Bulletin 17-U-2
July 24, 2017

2017 Thrift Savings Plan Payroll Office Reports for the Blended Retirement System

With the implementation of the Blended Retirement System (BRS) on January 1, 2018, the various reports that payroll offices receive from the Thrift Savings Plan recordkeeping system, as well as those reports that are available on an ad hoc basis through the web-based data submission and reports retrieval application (“web-based application”), will be updated to incorporate the BRS contributions and associated transactions. This bulletin addresses all of the payroll office reports with specific references to the BRS-related changes as necessary. Sections I through V of this bulletin discuss the reports that are issued in response to payroll offices submissions. Section VI discusses the reports that are issued in response to TSP actions (generally disbursements). Sections VII and VIII address special payroll reports and ad hoc reports.

Generally, these reports are issued as a result of transactions submitted by the service payroll offices and by participant-initiated loan and financial hardship in-service withdrawal activity. Consequently, some of the reports may be received daily while others are tied more closely to the payroll processing cycles. Most of these reports are available in electronic data transmission system (EDTS) file format as well as in PDF format through the web-based application.

Attachments 1 through 18 are samples of the reports. The EDTS handbook, Uniformed Services Guide for Report Descriptions and Data Record Formats, which contains the data file record format for each of the reports, and the error codes and messages referenced in this bulletin are available in the Information for Agency/Service Representatives section of tsp.gov.

  1. Reports Generated by Processing a Payroll Office Submission Accompanied by Form TSP-U-2 or TSP-U-2-G
  2. Reports Generated by Processing Recharacterization Records Accompanied by Form TSP-U-2-R
  3. Reports Generated by Processing Redesignation Records Accompanied by Form TSP-U-2-D
  4. Reports Generated by Processing a Payroll Submission Accompanied by Form TSP-U-2-L
  5. Reports Generated by a Payroll Submission Accompanied by a Form TSP-U-2-F (only available through the TSP web-based application)
  6. Reports Generated by TSP Action
  7. Per Request Processing Reports
  8. Ad hoc Reports
  1. Reports Generated by Processing a Payroll Office Submission Accompanied by Form TSP-U-2 or TSP-U-2-G Back to Top
    Generally, Form TSP-U-2, Certification of Transfer of Funds and Journal Voucher, must accompany payroll office submissions of employee data, payment, and negative adjustment records. The Form TSP-U-2-G, Certification of Transfer of Funds and Journal Voucher for Contributions Requiring G Fund Breakage, must accompany those payroll submissions that report makeup or late contributions for which breakage (i.e., lost earnings) is to be calculated at the rates of return for the Government Securities Investment (G) Fund. The updated versions of these Journal Vouchers that were necessary to implement BRS are discussed in Bulletin 17-U-1, “Implementation of the Blended Retirement System” (April 5, 2017).
    1. Report TSP 1702, Payroll Office Recap of Journal Voucher Processing (Attachment 1)

      Report TSP 1702 is generated after the payroll submission is processed and is the primary payroll office and accounting reconciliation report. It provides a summary of the charges and credits to the payroll office and of the number of records processed for the specific journal voucher. If the payroll office recipient of this report is not the agency’s accounting (or certifying) officer, the recipient should forward the report to that officer. The changes to this report include the addition of Service Automatic (1%) under both the “Payments” and “Negative Adjustments” sections of the “Source” column. Service Matching has been included in these sections since the pilot Service Matching program was implemented for the Army. Other services will need to program to accept Service Matching on the 1702 reports.

      The report provides the following information:

      1. The “Payments” section shows the following by source of contribution1: the total dollar amount on the payment records that was submitted by the payroll office, the total dollar amount that was rejected by the TSP (i.e., that was not processed because the payment records contained errors), the breakage that was charged to the service payroll office, and the total amount charged to the payroll office.

        The amount “charged to service” is the total of the amount submitted, minus the amount rejected, plus the amount of the breakage.

      2. The “Negative Adjustments” section shows the following by source of contribution1: the total dollar amount on the negative adjustment records that was submitted by the payroll office, the total dollar amount that was rejected by the TSP (because of payment record errors), the total dollar amount of the negative adjustments that was processed but not credited to the payroll office (because of investment losses or, in the case of agency contributions, untimely submission of the adjustment records),2 and the total amount that was credited to the service payroll office.

        The amount for “credited to service” is the total of the amount submitted, minus the amount rejected and the amount not returned (credited) for other reasons (e.g., investment losses).

      3. The “Grand Total Charged” is the total amount “charged to service” in the Payments section, minus the total amount “credited to service” in the Negative Adjustments section. It is the result of the totals from the “Submitted” column, minus the totals from the “Rejected” column, plus the difference of the total “Breakage” amount minus the total “Amount Not Returned.”

      4. The “Transaction Counts” section shows the following by record type (Employee Data Records, Current Payment Records, Late Payment Records, and Negative Adjustment Records)3: the number of records fully processed is the total of the number of records submitted minus the number of records rejected minus the number of records partially processed4. This report is available via EDTS and the web-based application.

        1 In addition to “Service Matching” and the new “Service Automatic (1%)” row, sources of contributions include “Traditional (Tax-deferred)” contributions, which are tax-deferred member contributions; “Tax-exempt” contributions, which are member contributions deducted from pay that is subject to the Combat Zone Tax Exclusion (CZTE); and “Roth” contributions, which are after-tax and/or tax-exempt member contributions. Member contributions may be deducted from basic, incentive, special, and bonus pays (except catch-up contributions, which must be deducted from basic pay only as either traditional or Roth).

        2 Service matching contributions that have erroneously been in a participant’s TSP account for one year or more cannot be returned to the payroll office. They are removed from the participant’s account when the negative adjustment record is processed and are forfeited to the TSP.

        3 For example, all traditional, Roth, and catch-up contribution current payment records are grouped together in the Current Payment count. This mirrors their treatment on the Form TSP-U-2 trailer record and serves as a check between the journal voucher, the trailer, and the number of records acted upon by the TSP system.

        4 The TSP will process a portion of a member catch-up contribution submitted on a Traditional (tax-deferred) or Roth catch-up contribution record for the amount that will put the member at the Internal Revenue Code (IRC) section 414(v), catch-up contribution limit for the year.

    2. Error Reports

      If the submission contains errors, the TSP will generate Report TSP 1701 and Report TSP 1703 after all the records in the submission that can be processed are processed.

      1. Report TSP 1701, Error Report (Attachment 2)

        This report identifies the records that were not processed and the records that were processed but contain suspect data. The report shows the rejected or suspect records and the error codes. These reports specify the record type affected by the error (and the record type identifies the type of contribution). The “Automatic (1%)” column was added to this report for each section (Payment Records, Negative Adjustment Records, Late Payment Records, Earnings Adjustment Records, Loan Payment Record and Employee Data Record). Service Matching has been included in these sections since the pilot Service Matching program was implemented for the Army. Other services will need to program to accept Service Matching on the 1701 reports.

        1. Error codes beginning with “R” (reject) identify records that were not processed. The payroll office should review the record and, as appropriate, resubmit the correct data, payments, or negative adjustments.
        2. Error codes beginning with “P” (partial) identify current or late payment records that were partially processed. The payroll office should take the necessary actions to correct the payments that were not processed.

          For example, if the payroll office submits a payment record reporting traditional (tax-deferred) catch-up contributions and the amount of the contribution will cause the participant to exceed the catch-up contribution limit, the TSP will process the payment record for the exact amount that will place the participant at the catch-up contribution limit. In this case, the payroll office should ensure that the participant is paid the traditional contribution that had been erroneously deducted from his or her pay.

        3. Error codes beginning with “W” (warning) identify records that were processed with suspect data. The payroll office should submit records with correct data if its research shows a correction is necessary.
      2. Report TSP 1703, Analysis of Payroll Office Errors (Attachment 3)

        This report is a quality control report. It provides a count of the errors and the number of times they occurred in the submission. If the same error occurs multiple times, the payroll office may have a systemic problem to correct. No changes have been made to this report.

        The error codes and messages can be found in the Information for Agency/Service Representatives section of tsp.gov.

        Both of the error reports are available in EDTS format and from the web-based application.

    3. Negative Adjustment Reports

      If the submission contained negative adjustment records that were processed, the TSP will generate Report TSP 31504, Summary Report of Negative Adjustments Processed (Attachment 4). Report TSP 31503, Report of Detail Negative Adjustment Records Processed (Attachment 5), will be generated upon request by the payroll offices

      1. Report TSP 31504, Summary Report of Negative Adjustments Processed (Attachment 4)

        This report is an accounting reconciliation tool that shows the negative adjustment amount returned to the payroll office. To accommodate BRS, an “Automatic (1%)” line has been added to the source column.

        1. The “Summary” section closely matches the information provided on Report TSP 1702 and shows the following by source of contribution (traditional (tax-deferred), tax-exempt, Roth, Automatic (1%) and Matching): the total amount of the negative adjustments processed, the total amount of service contributions that were forfeited to the TSP (because the negative adjustment records were not timely submitted), the total dollar amount of the investment losses (which prevented the removal of the entire amount requested from the participant’s account and caused it to be returned to the payroll office) and the total amount of negative adjustments returned (credited) to the service payroll offices.

          The total amount returned equals the amount processed, minus the amount forfeited, minus the investment losses.

        2. The “Detail” section shows the same information for each individual adjustment record. It also shows the information that was provided by the payroll office in the “service use only” field of the negative adjustment record. If the payroll office provides an accounting identifier in this field, it may use this “detail” information to make appropriate credits.

        This report is available in EDTS format and from the web-based application.

      2. Report TSP 31503, Report of Detail Negative Adjustment Records Processed (Attachment 5)

        This report shows the processing of individual negative adjustment records and can be used to answer questions from participants regarding the effect of the negative adjustment on their accounts. All numbers on the report are shown as positive.

        The report is divided by source (Traditional (tax-deferred), tax-exempt, Roth, Automatic (1%), Matching). The Automatic (1%) source is new. An additional section shows the total. For each source and the total, the following 6 lines of data may appear:

        • Line A shows the negative adjustment amount by fund, as submitted by the payroll office
        • Line B shows the investment losses of the negative adjustment by fund. (If there were investment gains on the amount of the negative adjustment, this line contains no entries.)
        • Line C (which only appears for the Automatic (1%) and Service Matching sections) shows, by fund, the negative adjustment amount of service contributions that cannot be returned to the payroll office because they have been in the participant’s account for one year or more. These erroneous service contributions are removed from the participant’s account and forfeited to the TSP.
        • Line D (which only appears for the Automatic (1%) and Service Matching sections) shows, by fund, the investment gains of the negative adjustment of service contributions. Investment gains on erroneous service contributions are removed from the participant’s account and forfeited to the TSP; investment gains on erroneous employee contributions (traditional or Roth) remain in the participant’s account. However, investment gains on Roth contributions that have been removed from the participant’s account are moved from the participant’s Roth balance to the participant’s traditional (tax-deferred) balance. This action is transparent to the payroll office and is not reported.
        • Line E shows the amount removed from the participant’s account by fund. It equals Line A, minus Line B, plus Line D.
        • Line F shows only the total amount returned to the payroll office. It equals the totals of Line A, minus Line B, minus Line C.

        This report is generated only upon request and is available only through the web-based application.

    4. Breakage Reports

      If the submission contains makeup service contributions or late contributions, or if the entire submission is late, the TSP will generate Report TSP 5014 to show the breakage that was charged to the payroll office. Reports TSP 5015 and TSP 5016 (which are progressively more detailed reports) are only generated upon request.

      1. Report TSP 5014, Breakage by Agency Accounting Number (Attachment 6)

        This report shows the total breakage amount that was charged to the payroll office and matches the information provided on Report TSP 1702. This report also shows the amount of breakage by participant and by any (accounting) identifier that the payroll office provided in the “service use only” field. No changes are being made to the report.

        This report is available in EDTS format and through the web-based application

      2. Report TSP 5015, Breakage by Participant (Attachment 7)

        This report provides details for each participant for whom breakage was calculated. It can be used to answer most of the questions from participants regarding the breakage that they received as a result of a makeup or late contribution. It can be generated for an entire submission or for an individual participant (generally the latter).

        • Line A shows the total amount of the contribution subject to breakage by source (Traditional (tax-deferred/tax-exempt), Roth, Automatic (1%), and Matching) and total. (This is the amount the payroll office reported on the payment record.)
        • Line B shows how the contribution would have been invested on the “as of” date by fund. The “as of” date is reported by the payroll office on the payment record. The investment on the “as of” date is based on the participant’s contribution allocation on file or derived from that date.
        • Line C shows the amount of breakage calculated. If the share price(s) for the fund(s) in which the participant would have been invested on the “as of” date are higher on the process date than they were on the “as of” date, the breakage amount will be positive. If the share prices for the funds in which the participant would have invested on the “as of” date are lower than on the process date, the breakage amount will be negative.
        • Line D shows the total posted to the account by fund, source, and total. The total posted to the account equals the contribution (Line A) plus the breakage (Line C). The total is posted according to the participant’s contribution allocation on the posting date.
      3. Report TSP 5016, Detailed Breakage by Participant (Attachment 8)

        This report provides more details for each participant for whom breakage was calculated; it is rarely used and is available only upon request. The BRS changes made for the Report TSP 5015 have also been made on this report. In reviewing the report:

        • Line A and Line B are the same as Line A and Line B on Report TSP 5015.
        • Line C will only be populated if the “as of” date was before June 1, 2003; it is the dollar amount the contributions would have earned up to the date of the conversion to the daily-valued record keeping system (earnings may be positive or negative).
        • Line D is the total of the contributions (reflected in Line B) and the earnings (reflected in Line C).
        • Line E shows the share price on the “as of” date (which is the date the contributions should have been posted to the account); or, if the “as of” date is before June 1, 2003, Line E shows the share prices on May 31, 2003 (because the valued contribution for the pre-conversion “as of” date would have been converted to shares at that time).
        • Line F shows the number of shares that would have been purchased and is obtained by dividing Line D by Line E.
        • Line G shows the share prices on the posting date.
        • Line H shows the cost of the shares that would have been purchased on the posting date and is obtained by multiplying Line F by Line G.
        • Line I shows the breakage amount and is the same as Line C on Report TSP 5015. The breakage amount is obtained by subtracting Line B (the amount of the contribution) from Line H (the cost on the process date of the shares that would have been purchased on the “as of” date).
        • Line J shows the total posted to the account. It is the same as Line D on Report TSP 5015.

        Reports TSP 5015 and TSP 5016 are available upon request and retrievable only through the web-based application.

  2. Reports Generated by Processing Recharacterization Records Accompanied by Form TSP-U-2-R Back to Top
    These reports are specifically designed to accommodate Roth. Form TSP-U-2-R, Certification of Recharacterization of Records and Journal Voucher, is the journal voucher that must accompany payroll submissions of the records to recharacterize traditional (tax-deferred) contributions to tax-exempt contributions and vice versa. This recharacterization is necessary when the payroll office erroneously submits traditional (tax-deferred) employee contributions on the tax-exempt payment records or tax-exempt contributions on traditional (tax-deferred) payment records. The following reports are generated as a result of receiving Form TSP-U-2-R and the recharacterization records.
    1. Report TSP 35002, Payroll Office Recap of Recharacterization (Attachment 9)

      Report TSP 35002 is generated after the payroll submission is processed. It provides a summary of the dollar amounts recharacterized by type (i.e., tax-exempt to traditional (tax-deferred), and traditional (tax-deferred) to tax-exempt) and the number of records processed by type.

    2. Report TSP 35003, Recharacterization Error Report (Attachment 10)

      Report TSP 35003 is generated when the payroll submission contains recharacterization records that cannot be processed. Like the Report TSP 1701, it includes the error code(s) for each of the records included on the report.

      These reports are available in EDTS format and through the web-based application.

  3. Reports Generated by Processing Redesignation Records Accompanied by Form TSP-U-2-D Back to Top
    These reports are specifically designed to accommodate Roth. Form TSP-U-2-D, Certification of Redesignation of Records and Journal Voucher, is the journal voucher that must accompany payroll submissions of the records to redesignate traditional contributions to Roth contributions and vice versa. This redesignation is necessary when the payroll office erroneously submits traditional (tax-deferred) employee contributions on the Roth payment records or Roth contributions on traditional (tax-deferred) payment records. The following reports are generated as a result of receiving Form TSP-U-2-D and the redesignation records.
    1. Report TSP 35004, Payroll Office Recap of Redesignation (Attachment 11)

      Report TSP 35004 is generated after the payroll submission is processed. It provides a summary of the dollar amounts redesignated by type (i.e., Roth to traditional (tax-deferred), traditional (tax-deferred) to Roth, Roth to tax-exempt, tax-exempt to Roth, Roth catch-up to traditional catch-up, and traditional catch-up to Roth catch-up) and the number of records processed by type.

    2. Report TSP 35005, Redesignation Error Report (Attachment 12)

      Report TSP 35005 is generated when the payroll submission contains redesignation records that cannot be processed. Like the Report TSP 1701, it includes the error code(s) for each of the records included on the report.

      These reports are available in EDTS format and through the web-based application.

  4. Reports Generated by Processing a Payroll Submission Accompanied by Form TSP-U-2-L Back to Top
    Form TSP-U-2-L, Certificate of Transfer of Funds and Journal Voucher for Loan Payments, is the journal voucher that must accompany payroll submissions of loan payments if the payroll office does not submit loan payments via the Federal Reserve Bank.
    1. Report TSP 1802, Payroll Office Recap of Loan JV Processing (Attachment 13)

      Report TSP 1802 is generated after the payroll office submission is processed. It provides a summary of the charges to the payroll office and the number of records processed. There are no changes to this report.

    2. Error Reports

      If the submission contained payments that were not processed, the Reports TSP 1701 and TSP 1703 are generated after the submission is processed. (See Section I.B above for a discussion of these reports.)

    3. Breakage Reports

      If the submission contained loan payment records with an “as of” date earlier than the current pay date reported on Form TSP-U-2-L, or if the entire loan payment submission is late, Report TSP 5014 will be generated. (See Section I.D above for a discussion of the breakage reports.)

  5. Reports Generated by a Payroll Submission Accompanied by a Form TSP-U-2-F (only available through the TSP web-based application) Back to Top
    Form TSP-U-2-F, Certification of Transfer of Funds and Journal Voucher for Earnings Adjustment, must be used to submit earnings adjustments that are generally related to rare miscellaneous earnings situations (e.g., a court-ordered adjustment).
    1. Report TSP 1902, Payroll Office Recap of Earnings Adjustment Processing (Attachment 14)

      Report TSP 1902 is generated after the payroll request is processed. It provides a summary of the charges to the payroll office and the number of records processed. It distinguishes between earnings adjustments on traditional (tax-deferred) member contributions and on Roth contributions. The report is available in EDTS format and through the web-based application.

    2. Error Reports

      The data submission application will edit the earnings adjustment request. However, if it cannot be processed, Reports TSP 1701 and TSP 1703 will be generated. (See Section I.B for a discussion of these reports.)

    3. Breakage Reports

      If the request is for an “as of” date earlier than the date reported on Form TSP-U- 2-F, Report TSP 5014 will be generated. (See Section I.D for a discussion of the breakage reports.)

  6. Reports Generated by TSP Action Back to Top
    1. Report TSP 19401, Loan Status Report (Attachment 15)

      Report TSP 19401 provides the loan payment amounts that payroll offices must deduct and report to the TSP. This report is issued daily based on participant requests as well as loan maintenance activities (e.g., loan payoffs, taxable distributions). There are no changes to this report.

      Transaction Codes included on the report:

      1. Notification of new loan payment amounts. If the loan payment amount resulted from the disbursement of a new loan, the loan payment amount and transaction code “01” will be shown.
      2. Notification to stop loan payments. If the loan has been paid in full, the loan payment amount will be $0.00 and the transaction code “02” will be shown.
      3. Notification to correct loan payments. If the loan payment amount resulted from the reamortization of the loan or if an incorrect loan payment is received, the correct loan payment amount and transaction code “03” will be shown.
      4. Notification of missing loan payments. If loan payments are missing, the loan payment amount and transaction code “04” will be shown.

        This report is available in EDTS format and through the web-based application. We strongly urge payroll offices to receive the reports electronically and automate the updating of the loan payment information for their employees within their payroll systems.

    2. Report TSP 5501, Participants for Whom Financial Hardship In-Service Withdrawals Were Disbursed (Attachment 16)

      Report TSP 5501 provides the non-contribution period for the listed participants. Upon receipt of a financial hardship in-service withdrawal, member contributions (whether they are traditional or Roth) must stop for 6 months; the associated Service Matching Contributions must also stop. If the payroll office submits member or attributable Service Matching Contributions for any pay date falling within a participant’s non-contribution period, the TSP will not process the contributions and the payment record will be reflected on Report 1701. Once the non-contribution period is ended, the participant may elect to contribute to the TSP; member contributions should not be restarted automatically. There are no changes to this report.

      This report is available in EDTS format and through the web-based application. We strongly urge payroll offices to receive the reports electronically and automate the updating of this information within their payroll systems.

  7. Per Request Processing Reports Back to Top
    1. Report 1700, Header/Trailer Error Report (Optional) (Attachment 17)

      Report 1700 identifies all header and trailer records that contained errors and/or records that were not identifiable. If the data submission’s header or trailer did not contain errors and all records could be identified, the Report 1700 is not generated.

    2. Report 99999, EDTS Trailer (Optional)

      Report 99999, EDTS Trailer Record is added to the EDTS transmission file upon request. It identifies the total record count on the file, excluding the trailer record itself. There is no report format.

    3. Report 1603, SF-224 Abstract Report (Attachment 18)

      Report 1603 provides payroll offices with an accounting of the charges and credits made by the TSP to their Treasury clearing accounts. By providing the journal voucher number, the clearing account, and the dollar amount associated with the processing of the journal voucher, the payroll office (and associated accounting offices) can reconcile with the FMS-6653, Undisbursed Appropriation Account Ledger, provided by the Department of the Treasury. This report is available via e-mail.

  8. Ad hoc Reports Back to Top
    1. Report 5001, Member History Report

      Report 5001 provides a list of all of the transactions made to a participant’s account. The report assists payroll offices in identifying missing transactions and correcting errors. Roth transactions will be reflected on this report by record type.

    2. Benefits Statement

      The Benefits Statement is available only as an electronic file. It provides account balance information (by fund) for the participants identified in the population (e.g., by a specific service, by payroll office).

      Both of these reports are generated only upon request. The Report 5001 is available through the web-based application. The format of the Benefits Statement is established at the time of the request from the service.

Resources:

  • Bulletin 17-U-2 Attachments (July 24, 2017)
    • TSP 1702, Payroll Office Recap of Journal Voucher Processing
    • TSP 1701, Error Report
    • TSP 31504, Summary of Negative Adjustments Processed
    • TSP 31503, Detail of Negative Adjustment Records Processed
    • TSP 5015, Breakage by Participant
    • TSP 5016, Detailed Breakage by Participant
    • TSP 1700, Header/Trailer Error (Optional)
  • Bulletin 11-U-10 Attachments (December 21, 2011)
    • TSP 1703, Analysis of Payroll Office Errors
    • TSP 5014, Breakage by Agency Accounting Number
    • TSP 35002, Payroll Office Recap of Recharacterization
    • TSP 35003, Recharacterization Error Report
    • TSP 35004, Payroll Office Recap of Redesignation
    • TSP 35005, Redesignation Error Report
    • TSP 1802, Payroll Office Recap of Loan JV Processing
    • TSP 1902, Payroll Office Recap of Earnings Adjustment Processing
    • TSP 19401, Loan Status Report
    • TSP 5501, Participants for Whom Financial Hardship In-Service Withdrawals Were Disbursed
    • 1603, SF-224 Abstract Report
Jim Courtney
Director, Office of Communications
Office of Communications and Education