If you have not completed a designation form, payment would be made to your survivors as follows:

• Widow or widower.
• If none of the above, child or children and descendants of deceased children by representation.If none of the above, retiree's parents or to the surviving parent.
• If none of the above, the executor or administrator of the retiree's estate.If none of the above, to any other of the retiree's next of kin who is entitled under the laws of the state in which the retiree resided at death.