Financial Management Element 42

Thrift Savings Plan (TSP) Blended Retirement System (BRS) Survivor Benefit Plan (SBP) Indirect Compensation Resources

TSP What is it? It’s a retirement savings and investment plan for federal employees and uniformed services The amount received from TSP will depend on the amount contributed over the years If a member does not complete 20 years the amount contributed still belongs to them If your account is more than $200 you can automatically withdraw at separation or leave it in your account for later withdrawal Required to withdraw after 1 April the year following the age of 70 ½ or year following separation

Types of Post-Separation Withdrawals Partial Withdrawal Must take out 1,000 or more https://www.tsp.gov/index.html A Full Withdrawal Lump Sum Monthly Payments TSP Life Annuity, pays a benefit every month for life

BRS Four Main Changes from TSP Employing service will contribute 1% of service member’s monthly pay Member will automatically be enrolled at 3% Military employers will match TSP contributions for the first 3% Invests employee contributions in an “age appropriate” life cycle, unless member chooses differently https://www.youtube.com/watch?v=FNC5O_nlL4Q

SBP Active duty Military are automatically covered by this plan (while on active duty) Protects against complete loss of retired pay Member and spouse are equally responsible for decision It is an insurance plan that will pay the surviving spouse a monthly payment (annuity)

Elections For SBP At retirement, full basic SBP for spouse and children will take effect May not decline spouse coverage w/o spouse’s consent Elections Spouse Only Spouse (Former Spouse) with Children Children Only Person with insurable interest https://www.dfas.mil/retiredmilitary/provide/sbp.html

Indirect Compensation Medical care free prescriptions (cold packs) TriCare Dental Program Federal Tax Advantage BAH and BAS (tax bracket) State/Local Tax Advantage (ie not paying California State Taxes) Pension SGLI

Indirect Compensation Cont. Commissary/NEX Education Programs (TA) Counseling (Fleet and Family and other resources) Legal Counseling (RELSO/LO) Space A Travel Gym Memberships

Questions for the Audience When is the deadline to opt in for BRS Name 3 Indirect compensations that Sailors don’t consider when separating What are the different elections for SBP What are the two types of separation withdrawals available with TSP

QUESTIONS????