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Thrift Savings Plan

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Thrift Savings Plan
HRA-360 Total Compensation
Dr. James Waters
Jacqueline Kelly
2 March 2010

Every successful organization depends on the abilities of a good workforce. The United States Government is no different. One of the major concerns of most employees is receiving fair compensation for the work performed, even after retirement. In 1920 the U S Federal government provided retirement, disability and survivor benefits for most civilian employees. The plan continues to provide benefits to those still covered under the plan. Employees covered under CSRC were not covered by Social Security. However, realizing a need for change, the United States Congress designed a new program, the Thrift Savings Plan, which was enacted 6 June 1986 and became effective 1 January 1987 in the Federal Employees Retirement Act of 1986. The Thrift Savings Plan is meant to operate like a 401(k) retirement savings plan. The plan permits employees to defer paying taxes on the money saved until they retire, at which time they may be in a lower tax bracket because they are no longer earning a full time income. The Thrift Savings Plan is one of the three parts of the Federal Employees Retirement System, and is the largest defined contribution plan in the world with assets worth over $210 billion dollars. The Thrift Savings Plan has the over 3.7 million participants who contribute to the plan on a voluntary basis. Some these civilian participants included: Individuals on approved leave without pay to serve as full-time officers or employees of certain unions or other employee organizations Individuals assigned from a Federal agency to a state or local government under an Intergovernmental Personnel Act assignment who choose to retain FERS or CSRS coverage Individuals appointed or otherwise assigned to one of the Cooperative Extension Services, as defined by the National Agricultural Research, Extension, and Teaching Policy Act of 1977 Federal justice and judges, certain...