Changes

All employees and uniformed members may enroll and withdraw from the TSP at any time, as often as desired.  However, only civilian employees under FERS and new uniformed service enlistees under the Blended Retirement System (BRS) are eligible for matching contributions.<ref>A prior law allowed the Department of Defense to designate any military position as eligible for matching contributions; none was so designated.  A small pilot program, operated by the Army during the later 1980's, allowed for matching contributions for enlistees.  The program has since ended and as of December 31, 2018 only five Soldiers are still serving and receiving matching contributions under that law.  The BRS requires the enlistee to serve for two years before receiving matching contributions.</ref>

All employees and uniformed members may enroll and withdraw from the TSP at any time, as often as desired.  However, only civilian employees under FERS and new uniformed service enlistees under the Blended Retirement System (BRS) are eligible for matching contributions.<ref>A prior law allowed the Department of Defense to designate any military position as eligible for matching contributions; none was so designated.  A small pilot program, operated by the Army during the later 1980's, allowed for matching contributions for enlistees.  The program has since ended and as of December 31, 2018 only five Soldiers are still serving and receiving matching contributions under that law.  The BRS requires the enlistee to serve for two years before receiving matching contributions.</ref>

New and rehired FERS employees are automatically enrolled upon hire and have 3% of their pay automatically deducted, unless they choose to withdraw.<ref>Effective October 1, 2020, the percentage will increase to 5%, which is the minimum an employee can have withheld and still receive the maximum matching funds.</ref>  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<ref>Under IRS rules, an employee needs only to turn 50 sometime during the year to begin catch-up contributions, so an employee with a December 31 birthday can begin contributing on January 1 of the year s/he turns 50.</ref> up to IRS limitations (whole dollars only), but those contributions are also not matched.

New and rehired FERS employees are automatically enrolled upon hire and have 3% of their pay automatically deducted, unless they choose to withdraw.<ref>Effective October 1, 2020, the percentage will increase to 5% for newly-hired employees only, which not coincidentally is the minimum an employee can have withheld and still receive the maximum matching funds.</ref>  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<ref>Under IRS rules, an employee needs only to turn 50 sometime during the year to begin catch-up contributions, so an employee with a December 31 birthday can begin contributing on January 1 of the year s/he turns 50.</ref> 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).  An employee having forfeited funds, if s/he returns to civil service, cannot reclaim those funds.

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.

*S (Small Capitalization Stock) Fund—invests in the BlackRock Extended Market Index Fund, which attempts to track the Dow Jones U.S. Completion TSM index.

*S (Small Capitalization Stock) Fund—invests in the BlackRock Extended Market Index Fund, which attempts to track the Dow Jones U.S. Completion TSM index.

*I (International Stock) Fund—invests in the BlackRock EAFE Index Fund, which attempts to track the net version of the MSCI EAFE index.

*I (International Stock) Fund—invests in the BlackRock EAFE Index Fund, which attempts to track the net version of the MSCI EAFE index.

*L (Lifecycle) Funds—invests in a specified mix of the five traditional funds.  Those funds with target years in the distant future have higher percentages of investments in the C, I, and S Funds, and as the target year approaches the percentages shift to predominantly in the G and F Funds.  Every ten years, in years ending in zero, the fund for that target year is merged into the L Income fund, and a new fund established.<ref>Current legislation has this changing, beginning in 2020, to every five years, consistent with target date funds offered in the private sector, but implementing regulations have not been established.  The expected date of changes such as this is September 2019; the law requires implementation by November 1, 2019.</ref>  Unless a new employee chooses differently, s/he will automatically have all contributions established in an L fund based on an expected retirement date of 62.<ref>Members of the uniformed services have their contributions automatically placed in the G Fund unless chosen differently.</ref>

*L (Lifecycle) Funds—invests in a specified mix of the five traditional funds.  Those funds with target years in the distant future have higher percentages of investments in the C, I, and S Funds, and as the target year approaches the percentages shift to predominantly in the G and F Funds.  Every ten years, in years ending in zero, the fund for that target year is merged into the L Income fund, and a new fund established.<ref>Current legislation has this changing, beginning in 2020, to every five years, consistent with target date funds offered in the private sector, but implementing regulations have not been established.</ref>  Unless a new employee chooses differently, s/he will automatically have all contributions established in an L fund based on an expected retirement date of 62.<ref>Beginning with the new funds, the L fund automatically chosen will be based on an expected retirement age of 63.</ref><ref>Members of the uniformed services have their contributions automatically placed in the G Fund unless chosen differently.</ref>

**L Income—individuals currently receiving monthly payments (but a current employee may invest in this fund)

**L Income—individuals currently receiving monthly payments (but a current employee may invest in this fund)

**L2020—individuals with retirement dates between 2015 and 2024

**L2020—individuals with retirement dates between 2015 and 2024