The Thrift Savings Plan (TSP) is a defined contribution retirement savings plan for Federal employees.
If you are a civilian and you were enrolled on or after September 5, 2015, then unless you choose another investment option, all contributions received by the TSP will be deposited into the Lifecycle (L) Fund targeted most closely to the year you turn 62.*
If you are a member of the uniformed services or you are a civilian who enrolled before September 5, 2015, then until you choose another investment option, all contributions to your account will be deposited into the Government Securities Investment (G) Fund.
If you are rehired after a break in Federal service, a number of factors affect how new contributions to your account will be invested. Refer to the “Welcome Letter” you receive from us after you are rehired for more information. It is especially important for you to review your statements to ensure your money is being invested according to your wishes.
If you would like new money coming into your account to be invested differently, you can make a contribution allocation.
Your contribution allocation tells us how you want new money going into your account to be invested among the TSP investment fund options. New money may be your own contributions, your agency contributions (if you are a FERS employee), your TSP loan payments, and any transferred or rollover funds from other retirement plans. You can make a contribution allocation at any time.
Keep in mind that your TSP funds are subject to market volatility and as such, we strongly suggest that you consider the potential timeline between now and retirement and determine how long it will take you to recover from market losses and how willing you are to incur that risk.