If you're covered by the Federal Employees Retirement System (FERS), your employing agency makes an automatic contribution equal to 1 per cent of your salary. Investments are matched dollar for dollar for the first 3 percent of pay invested per pay period, and then 50 cents on the dollar for the next 2 per cent of pay invested per pay period. Employees become vested in the automatic contributions and the earnings on them after 3 years of federal civilian service.

Civil Service Retirement System (CSRS) covered employees can also invest in the Thrift Savings Program (TSP), but they receive no matching contributions. The annual dollar limit for contributions is $18,000. TSP participants can make additional investments under certain conditions for each year in which they are 50 or older. The maximum amount is $6,000.

We understand this can be a lot of technical information to take in. If you need assistance understanding the specifics, or would like to go over how these provisions apply to your benefits and financial status, contact us today. Our team is prepared to provide you with resources and additional information that make you feel in control of your benefits, and not the other way around!