Search Results for keywords:"Thrift Savings Plan"

The Federal Retirement Thrift Investment Board (FRTIB) has proposed a new rule allowing the Thrift Savings Plan (TSP) record keeper to calculate financial gains or losses, known as breakage, on late or erroneous small contributions and loan payments, even if they total less than $1.00. Previously, the TSP did not calculate breakage if the amount was under $1.00, but technological advancements have made this rule outdated. This proposed rule aims to ensure employees' investments are accurately tracked, even for minor discrepancies. Public comments on this proposal are accepted until February 18, 2025.

The Federal Retirement Thrift Investment Board (FRTIB) is proposing a change to the rules about how loans from the Thrift Savings Plan are managed. Currently, any interest that has already been collected on a loan must be paid off before payments can be made toward the principal and current interest. The new rule suggests that the interest be added to the principal when recalculating the loan, making the process more in line with the practices used for similar private-sector plans. This change will not significantly impact small entities or require additional reporting.

The Federal Retirement Thrift Investment Board (FRTIB) has finalized a rule that allows the Thrift Savings Plan (TSP) record keeper to calculate gains and losses on small contributions and loan payments, even if they are less than $1.00. This change updates a previous rule that did not account for these small amounts due to past limitations, which are now considered obsolete. The rule affects federal employees and members of the uniformed services involved in the TSP and ensures accurate financial records for all contributions, regardless of size. No significant economic impact on small entities is expected, and no additional reporting requirements are introduced.

The Federal Retirement Thrift Investment Board (FRTIB) has finalized a rule, without changes, that updates how they calculate the earnings and losses for court-ordered payments involving Thrift Savings Plan (TSP) participants. This rule affects payments to spouses, former spouses, children, or dependents when a court order is issued. The new methodology aligns with industry standards, calculating earnings through an internal rate of return that considers how cash flows like contributions or loans affect investment performance. This ensures that the final payout is based on both the award amount and the actual investment earnings from the relevant period.