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.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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