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TSP bulletin
for Agency TSP Representatives

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Implementation of 5% Automatic Enrollment Percentage for Thrift Savings Plan Participants

On October 1, 2020, the Federal Retirement Thrift Investment Board (FRTIB) will increase the automatic enrollment percentage from 3% to 5% of pay for all Federal Employees Retirement System (FERS), Civil Service Retirement System (CSRS), and Blended Retirement System (BRS) participants who are automatically enrolled in the TSP on or after October 1, 2020, and for BRS participants automatically re-enrolled in the TSP on or after January 1, 2021, per 5 CFR § 1600.34 and 1600.37. The Thrift Savings Plan Enhancement Act of 2009 grants the FRTIB the authority for this change. This change will not affect the contribution rates in place for FERS and CSRS participants who were automatically enrolled in the TSP prior to October 1, 2020, or BRS participants who were automatically enrolled prior to October 1, 2020, and did not terminate their contributions.

If a civilian participant... then the participant...
was automatically enrolled before 10/1/2020, and is still contributing at the automatic enrollment rate on 10/1/2020 remains auto-enrolled at 3%.
is separated before 10/1/2020, and then rehired, and subject to automatic enrollment on or after is auto-enrolled at 5%.
If a BRS member... then the member...
was automatically enrolled before 10/1/2020, and is still contributing at the automatic enrollment rate on 10/1/2020 remains auto-enrolled at 3%.
is separated before 10/1/2020, and then rehired, and subject to automatic enrollment on or after is auto-enrolled at 5%.
was automatically enrolled, but stops contributions during the year and is automatically re-enrolled on 1/1/2021 (or any January 1 thereafter) is auto-reenrolled at 5%.

Increasing the default automatic enrollment rate to 5% ensures that the participant receives the full amount of Agency Matching Contributions he or she is entitled to, which, in turn, will improve the participant’s retirement savings outcome.

This bulletin is to notify agency and service payroll offices and HR personnel of this upcoming change so that agencies and services can take appropriate actions to ensure an efficient transition to the 5% automatic enrollment rate. This bulletin supersedes any previous mentions of the prior automatic enrollment percentage in other bulletins.

Information for Agency Representatives

Affected Forms

The following forms and booklets have been changed to reflect the new automatic enrollment percentage:

Affected Reports

There are no agency or service reports affected by the change to the automatic enrollment percentage.