TSP Benefits that Apply to Members of the Military Who Return to Federal Civilian Service:
This fact sheet applies to you if you meet all of the following conditions:
- You leave federal civil service for military service, or you are placed on unpaid status for military service.
- Your discharge, discharge, or similar event occurred on or after August 2, 1990.
- You have subsequently been rehired or reinstated to a position protected by FERS or CSRS under United States Code (USC) Chapter 43 38, Uniform Service Reemployment and Reemployment Act of the year 1994 (USERRA) 1
USERRA has several provisions regarding the Savings Plan (TSP):
- FERS employees are eligible to receive automatic retroactive agency contributions (1%)2 and income during periods of unpaid or dismemberment in connection with military service.
- FERS employees are eligible to receive corresponding contributions retroactively from Agency2 to their civilian TSP account if they have contributed to their military service account during an unpaid period or separated to perform military service.
- FERS and CSRS employees can offset employee contributions to civilian TSP accounts that they missed out on due to military service. FERS employees will receive matching contributions from the agency.
- FERS employees who have not been awarded at civil service termination and whose automatic contributions (1%) to the Agency and their allocated income have been withdrawn from their TSP account, are entitled to collect recover these funds in their accounts.
- Participants who have left civil service and received an automatic “required” distribution from their account can return the funds and, if necessary, restore a closed TSP Loan as a lien on the loan. Participants whose loans are declared taxable because they are in non-payment, but whose agency has never notified TSP, can also reinstate their loans.
- The repayment terms of any unpaid civilian TSP loans will be extended upon return to civilian employment.
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