Eligibility for Catch-up ContributionsCatch-up Contributions are supplemental contributions available to TSP participants who are age 50 or older. There is no "lookback" provision to see what the participant could have contributed but did not. Eligible participants simply have the right to contribute the additional funds up to the annual Catch-up Contribution limit. To elect Catch-up Contributions, the employee must: • Be in a pay status. Make contributions from basic pay through payroll deductions only. • Have either a regular election on file to contribute the maximum percentage of basic pay, or an election on file where the maximum IRS elective deferral limit will be reached during the calendar year. • Be age 50 or older, or turn age 50 in the calendar year the election is submitted and processed. • Not be in the 6-month noncontribution period following the receipt of a financial hardship in-service withdrawal. • Self-certify that he or she is contributing (in all equivalent employer plans) either the maximum TSP contribution percentage or an amount that will result in his or her reaching the IRS elective deferral limit by the end of the relevant calendar year. In addition, the following rules will apply to the 50 and older Catch-up Contributions: • Open season dates do not apply to Catch-up Contributions (once implemented, participants can start, change the amount, or stop at any time). The termination of Catch-up Contributions does not affect the participant's regular contributions. • A new election must be submitted each year (deductions will not continue into the next calendar year). • The annual amount of the contribution will be combined with regular tax-deferred contributions in the deferral block of Form W-2 as follows: - If amount shown exceeds the IRS limit, the IRS will check the date of birth with the Social Security Administration and assume any amount over the limit is attributable to the Catch-up Contributions. - If participant exceeds the Catch-up limit (usually by contributing to more than one plan), the participant may contact the TSP and request a refund of the excess Catch-up Contributions. • If applicable, participant is eligible under the Uniformed Services Employment and Reemployment Rights Act (USERRA) to make up missed Catch-up Contributions. Other Catch-up Contributions InformationCatch-up Contribution elections are not subject to the open season rules. Participants can make more than one election in any given calendar year (as long as the annual Catch-up limit is not exceeded). Beginning with the initial election period in August 2003, participants can make Catch-up Contribution elections at any time during the calendar year via payroll deductions. Employees will need to make a new election for each calendar year in which they wish to participate in the Catch- Up Contribution election. Catch-up Contributions will be invested in the employee's account based on the most current contribution allocation on file with the TSP. The employee should be reminded that his or her contribution allocations must be made with the TSP using the TSP Web site, ThriftLine, or Form TSP-50, Investment Allocation. Termination of Catch-up ContributionsEmployees can stop their Catch-up Contributions at any time without penalty. They may restart them at any time. This rule differs from the current rule for regular employee contributions, which imposes a waiting period between stopping and resuming contributions. The termination of Catch-up Contributions does not affect the employee's regular contributions. If a participant receives a financial hardship in-service withdrawal, then the participant's Catch-up Contributions must stop along with any regular employee contributions for a period of 6 months. The Catch-up Contribution election terminates automatically with the last pay date of the calendar year to which it applies unless the employee has previously terminated the election or has reached the annual Catch-up Contribution limit. Using PostalEASE for EnrollmentAn employee who wishes to start, stop, or change a Catch-up Contribution must use the PostalEASE telephone system or the PostalEASE employee Web site to make an election. PostalEase's toll-free number is 877-4PS-EASE (877-477-3273). For web access through the Postal Service intranet, employees must go to http://blue.usps.gov, click on Employee Self-Service, and then click on PostalEASE. The employee must have his or her USPS personal identification number (PIN) to use PostalEASE (for information on PINs, see "USPS PIN" and "TSP PIN" below). Note: Personnel and employing offices must not distribute Form TSP-1-C, Catch-up Contribution Election, to employees for making Catch-up Contribution elections. TSP-1-C will not be stocked at the Material Distribution Center (MDC). If an employee brings a Form TSP-1-C to Personnel, Personnel should return the form to the employee and inform the employee that he or she must use PostalEASE to make his or her Catch-up Contribution election beginning Monday, August 11, 2003, per instructions provided in the July mailing. Contacting TSP to Make a Fund Investment ElectionEmployees have three methods to make a fund investment election as follows: • Web site: Go to the TSP Web site at www.tsp.gov. • Telephone: Call the TSP ThriftLine at 504-255-8777. • Mail: Mail Form TSP-50, Investment Allocation, to the TSP service office in New Orleans. Note: Personnel offices must not accept and cannot process completed Forms TSP-50. Form TSP-50 is not available from the TSP Web site. Form TSP-50 is available from the MDC. The relevant ordering information for Form TSP-50 is as follows: PSN: 7530-05-000-4305 The TSP Web site and ThriftLine are convenient methods for making fund investment elections and elections will take effect more quickly than using Form TSP-50. To use the TSP Web site or TSP ThriftLine, participants must use their TSP PIN. Using Pins to Make TSP ElectionsTo make TSP elections, use two Pins: USPS PIN and TSP PIN. USPS PINThe Postal Service maintains the USPS PIN. Employees must use their USPS PIN to (1) begin a contribution percentage or a dollar amount election, or (2) change their current TSP contribution percentage or dollar amount, or (3) begin, change, or stop a Catch-up Contribution election, or (4) cancel TSP participation via PostalEASE. If an employee does not know his or her USPS PIN, he or she must contact PostalEASE and do the following steps when prompted: (1) press 1 for PostalEASE; (2) enter his or her Social Security number; (3) when prompted to enter PIN, pause, and then press 2. The employee's USPS PIN will be mailed to his or her address of record, usually by the next business day. Note: When employees request their USPS PIN, their USPS PIN does not change (unlike the TSP PIN). The employee's old USPS PIN remains valid. (The USPS PIN is the same PIN employees use for telephone bidding and computerized bidding.) TSP PINThe TSP PIN is maintained by TSP. Employees must use their TSP PIN to make fund investment choices via the TSP Web site or the TSP ThriftLine. If employees are TSP participants and they do not know their TSP PIN, they have three methods for having a new TSP PIN mailed to their address of record: 1. Go to the TSP Web site at www.tsp.gov and select Account Access, or 2. Call the TSP ThriftLine at 504-255-8777, choose 2, enter the Social Security number, and then follow the instructions, or 3. Call the TSP service office at 504-255-6000. Once TSP has received the employee's TSP PIN request, his or her former TSP PIN is no longer valid. Direct Mailings to EmployeesCareer employees who meet the age requirements will receive from the national level a direct mailing of a PostalEASE worksheet and cover letter containing TSP Catch-up Contribution election information at their mailing addresses of record during late July. PublicityTo help publicize this TSP Catch-up Contribution election, all offices must post (1) the notice "Thrift Savings Plan Catch-up Contributions for TSP Participants Age 50 and Older, and PostalEASE" provided on page 1 of this Postal Bulletin through December 31, 2003, and (2) the current TSP fact sheet on bulletin boards. - Compensation,
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| If the PS Form 1412 is... | Then... |
| Overstated receipt account identifier codes (AICs) or an understated disbursement AIC, | Correct the total for the AIC to agree with the supporting documentation and increase AIC 090 as an offset to balance the PS Form 1412. Notify the CPU. |
| Understated receipt AIC or an overstated disbursement AIC, | Correct the total for the AIC to agree with the supporting documentation and decrease AIC 090 as an offset to balance the PS Form 1412. Notify the CPU. |
Note: Supporting documentation must agree with the totals entered in individual AICs, except for AIC 090.
II. Notice From the Accounting Service Center (ASC) of Financial Differences
When the ASC notifies the host Post Office of financial differences expensed to it (discrepancies in money orders, cash deposits, banking, unit's PS Form 1412, or stamp stock inventory) relating to a CPU, the host Post Office makes the following corrections:
| If the notice of financial difference is... | Then... |
| For an overage, | Notify the CPU, and on the next day's PS Form 1412, increase AIC 090 and offset to AIC 647 for the amount indicated on the notice of financial difference. |
| For a shortage, | Notify the CPU, and on the next day's PS Form 1412, decrease AIC 090 and offset to AIC 247 for the amount indicated on the notice of financial of difference. |
The postmaster or designated employee is responsible for the following:
• Issuing a PS Form 1908, Financial Adjustment Memorandum, with the appropriate explanation annotated regarding the cause for the adjustment of the CPU's PS Form 1412.
• Examining the CPU's accountability for compliance with Handbook F-1, Post Office Accounting Procedures, section 429.3.
• Ensuring that the CPU's accountability does not exceed their bonded amount.
- Revenue and Field Accounting,
Finance, 7-24-03
