Question of the day

[Davehop21]

Yesterday I received my leave and earnings statement. It showed no frozen fers money in block 20 only FERS CURR. Does a government employee have any say so in how this money is invested? There used to be a DFAS frozen amount that is totally gone on this statement. It is my understanding that this is 1% of our bi-weekly pay and yet we earn 0 interest on this money. Could we at least earn G Fund return on this. There is alot of money going somewhere every pay day for federal employees that is not earning us any interest.

Is this just another Government mis appropriation of our money?

Thanks, Dave at VA

 

[coolhand]

Yesterday I received my leave and earnings statement. It showed no frozen fers money in block 20 only FERS CURR. Does a government employee have any say so in how this money is invested? There used to be a DFAS frozen amount that is totally gone on this statement. It is my understanding that this is 1% of our bi-weekly pay and yet we earn 0 interest on this money. Could we at least earn G Fund return on this. There is alot of money going somewhere every pay day for federal employees that is not earning us any interest.

Is this just another Government mis appropriation of our money?

Thanks, Dave at VA

First, do you have a log-in/password for the tsp.gov website? There is a lot of info there and you can see exactly where your money is and how much interest is accruing. You can also see your quarterly statements which is show contributions/interest/capital gains as well as where you are allocated.

http://www.tsp.gov/account/index.html

Second, do you know about EBIS?

That's where you can reset how you want your contributions allocated from payday to payday, among other things like increasing/decreasing your contributions. There is a wealth of retirement planning info there as well, including various calculators.

There are separate EBIS sites depending on your agency. Here's the one I work with:

https://www.civilianbenefits.hroc.navy.mil/ebispage.asp

Ask your Human Resources department about access to your particular site.

To answer your original question, the 1% contribution provided by your agency is automatically invested in the G fund if you haven't elected something different.

 

[Davehop21]

Thanks Coolhand but I think I may not have asked the question in the best way. I understand tsp but what I am talking about is the automatic 1 % they take out for box 20 (cumulative reirement) they take one percent and it has not earned a penny since I started at the VA.

 

[coolhand]

Thanks Coolhand but I think I may not have asked the question in the best way. I understand tsp but what I am talking about is the automatic 1 % they take out for box 20 (cumulative reirement) they take one percent and it has not earned a penny since I started at the VA.

My block 20 is labeled "Military Deposit". I take it you are referring to "Cumulative Retirement"? That would be block 19 on my LES.

 

[Frixxxx]

Agency Automatic (1%) Contributions
[FONT=AAHKM D+ Caxton Bk BT,Caxton Book][FONT=AAHKM D+ Caxton Bk BT,Caxton Book]Your agency will set up a Thrift account for you and will automatically contribute an amount equal to 1% of your basic pay each pay period. These Agency Automatic (1%) Contributions are not taken out of your salary, and your agency makes these contributions whether or not you contribute your own money.

Vesting Requirement
[FONT=AAHKM D+ Caxton Bk BT,Caxton Book][FONT=AAHKM D+ Caxton Bk BT,Caxton Book]When you separate from Federal service, you must meet the Thrift Plan vesting requirement to be entitled to, or vested in, your Agency Automatic (1%) [/FONT][/FONT]
[FONT=AAHKM D+ Caxton Bk BT,Caxton Book][FONT=AAHKM D+ Caxton Bk BT,Caxton Book]Contributions and attributable earnings. For most employees, this vesting requirement is 3 years of Federal, generally civilian, service.
Congressional employees and certain other non-career employees must complete 2 years of Federal, generally civilian, service. Employees who die in service are automatically vested in their Agency Automatic (1%) Contributions.
You are immediately vested in your own contributions and your Agency Matching Contributions and in the earnings attributable these contributions
[/FONT][/FONT][/FONT][/FONT]

 

[Davehop21]

Thanks Frixx, does this account earn any interest?

 

[Warrenlm]

Could he be talking about the FERS 1+% that is similar to the CSRS 7% instead of anything to do with TSP? On top of the Social Security "tax", FERS employees pay a percentage of salary, about 1%, to build an account that at retirement produces an annuity to complement SS. If I'm way off base just tell me to hush up.

 

[Frixxxx]

Thanks Frixx, does this account earn any interest?

Yes, it is deposited in your TSP account. If you make no elections, it is in the "G" Fund.

 

[Frixxxx]

Could he be talking about the FERS 1+% that is similar to the CSRS 7% instead of anything to do with TSP? On top of the Social Security "tax", FERS employees pay a percentage of salary, about 1%, to build an account that at retirement produces an annuity to complement SS. If I'm way off base just tell me to hush up.

sshhh... Annuity is different, thats Retire, FERS line.