In light of the announcement from OPM about the finalized rules for phased retirement, the Thrift Savings Plan has issued this announcement for federal employees:
TSP participants should be aware of the following:
- Employees in phased retirement status (“phased retirees”) continue their eligibility to participate in the TSP. They are eligible to contribute to the TSP and are subject to the normal restrictions regarding TSP loans, financial hardship withdrawals, and age-based in-service withdrawals.
- Phased retirees are not eligible for post-employment withdrawals.
- Phased retirees will not be subject to required minimum distributions or the TSP withdrawal deadline.
- All sources of contributions (employee contributions, Agency Automatic Contributions, and Agency Matching Contributions) to phased retirees’ TSP accounts will be calculated on basic pay received each pay period and will not consider the annuity payment from OPM.