End of TSP-U enrollment approaching

Compiled by Valerie VanKleeck
Assistant Editor

It was announced in fall 2001 that uniformed military personnel would become eligible to participate in the Thrift Savings Plan for Uniformed Service Members effective Oct. 9, 2001. The end of that initial sign up period is fast approaching as Jan. 31 is the final day to enroll in this first TSP-U segment. After that, enrollment will be offered in two open seasons annually.

Department of the Army, Deputy Chief of Staff for Personnel selected the Army Benefits Center–Civilian to provide information and assistance to Army service members on this new benefit. The ABC-C is located at Fort Riley, Kan.

To contact the ABC-C call 1-877-276-9287, select option "2" for military and a counselor will provide more information. You can also visit the TSP Web site at www.tsp.gov and select any of the options from the category "Uniformed Services."

The TSP-U offers many advantages. A few to consider include:

- The sooner you start contributing, the sooner your money can go to work for you.

- You have the flexibility of contributing as little as 1 percent or as much at 7 percent of your basic pay -- plus up to 100 percent of incentive pay or special pay, including bonus pay. You will also be able to contribute a higher percentage of basic pay in the future.

- Your TSP-U contributions are taken out of your pay before taxes are computed, so you pay less tax now.

- TSP-U earnings are tax-deferred.

- You can diversify your TSP-U investment among five different investment funds:

- Government Securities Investment (G) Fund

- Fixed Income Index Investment (F) Fund

- Common Stock Index Investment (C) Fund

- Small Capitalization Stock Index Investment (S) Fund

- International Stock Index Investment (I) Fund

More information on these funds can be found under the Questions & Answers link (#14) at www.tsp.gov under "Uniformed Services."

If you joined the uniformed services on or before Dec. 8, 2001, you can participate in the TSP-U now.

Sign up to participate by submitting a TSP-U Election Form (TSP-U-1) to your local Personnel Service Center or electronically through the Employee/Member Self-Service System at www.dfas.mil (under "Money Matters").

On the local level, Sgt. 1st Class Raul Roman-Beltran is the TSP-U representative.

"I have the TSP-U-1 form needed for enrollment," said Roman-Beltran. "Those interested should stop by Bldg. 621, 1st Bn, 1st Inf. S-1 or call me at 938-7121 for more information."

Elections submitted during January will go into effect no later than the first full pay period after your service accepts your TSP-U election form.

Once you begin participating in TSP, you will be sent a letter confirming an account has been established. The letter will include your Personal Identification Number which can be used to access your account on the www.tsp.gov Web site. At that time, you will be able to make contribution allocations to invest your contributions in the five TSP investment funds offered, and submit your Designation of Beneficiary Form (TSP-U-3).

If you do not enroll during this initial season, your next opportunity is May 15 through July 31, and again Nov. 15 through Jan. 31, 2003.

Editor’s Note: Some of the information provided in this article was compiled from a TSP-U newsletter printed by the Southwest Regional Civilian Personnel Operating Center and the TSP Web site.