Employees in the Federal Employees Retirement System will be able to invest an additional 1 percent of their salary not to exceed 11 percent each pay period while those under the Civil Service Retirement System can invest an additional 1 percent of their salary, not to exceed 6 percent each pay period. In fiscal 2006, the limits will be lifted entirely. Additional contributions will not affect government contributions. CSRS employees do not receive government contributions and FERS employees will continue to receive an automatic 1 percent of salary regardless of whether they invest anything. FERS employees will continue to receive matching contributions of up to an additional 4 percent for those investing 5 percent or more of their salaries.
Employees can invest in two new funds, making a total of five funds to choose from.
People desiring to rollover money from qualified trusts may do so based on Public Law 106-361. This transaction will be done directly with the Federal Retirement Thrift Investment Board. The board is in the process of developing a new form and additional information will be released within the next few months. FERS or CSRS employees appointed before July 1, will have the opportunity to make a TSP contribution election during the May to July open season. Employees appointed on or after July 1, will have 60 days from the effective date of their appointments to make a TSP contribution election.