ADMINISTRATIVE MESSAGE PRIORITY P R 022112Z OCT 01 ZYB MIN PSN 249673J31 FM CNO WASHINGTON DC//N1// TO NAVADMIN UNCLAS //07000// NAVADMIN 258/01 PART TWO OF TWO - PART ONE IDENT IS 022110Z OCT 01 MSGID/GENADMIN/N1// SUBJ/IMPLEMENTING GUIDANCE ON UNIFORMED SERVICES THRIFT SAVINGS PLAN // REF/A/DOC/FY-00 NDAA/05OCT1999// REF/B/DOC/FY-01 NDAA/30OCT2000// REF/C/DOC/DOD/01JAN1999// REF/D/DOC/DOD/01MAY2001// REF/E/DOC/DOD/01MAY2001// REF/G/DOC/DOD/01AUG2001// REF/H/DOC/DOD/01AUG2001// NARR/REF A IS PUBLIC LAW IAW 106-65, SEC 661. REF B IS PUBLIC LAW 106-398, SEC 661. REF C IS TITLE 5, CODE OF FEDERAL REGULATIONS (CFR), CHAPTER 6. REF D IS DOD DIRECTIVE 1341.4, THRIFT SAVINGS PLAN (DRAFT). REF E IS DODFMR, VOLUME 7A, CHAPTER 31 SAVINGS PROGRAM (DRAFT). REF F IS DODFMR. VOLUME 7C, CHAPTER 10, TSP (DRAFT). REF G IS TSP WEBSITE: WWW.TSP.GOV. REF H IS TSP BULLETINS, FEDERAL RETIREMENT THRIFT INVESTMENT BOARD.// RMKS/18. NFC TSP ACCOUNT A. NFC INVESTS ALL OF YOUR TSP CONTRIBUTIONS IN THE G FUND UNTIL YOU MAKE A CONTRIBUTION ALLOCATION OR INTERFUND TRANSFER BY EITHER: (1) USING THE TSP WEB SITE, WWW.TSP.GOV (2) CALLING THE THRIFTLINE'S AUTOMATED TELEPHONE SERVICE, AT (504) 255-8777. THRIFTLINE IS AN AUTOMATED VOICE RESPONSE SYSTEM AVAILABLE 24 HOURS A DAY, 7 DAYS A WEEK. (3) SUBMITTING A FORM TSP-U-50 TO THE TSP SERVICE OFFICE, NATIONAL FINANCE CENTER, P.O. BOX 61500, NEW ORLEANS LA 70161-1500. B. ONCE YOUR TSP ACCOUNT IS ESTABLISHED AT NFC, THE RECORD KEEPER WILL SEND YOU A LETTER VIA REGULAR MAIL, USUALLY WITHIN 2 TO 7 DAYS, WITH INFORMATION ABOUT YOUR TSP ACCOUNT AND TSP PIN NUMBER. (1) YOUR TSP PIN IS A 4-DIGIT PERSONAL IDENTIFICATION NUMBER NORMALLY MAILED TO YOU BY NFC AFTER YOUR FIRST CONTRIBUTION IS POSTED TO YOUR ACCOUNT. YOUR TSP PIN IS NOT THE SAME AS YOUR PIN FOR OTHER UNIFORMED SERVICES SYSTEMS. IF YOU ALSO HAVE A CIVILIAN TSP ACCOUNT, YOUR TSP PIN FOR EACH ACCOUNT WILL BE DIFFERENT. YOU MAY THEN CUSTOMIZE THEM TO BE THE SAME, IF YOU WISH. (2) YOU WILL NEED YOUR TSP PIN TO ACCESS YOUR ACCOUNT BALANCE AND EXECUTE TRANSACTIONS ON THE TSP WEB SITE AND THE THRIFTLINE. IF YOU LOSE YOUR PIN OR WOULD LIKE TO CHANGE YOUR CURRENT PIN TO A 4-DIGIT PIN OF YOUR CHOICE, YOU CAN DO SO ON THE WEB SITE OR THE THRIFTLINE. YOU CAN ALSO WRITE TO THE TSP SERVICE OFFICE FOR A SYSTEM-GENERATED PIN. INCLUDE YOUR SOCIAL SECURITY NUMBER AND DATE OF BIRTH IN YOUR LETTER. (3) A CONTRIBUTION ALLOCATION SPECIFIES THE WAY YOU WANT THE CONTRIBUTIONS TO YOUR ACCOUNT TO BE INVESTED AMONG THE FIVE TSP FUNDS. YOUR CONTRIBUTION ALLOCATION WILL APPLY TO ALL FUTURE CONTRIBUTIONS AS WELL AS LOAN PAYMENTS AND TRANSFERS FROM OTHER PLANS. IT DOES NOT AFFECT THE MONEY ALREADY IN YOUR ACCOUNT. TO SPECIFY THE WAY YOU WANT YOUR CONTRIBUTIONS TO BE INVESTED, USE THE TSP WEB SITE, THRIFTLINE, OR SUBMIT FORM TSP-U-50 TO THE NFC RECORD KEEPER. THE FIRST TIME YOU MAKE A CONTRIBUTION ALLOCATION YOU MUST ACKNOWLEDGE THE RISK OF INVESTING IN THE F, C, S, AND I FUNDS. (4) YOU MAY MAKE AN INTERFUND TRANSFER OF ALL OR SOME OF YOUR EXISTING ACCOUNT BALANCE BETWEEN THE FIVE TSP FUNDS. YOU CAN ONLY MAKE CHANGES IN TERMS OF THE PERCENTAGE OF YOUR TOTAL ACCOUNT BALANCE. YOU CANNOT REQUEST TO HAVE A SPECIFIC DOLLAR AMOUNT. AN INTERFUND TRANSFER IS DIFFERENT FROM A CONTRIBUTION ALLOCATION BECAUSE THE INTERFUND TRANSFER INVOLVES ONLY MONEY THAT IS ALREADY IN YOUR ACCOUNT. IT DOES NOT CHANGE THE WAY NEW CONTRIBUTIONS ARE ALLOCATED TO THE FIVE FUNDS. BEFORE MAKING AN INTERFUND TRANSFER, YOU SHOULD CAREFULLY CONSIDER THE ADVANTAGES AND RISKS INVOLVED. TSP IS NOT RESPONSIBLE FOR INVESTMENT RESULTS. THE LAW REQUIRES THAT YOU SIGN A STATEMENT ACKNOWLEDGING THAT YOU UNDERSTAND AND ACCEPT THE RISKS OF INVESTING IN THE F, C, S, AND I FUNDS BEFORE YOU MAY INVEST IN ANY OF THESE FUNDS. THE TSP RECORD KEEPER PROCESSES INTERFUND TRANSFER REQUESTS MONTHLY, EFFECTIVE AS OF THE END OF THE MONTH. YOU CAN MAKE AN INTERFUND TRANSFER IN ANY MONTH, WITHOUT AN ANNUAL LIMIT. THE TSP WEB SITE AND THE THRIFTLINE ARE THE MOST EFFICIENT WAYS FOR YOU TO REQUEST AN INTERFUND TRANSFER BY ENTERING YOUR SOCIAL SECURITY NUMBER, TSP PIN NUMBER AND PASSWORD. YOU CAN ALSO SUBMIT AN INTERFUND TRANSFER REQUEST ON FORM TSP-U-50 " INVESTMENT ALLOCATION" AND MAIL THE FORM DIRECTLY TO NFC. C. MEMBERS MUST DEAL DIRECTLY WITH NFC ON ANY QUESTIONS ABOUT THEIR TSP ACCOUNT. NEITHER THE NAVY OR DFAS WILL HAVE ACCESS TO YOUR TSP ACCOUNT AND CANNOT ANSWER QUESTIONS ABOUT THE ACCOUNT BALANCE, INTERFUND TRANSFERS, LOANS, ETC. 19. THE OPTION TO STOP CONTRIBUTING TO TSP IS PERMITTED AT ANY TIME. A. IF YOU STOP BASE PAY CONTRIBUTIONS YOU MUST ALSO STOP ALL OTHER BONUS, SPECIAL OR INCENTIVE PAY CONTRIBUTIONS. IF YOU STOP CONTRIBUTING OUTSIDE OF AN OPEN SEASON, YOU MUST WAIT UNTIL THE SECOND OPEN SEASON TO REENROLL IN THE TSP. IF YOU STOP YOUR CONTRIBUTIONS DURING AN OPEN SEASON, YOU MAY REENROLL IN THE TSP DURING THE NEXT OPEN SEASON. B. IF YOU STOP YOUR SPECIAL, INCENTIVE, OR BONUS PAY CONTRIBUTION YOU DO NOT NEED TO STOP YOUR BASE PAY CONTRIBUTION. IF YOU STOP YOUR CONTRIBUTION OUTSIDE OF AN OPEN SEASON, YOU MUST WAIT UNTIL THE SECOND OPEN SEASON TO REINSTATE YOUR SPECIAL OR INCENTIVE PAY CONTRIBUTION. IF YOU STOP YOUR CONTRIBUTION DURING AN OPEN SEASON, YOU MAY REINSTATE YOUR SPECIAL OR INCENTIVE PAY DURING THE NEXT OPEN SEASON. 20. MATCHING CONTRIBUTIONS. A. AS A RETENTION INITIATIVE, THE SECRETARY OF THE NAVY IS AUTHORIZED TO ENTER INTO AN AGREEMENT WITH YOU TO MAKE MATCHING TSP CONTRIBUTIONS IF YOU ARE IN A CRITICAL SPECIALTY AND AGREE TO SERVE ON ACTIVE DUTY IN YOUR CRITICAL SKILL FOR A PERIOD OF SIX YEARS. B. AT THIS TIME, THE NAVY DOES NOT INTEND TO USE THIS AUTHORITY IN 2002. THE CENTER FOR NAVAL ANALYSIS IS STUDYING THIS TOOL TO SEE IF IT HAS UTILITY IN THE FUTURE AGAINST THE PROVEN SUCCESS OF OUR BONUSES, SPECIAL AND INCENTIVE PAYS. POLICY, PROCEDURES, AND ELIGIBLE SKILLS WILL BE PUBLISHED BY SEPARATE NAVADMIN SHOULD THE DECISION BE MADE TO OFFER MATCHING FUNDS IN THE FUTURE. 21. TSP LOAN PROGRAM. A. YOU ARE ELIGIBLE TO OBTAIN A TSP LOAN WHILE YOU HAVE A TSP ACCOUNT AND YOU ARE IN A PAY STATUS. YOU MUST BE IN A PAY STATUS, BECAUSE YOU REPAY YOUR TSP LOAN THROUGH PAYROLL DEDUCTIONS. YOU CANNOT BORROW ANY MATCHING CONTRIBUTIONS IN YOUR ACCOUNT OR ANY EARNINGS ATTRIBUTABLE TO THOSE CONTRIBUTIONS. YOU MAY HAVE A TOTAL OF TWO LOANS. WHEN YOU HAVE BOTH A CIVILIAN TSP ACCOUNT AND A UNISERV TSP ACCOUNT, THE MAXIMUM LOAN AMOUNT APPLIES TO THE COMBINED ACCOUNTS AND NOT TO EACH ACCOUNT SEPARATELY. B. THERE ARE TWO TYPES OF LOANS. THE FIRST IS A GENERAL PURPOSE LOAN IN WHICH YOU CAN APPLY FOR A REPAYMENT PERIOD OF ONE TO FOUR YEARS. THE SECOND, IS A RESIDENTIAL LOAN FOR A PRIMARY RESIDENCE. YOU CAN APPLY FOR A RESIDENTIAL LOAN WITH A REPAYMENT PERIOD OF ONE TO FIFTEEN YEARS. NO DOCUMENTATION IS REQUIRED FOR A GENERAL PURPOSE LOAN, BUT YOU MUST SUBMIT DOCUMENTATION (SUCH AS A CONTRACT FOR THE PURCHASE OF YOUR RESIDENCE) TO SUPPORT THE AMOUNT YOU ARE REQUESTING FOR A RESIDENTIAL LOAN. C. THE MINIMUM AMOUNT YOU CAN BORROW IS $1,000. YOU MUST HAVE AT LEAST $1,000 OF YOUR OWN CONTRIBUTIONS AND EARNINGS IN YOUR TSP ACCOUNT TO APPLY FOR A LOAN. D. THE MAXIMUM LOAN AMOUNT IS $50,000. THIS AMOUNT IS GOVERNED BY THE FEDERAL EMPLOYEES' RETIREMENT SYSTEM ACT (FERSA) OF 1986 AND IRC SECTION 72(P). E. AT PRESENT, THE FOLLOWING RULES APPLY: (1) YOU CAN NEVER BORROW MORE THAN THE AMOUNT OF YOUR OWN CONTRIBUTIONS AND EARNINGS. (2) IF YOU HAVE NOT HAD A TSP LOAN OUTSTANDING DURING THE PAST YEAR, AND YOUR CONTRIBUTIONS AND EARNINGS ARE $10,000 OR LESS, YOU CAN BORROW UP TO THE FULL AMOUNT OF YOUR CONTRIBUTIONS AND EARNINGS. (3) IF YOU HAD A TSP LOAN OUTSTANDING DURING THE PAST 12 MONTHS, OR IF YOUR CONTRIBUTIONS AND EARNINGS ARE GREATER THAN $10,000, YOU SHOULD USE THE WORKSHEET IN THE TSP PUBLICATION ON LOANS TO ESTIMATE THE MAXIMUM AMOUNT YOU ARE ALLOWED TO BORROW. F. THE INTEREST RATE ON YOUR LOAN IS THE POSTED RATE FOR THE G FUND AT THE TIME THE TERMS OF THE LOAN ARE ESTABLISHED. THE RATE IS FIXED AT THAT LEVEL FOR THE LIFE OF THE LOAN, AND THE INTEREST PAID ON THE LOAN GOES BACK TO YOUR TSP ACCOUNT. THE INTEREST PAID IS NOT TAX DEDUCTIBLE. G. WHEN YOU HAVE CONTRIBUTIONS FROM TAX EXEMPT PAY AS WELL AS FROM TAX DEFERRED PAY, THE LOAN PRINCIPLE WILL BE MADE AND REPAID ON A PRO RATA BASIS FROM THESE FUNDS. H. LOAN REPAYMENT WILL BE ACCOMPLISHED BY AN ALLOTMENT FROM PAY. 22. WHEN SEPARATING FROM THE UNIFORMED SERVICES, YOU MAY: A. RECEIVE A SINGLE LUMP SUM PAYMENT. B. ALL OR A PORTION OF THE ACCOUNT CAN BE TRANSFERRED TO AN INDIVIDUAL RETIREMENT ACCOUNT (IRA) OR OTHER ELIGIBLE RETIREMENT PLAN (E.G., A 401(K) PLAN OR A CIVILIAN TSP ACCOUNT). (1) TAX-EXEMPT TSP CONTRIBUTIONS ARE NOT ELIGIBLE FOR TRANSFER TO AN IRA OR OTHER ELIGIBLE RETIREMENT PLAN. THESE CONTRIBUTIONS WILL BE PAID DIRECTLY TO YOU. (2) THE TAXABLE EARNINGS ATTRIBUTABLE TO THE TAX-EXEMPT CONTRIBUTIONS ARE ELIGIBLE FOR TRANSFER TO AN IRA OR OTHER ELIGIBLE RETIREMENT PLAN. C. REQUEST A SERIES OF MONTHLY PAYMENTS BASED ON A DOLLAR AMOUNT, A NUMBER OF MONTHS, OR YOUR LIFE EXPECTANCY. ALL OR A PORTION OF CERTAIN MONTHLY PAYMENTS CAN BE TRANSFERRED TO AN IRA OR OTHER ELIGIBLE RETIREMENT PLAN; D. REQUEST A TSP ANNUITY. YOU MUST HAVE AT LEAST $3,500 IN THE ACCOUNT IN ORDER TO PURCHASE AN ANNUITY; E. LEAVE THE MONEY IN THE TSP WHERE IT WILL CONTINUE TO ACCRUE EARNINGS. YOU MUST BEGIN WITHDRAWING FROM THE ACCOUNT NO LATER THAN APRIL 1 OF THE YEAR FOLLOWING THE YEAR YOU TURN 70 YEARS AND SIX MONTHS OLD. 23. IN GENERAL UNISERV TSP IS THE SAME AS TSP FOR FEDERAL EMPLOYEES. THEY BOTH INCLUDE BEFORE-TAX SAVINGS AND TAX-DEFERRED INVESTMENT EARNINGS, FIVE DIVERSIFIED FUNDS, LOW ADMINISTRATIVE AND INVESTMENT EXPENSES, MEMBER CONTRIBUTION ALLOCATION AND INTERFUND TRANSFERS, ROLLOVERS FROM QUALIFIED RETIREMENT PLANS, IN AND POST SERVICE WITHDRAWALS, WEBSITE AND THRIFTLINE INTERFACE, SPOUSAL RIGHTS, ETC. DETAILED INFORMATION ON THESE AND OTHER FEATURES CAN BE FOUND IN SPECIFIED REFERENCES AND, IN PARTICULAR, AT THE TSP WEBSITE. 24. RESPONSIBILITIES A. DEPUTY CHIEF OF NAVAL OPERATIONS (MANPOWER AND PERSONNEL) WILL SERVE AS THE CENTRAL POINT OF CONTACT ON TSP POLICY. B. DIRECTOR OF NAVAL RESERVE (N095/CNRC/N1) WILL BE RESPONSIBLE FOR TSP POLICY, TRAINING, AND INPUT SYSTEM COORDINATION FOR NAVY RESERVISTS. C. COMMANDER, NAVY PERSONNEL COMMAND WILL BE RESPOSIBLE FOR TSP TRAINING AND INPUT SYSTEM COORDINATION FOR ACTIVE DUTY NAVY PERSONNEL. (1) PERS-6 WILL PROVIDE TRAINING FOR FINANCIAL COUNSELING ON THE TSP TO FINANCIAL EDUCATORS (FE) LOCATED AT THE FLEET AND FAMILY SUPPORT CENTERS (FFSC). ONCE TRAINED, FE'S WILL PROVIDE TSP TRAINING CLASSES AND SEMINARS FOR COMMAND FINANCIAL SPECIALISTS (CFS). (2) PERS-6/TAMP WILL PROVIDE FINANCIAL COUNSELING TO MILITARY MEMBERS REGARDING TSP SEPERATION/RETIREMENT BENEFITS. (3) PERS-621/CASUALTY ASSISTANCE WILL INCLUDE TSP SURVIVOR BENEFITS IN CACO COUNSELING. D. PERSONNEL SUPPORT ACTIVITY DETACHMENTS, SHIP'S PERSONNEL OFFICES, AND NAVY RESERVE CENTERS ARE RESPONSIBLE FOR PROCESSING TSP-U-1 ELECTIONS AND CLAIMS. E. CHIEF OF EDUCATION AND TRAINING WILL DEVELOP AND OPERATE INTRODUCTORY PROGRAMS FOR ACCESSIONS AND ENSURE ELIGIBLE ACCESSIONS ARE ADVISED OF OPPORTUNITY TO ENROLL IN TSP AND GIVEN THAT OPPORTUNITY. F. FLEET AND FAMILY SUPPORT CENTER FINANCIAL EDUCATORS AND COMMAND FINANCIAL SPECIALISTS SHALL PROVIDE FINANCIAL COUNSELING TO MILITARY MEMBERS REGARDING THE TSP PROGRAM. 25. THE FEDERAL RETIREMENT THRIFT INVESTMENT BOARD PUBLISHES SUPPLEMENTAL GUIDANCE AND PROCEDURES ON THE TSP PROGRAM VIA THEIR WWW.TSP.GOV WEB SITE. 26. DFAS WILL BE RELEASING MILITARY PAY ADVISORIES ON PAY AND PERSONNEL OFFICE PROCEDURES RELATING TO ELECTIONS, CHANGES, TERMINATIONS AND CLAIMS FOR TSP. 27. FEDERAL RETIREMENT THRIFT INVESTMENT BOARD WILL PUBLISH AND N013/DIRECTOR OF RECORDS MANAGEMENT WILL DISTRIBUTE TSP FORMS AND PAMPHLETS DIRECTLY TO THE FLEET. 28. UNISERV TSP POINTS OF CONTACT: A. MILITARY REPRESENTATIVE TO THE FEDERAL RETIREMENT THRIFT INVESTMENT BOARD - LTC T. EMSWILER, EXECUTIVE DIRECTOR, ARMED FORCES TAX COUNCIL, OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE FORCE MANAGEMENT POLICY (MILITARY PERSONNEL POLICY) 4000 DEFENSE, PENTAGON WASHINGTON DC. B. DFAS/NAVY - FIELD PROCESS AND PAY POLICY/CODE PMMB COMM: (216) 522-5886/DSN 580. C. DEPUTY CHIEF OF NAVAL OPERATIONS (MANPOWER AND PERSONNEL), LT KERRI BUTEMEYER, N130G2, (703) 614-5636/DSN 224, OR EMAIL: N130G2@BUPERS.NAVY.MIL. D. COMMANDER, NAVY PERSONNEL COMMAND (1) PASS ISSUES: CDR WOODIE CHEWNING, PERS 33, COMM: (901) 874-3465/DSN 882, EMAIL: P33@PERSNET.NAVY.MIL. (2) PERSONNEL READINESS AND COMMAND SUPPORT: KATHY SINGLETARY, PERS 662, COMM: (901) 874-4393/DSN 882, EMAIL: KATHY.SINGLETARY@PERSNET.NAVY.MIL. E. CHIEF OF NAVY EDUCATION AND TRAINING (CNET), MR BARRY HOAG, (850) 452-4197/DSN 922, EMAIL: BARRY.HOAG@CNET.NAVY.MIL F. NAVY RESERVE/CNRF/N11/NCC GRAHAM, (504) 678-5905/DSN 678, EMAIL: GRAHAMD@CNRF.NOLA.NAVY.MIL. 29. THIS NEW BENEFIT IS A PROGRAM THAT NAVY LEADERSHIP LED THE CAMPAIGN ON FOR THE DOD. AS LEADERS IT IS INCUMBENT UPON US TO ENSURE ALL OUR PERSONNEL ARE AWARE OF THIS OUTSTANDING OPPORTUNITY SO THAT EVERY SHIPMATE CAN MAKE AN INFORMED CHOICE ABOUT THEIR FUTURE. 30. RELEASED BY VADM NORB RYAN, JR., N1.// BT NNNN