TSP Will Need to Adjust to Military Retirement Reform Changes

"...A congressional proposal to expand the Thrift Savings Program to members of the military would flood the program with hundreds of thousands of new members, cost millions of dollars and require boosting staff – and the TSP is up to the challenge.

The Military Compensation and Retirement Modernization Commission recommended in January that the military move from a pension system that rewards 20 years or more of service to a blended plan involving a pension and Thrift Savings Plan contributions. Congress has followed suit with legislation that mirrors the recommendations.

While service members can currently contribute to the TSP they receive no matching contribution from the military. Under the proposed plan – one that closely mirrors federal civilian plans - service members would see their contributions matched up to 5 percent of their salary, plus a base of 1 percent regardless of their contribution levels..."

Read more at federaltimes.com