INQUIRY 20-06, Increased Thrift Savings Plan (TSP) Automatic Employee Contributions for New or Rehired Employees
Published: October 5, 2020
Effective: Pay Period 20, 2020
The Federal Retirement Thrift Investment Board (FRTIB) increased the automatic enrollment percentage from 3 percent to 5 percent of basic pay for all participants who are automatically enrolled in TSP on or after October 1, 2020. This change applies to all new or rehired employees. This change will not affect the contribution rates in place for participants who have been enrolled prior to October 1, 2020.
Agencies are encouraged to inform new or rehired employees that 5 percent of their basic pay will be deducted and contributed to TSP. Employees may elect to immediately terminate their automatic TSP enrollment.
Termination of Automatic TSP Enrollment and Refund of TSP Contributions
Employees may elect to immediately terminate their automatic TSP enrollment. In order to terminate their automatic TSP enrollment, employees must complete Form TSP-1, Election Form, and submit it to their servicing personnel office. Employees may also terminate their automatic TSP enrollment through the Employee Personal Page (EPP). If an employee terminates automatic TSP enrollment within the first pay period of hire or rehire, no contributions will be deducted from the employee's pay. Therefore, it is critical that personnel offices process these automatic enrollment terminations within the first pay period of hire or rehire to prevent deductions from occurring. If an employee elects to terminate their automatic TSP enrollment after the first pay period of hire or rehire, they must submit Form TSP-25, Automatic Enrollment Refund Request, directly to TSP as instructed on the form to request a refund of the contributions deducted.
To Process TSP Termination of Automatic Contributions in EPP:
- Select the component on the menu. The Thrift Savings Plan (Federal and Non-Federal) page is displayed.
- Select the button. The TSP Self-Service Request page is displayed.
- Select the button in the Current Information section. The Enter TSP Self-Service Request page is displayed.
- Select the button. The Submit TSP Self-Service Request page is displayed.
- Select the button. The TSP Self-Service Request Confirmation page is displayed.
- Select the button.
For additional information, see TSP Bulletin 19-U-2 issued July 31, 2019, available online at.
For questions about National Finance Center (NFC) processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center ator via the customer service portal.