Federal Employees News Digest

Federal Benefits Q&A

Question: I have an annual salary of $109,000. I want to contribute the smallest amount that I can to the TSP to qualify for the entire 5 percent agency match. I originally thought the amount would be $19,000/3 = $6,333, but now I think it is $109,000 x .05 = $5,450. What is the correct amount considering my salary?

Answer: If your current SF 50 (gross) salary is $109,000, then with 26 pay dates during 2019 your gross salary each pay date is $109,000/26 or $4,192.31. If you want to receive the maximum agency matching of 4 percent for 2019 (note that the maximum agency match is 4 percent, not 5 percent. This is because a FERS-covered employee always receives an automatic 1 percent of SF 50 salary contribution from his or her agency whether the employee contributes to the TSP or not), you would have to contribute each pay date to your TSP account a minimum of 5 percent of $4,192.31 or $209.62.

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