Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

How TSP Annuities Are Set Up For and Paid Out

The primary federal retirement program provides various ways in which to set up survivor benefits. The Thrift Saving Plan (TSP) offers a plethora of opportunities in setting up the annuity benefit. TSP withdrawals can be made by multiple of ways and annuity is just one of the options available, either through a lump sum, a monthly payment or through a combination of both.

 

There are three kinds of TSP annuities:

 

 

A joint life annuity pays a monthly payment of either 100 or 50 percent. If both you and the insured are still alive, it pays 100 percent. If either one of you dies, it pays a 50 percent survivor benefit.

 

There are some annuity features combinable with basic annuity kinds such as:

 

  • Cash refund– This option means if either one of you dies before getting payments that equal the account balance amount, the difference between the annuity purchase balance and payment sum is given to the beneficiary in a cash refund.
  • Increasing payments –With this option, the monthly payment amount grows up to three percent annually (dependent upon the consumer price index).
  • 10-year definite payout –If you die during the first 10years of the annuity, the beneficiary gets payments for the rest of the 10

 

Available features may not be combined with all basic annuity types, and after the purchase of an annuity is made, the money is given to a private company. This company is the one that gives out the benefit.

 

  • A married person with a $3,500 or more account balance means spouses’ right requirements are applied to the withdrawal choice.
  • Married FERS participants’ spouses can have a joint and survivor annuity with its level payments, 50 percent survivor benefit level and the no cash refund feature unless they waive their rights to it.
  • A married CSRS participant means the TSP will inform the spouse of the withdrawal choice.

Search for Public Sector Retirement Expert.

Receive the Best advice.

PSR Experts can help you determine if Public Sector Retirement is right for you or if you should look for alternatives.

The Best Advice creates
the best results.

Recent Articles

Three Critical Facts About Divorce and Federal Pensions You Can’t Ignore

Key Takeaways Divorce can significantly impact your federal pension and other retirement benefits, so understanding the rules is crucial to...

Surprising Federal Employee Perks That Could Make a Big Difference in Your Long-Term Retirement Plans

Key Takeaways Federal employment offers hidden benefits that significantly enhance your long-term retirement plans.Understanding these perks now can help you...

4 Questions to Ask About Potential Hiring Freezes and Workforce Reductions Affecting Federal Employees

Key Takeaways Understanding hiring freezes and workforce reductions can help you prepare for potential impacts on your job security and...

Search For Public Sector Retirement Expert

Receive the Best advice.

PSR Experts can help you determine if
Public Sector Retirement is right for you or if you should
look for alternatives.

The Best Advice creates

the best results.

Subscribe to our Newsletter

"*" indicates required fields

Our Readers Deserve The Best PSHB and USPS Health Benefits Guidance

Licensed insurance agents who understand PSHB, Medicare, and USPS Health Benefits Plan are encouraged to apply for a free listing.

This field is for validation purposes and should be left unchanged.

Book Phone Consultation

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Get In Touch

Stay up to date on the latest information about Public Sector Retirement.

The Best Advice Creates The Best