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The Federal Retirement Thrift Investment Board is trying to lure more military service members into the Thrift Savings Plan.

The 401(k)-style savings plan first allowed uniformed defense personnel to open TSP accounts in late 2001. About 220,000 service members initially joined. Participation has risen quickly, and the thrift plan now has almost 410,000 military participants, representing 17 percent of all TSP investors. The Navy has the highest number, with more than 132,000 TSP accounts.

But at an April 19 thrift board meeting, TSP Executive Director Gary Amelio said the agency wanted to encourage even higher military participation. In total, there are about 3.3 million federal employees and retirees who have $134 billion invested in the TSP.

Amelio has met with several members of the Defense Department's media branch in an effort to publicize the TSP. The Pentagon's Web site, DefenseLink, published an interview with Amelio last week.

"You're never too young or too old to start a savings account in TSP," Amelio said. "The tax deferral benefits are excellent, and compounded earnings are simply a phenomenal way to increase your wealth."

Members of the military can sign up for the TSP online, through the Pentagon's MyPay Web site.

Uniformed TSP participants are allowed to contribute up to 9 percent of their basic monthly pay, and all of their incentive pay or combat pay. The contributions are subject to a annual cap of $13,000, set by the Internal Revenue Service.

"We've been putting a special focus with DoD on getting more and more armed service members to participate," Amelio told the Pentagon. He predicted military participation would continue to increase. "As members of the armed services become more familiar with TSP, the more they like it ... they find that it's a wonderful savings program."

COMMENTS

• These comments obviously are from government employees that know little if anything about pensions in the private sector. How would you like to have been in the Worldcom or Enron plan that lost everything when the stock fell to zero? How would you have liked to have been in the Eastern Airlines or Pan Am pensions when they went out of business and stopped paying. Or maybe you would rather be a steel worker when the company that paid your pension went out of business. Many in the private sector are in SEPs that invest all their money in the company that hires the employee - iut should be illegal but it is very common. The TSP program provides net returns in line with or in excess of most private funds! Forget the fees and other ocsts, the net return is all that you should worry about. Every young soldier should be saving all they can in the TSP fund because it will reduce their taxes immediately and provide tax sheltered returns until they withdraw money from the fund. The whiners shoujld start providing the net returns of TSP compared with the net returns of other funds before they provide their worthless advice to the soldier. tax payer Posted April 30, 2004 7:02 AM
• Now Amelio can start stealing the Military's money. How nice. Next we will have a four star general telling the troops what Amelio wants them to invest in. GovExec.com reader Posted April 29, 2004 2:32 PM
• Watch out, soldier! It's just a matter of time before Congress starts screwing around with your 20-year military pension again. How does 1% per year plus whatever you put in the TSP grab you? Sound familiar? It should. It's the same crummy plan civil servants have under FERS. GovExec.com reader Posted April 29, 2004 12:32 PM