Fed Board Fixes Back Pay Rules to Ensure Timely Retirement Savings
Published Date: 7/11/2025
Rule
Summary
If you get your job back or are appointed retroactively under certain federal retirement plans, your agency must let you start or update your Thrift Savings Plan (TSP) contributions right away. This fix clears up a previous mistake to make sure contributions start no later than the first full pay period after you choose. It affects federal employees and helps keep your retirement savings on track without delays.
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Faster TSP Contributions After Reinstatement
If you are reinstated or retroactively appointed to a job covered by FERS, CSRS, or an equivalent system where TSP is allowed, your agency must let you submit a Thrift Savings Plan (TSP) contribution election immediately. That election must take effect as soon as administratively feasible, but no later than the first day of the first full pay period after the agency receives it.
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Key Dates
Department and Agencies
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