ADMINISTRATIVE MESSAGE
 
ROUTINE       
 
R 282200Z SEP 01 ZYB MIN PSN 211251J12
 
FM CNO WASHINGTON DC//N1//
 
TO NAVADMIN
 
UNCLAS
NAVADMIN 254/01
 
MSGID/GENADMIN/N1//
 
SUBJ/THRIFT SAVINGS PLAN//
 
RMKS/1.  SAILORS WILL BE ABLE TO SIGN UP FOR THE THRIFT SAVINGS PLAN
(TSP) BEGINNING 9 OCT 01.  THE FOLLOWING GENERAL TSP INFORMATION IS
PROVIDED.  IN ADDITION TO THIS MESSAGE, MILITARY COMPENSATION
(N130) WILL PROVIDE A 13 PAGE TSP NAVADMIN WITH IN-DEPTH POLICY AND
PROCEDURES TO IMPLEMENT THIS IMPORTANT FINANCIAL PROGRAM FOR OUR
SAILORS AND THEIR FAMILIES NLT 2 OCT 01.  TSP PROVIDES A GREAT
OPPORTUNITY FOR SERVICEMEMBERS TO PREPARE FOR THE FUTURE.
 
2.  WHAT IS TSP?  TSP IS A VOLUNTARY PERSONAL SAVINGS/INVESTMENT
PLAN THAT OFFERS MILITARY SERVICEMEMBERS THE SAME TYPE OF SAVINGS
AND TAX BENEFITS THAT MANY PRIVATE CORPORATIONS OFFER EMPLOYEES
UNDER '401K' PLANS.  TSP ALLOWS PARTICIPANTS TO SAVE A PORTION OF
THEIR PAY IN A SPECIAL RETIREMENT ACCOUNT ADMINISTERED BY THE
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD (FRTIB).  TSP ENABLES
PARTICIPANTS TO REDUCE THEIR CURRENT TAX LIABILITY WHILE PREPARING
FOR RETIREMENT.  INVESTMENTS AND EARNINGS ARE TAXED WHEN MONEY IS
WITHDRAWN.
 
3.  HOW WILL YOU GET THE WORD ABOUT TSP?  NAVY HAS TRAINED
PERSONNEL TO PROVIDE INFORMATION AND ASSISTANCE.  AT THE COMMAND
LEVEL, YOUR COMMAND FINANCIAL SPECIALIST WILL PROVIDE IN-DEPTH
ENROLLMENT INFORMATION AND PROGRAM DETAILS.  INSTALLATIONS
SERVICED BY FLEET AND FAMILY SUPPORT CENTERS HAVE TRAINED FINANCIAL
EDUCATORS WHO PROVIDE INDIVIDUAL/FAMILY FINANCIAL MANAGEMENT
COUNSELING, AND TSP CLASSES/SEMINARS.  VISIT WWW.TSP.GOV ON THE
INTERNET FOR IN-DEPTH DETAILS.  A TSP TRAINING VIDEO AND GMT LESSON
PLAN HAVE BEEN DEVELOPED AND ARE BEING DISTRIBUTED TO COMMANDS BY THE
CENTER FOR CAREER DEVELOPMENT (CCD) AND CHIEF OF NAVAL EDUCATION AND
TRAINING (CNET).  IF YOU HAVE NOT RECEIVED BY 3 OCT 01 CONTACT LTJG
BILL DANZI, PAO, AT (901) 874-2260/DSN 882, E-MAIL:
P00RP@BUPBERS.NAVY.MIL.  THE FRTIB WILL PROVIDE TSP BROCHURES TO THE
COMMANDS AND FLEET AND FAMILY SUPPORT CENTERS (FFSCS) IN OCT 01.
CNET HAS INCORPORATED TSP INTO THE NEW "A" SCHOOL PERSONAL FINANCIAL
MANAGEMENT COURSE THAT CAME ON LINE 16 JUL 01 AND IS IN THE PROCESS
OF DEVELOPING WEB-BASED TRAINING THAT WILL BE AVAILABLE ON THE NAVY
LEARNING NETWORK NLT JAN 02.
 
4.  QUESTIONS AND ANSWERS:
Q.  WHO IS ELIGIBLE TO PARTICIPATE IN THE TSP PROGRAM?
 
A.  THE TSP IS OPEN TO ALL ACTIVE DUTY AND NAVAL RESERVISTS IN
ANY PAY STATUS.
Q.  WHEN IS THE ENROLLMENT PERIOD?
A.  SERVICEMEMBERS CAN SIGN UP THROUGH THEIR PAY/PERSONNEL OFFICE
TO PARTICIPATE IN TSP, KNOWN AS AN "OPEN SEASON," BEGINNING 9 OCT
01, AND ENDING 31 JAN 02.  SIGN UP BEFORE 8 DEC 01 WILL RESULT IN
CONTRIBUTIONS BEING DEDUCTED FROM PAYCHECKS BEGINNING THE FIRST WEEK
OF JAN 02.  MEMBERS WHO DO NOT ENROLL DURING INITIAL SPECIAL OPEN
SEASON WILL HAVE TWO OTHER "OPEN SEASONS" PER YEAR TO ENROLL (OPEN
SEASONS ARE CURRENTLY 15 MAY - 31 JUL AND 15 NOV - 31 JAN).
Q.  IS THE TSP TIED TO THE MILITARY RETIREMENT SYSTEM?
A.  NO.  PARTICIPATION IN THE TSP IS OPTIONAL.  SINCE YOU CONTRIBUTE
TO THE TSP FROM YOUR OWN PAY, THE AMOUNT YOU CONTRIBUTE AND THE
EARNINGS ATTRIBUTABLE TO YOUR CONTRIBUTIONS BELONG TO YOU.  THEY ARE
YOURS TO KEEP EVEN IF YOU DO NOT SERVE THE 20 YEARS NECESSARY TO
RECEIVE MILITARY RETIREMENT PAY.
Q.  HOW ARE CONTRIBUTIONS MADE TO TSP?
A.  CONTRIBUTIONS ARE MADE THROUGH DIRECT DEPOSIT FROM PRE-TAX
DOLLARS.
Q.  HOW MUCH CAN I CONTRIBUTE?
A.  IN 2002, YOU MAY CONTRIBUTE UP TO SEVEN PERCENT OF BASIC PAY
EACH MONTH.  HOWEVER, THE TOTAL AMOUNT YOU CONTRIBUTE EACH
YEAR CANNOT EXCEED THE INTERNAL REVENUE CAP, WHICH WILL BE
SET EACH YEAR.  (2002'S LIMIT IS $11,000).  MEMBERS CAN ALSO
INVEST MONEY FROM BONUSES, SPECIAL OR INCENTIVE PAY AS LONG
AS THEY ARE CONTRIBUTING FROM THEIR BASIC PAY AS WELL.
 
5.  START YOUR SAVINGS/INVESTMENT PROGRAM AS SOON AS POSSIBLE!  BE
PREPARED AND REMEMBER, PERSONAL FINANCIAL MANAGEMENT IS THE
STRONGEST LINK TO YOUR FINANCIAL FUTURE!
 
6.  NAVPERSCOM POCS ARE MS. KATHY SINGLETARY, PERSONAL FINANCIAL
MANAGER (PERS-662C) AT (901) 874-4393/DSN 882, MICHELLE SMELLER, EXT
4372, OR BARBARA FATA, 4371.
 
7.  RELEASED BY VADM NORB RYAN, JR., N1.//
 
BT