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Federal Employees Benefits Q &A

Do you have questions about your federal employee CSRS or FERS pension/annuity or federal employee retirement planning? Concerns about your Thrift Savings Plan (TSP) account or what about federal employee pay and leave issues?

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bruce598  
#1 Posted : Wednesday, July 24, 2019 6:23:17 AM(UTC)
bruce598

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I have an annual salary of $109,000. I want to contribute the smallest amount that I can to the TSP to qualify for the entire 5% agency match. I originally thought the amount would be $19,000/3 = $6,333 but now I think it is $109,000 * .05 = $5,450. What is the correct amount considering my salary?
Ed Zurndorfer  
#2 Posted : Wednesday, July 24, 2019 9:52:37 AM(UTC)
Ed Zurndorfer

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If your current SF 50 (gross) salary is $109,000, then with 26 pay dates during 2019 your gross salary each pay date is $109,000/26 or $4,192.31. If you want to receive the maximum agency matching of 4 percent for 2019 (note that the maximum agency match is 4 percent, not 5 percent. This is because a FERS-covered employee always receives an automatic 1 percent of SF 50 salary contribution from his or her agency whether the employee contributes to the TSP or not), you would have to contribute each pay date to your TSP account a minimum of 5 percent of $4,192.31 or $209.62.
someoldguy  
#3 Posted : Wednesday, August 7, 2019 11:50:08 AM(UTC)
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Originally Posted by: Ed Zurndorfer Go to Quoted Post
If your current SF 50 (gross) salary is $109,000, then with 26 pay dates during 2019 your gross salary each pay date is $109,000/26 or $4,192.31.
Actually isn't the biweekly pay a little different? They use some number like 2100 hours to calculate your salary so your annual pay ends up being a bit less than the amount shown on the pay scale EXCEPT for like once every seven years when we get 27 pay periods in a year.

Many a new fed has stumbled across this when looking at their first LES. Granted it is not a huge difference (and I haven't been around long enough for that glorious 27 pay period year) but your biweekly pay is usually a bit less than (pay on pay scale)/26 pay periods.

DISCLAIMER: You read it on an open internet forum :)
Ed Zurndorfer  
#4 Posted : Wednesday, August 7, 2019 1:29:29 PM(UTC)
Ed Zurndorfer

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For the year (and only for that year) in which there are 27 pay periods (actually, it is every 11 years), the annual SF 50 salary would be divided by 27 to determine the amount of gross pay per pay period).
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