Sequestration and Your TSP Account
The TSP has provided some information to participants on how sequestration may affect their accounts.
Federal employee pay news: If it impacts pay and benefits for federal employees, you’ll find it here. Stay informed about important topics such as annual federal pay raises, the GS pay scale, and Thrift Savings Plan (TSP) including the latest TSP performance updates. You will also find articles about the Federal Employees Health Benefits (FEHB) program, Federal Employees Group Life Insurance (FEGLI), and Federal Employees Dental and Vision Insurance Program (FEDVIP), or event legislation in Congress that could impact federal employees’ pay and benefits.
The TSP has provided some information to participants on how sequestration may affect their accounts.
OPM has added additional guidance to its information on furloughs to cover leave accrual and retirement annuity benefits.
Congresswoman Eleanor Holmes Norton (D-DC) has announced that she will donate a day’s pay for each day federal employees are furloughed this year if sequestration takes effect.
Senator Kelly Ayotte (R-NH) has proposed legislation that would extend the pay freeze increase current federal employees’ pension contributions as a means of avoiding sequestration cuts, however, the Senate has said it will not be put to a vote.
OMB has told federal agencies to slow down new hiring and apply extra scrutiny to handing out bonuses as a precaution for sequestration cuts.
OPM offers some administrative guidance federal employees can use in the event of a furlough.
The House voted today to block the 0.5% pay increase for federal employees that is set to go into effect this spring.
The proposed pay raise for federal employees has stirred debate this week as the vote in the House to extend the pay freeze approaches. One of the latest people to weigh in is the bill’s sponsor, Congressman Ron DeSantis (R-FL), who touts the fiscal benefits provided by his legislation.
The White House’s Office of Management and Budget issued a statement this week denouncing legislation pending in the House that would block the pay increase for federal employees.
The high-3 average pay is a basic component of an employee’s retirement contribution that federal employees often find confusing. The author offers some detailed explanation to take the mystery out of it.