1. Thrift Savings Plan A Great Idea!

2. Thrift Savings Plan TAX DEFERRED EARNINGS You defer paying Federal income taxes on the earnings that your account accrues over the years. Longer you keep money in TSP, more earnings you accrue and more benefit from tax deferred savings. Deferral limit: $15,500 CY 2007 & 2008

3. When Eligible? All Military employees available in January 2002 Can enroll right away -- OR -- Any time or year Can stop or start at any time To sign up: https:mypay.dfas.mil

5. G FUND Government Securities Investment Fund Invested in short term non-marketable U.S. Treasury Securities Rate is set once a month by the Treasury Department No risk of loss (negative returns) in G Fund Managed in-house by the Board as received from the U.S. Treasury each business day

6. F FUND Fixed Income Investment Fund Tracks the Lehman Brothers U.S. Aggregate (LBA) box index fund LBA index represent sectors of the U.S. bonds markets - U.S. Government: U.S. Treasury and Agencies - Corporate - Mortgage-backed securities - Foreign Government Managed by Barclays Global Investors and invested in Barclays U.S. Debt index fund

7. C FUND Common Stock Index Investment Fund Replicates the Standard & Poor’s (S&P) 500 stock index S & P 500 index contains common stocks of 500 companies that represent the U.S. stock markets The total dollar value of the stocks of the 500 companies in the S&P 500 makes up approximately 78% of the value of the U.S. stock markets

8. S FUND Small Capitalization Stock Index Investment Fund Tracks performance of the Wilshire 4500 stock index Includes all common stocks (except those in the S&P 500 index) actively traded in the U.S. stock markets on a daily basis

9. I FUND International Stock Index Investment Fund Replicates Morgan Stanley’s Europe, Australia and the Far East (EAFE) index EAFE contains stocks that cover approximately 60% of the stock markets of the 21 countries included in the index The I Fund exposes participant to currency risk

10. L FUND Lifecycle Investment Fund Diversify participant accounts among the G, F, C, S, & I Funds, using professionally determined investment mixes tailored to different time horizons; i.e.; 2040, 2030, 2020, 2010 or L Income (sooner than 2008) Highest possible rate of return for the lowest amount of risk taken Designated for participants who may not have the time, experience, or interest to manage their TSP retirement savings

11. TSP Performance By Fund

12. Up-To-Date Info.at www.tsp.gov 1-877-968-3778www.tsp.gov

13. THRIFT SAVINGS PLAN Participant Statements Participants are able to print a copy of their statements from the Account Access section of the TSP website at the end of each quarter (January, April, July, and October) Reflects transactions, number of shares in each fund and dollar value of the shares in each fund

14. When Can I Change How My Money’s Invested? Anytime of year. Move Existing Funds –You can move money (how it’s invested) each pay period. Two types: Change distribution of future contributions (doesn’t change where $$ is sitting today) Move existing dollar balance between the 6 funds (doesn’t change where money goes next payday) –Use website www.tsp.gov or ThriftLine (1-877-968-3778)

15. I Heard I Can Borrow Against My Account -- TSP Loans? Yes. Two type loans: –General Purpose (1 to 5 yrs to repay) –Residential (1 to 15 yrs to repay; $50,000 max.) Min. $1,000 (Your Own Contributions), never > 1/2 existing TSP balance, only one of each type loan, must be in pay status. $50 application fee Upon loan pay-off must wait 60 days before applying again Good; Low Interest (4 to 6% +/- tracks G-Fund) Bad; If you leave fed. Svc. you have 3 months to repay entire balance. -- Employee doesn’t earn dividends on amount owed.

16. When Can I Withdraw My Money? Age 59.5 or older (Taxed at 20%, but no early withdrawal penalty). Annuitants 55 yrs or older (Taxed, no early withdrawal penalty) Financial Hardship (Must be documented) Leave Federal Service (if under 59.5 tax penalty applies; 30% total) –One Time Withdrawal ($1K min.), remainder left in TSP –Full pay-out in monthly payments –Full pay-out as TSP Life Annuity –Transfer to another 401k or IRA –Mixed Combination of Withdrawal Options

17. What If I Die? TSP Order of Precedence 1. Designated beneficiary – TSP-3 maintained by the TSP record keeper 2. Widow or widower 3. Children (and/or the descendants of any children) 4. Parents 5. Executor or administrator of estate 6. Next of kin

18. PLAN NOW TO ENJOY YOUR RETIREMENT PLAN NOW TO ENJOY YOUR RETIREMENT!!

19. Questions?