Changes

New FERS employees are automatically enrolled upon hire and have 3% of their pay automatically deducted, unless they choose to withdraw.  Employees are automatically established a TSP account with 1% of their pay deposited (even if not participating, this does not stop), and are additionally matched at dollar-for-dollar up to the first 3% of pay, then at $0.50/$1 for the next 2% (thus, at 5% of pay, with automatic and matching contributions an additional 5% is deposited).  Employees may contribute above that (in terms of whole percentages or whole dollar amounts only) up to IRS limitations, but those contributions are not matched.  Also, "catch-up" contributions are allowed for employees age 50 or older up to IRS limitations (whole dollars only), but those contributions are also not matched.

New FERS employees are automatically enrolled upon hire and have 3% of their pay automatically deducted, unless they choose to withdraw.  Employees are automatically established a TSP account with 1% of their pay deposited (even if not participating, this does not stop), and are additionally matched at dollar-for-dollar up to the first 3% of pay, then at $0.50/$1 for the next 2% (thus, at 5% of pay, with automatic and matching contributions an additional 5% is deposited).  Employees may contribute above that (in terms of whole percentages or whole dollar amounts only) up to IRS limitations, but those contributions are not matched.  Also, "catch-up" contributions are allowed for employees age 50 or older up to IRS limitations (whole dollars only), but those contributions are also not matched.

Employees are automatically vested for their contributions and agency matching contributions, and associated earnings on those, from day one, but are not vested in agency automatic contributions and associated earnings on those until three years after employment (two years for members of the uniformed services and some categories of civilian employees); if the employee leaves those contributions are forfeited<ref>If an employee dies while employed, the matching contributions and associated earnings are "deemed" to be vested at death and can be withdrawn by his/her beneficiaries/heirs.</ref> (and used to pay administrative fees, which makes the TSP among the lowest-cost plans available).

Employees are automatically vested for their contributions and agency matching contributions, and associated earnings on those, from day one, but are not vested in agency automatic contributions and associated earnings on those until three years after employment (two years for members of the uniformed services and some categories of civilian employees); if the employee leaves those contributions are forfeited<ref>If an employee dies while employed, the matching contributions and associated earnings are "deemed" to be vested at death and can be withdrawn by his/her beneficiaries/heirs.</ref> (and used to pay administrative fees, which makes the TSP among the lowest-cost plans available).  An employee having forfeited funds, if s/he returns to civil service, cannot reclaim those funds.

Both traditional and Roth TSP accounts are available for the employee's contribution (the agency automatic and matching contributions are automatically deposited into a traditional account).  In addition the TSP allows, in some cases, rollovers from other employer defined contribution plans (but rollovers from IRA's are not allowed).

Both traditional and Roth TSP accounts are available for the employee's contribution (the agency automatic and matching contributions are automatically deposited into a traditional account).  In addition the TSP allows, in some cases, rollovers from other employer defined contribution plans (but rollovers from IRA's are not allowed).