Welcome to TSP Strategies

Welcome to TSPstrategies.com! This Web site is dedicated to exploring the benefits of saving and investing in the Thrift Savings Plan.

The companion book, TSP Investing Strategies: Building Wealth While Working for Uncle Sam, lays out a simple set of strategies for long-term, buy-and-hold investors to consider while investing in the TSP. This Web site and accompanying blog will build on those concepts, while focusing on new investing options and developments related to the TSP.

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Tag Archives: Pensions

Aug


19

‘Tick Tock Tick Tock That’s the Sound of Baby’s Clock…’

My young son loves to be read “Baby Listens,” written by Esther Wilkin in 1960.  It’s a “Little Golden Book Classic” edition now.  It’s very lyrical. The first main page of the story shows a baby entranced by an old alarm clock.  “Tick tock tick tock, that’s the sound of baby’s clock…” goes the book. That’s what immediately came to mind when I read the annual Board of Trustees’ Report on Social Security and Medicare, and the CBO’s latest long-term … more

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Jun


24

The Unintended Consequence of Higher FERS-FRAE Payments

Did you experience a 3.6% pay cut this year? Those who just began their civilian federal government service this year did, probably without even knowing it. You’ll recall that lawmakers mandated an increase in contribution rates from new employees’ salaries to pay into the FERS retirement system. The new revised retirement system – “FERS-FRAE” or “FERS Further Revised Annuity Employee” – now requires a payment of 4.4% of new employees’ salaries into the system.  The 3.6% figure represents the difference … more

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Dec


17

Kicking the Can Down the Road, or Kicking the Kid Stuck With the Can Walking Down the Road?

All the discussion about the recent budget compromise has focused on the cuts to Cost of Living Adjustments (COLAs) mandated for recent military retirees going forward.  Under the budget compromise, military retirees under the age of 62 will face a COLA equal to the Consumer Price Index minus one percent. But what of the new govies who, hired in 2014 and thereafter, will have to contribute still more of their pay to retirement contributions?   As expected, in the name … more

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Nov


06

Required Employee Pension Contributions Will Probably Rise Soon

In an under-noticed article inside the Wall Street Journal today – titled “Parties Hunt for Revenue Streams” – was this revelation: “Now, budget negotiators in both parties are again looking to premiums, user fees and other nontax revenue as they try to soften the effect of a new round of automatic federal spending cuts set to kick in at the start of the year.  Possibilities include…raising how much federal employees must contribute to their pension programs, among many others…” And … more

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Aug


07

Trading a Pension for an Increased TSP Match

The Postal Reform Bill introduced in the Senate last week includes some interesting proposals.  Of note, it includes language that “the bill would allow the Postal Service and postal unions to bargain over the extent of new postal employees’ participation in FERS and the Thrift Savings Program (TSP).” The Washington Post‘s Federal Diary added yesterday that: “A revised [benefit] system might repeal for [future] employees the defined benefit portion of federal retirement benefits, which pays a lifetime annuity based on … more

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