Family Life Financial Services Inc. - Greater Lansing Financial Services

TSP Investments / Rollovers
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Thift Saving Plan Investments Rollovers - Family Life Financial Services

This plan is similar to the 401k program available to many employees in private industry in that contributions to the fund and earnings by the fund are not subject to taxes until withdrawn. FERS employee receive an automatic government TSP contribution of 1% of their salary and matching contributions of up to an additional 4% of salary when the participate. CSRS employees, however, do not receive an agency contributions.


Contribution Limits

In addition to the percentage contribution limits below, the maximum amount of your own pay that you can contribute to the TSP is also limited by the IRS.

The USPS has a 90% of basic pay limit per pay period for TSP contributions. TSP contributions can not be withheld from annual leave exchange payments, terminal leave payments or bonus payments of any kind.

Federal Employees can reduce their contribution election at any time using Postal EASE before noon of the second Wednesday of each pay period for the election to be effective in that pay period.

If they do not have sufficient funds available to be withheld “nothing” will be withheld for that pay period for the TSP Catch-Up contribution election.

 

G FUND

Government Securities Investment Fund

Key Features

  • The G Fund offers the opportunity to earn rates of interest similar to those of long-term Government securities but without any risk of loss of principal and very little volatility of earnings
  • The objective of the G Fund is to maintain a higher return than inflation without exposing the fund to risk of default or changes in market prices.
  • The G Fund is invested in short-term U.S. Treasury securities specially issued to the TSP. Payment of principal and interest is guaranteed by the U.S. Government. Thus, there is no “credit risk.
  • Earnings consist entirely of interest income on the securities
  • Interest on G Fund securities has outpaced inflation and 90-day T-bills

F FUND

Fixed income Index Investment Fund

Key Features

  • The F Fund offers the opportunity to earn rates of return that exceed those of money market funds over the long term (particularly during periods of declining interest rates), with relatively low risk.
  • The objective of the F Fund is to match the performance of the Lehman Brothers U.S. Aggregate (LBA) index, a broad index representing the U.S. bond market.
  • The risk of nonpayment of interest or principal (credit risk) is relatively low because the fund includes only investment-grade securities and is broadly diversified. However, the F Fund has market risk (the risk that the value of the underlying securities will decline) and prepayment risk (the risk that the security will be repaid before it matures).
  • Earnings consist of interest income on the securities and gains (or losses) in the value of securities resulting from changing market interest rates.

L FUND

Lifecycle Funds

Key Features

  • The L Fund diversify participant accounts among the G. F. C. S. and l Funds, using professionally determined investment mixes (allocations) that are tailored to different time horizons. The L Funds are re-balanced to their target allocations each business day. The investment mix of each fund adjusts quarterly to more conservative investments as the fund’s time horizon shortens.
  • The objective of the L Fund is to provide the highest possible rate of return for the amount of risk taken.
  • Investing in the L Fund is not a guarantee against loss and does not eliminate risk. The L Funds are subject to the risks inherent in the underlying funds, and can have periods of gain and loss.
  • The L Funds’ expected returns will be approximately equal to the weighted average of the G. F. C. S. and l Funds’ returns. Earnings will be calculated daily and there will be a daily share price 0 for each L Fund.

S FUND

Small Capitalization Stock Index Investment Fund

Key Features

  • The S Fund offers the opportunity to earn a potentially high investment return over the long term by investing in the stocks of small and medium-size U.S. companies.
  • The object of the S Fund is to match the performance of the Dow Jones Wilshire 4500 Completion (DJW 4500) index, a broad market index made up of stocks of U.S. companies not included in the S&P 500 index.
  • There is a risk of loss if the DJW 4500 index declines in response to changes in overall economic conditions (market risk).
  • Earnings consist of gains and losses in the prices of stocks, and dividend income.

I FUND

International Stock Index Investment Fund

Key Features

  • The I Fund offers the opportunity to earn a potentially high investment return over the long term by investing in the stocks of companies in developed countries outside the U.S.
  • The objective of the I Fund is to match the performance of the Morgan Stanley Capital International EAFE (Europe, Australia, Far East) index, a broad international market index, made up of stocks of companies in 21 developed countries.
  • There is a risk of loss if the EAFE index declines in response to changes in overall
    economic conditions (market risk) or in response to increase in the value of the U.S. dollar (currency risk).
  • Earnings consist of gains and losses in the prices of stocks, currency changes relative to the U.S. dollar, and dividend income.

C FUND

Common Stock Index Investment Fund

Key features

  • The C Fund offers the opportunity to earn a potentially high investment return over the long term from a broadly diversified portfolio of stocks of large and medium size U.S. companies.
  • The objective of the C Fund is to match the performance of the S&P 500 index, a broad market index made up of stocks of 500 large to medium-size U.S. companies.
  • There is a risk of loss if the S&P 500 index declines in response to change in
    overall economic conditions (market risk).
  • Earnings consist of gains and losses in the prices of stocks, and dividend income.

Thrift Savings Plan (TSP) Share Price History

 A fund comparison matrix for the TSP