Option to put unused leave toward TSP part of House bill

Tuesday - 2/14/2012, 8:12am EST

Tom Trabucco, director of external affair, Federal Retirement Thrift Investment Board

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Your Thrift Savings Plan account wouldn't change much under the budget proposal coming from the administration on Monday. But a couple of the bills Congress is working on, would change a few things about your TSP account.

One of the proposals that affects pay and benefits in the House includes a "terminal lump sum annual leave."

The provision — part of a larger transportation bill — would allow retiring federal employees to put their unused annual leave toward their TSP.

"It was not authorized in the TSP because contributions to the TSP must come from basic pay, and this is not basic pay. So this provision would change that," said Tom Trabucco, director of external affairs at the Federal Retirement Thrift Investment Board, in an interview with In Depth with Francis Rose.

Trabucco said the provision has a good chance of passing because it is part of the larger highway bill, and Congress and the administration have "some agreement" on the bill.