Term
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Definition
The sum of the dollar amounts in each TSP investment fund for an individual account. The dollar amount in each investment fund on a given day is the product of the total number of shares in that fund multiplied by the share price for that fund on that day. |
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Term
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Definition
The 13-digit number that the TSP assigns to a participant to identify his or her TSP account. The participant must use this TSP account number (or a customized user ID) in conjunction with his or her Web password to log into the My Account section of the TSP website, and must use this number with his or her Personal Identification Number (PIN) to access his or her account on the ThriftLine. |
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Term
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Definition
| A strategy of buying and selling securities based on an evaluation of the factors that affect the price of the security, such as the economy, political environment, industry trends, currency movements, etc. The objective of an active investment strategy is to outperform the market as measured by a benchmark index such as the S&P 500. |
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Term
| Agency Automatic (1%) Contributions |
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Definition
| Contributions equal to 1% of basic pay each pay period, contributed to a FERS participant's TSP account by his or her agency. |
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Term
| Agency Matching Contributions |
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Definition
| Contributions made by agencies to TSP accounts of FERS employees who contribute their own money to the TSP. CSRS employees and members of the uniformed services do not received matching contributions. |
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Term
| Annual Additions (Section 415(c)) Limit |
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Definition
| An annual dollar limit, established under Internal Revenue Code (IRC) section 415(c), that limits the amount of money that can be contributed to employer-sponsored plans like the TSP. (This limit includes all employee and agency contributions.) |
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Term
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Definition
| Guaranteed monthly income for the life of the TSP participant (or survivor if a joint annuity) after separating from Federal service. These payments are issued directly by the TSP annuity provider. |
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Term
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Definition
Applies to FERS and CSRS employees hired or rehired after July 31, 2010. As a result of the Thrift Savings Plan Enhancement Act of 2009, Public Law 111-31, signed into law on June 22, 2009, agencies must enroll their newly hired FERS employees in the TSP. They must also
automatically enroll rehired FERS and CSRS employees who have had a break in service of more than 30 days. Automatic enrollment contributions are deducted from employees’ pay at a rate of 3% of basic pay per pay period and deposited into their TSP accounts. Automatically enrolled participants may make a contribution election at any time to change or stop their TSP contributions. |
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Term
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Definition
| This pay is defined in 5 United States Code (USC) 8331(3). |
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Term
| Basic Pay (Uniformed Services) |
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Definition
| This refers to compensation payable under sections 204 and 206 of USC title 37. Section 204 pay is pay for active duty; section 206 pay (e.g., inactive duty for training (IDT) pay) is pay earned by members of the Ready Reserve (including the National Guard). |
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Term
| Beneficiary Participant Account |
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Definition
| TSP account established in the name of a spouse beneficiary of a deceased TSP participant. |
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Term
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Definition
| A debt security issued by a Government entity or a corporation to an investor from whom it borrows money. The bond obligates the issuer to repay the amount borrowed (and, traditionally, interest) on a stated maturity date. |
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Term
| Bonus Pay (Uniformed Services) |
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Definition
| Generally, a type of special pay with its own rules for TSP contribution election purposes. |
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Term
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Definition
| Contributions that are made via payroll deductions by a participant age 50 or older and are permitted to exceed the Internal Revenue Code (IRC) elective deferral limit. |
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Term
| Catch-Up Contribution Limit |
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Definition
| An annual dollar limit, established under Internal Revenue Code (IRC) section 414(v), that limits the amount of catch-up contributions that a participant age 50 or older can make to employer-sponsored plans like the TSP. It is separate from the elective deferral limit imposed on regular employee contributions. |
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Term
| Civil Service Retirement System (CSRS) |
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Definition
| The term "CSRS" refers to the retirement system for Federal civilian employees who were hired before January 1, 1984. CSRS refers to the Civil Service Retirement System, including CSRS Offset, the Foreign Service Retirement and Disability System, and other equivalent Government reitrement plans. |
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Term
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Definition
| A deposit made to the TSP by a participant throught payroll deduction or on behalf of the participant by his or her agency or service. |
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Term
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Definition
| A participant's choice that tells the TSP how contributions, rollovers, and loan payments that are going into his or her account should be invested among the TSP funds. |
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Term
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Definition
| A request by a participant to start contributing to the TSP, to change the amount of his or her contribution to the TSP each pay period, or to terminate contributions to the TSP. |
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Term
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Definition
| The risk that a borrower will not make a scheduled payment of principal and/or interest. |
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Term
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Definition
| The risk that the value of a currency will rise or fall relative to the value of other currencies. Currency risk could affect investments in the I Fund because of fluctuations in the value of the U.S. dollar in relation to the currencies of the 22 countries in the EAFE index. |
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Term
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Definition
| A combination of letters, numbers, and/or symbols that you can create to use instead of your TSP account number to log into the My Account section of the TSP website. The user ID cannot be used on the ThriftLane as a substitute for the account number. |
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Term
| Designation of Beneficiary |
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Definition
| The participant's formal indication of who should receive the money in his or her account in the event of his or her death. Participants must use Form TSP-3, Designation of Beneficiary. (A will is not valid for the disposition of a participant's TSP account.) |
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Term
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Definition
| To pay out money, as from the TSP. |
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Term
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Definition
| An annual dollar limit, established under the Internal Revenue Code (IRC) section 402(g), that limits the tax-deferred contributions and Rother contributions a participant can elect to make to employer-sponsored plans like the TSP. The limit can change each year. |
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Term
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Definition
A plan qualified under Internal Revenue Code (IRC) § 401(a), including a
§ 401(k) plan, profit sharing plan, defined benefit plan, stock bonus plan, and money purchase plan; an IRC § 403(a) annuity plan; an IRC § 403(b) tax-sheltered annuity; and an eligible IRC § 457(b) plan maintained by a Government employer. |
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Term
| Federal Employee's Retirement System (FERS) |
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Definition
| The term "FERS" refers to the retirement system for Federal civilian employees who were hired on or after january 1, 1984. FERS refers to the Federal Employees' Retirement System, the Foreign Service Pension System, and other equivalent Government plans. |
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Term
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Definition
| Generally refers to bonds and similar investments (considered debt instruments) that pay a fixed amount of interest. |
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Term
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Definition
| A post-separation withdrawal of a participant's entire TSP account through an annuity, a single payment, or TSP monthly payments (or a combination of these three options). |
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Term
| Incentive Pay (Uniformed Services) |
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Definition
| Pay set forth in Chapter 5 of USC title 37 (e.g., flight pay, hazardous duty pay). |
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Term
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Definition
| A broad collection of stocks or bonds which is designed to match the performance of a particular market. For example, the Standard & Poor's 500 (S&P 500) is an index of large and medium-sized U.S. companies. |
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Term
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Definition
| An investment fund that attempts to track the investment performance of an index. |
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Term
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Definition
| The risk that investments will not grow enough to offset the effects of inflation. |
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Term
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Definition
| A disbursement made from a participant's account which is available only to a participant who is still employed by the Federal Government, including the uniformed services. |
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Term
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Definition
| An IFT allows the participant to redistribute all or part of his or her money already in the TSP amont the different TSP funds. For each calendar month, the participant's first two IFTs can redistribute money in his or her account among any or all of the TSP funds. After that, for the remainder of the month, the participant's IFTs can only move money into the Government Securities Investment (G) Fund (in which case, the participant will increase the percentage of his or her account held in the G Fund by reducing the percentage held in one or more of the other TSP funds). An IFT does not change the way new contributions, transfers or rollovers into the TSP, or loan payments are invested. |
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Term
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Definition
A participant’s choice that tells the TSP (1) how money going into his or her account should be invested in the TSP funds (contribution allocation), and/or (2) how money already in the TSP account should be invested in the TSP funds (interfund transfer). An investment allocation can be made on the TSP website in My Account, or by calling the toll-free ThriftLine at 1-TSP-YOU-FRST (1-877-968-3778). (See “Contribution Allocation” and “Interfund Transfer.”) |
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Term
| IRS Life Expectancy Tables |
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Definition
When you withdraw your account, if you choose to have the TSP calculate monthly payments based on life expectancy, the TSP will use these tables. IRS Single Life Table, Treas. Reg. § 1.401(a)(9)-9, Q&A
1, is used for participants who are under age 70 on or after July 1 of the calendar year in which the calculation is made. For participants who turn age 70 before July 1 of that year, the Uniform Lifetime Table, Treas. Reg. § 1.401(a)(9)-9, Q&A 2, is used. |
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Term
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Definition
| The risk of a decline in the market value of stocks or bonds. |
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Term
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Definition
See "Agency Matching Contributions."
(Contributions made by agencies to TSP accounts of FERS employees who contribute their own money to the TSP. CSRS employees and members of the uniformed services do not receive matching contributions.) |
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Term
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Definition
| A post-employment withdrawal of a participant's entire account through any combination of the following: an annuity, a single payment, or TSP monthly payments. |
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Term
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Definition
See "TSP Monthly Payments."
(Payments that the participant elects to receive each month from his or her TSP account after separating from service. (Note: In this case, money remains in the TSP account and is paid out direclty from the account.)) |
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Term
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Definition
| The secure section of the TSP website, where you can log into your account to find out your account balance or perform certain transactions. |
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Term
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Definition
| Actively employed by the Federal Government or uniformed services but not receiving regular pay because of furlough, suspension, leave without pay (including leave without pay to perform military service), or pending resolution of a grievance or appeal. |
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Term
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Definition
| A one-time post-employment distribution of part of a participant's account balance. A partial withdrawal is participant-elected and is made in a single payment. |
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Term
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Definition
| Statements that are furnished to each TSP participant after the end of each calendar quarter and after the end of each calendar year. Quarterly statements show the particpant's account balance (in both dollars and shares) and the transactions in his or her account during the quarter is covered. Annual statements summarize the financial activity in the particpant's account during the year covered and provide other important account data such as the participant's personal investment performance and an account profile. |
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Term
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Definition
| Generally, buying and holding a portfolio of securities designed to replicate a broad market index. Passive strategies are based on the assumption that it is impossible to accurately forecast future trends in securities prices over long periods of time. Management fees and trading costs are generally lower in passively managed index funds. |
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Term
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Definition
| A secret 8-character code made up of letters and numbers that a TSP participant uses in conjunction with his or her TSP account number (or customized user ID) whenever accessing his or her account through the TSP website. For new participants, the initial password is computer-generated and is sent to the participant shortly after his or her first contribution is received by the TSP. Participants can customize their passwords using the TSP website. |
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Term
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Definition
| Actively employed by the Federal Government or uniformed services and receiving regular pay. |
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Term
| Personal Identification Number (PIN) |
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Definition
| A 4-digit number that the participant can use (in conjunction with his or her TSP account number) to access his or her own account on the ThriftLine. The initial PIN is computer-generated and is sent to the participant shortly after the participant's first contribution is recieved by the TSP. |
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Term
| Post-Separation Withdrawal |
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Definition
| A distribution from a participant's account that is available only to participants who have left Federal Service or the uniformed services. Sometimes referred to as a "post-employment" withdrawal. (see also "Withdrawal.") |
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Term
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Definition
| The probability that as interest rates fall, bonds that are represented in the index will be paid back early, thus forcing lenders to reinvest at lower rates. |
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Term
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Definition
| Earnings on Roth contributions that are eligible to be paid out tax-free at withdrawal. Earnings are considered "qualified" as long as the following two requirements are met: (1) it has been 5 years since January 1 of the calendar year the participant made the first Roth TSP contribution AND (2) the participant is at least 59 ½, permanently disabled (or deceased). |
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Term
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Definition
| Adjust the terms of a loan to change the loan payment amount or to shorten or lengthen the repayment period. |
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Term
| Required Minimum Distribution |
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Definition
| The amount of money based on a participant's age and previous year's TSP account balance, that the IRS requires be distributed to a participant each year after the participant has reached age 70½ and is separated from service. |
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Term
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Definition
| The amount of change (both up and down) in an investment's value over time. |
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Term
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Definition
| The portion of your TSP account made up of Roth (after-tax) contributions and accrued earnings. Portions of this balance may have originated from tax-exempt pay. |
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Term
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Definition
| Contributions from pay that has already been taxed (or from tax-exempt pay) and that has been deposited to a Roth balance. |
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Term
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Definition
| An individual retirement account that is described in § 408A of the Internal Revenue Code (IRC). A Roth IRA provides tax-free earnings. You must pay taxes on the funds you transfer from your traditional balance to a Roth IRA; the tax liability is incurred for the year of the transfer. |
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Term
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Definition
| A general term describing a variety of financial instruments, including stocks and bonds. |
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Term
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Definition
| Savings Incentive Match Plan for Employer, an employer-sponsored retirement plan available to small businesses. A TSP participant can transfer money from a SIMPLE IRA to the TSP, as long as he or she participated in the SIMPLE IRA for at least two years. However, a participant cannot transfer an amount from a TSP account into a SIMPLE IRA. |
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Term
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Definition
| A payment made at one time. Sometimes referred to as a "lump sum." |
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Term
| Special Pay (Uniformed Services) |
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Definition
| Pay set forth in Chapter 5 of the United States Code (USC) title 37 (e.g., medical and dental officer pay, hardship duty pay, career sea pay). |
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Term
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Definition
| Equity securities issued as ownership in a publicly held corporation. |
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Term
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Definition
| Contributions that can be made to the TSP by members of the uniformed services from pay that is covered by the combat zone tax exclusion. |
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Term
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Definition
| The TSP's automated voice response system. It provides general news about the tSP and allows participants to access certain information and perform some transactions over the telephone. You can also use the ThriftLine to contact Particpant Service Representatives at the TSP. To access your account through the ThriftLine, you will need your TSP account number and ThriftLine Pin. |
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Term
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Definition
| The investment time you have until you need to use your money. |
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Term
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Definition
| The portion of your TSP account made up of your pre-tax (and any tax-exempt) TSP contributions, plus agency contributions, and accrued earnings. |
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Term
| Traditional Contributions |
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Definition
| Contributions from pay that has not yet been taxed. Also referred to as "tax-deferred," "pre-tax," or "non-Roth" contributions. Traditional contributions also include contributions to a traditional balance from tax-exempt pay earned in a combat zone. |
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Term
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Definition
| A traditional individual retirement account described in § 408(a) of the Internal Revenue Code (IRC), or an individual retirement annuity described in IRC § 408(b). It does not include a Roth IRA, a SIMPLE IRA, or a Coverdell Education Savings Account (formerly known as an education IRA). |
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Term
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Definition
| Payments that the participant elects to receive each month from his or her TSP account after separating from service. (Note: In this case, money remains in the TSP account and is paid out directly from the account.) |
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Term
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Definition
| Uniformed members of the Army, Navy, Air Force, Marine Corps, Coast Guard, Public Health Service, and the National Oceanic and Atmospheric Administration serving on active duty, and members of the Ready Reserve or National Guard of those services in any pay status. |
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Term
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Definition
See "Customized User ID."
(A combination of letters, numbers, and/or symbols that you can create to use instead of your TSP account number to log into the My Account section fo the TSP website. The user ID cannot be used on the ThriftLine as a substitute for the account number. |
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Term
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Definition
| For a FERS participant, the time in service that he or she must have upon separation from service in order to be entitled to keep Agency Automatic (1%) Contributions and associated earnings. A participant is vested in (entitled to keep) the Agency Automatic (1%) Contributions in his or her account after completley 3 years of Federal service (2 years for most FERS employees in Congressional and certain noncareer positions). |
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Term
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Definition
See "Risk."
(The amount of change (both up and down) in an investment's value over time.) |
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Term
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Definition
| A general term for a distribution that a participant requests from his or her account. (Includes in-service withdrawal, partial withdrawal, full withdrawal, etc.) |
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