State:
Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
March 19, 2002
Higher Thrift Limits Eyed for Fed Employees
A b
For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!
ill making its way through congressional committees would allow federal employees age 50 and older to contribute an extra $2,000 to their retirement-saving plans next year, according to GovExec.com.

Under the bill, approved recently by the House Government Reform Committee, federal employees age 50 or over would be able to make up to $2,000 in so-called "catch-up" contributions on top of the contributions they make under normal Thrift Saving Plan rules.

For 2003, GovExec.com reports, normal TSP rules limit employees under the Federal Employees Retirement System to annual contributions of $12,000, or 13 percent of salary per paycheck, whichever is lower. Employees under the Civil Service Retirement System and military personnel are limited to annual contributions of $12,000, or 8 percent of salary per paycheck, whichever is lower.

Under the bill, the limit on TSP contributions for federal employees age 50 or older would be $2,000 higher than for younger workers in 2003, $3,000 higher in 2004, $4,000 higher in 2005, $5,000 higher in 2006.

After 2006, the limit for people age 50 or older would remain at $5,000 above the limit for younger people. Coupled with planned increases in normal TSP contributions, federal employees age 50 or older would be able to contribute as much as $20,000 a year to their TSP accounts beginning in 2006.

To view the GovExec.com story, click here.


Participate in this week's HR.BLR.com poll and discussion!
Featured Free Resource:
Cost Per Hire Calculator
   
   
 
 
Twitter  Facebook  Linked In
Follow Us
CT-WEB01
Copyright © 2016 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on http://Compensation.BLR.com
Document URL: http://compensation.blr.com/Compensation-news/Benefits-Leave/ERISA/Higher-Thrift-Limits-Eyed-for-Fed-Employees-/