Shows & Panels
Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- American Readiness: Renewable Power and Efficiency Technologies
- 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 News Radio's National Cyber Security Awareness Month Special Panel Discussion
- Federal Tech Talk
- The Future of Government Data Centers
- The Future of IT: How CIOs Can Enable the Service-Oriented Enterprise
- Government Perspectives on Mobility and the Cloud
- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Mitigating Insider Threats in Virtual & Cloud Environments
- Modern Mission Critical Series
- The New Generation of Database
- Reimagining the Next Generation of Government
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Air Traffic Management Transformation Report
- Cloud First Report
- General Dynamics IT Enterprise Center
- Gov Cloud Minute
- Government in Technology Series
- Homeland Security Cybersecurity Market Report
- National Cybersecurity Awareness Month
- Technology Insights
- The Cyber Security Report
- The Next Generation Cyber Security Experts
Shows & Panels
Furloughs and your TSP account
Monday - 3/4/2013, 2:00am EST
What about the amount of money you are putting into the TSP each payday? Will furloughs impact that? Again, yes!
Most federal workers participate in the TSP, which many experts consider to be the best 401(k) plan in the world. It is an important option for workers under the old CSRS program and an essential investment for the majority of feds who are under the newer FERS plan, which offers a reduced civil service annuity but a more generous TSP option. When it was set up, planners estimated that TSP investments and earnings (along with the generous government match) would supply anywhere from one-third to one-half of the total income available to FERS retirees. That's a lot.
So what's the deal with the TSP and furloughs?
Under the worst-case scenario for an extended sequestration, Defense civilians face up to 22 days of furlough and IRS workers could be furloughed one day per week for anywhere from five to seven days. Some agencies say they will be able to avoid furloughs, others are still crunching the numbers and watching the political game of musical chairs in Washington.
Anybody and everybody who is furloughed, even if for only one day, takes a 20 percent pay hit for that week. In Defense's Dr. Strangelove plan, that would mean a significant pay cut for most of this year. Furloughs, when and if they come, probably wouldn't start until mid-April at the earliest. Agencies must give employees 30-days' notice, and agencies must negotiate the terms and timing of furloughs in some cases with unions that represent both union and nonunion workers in that bargaining unit.
Even the start date of the sequester is in question. With apologies to Cinderella, Republicans and Democrats who created sequestration and reset the March 1 deadline couldn't even agree on when March 1 started. The GOP said it was 12:01 am on March 1, whereas Democrats argued that it technically didn't begin until the following midnight. The Office of Management and Budget, not suprisingly, ruled for the White House.
Now to the TSP. Will the Federal Retirement Thrift Investment Board, the agency that runs the TSP, be subject to furloughs? Short answer, No!
The TSP, like several other federal agencies, is not funded with appropriated money. It is funded through (very small) administrative fees. So no furloughs.
What about the contributions that federal agencies make to the accounts of FERS employees? Those workers get an automatic 1 percent contribution even if they contribute nothing themselves. They can also get an additional 4 percent matching contribution. So what happens to those contributions if the participant is furloughed?
According to the board:
"If a TSP participant is furloughed, his or her employing agency will continue to make the automatic 1% contribution and any matching contributions. However, the 1% automatic contribution will be based on the actual salary received (lower due to the furlough), not the participant's regular salary. Likewise, the agency matching contributions will be based on the participant's actual contribution to the TSP, not their regular contribution level."
NEARLY USELESS FACTOID
Compiled by Jack Moore
Courtesy of Federal News Radio producer Sean McCalley:
Forrest's girlfriend in Forrest Gump is named Jenny, but most people don't know her last name. It's Curran, and it's never spoken throughout the entire movie. The only time her full name is revealed is on the envelopes Forrest used to mail news from Vietnam. Also, it's a popular trivia question used by wait staff at the Bubba Gump Shrimp Co.
MORE FROM FEDERAL NEWS RADIO
TSP funds see slightly lower gains in February
The Thrift Savings Plan saw slightly lower gains in all but two of its funds in February. This slow down came after the year started off on a positive note for the TSP, with high numbers in January for all target-date Lifecycle Funds and all but one of the regular funds.
Deadline Arrives: What Happens Now?
After more than 15 months, fierce debate and a delay at the beginning of the year, the deadline to avert $85 billion in automatic, across-the-board budget cuts is officially here. President Barack Obama has until 11:59 tonight to reach a deal with Congress. Failing that, he'll have to sign the sequestration order as required under the law, making the cuts a reality for federal agencies and their employees. Find out what steps civilian agencies and the Pentagon are taking, including employee furloughs, and the looming budget battle still on the horizon.
SSA, IRS take different paths on
The Internal Revenue Service and the Social Security Administration - two of the largest federal agencies with very public missions - are taking divergent paths when it comes to dealing with the automatic, across-the-board budget cuts known as sequestration.