Annual Leave and Your Thrift Savings Plan

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By on April 15, 2010 in Current Events with 0 Comments

There is potential good news on the horizon for federal employees who plan to retire with a large annual leave balance. The news relates to the ability to contribute their annual leave balance to the Thrift Savings Plan.
Currently, federal employees, unlike their private sector counterparts, cannot contribute the cash value of their A/L to the TSP. If HR 4865 is passed and signed into law, federal employees will be able to take that A/L balance and contribute it to the TSP, as long as their annual contributions do not exceed the annual elective deferral limit. That limit is $16,500 for 2010.
The bill is sponsored by Representatives Stephen Lynch (D-MA) and Jason Chaffetz (R-UT). In addition to the fact that the sponsors are from different parties (how unusual), President Obama indicated a few months ago that he would sign such legislation if it crosses his desk.
HR 4865 is called The Federal Employees and Uniformed Services Retirement Equity Act of 2010. If the spirit moves you, contact your representative and ask him or her to support the bill.

Agencies can request to have John Grobe, or another of Federal Career Experts' qualified instructors, deliver a retirement or transition seminar to their employees. FCE instructors are not financial advisers and will not sell or recommend financial products to class participants. Agency Benefits Officers can contact John Grobe at [email protected] to discuss schedules and costs.

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About the Author

John Grobe is President of Federal Career Experts, a firm that provides pre-retirement training and seminars to a wide variety of federal agencies. FCE’s instructors are all retired federal retirement specialists who educate class participants on the ins and outs of federal retirement and benefits; there is never an attempt to influence participants to invest a certain way, or to purchase any financial products. John and FCE specialize in retirement for special category employees, such as law enforcement officers.