TSP offers fix for retirement errors

The Thrift Savings Plan board on Thursday moved federal workers placed in the wrong retirement system over the last two decades one step closer to a solution. Since the switch from the old Civil Service Retirement System (CSRS) to the new Federal Employees Retirement System (FERS) began in 1984, federal human resources offices have accidentally placed as many as 20,000 employees in the wrong retirement system. Until recently, agencies were required to move employees into the correct system as soon as an error was discovered. That could have an adverse effect on an employee's retirement funds. For example, employees incorrectly placed for years in CSRS might have contributed no money to the Thrift Savings Plan during that time. When their agencies switched them into FERS, they might not have had enough time left before retirement to make up contributions to the thrift plan that they could have made. The thrift plan is intended to replace much of the CSRS' more generous pension, so the employees' retirement could end up being much less comfortable. In September, President Clinton signed a law, H.R. 4040, allowing employees who were placed in the wrong retirement system to choose whether to be covered by FERS or by CSRS offset, a hybrid plan that was created during the transition to FERS between 1984 and 1987. The Office of Personnel Management is primarily responsible for helping employees make a choice, but the Thrift Savings Plan board also needed to issue procedures for its portion of the retirement corrections. The TSP board issued proposed rules in the April 19 Federal Register that outline procedures for changing the TSP portion of the retirement corrections. See the Federal Retirement Thrift Investment Board's section of the issue for details.
Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care


When you download a report, your information may be shared with the underwriters of that document.