The Federal Retirement Thrift Investment Board (FRTIB) administers the Thrift Savings Plan and they are saying more military service members are opting into the new blended retirement system each month, however, thousands are forgetting an important step.
Around 20,000 participants have opted into the BRS and will receive the automatic 1% contribution from their employing military service, but they haven’t chosen how much they’ll contribute from their own paychecks. Contributions from BRS participants aren’t automatic unless a service member specifically designated them.
Under the system, members automatically receive 1% from their military services, but they can receive up to 5% from their agency depending on how much they choose to contribute from their paychecks.
Individual military services have been automatically enrolling new members to the TSP since January 1, 2018. Current members with 12 years or less of service had to specifically opt-in to use the blended retirement. Those with less than 12 years of service have until December 31, 2018, to decide whether they should stay in the current retirement system or opt into BRS.
About 162,000 service members are missing out of TSP’s full benefits.
The TSP Modernization Act made some big changes to this important benefit, and you should be aware of these changes for your future.