Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Building the Hybrid Cloud
- Connected Government: How to Build and Procure Network Services for the Future
- Continuing Diagnostics and Mitigation: Discussion of Progress and Next Steps
- Federal Executive Forum
- Federal Tech Talk
- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Moving to the Cloud. What's the best approach for me
- Navigating Tough Choices in Government Cloud Computing
- The New Generation of Database
- Satellite Communications: Acquiring SATCOM in Tight Times
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Value of Health IT
Shows & Panels
Analysis: Payroll tax cut opportunity to put more in TSP
Friday - 2/24/2012, 11:19am EST
However, current federal workers are not affected by the pension changes and will continue to pay 0.8 percent of their salaries toward their pensions.
Most FERS and CSRS Offset employees will receive the 2 percent payroll tax cut as part of the plan signed into law Thursday by the President, said certified financial planner Ed Zurndorfer, in an interview The Federal Drive with Tom Temin.
"How should employees take advantage of that 2 percent payroll tax cut? They should put all that money in the Thrift Savings Plan. That's what they should do. They should save more," he said.
Started in 2010, new employees automatically had 3 percent of their post-tax salary put into the TSP. Zurndorfer said to put an additional 2 percent into the TSP would allow the employees to get the maximum agency match of 4 percent. That, in effect, would be "10 percent of their paycheck into the Thrift Savings Plan," he said.