Career Center >> Benefits Chat >> TSP Automatic Enrollment
TSP Automatic Enrollment
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Posted about 1 year ago There's been a lot of discussion aover whether federal employees should be automatically enrolled for the TSP when they are first hired. What do you think? Who would favor this type of enrollment? |
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| Posted about 1 year ago Federal Employees are automatically enrolled in the TSP program, since the Government automatically contributes 1% to the TSP for you. This benefits the worker because you can see how fast the money grows and hopefully you will contribute as close as you can to the 15,500 maximum each year. Remember, the FERS retirement is only 1% (1.1% if over 62) for every year of employment of your high 3 salary. This means that if you work for 30 years, which seems like a long time, you will only receive 30% for your retirement! Not much at all right. Well, if you contribute to your TSP you will turn that 30% into 130% and actually give yourself a raise when you retire. Unfortunately, most workers do not think of this and end up having to work far beyond their expected retirement age. FERS is a 3 tier retirement system, so you will also receive Social Security, which will help make up to some extent. M2C |