For complete details on Thrift Savings Plan go to http://www.tsp.gov/

Military Pension

The Uniformed Services retirement system is a Defined Benefit Program. Defined Benefit Program means that the level of retirement income you receive is determined by your years of service and base pay this benefit holds true for all individuals with the same years of service and rank.  NOTE (to receive the Defined Benefit Program you must do 20 years of active service)

TSP

Thrift Savings Plan is not a military pension however, it can augment retirement income. TSP is a defined contribution plan! Defined contribution plan means the money you put into TSP and the interest accrued on those funds determine how much will be available to you when you retire. TSP contributions are distributed over any five core funds you choose (G, F, C, S and I)For more on the funds see below.  NOTE (the money contributed determines the level of retirement income)

What can I contribute?

TSP contributions are based on percentages of your base pay from 1% to 100%. A member that contributes at least 1% base pay may also contribute 1% to 100% of special pay, incentive and bonus pay. To start TSP use this form TSP-U1 NOTE (There is no max to TSP contributions however the IRS limits tax-deferred contributions to an annual max of $15,500 for 2007 and 2008)

What is TAX Deferred?

Contributions to your TSP account are taken from your Net pay therefore no income tax is paid on these contributions. Taxes on earnings from TSP is deferred until you withdraw the money.

What is TAX exempt?

When members are in a TAX free combat zone any contributions made to TSP will be exempt from taxes upon withdrawal. NOTE(Interest made from contributions in a tax exempt zone will receive the federal tax rate upon withdrawal)

When do I withdrawal my money from TSP?

TSP is designed to supplement retirement income so TSP may be withdrawn starting at age 591/2 and withdrawals must start at 701/2.  

THRIFT SAVINGS PLAN

KNOW THE SCOOP ON YOUR CASH

FORMS AND USEFUL INFORMATION

 Most changes to your TSP account can be accomplished at the TSP home page http://www.tsp.gov/ Once on the TSP home page click on Account Access, on the next page click on all account transactions.  You must have your 13 digit account number and either your Web password or customer ID to log in.

NOTE: Due to the sensitivity of TSP information the only one that can receive account numbers and passwords are the individual holders of that account.

Loss of Account Number or Password

If you lose your 13 digit account number or web password you must have it mailed to you from TSP.  From the TSP main page click on account access, on the account access page click on the header mail me my account number. For a new web password click on mail me a new web password, you must have your account number to get a new web password. 

NOTE: Your account number and password will be mailed to your address on file at TSP. To verify or change your TSP address go to the MY Pay website and login. After login click on TSP and enter your new address, address may not reflect until the beginning of next month.

  TSP MILLIONAIRE PLAN

TSP FORMS

 TSP Election Form                                                                         TSP-U-1 

 TSP catch up Contribution form                                                       TSP-U-1-C

 TSP financial hardship withdrawal                                                    TSP-U-76

 TSP Info for the separated sailor

 Change Of Address                                                                          TSP-U-9

 Change of Name                                                                              TSP-U-15 

 Request for full withdrawal                                                                TSP-U-70

 Change in monthly Payments                                                           TSP-U-73   

Complete listing of TSP FORMS go to http://www.tsp.gov/uniserv/forms/index.html 

Questions or Comments about this TSP page contact:

            timothy.r.walker2@navy.mil 

TSP FUNDS OVERVIEW

G-FUND-The goal of the G-fund is to maintian a higher return than inflation. The G-fund is investing in short term United States Treasury Securities that are specially issued to TSP. The interest in the G-fund is guaranteed by the U.S. Government. The G-fund will never receive a loss do to the government backing.

The past 10 year average return for the G-fund was 5.12%

Note: When a member signs up for TSP your contributions are automatically placed in the G-fund unless the account holder changes there fund contribution.

F-FUND-The goal of the F-fund is to earn rates of return that are higher than the returns of Money Market Accounts. The F-fund matches the Lehman Brothers U.S. Aggregate Index (LBA) that represents the United States Bond Market. The risk of non-payment of interest in the F-fund is low due to only contributing to only investment grade securities and being well diversified.   

The past 10 year average return for the F-fund was 7.24%

Note-although the F-fund is not tied to the stock market there is risk due to its exposure to the U.S. Bond market.  The returns for the past ten years resulted in one negative year 1999 in which the fund returned -0.85%

C-FUND-The goal of the C-fund is to earn a potentially high investment return from a broadly diversified portfolio of large and mid sized United States Companies. The C-fund tracks the performance of the Standard and Poors 500(S&P 500) index. There is a risk of loss in the C-fund due to its performance being completely dependant on the performance of the S&P 500.

The past 10 year average return for the C-fund was 5.88%

Note-Market volatility has caused swings in the performance of the C-fund for the last ten years. Seven years have given a positive return and three have returned negative earnings. Largest return was in 2003 at 28.54% and the largest loss was 2002 at -22.05.

C-FUND FACT SHEET

S-FUND-The goal of the S-fund is to earn a potentially high investment return from a broadly diversified portfolio of small and and medium sized United States Companies. The S-fund tracks the performance of the Dow Jones Wilshire 4500 completion Index. (DJW 4500) There is a risk of loss in the S-fund due to its performance being completely dependant on the performance of the DJW 4500

The past 5 year average return for the S-fund was 17.78% 

S-Fund was created in May of 2001. Also known as inception date

Note-Market volatility has caused swings in the performance of the S-fund for the last six years. Five years have given a positive return and one has returned negative earnings. Largest return was in 2003 at 42.92% and the largest loss was 2002 at -18.14.

I-FUND-The goal of the I-fund is to earn a potentially high investment return from a broadly diversified portfolio of stocks that are located in developed countries outside the United States. The I-fund tracks the performance of the Morgan Stanley Capital International EAFE Index. There is a risk of loss in the I-fund due to its performance being completely dependant on the performance of the EAFE index.

Since inception of May 2001 the I-fund's average return was 9.98%

Note-Market volatility has caused swings in the performance of the I-fund for the last six years. Five years have given a positive return and one has returned negative earnings. Largest return was in 2003 at 37.94% and the largest loss was 2002 at -15.98.