1. Financial Management Element 42

2. Thrift Savings Plan (TSP)
Blended Retirement System (BRS)
Survivor Benefit Plan (SBP)
Indirect Compensation
Resources

3. TSP
What is it?
It’s a retirement savings and investment plan for federal employees and uniformed services
The amount received from TSP will depend on the amount contributed over the years
If a member does not complete 20 years the amount contributed still belongs to them
If your account is more than $200 you can automatically withdraw at separation or leave it in your account for later withdrawal
Required to withdraw after 1 April the year following the age of 70 ½ or year following separation

4. Types of Post-Separation Withdrawals
Partial Withdrawal
Must take out 1,000 or more
A Full Withdrawal
Lump Sum
Monthly Payments
TSP Life Annuity, pays a benefit every month for life

5. BRS Four Main Changes from TSP
Employing service will contribute 1% of service member’s monthly pay
Member will automatically be enrolled at 3%
Military employers will match TSP contributions for the first 3%
Invests employee contributions in an “age appropriate” life cycle, unless member chooses differently

6. SBP
Active duty Military are automatically covered by this plan (while on active duty)
Protects against complete loss of retired pay
Member and spouse are equally responsible for decision
It is an insurance plan that will pay the surviving spouse a monthly payment (annuity)

7. Elections For SBP
At retirement, full basic SBP for spouse and children will take effect
May not decline spouse coverage w/o spouse’s consent
Elections
Spouse Only
Spouse (Former Spouse) with Children
Children Only
Person with insurable interest

8. Indirect Compensation
Medical care free prescriptions (cold packs)
TriCare Dental Program
Federal Tax Advantage BAH and BAS (tax bracket)
State/Local Tax Advantage (ie not paying California State Taxes)
Pension
SGLI

9. Indirect Compensation Cont.
Commissary/NEX
Education Programs (TA)
Counseling (Fleet and Family and other resources)
Legal Counseling (RELSO/LO)
Space A Travel
Gym Memberships

10. Questions for the Audience
When is the deadline to opt in for BRS
Name 3 Indirect compensations that Sailors don’t consider when separating
What are the different elections for SBP
What are the two types of separation withdrawals available with TSP

11. QUESTIONS????