In a separate proposed rule, TSP announced that, starting July 1, participants will be able to transfer money from outside retirement plans into their TSP accounts. The proposal also eliminates waiting periods for newly hired employees to begin participating in TSP, effective with the enrollment season that begins May 15. In addition, the proposed rule would phase out over five years the limits on employee contributions as a percentage of basic pay. Last year, Congress approved outside fund transfers into the TSP, immediate participation of new employees and the phaseout of percentage limits on contributions. The tax break can be worth several hundred dollars a year, depending on the cost of the health plan and the enrollee's taxable income.
Retirees currently are ineligible because of tax code provisions.
The measure also would make military retirees eligible for premium conversion. The National Capital Area Chapter of the American Society for Public Administration will hold its annual awards ceremony tonight. He will receive the President's Award for Outstanding Public Service. Adm. James M. Loy , commandant of the U.S. Coast Guard. Loy will receive the Government Executive Leadership Award.