“The TSP has been instrumental in helping federal employees maximize their retirement security, and to mark the 30th anniversary of this critical savings vehicle this bill takes important steps to modernize this system to benefit them in the future,” said
“Making smart choices to prepare for retirement can be difficult, but everyone deserves to have financial stability at the end of a their career,” said
“We are very appreciative of Senators Portman and Carper’s leadership on this important issue,” said
NOTE: Currently, federal workers are transferring about
By modernizing these outdated withdrawal regulations, the TSP Modernization Act will provide federal employees with greater retirement flexibility, and advance their ability to retire with dignity. Specifically, for federal employees separating from the federal workforce, the bill will change the current rules that allow only two post-separation withdrawals (in the form of a lump-sum payment, a stream of monthly payments, or annuity payments) to allow multiple, partial post-separation withdrawals that retirees can time to their individual needs. And for federal employees who are still working and are older than 59 1/2, the bill will allow multiple age-based withdrawals. The bill also adds flexibility to encourage retention in the TSP by allowing the election of quarterly or annual payments, and permitting periodic withdrawals to be changed at any point during the year.
A section-by-section of the bill can be found here https://www.portman.senate.gov/public/index.cfm/files/serve?File_id=0905D517-5230-4FE6-8F19-487CA66068E1 and the text is found here https://www.portman.senate.gov/public/index.cfm/files/serve?File_id=6DA6CB68-B576-4293-AA36-ED477C282718.
Read this original document at: https://www.portman.senate.gov/public/index.cfm/press-releases?ID=C8374D4A-485C-4E49-B6CB-E727797BD72D