TSP and re-employment


Q. I have been working for the federal government for a little more than two years. I am planning on moving in the next few months. I have applied to federal jobs as well as private-sector jobs and have heard back from the private-sector jobs. I read that TSP is vested at three years and that employees are entitled to retirement benefits after five years. If I were to leave the federal system at this point, would I be able to return to the system in the future and restart, as it were, at my two-year mark?

A. Yes. If you left your retirement deductions in the fund, you could pick up where you left off. If you asked for a refund, you’d need to redeposit that amount, plus accrued interest, to reclaim that period of service.


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