Retirement Planning Overview
You pay full Social Security taxes and a small contribution to the Basic Benefit Plan. In addition, your agency puts an amount equal to 1% of your basic pay each pay period into your Thrift Savings Plan (TSP) account. You are able to make tax-deferred contributions to the TSP and a portion is matched by the Government. The three components of FERS work together to give you a strong financial foundation for your retirement years.
The U.S. Office of Personnel Management (OPM) is currently undergoing a transformation called the Retirement Systems Modernization (RSM) Program. This new web-based retirement planning system will go live in February, 2008 making it easier for federal employees to track their retirement benefits online.
Source: Federal Employees Retirement System: An Overview of Your Benefits (1998)