For CSRS employees, Medicare deductions are withheld separately at the rate of 1.45 percent on annually indexed wage maximums. Under CSRS, you must have been employed for five years to qualify for disability retirement. Under FERS, you must have worked 18 months to qualify. The purpose of the TSP is to provide retirement income. Eligible employees reentering the federal service who became TSP eligible prior to separation are eligible for TSP participation in the first election period following rehire.
New hires are eligible during the second election period after entering on duty.
Both FERS and CSRS employees may participate in the TSP, but under different rules. FERS employees - when a FERS employee becomes eligible to participate in TSP, the agency will automatically open a TSP account for the employee and begin depositing 1 percent of basic pay each pay period. Contributions after completing three years of Federal civilian service. Eligible FERS employees may elect to contribute up to 10 percent of their basic pay in one or all of three investment funds. The agency matches the first 3 percent of the contribution dollar for dollar, and matches the next 2 percent at fifty cents on the dollar.