Percentage or *not* to percentage...that is the question

[Blarney]

Long time surfer, first time poster, and man this site a wealth of info. Thanks Tom. OK, question is this....Trusting Guvment employee I am....I always assumed the agency matching 5% was coming off of your base pay, right?? Actually your gross base pay to be exact. I've been trying to figure out how the 5% is arrived at. It sure doesn't come from your (or mine at least) gross pay. After my math what I found was that after deducting *your* contributions, the remaining balance is what the 5% comes from. Is this correct?? I've looked through TSP info and also OPM and our agency info, but the best I ever found was very vague info to say the least. If this is correct, am I also correct in assuming that the more *WE* contribute from our base pay, the less the Guvment's contribution would be becasue the more you give off the top, the balance would be smaller in which to deduct their 5%???? Call me a synical Irishman if you must, but that gnome don't hunt!! Here I was thinking I was contributing 25% (20 mine and 5 from the gov., but after the numbers it's more like 22...bummer. Please, someone tell me I'm wrong!

Thanks

 

[tsptalk]

Welcome Blarney!

My TSP deductions come off of my gross salary. I saw someone say that it does not include overtime pay but I can't confirm that.

I also correct in assuming that the more *WE* contribute from our base pay, the less the Guvment's contribution would be becasue the more you give off the top, the balance would be smaller in which to deduct their 5%????

Your gross is pre-TSP deductions so the amount you contribute does not affect how much you can, if that makes sense.

Hope that helps. Someone else can help me out here if you know about the overtime rules.

Thanks!
Tom

 

[Wheels]

Blarney,

I believe the 5% comes off your base salary. As you look at your paystub you are seeing a line that says TSP match. Remember that is only 4%. The other 1% is probably on a separate line that says something like TSP basic. Perhaps that is why you are having trouble adding it up. The amount you contribute will not effect your match unless you contribute less than 5%.

Tom,

I am surprised that your match comes from your gross. Are you positive? My pay is different all the time because of night pay, overtime, sunday pay, etc etc. But my match is always the same. I guess it could differ from agency to agency but it's not supposed to.

Dave
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[tsptalk]

Sorry, I'm confusing things. I was thinking "gross" as being my salary since I don't work OT or night diff, etc. I should be saying base salary.

I was trying to say that your contributions do not reduce your gross pay that the matching is based on, as I believe Blarney was thinking. In other words, if you contribute 15%, your match is not 5% of 85% of your salary. It's still 5% of 100% of your base salary.

There, that ought to clear things up.

 

[Blarney]

Brain cramp!! Thanks guys I finally figured it out and you're correct. I'm glad I was wrong in this case.

Thanks

 

[ChemEng]

My TSP deductions come off of my gross salary. I saw someone say that it does not include overtime pay but I can't confirm that.

I can confirm that. I did a bit of overtime recently and discovered it also. Here are the relevant parts of my LES:

No overtime Gross and TSP contributions:
GROSS PAY 2992.00
TAX DEFERRED WAGES 298.80

With 53 hours overtime Gross and TSP contributions:
GROSS PAY 3794.54
TAX DEFERRED WAGES 298.80

A substantial increase in gross pay, but no increase in TSP contributions. Needless to say, I was surprised to see this also. I suppose the government doesnt want to belly-up the extra 5% matching for overtime work...