Congresswoman Jen Kiggans (R-VA) has introduced the Financial Opportunities for Retirees and Warriors Advancing Retirement Development (FORWARD) Act (H.R. 4996), legislation designed to enable military retirees and 100% disabled veterans to continue contributing to their TSP accounts even after separation from service.
The legislation currently has one co-sponsor, Congressman Wesley Bell (D-MO).
What the FORWARD Act Does
Under current law, service members must stop contributing to their Thrift Savings Plan (TSP) upon separation from military or federal service. This forces veterans to open new retirement accounts, often losing the continuity and familiarity of the system they’ve relied on for years.
The FORWARD Act changes that by allowing eligible veterans to continue making voluntary contributions to their existing TSP accounts using either retired military pay or VA disability compensation.
Specifically, the bill:
- Authorizes the Federal Retirement Thrift Investment Board (FRTIB), the agency that oversees the TSP, to accept post-service contributions from qualified veterans.
- Directs coordination between the FRTIB, the Department of Defense, and the Department of Veterans Affairs to implement the change.
- Applies to military retirees with at least 20 years of service and veterans with a 100% disability rating.
It only applies to veterans who had a TSP account while serving in the military, and it does not authorize matching government contributions.
Assuming the bill becomes law as currently written, regulations would have to be implemented by the FRTIB in coordination with the DoD and VA within 180 days of enactment.
Kiggans, a former Navy pilot and military spouse, explained the reasoning behind the bill. She said in a statement:
Empowering our veterans to continue building their long-term financial security through retirement savings is the least we can do. These brave men and women have sacrificed so much for our country and deserve to know they will be able to live secure, comfortable lives in retirement. For our 20-year retirees and veterans with a 100% disability rating, it’s only fair that they can keep contributing to the Thrift Savings Plan they’ve spent years building. They shouldn’t be forced to start over in a new system when they’ve already invested in one that works for them.
Who It Impacts
The legislation directly benefits:
- Career military retirees who have built substantial savings in the TSP system.
- Veterans with a 100% disability rating who receive VA compensation.
- Federal retirement administrators tasked with implementing the new contribution pathways.
As of the end of July 2025, there were over 2 million total accounts in the TSP that belong to military service members. These are the figures from the FRTIB:
| Total Accounts | Average Balance | Total Roth Accounts | Average Roth Balance | |
|---|---|---|---|---|
| BRS Uniformed Services | 1,596,042 | $18,752 | 975,728 | $16,113 |
| Uniformed Services Legacy | 1,224,964 | $57,422 | 664,730 | $35,348 |
According to FRTIB data, as of the end of July there were approximately 357,000 separated Blended Retirement System (BRS) service member accounts and 658,000 separated uniformed service member accounts in the TSP.
Power of Investing Long-Term in the TSP
There are 171,023 TSP millionaires as of the end of June 2025—individuals who have at least a $1 million balance in their TSP accounts.
According to the 2025 Northwestern Mutual Planning & Progress study, the average American believes that he or she needs $1.26 million to retire comfortably. However, the median retirement savings in the country today is about $409,900, well short of this desired goal.
These TSP millionaires are well on their way—if not already there—to reaching this coveted figure. They are proof that building a robust level of wealth for retirement is possible with the TSP; it simply requires patience and a willingness to invest primarily in the TSP’s stock funds.
The average years of contributions to the TSP for millionaires is 28.13, so building this level of savings must be done over a long time, such as the course of one’s federal career.
Additionally, it is important to continue contributing steadily with each paycheck. This has the added benefit of receiving matching funds from the government.
TSP millionaires usually allocate a substantial portion of their investments to the stock funds offered by the TSP. These funds are:
- C Fund: Tracks the performance of the S&P 500, providing exposure to a diversified portfolio of large-cap U.S. companies.
- S Fund: Focuses on investing in small and mid-sized U.S. companies, offering exposure to a broader range of companies.
- I Fund: Invests in international stocks, providing exposure to companies outside the United States.
It’s important to note that these funds tend to be more volatile than other TSP funds, experiencing significant fluctuations in value. However, over time, they have historically demonstrated higher long-term returns than the G and F Funds—a crucial factor in building long-term wealth within the TSP.
If the FORWARD Act becomes law, it would provide retired military service members with an even greater opportunity to maximize the long-term savings power of the TSP.
