The Foreign Service Journal, March 2013

70 MARCH 2013 | THE FOREIGN SERVICE JOURNAL AFSA NEWS AFSA hosted the fourth ses- sion in its Federal Benefits Speaker Series on Feb. 11. Randy Urban, of the Federal Retirement Thrift Investment Board, gave a Thrift Savings Plan pre-separation briefing to AFSA members focused on contribution rules, invest- ment considerations, and withdrawal options, both in-service and post-service. More than 85 AFSA mem- ber’s attended the event. Beginning with contribu- tion rules, Mr. Urban stressed that the most important AFSA Speaker Series: TSP Pre-Separation Briefing BY MATTHEW SUMRAK, ASSOCIATE COORDINATOR FOR RETIREE COUNSELING AND LEGISLATION thing to remember is that agency contributions are “free government money,” and you do not want to lose out on getting the full 4 percent match that every employee is entitled to. He also recommended that TSP monthly contribu- tions are spread throughout the entire year so you do not max-out your agency’s contribution limit early in the year. The current limit is $17,500. He reminded the audience that one can start, stop, or change their contribution at any time. Every FERS/FSPS employee automatically receives a 1 percent agency contribution. To maximize both your and your agency’s contribution, Urban strongly encouraged everyone to go to the TSP Web site at www. tsp.gov. Th eir calculators will help you to decide the right amount to contribute. When investing with TSP, keep in mind how long it will be before you will use your investment. In most cases, that will be sometime after you retire. Also worth considering is diversification and risk tolerance, followed by inflation and taxes. It is important to understand the tax implications for with- drawing funds. The last consideration is investment costs. TSP pays for itself and receives no government money; despite this they have very low investment costs. As of 2012, the average expense for administrative and invest- ment management fees were $0.27 for every $1,000. Com-