for Agency TSP Representatives
New Guidance on the Use of Journal Voucher TSP-2-G
Effective immediately, the journal voucher TSP-2-G should no longer be used to submit records for back pay awards or USERRA makeup contributions.
Back Pay Awards
In September 2015, with the beginning of the L Fund default investment for newly enrolled and rehired participants, the TSP changed its regulations regarding the calculation of breakage on back pay awards. All breakage for back pay awards must be calculated based on the participant’s contribution allocation on file for the “as of” date of the correction.
Agencies should cease using the TSP-2-G, Certification of Transfer of Funds and Journal Voucher for Contributions Requiring G Fund Breakage, for back pay awards unless a court or other entity orders G Fund breakage. Agencies should instead use the TSP-2, Certification of Transfer of Funds and Journal Voucher, which will ensure the appropriate breakage. Both employee and employer contributions should be sent on late payment records.
The TSP will examine all breakage that has been calculated for participants on back pay awards from September 5, 2015, until the date on this bulletin. Participants who were adversely affected by the G Fund breakage calculation may have an additional breakage amount posted to their accounts. (This will show as a miscellaneous adjustment on their participant statements.)
Contributions Missed as a Result of Military Service (USERRA)
In December 2017, the TSP changed its regulations regarding USERRA makeup contributions. Affected participants may no longer choose their how breakage is calculated. All breakage must now be calculated based on the participant’s “as of” allocation on the date of the correction. The corrective records should be submitted along with the journal voucher TSP-2 (no longer TSP-2-G), which will ensure the appropriate breakage is calculated on employer contributions. (Employee contributions do not receive breakage in these cases and should be submitted, as previously, on current payment records.)
More guidance on submission of this type of contribution can be found in the fact sheet TSP Benefits That Apply to Members of the Military Who Return to Federal Civilian Service, updated and posted to the website in January 2018.