| Thrift savings plans or TSP are tax deferred | | | | CSRS employees, a thrift savings plan is not |
| retirement savings and investment plans | | | | included as a necessary part of the retirement |
| administered by the Federal Retirement Thrift | | | | plan, but rather as a supplement to CSRS |
| Investment Board or FRTIB for federal | | | | annuities. |
| employees. Thrift savings plans work on the | | | | FERS participants are allowed to contribute up to |
| same principle as 401 (k) plans offered by many | | | | eleven percent of their basic salary into their TSP |
| private employers. All the employees who fall | | | | accounts. This option is available as soon as they |
| under the Federal Employees Retirement System | | | | join federal employment. Benefits such as Agency |
| or FERS and the Civil Service Retirement System | | | | Automatic (1%) Contributions, Agency Matching |
| or CSRS are eligible to participate in TSP. There | | | | Contributions and immediate vesting in these |
| are different requirements specified for both | | | | contributions are also simultaneously activated. |
| FERS and CSRS groups. Federal employees have | | | | CSRS participants are eligible to contribute up to 6 |
| to make voluntary contributions to their TSP | | | | % of their basic salary to their TSP accounts, and |
| accounts. Additionally, these contributions are not | | | | they do not receive any agency contributions. |
| in any way considered a part of their regular | | | | For all types of participants, thrift savings plans |
| FERS Basic Annuity or CSRS annuity contributions. | | | | offer immediate employee contributions, |
| Thrift savings plans are also known as defined | | | | before-tax savings and tax-deferred investment |
| contribution plans, because the retirement income | | | | earnings, low administrative and investment |
| obtained from the TSP account depends on the | | | | expenses and a choice of five investment funds. |
| contribution made by employees or their agencies | | | | These five investment funds are Government |
| during working years. The earnings accumulated | | | | Securities Investment (G) Fund, Fixed Income |
| through these contributions also affect the | | | | Index Investment (F) Fund, Common Stock Index |
| retirement income incurred. FERS employees are | | | | Investment (C) Fund, Small Capitalization Stock |
| entitled to thrift savings plan as an essential part | | | | Index Investment (S) Fund, and International |
| of their entire retirement package, besides the | | | | Stock Index Investment (I) Fund. |
| FERS Basic Annuity and Social Security plans. For | | | | |