SUBJECTS:   Open Season – Thrift Savings Plan (TSP)

New This Open Season

1. Two new investment funds available: 
   - S Fund (Small Capitalization)
   -  I Fund (International Stock Index)

2. Maximum TSP contributions can be increased by 1% for all employees covered by retirement plans (including CSRS, CSRS Offset, and FERS)

3. Rollovers from previous employer retirement plans allowed

4. New employees may participate immediately

5. Three revised TSP publications are available

6. TSP open season highlights

Open season for enrolling or changing your allocations in the Thrift Savings Plan (TSP) will begin May 15th and run through July 31, 2001.

b.  New contribution limits and eligibility rules

• Effective July 2001 FERS employees may elect to contribute up to 11 percent of your basic pay  (up to $10,500 annually - IRS Limit).  There is no additional government match.
• Effective July 2001 CSRS and CSRS Offset employees may elect to contribute up to 6 percent of your basic pay (up to $10,500 annually - IRS Limit).  There continues to be no government match on contributions by CSRS and CSRS Offset employees.
• Effective January 2002 and each following year, these contribution limits will increase by one percent until January 2006, at which time the limit will be eliminated completely.
• You may start or change your contributions through Employee Express or by completing a TSP-1 Election Form.

c.  New employees no longer have to wait to invest in the TSP

• Starting this open season new FERS and CSRS employees will be eligible to contribute to the TSP immediately, regardless of their date of hire. 
• This provision applies only to employee contributions; agency contributions remain on the current open season waiting period schedule.  
• Participants who are currently in their waiting periods will be eligible to make a contribution election during the May open season.  
• You may begin your contributions through Employee Express or by completing a TSP-1 Election Form.

• Beginning in May, you can allocate your future TSP contributions (what comes out of your bi-weekly paycheck) among the different TSP funds at any time through the TSP website or the ThriftLine (504) 255-8777.  These changes will take effect immediately. 
• You may also mail a TSP-50 Investment Allocation form directly to the TSP Service Office; however, your transaction may not take effect for two to three weeks.

• Beginning in July, direct rollovers from qualified retirement plans established by your previous employer can be rolled over into your TSP.  
• These plans are limited to pension, profit-sharing, and stock bonus plans, and include 401(k) plans.  The law also allows rollovers from conduit IRAs that were set up to accept distributions from qualified retirement plans.  
• You cannot roll over money from a regular or ROTH IRA, a mutual fund, or savings account.  
• TSP-60 Request for Rollover forms will be available on the TSP website May 2001.

f.  Revised TSP publications now available

• Revised TSP Plan Summary Book (May 2001) — During the first week of May, you will receive a paper copy of the revised TSP Plan Summary.  The TSP Plan Summary provides complete information about the latest changes to TSP.  This booklet is also available electronically on the TSP website.
• Revised Guide to TSP Investments (May 2001)
• Revised TSP at a Glance (May 2001)

g.  TSP open season highlights - This is a table for you to use as a quick reference guide.

Further details and most forms are available on the HRO Homepage and the TSP website.  A very limited supply of paper forms are available through the Human Resources Office, Bldg 12, Room 105 or by calling x30476.