Thrift Savings Plan Policy Changes, Open Season, and PostalEASE

The next Thrift Savings Plan (TSP) open season is April 15 through June 30, 2005. This TSP open season ends June 30, 2005, at 5:00 P.M. Central Time (CT). The following information is provided to assist personnel offices in conducting this open season.

The booklet TSPBK08, Summary of the Thrift Savings Plan for Federal Employees (dated May 2001), provides a good overview of TSP. Newly eligible career employees receive a copy of TSPBK08 from Headquarters through a direct mailing. Offices can order additional copies of TSPBK08 from the Material Distribution Center (MDC) by using touch tone order entry (TTOE); call 800-332-0317, option 2.

Note: You must be registered to use TTOE. To register, call 800-332-0317, option 1, extension 2925, and follow the prompts to leave a message. (Wait 48 hours after registering before placing your first order.)

Use the following information to order TSPBK08:

PSIN: TSPBK08
PSN: 7530-03-000-9364
Unit of Measure: EA
Minimum Order Quantity: N/A
Quick Pick Number: N/A
Bulk Pack Quantity: 150
Price: $0.00

TSP Policy Change - Elimination of the TSP Open Seasons on July 1, 2005

Public Law 108-469, which was signed into law on December 21, 2004, eliminates the Thrift Savings Plan open seasons and the restrictions on contribution elections which are tied to open seasons. The Federal Retirement Thrift Investment Board will implement this law on July 1, 2005. After the close of the current TSP open season (April 15 through June 30, 2005), there will not be any more open seasons. This means that participants may file contribution elections with their agencies or uniformed services at any time beginning July 1, 2005. Through June 30, these elections will be processed under the current rules. Beginning July 1, 2005, contribution elections will be processed under the new rules - that is, all elections (start, stop, change) entered in PostalEASE before noon the second Tuesday of each pay period will be effective the pay period received. If an election is entered in PostalEASE after noon the second Tuesday of each pay period, the election will be effective the first day of the following first full pay period after the election is processed. Postal ServiceTM employees will continue to use PostalEASE to make TSP contribution elections.

The law does not affect the waiting period that new employees covered by the Federal Employees Retirement System (FERS) must serve before they become eligible for agency automatic (1 percent) and agency matching contributions to their accounts. In addition, the law does not affect contribution allocations or interfund transfers, which can be made at any time by using the TSP Web site or the TSP ThriftLine or by submitting a Form TSP-50, Investment Allocation, to the TSP. Furthermore, the law does not affect the TSP Catch-Up Contribution election for those employees age 50 or over.

During April, Headquarters will mail to career employees at their mailing address of record a letter of notification regarding the elimination of TSP open seasons with this last TSP open season mailing.

For further information regarding the elimination of TSP open seasons, see the TSP Bulletin 05-2 dated January 26, 2005, Participation in the Thrift Savings Plan.

TSP Open Season Dates

The date of this last TSP open season is April 15 through June 30, 2005 (see TSP Bulletin 02-12, dated May 2, 2002). The corresponding election periods are December and June. The "election period" is the earliest period during which a contribution election to start or to change the amount of contributions made during a TSP open season can become effective (see TSP Bulletin 01-4, dated February 2, 2001).

Employees may change their fund investment choices (contribution allocations) both during and outside of the TSP open season. To make a fund investment choice, an employee must contact TSP directly, not PostalEASE. If employees do not contact TSP, their existing fund investment choice continues. The earnings statement (paycheck stub) shows the TSP contribution percentage or dollar amount, but the statement does not show the TSP fund investment detail.

Because the TSP has moved the open season election period to June and December, the increases in the TSP employee contribution limits become effective each December (see TSP Bulletin 01-3, dated January 23, 2001). For example, during the October 15 through December 31, 2004, open season, employees covered by FERS became eligible to contribute up to 15 percent of basic pay in 2005 (the maximum was 14 percent for 2004). Eligible FERS employees still receive the Agency Automatic (1 percent) Contribution and the Agency Matching Contribution of up to 4 percent from the Postal Service - these amounts have not changed. Employees covered by the Civil Service Retirement System (CSRS) and CSRS Offset employees became eligible to contribute up to 10 percent of basic pay in 2005 (the maximum was 9 percent for 2004).

The limits for FERS, CSRS, and CSRS Offset employees will continue to increase by 1 percentage point per year through 2005. Then, in 2006, all participants will be eligible to contribute up to the Internal Revenue Service (IRS) annual deferral limit without any percentage limit. The IRS annual deferral limit for 2005 is $14,000. This amount is scheduled to increase by $1,000 each year through 2006 to $15,000. (See table below.)

A newly hired career employee may elect to participate in TSP until the 61st day after the date of hire or until July 1, 2005, when they may make elections at any time. The waiting period of 6 to 12 months continues to apply to the Agency Automatic (1 percent) Contribution and the Agency Matching Contribution for FERS employees.

Using PostalEASE for Enrollment

Employees must use the PostalEASE telephone system or the PostalEASE employee Web site to enroll, to make contribution elections, and to make cancellations. PostalEase's toll-free number is 877-4PS-EASE (877-477-3273). For Web access through the Postal Service Intranet, go to http://blue.usps.gov, click on Employee Self Service, and then click on PostalEASE; for access through the Internet, go to http://liteblue.usps.gov and then click on PostalEASE. Employees must have their Employee IDs (found on their earnings statements) and USPS® personal identification numbers (PINs) 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, Thrift Savings Plan Election Form, to employees for making TSP open season elections. TSP-1 is no longer stocked at the MDC.

Contacting TSP to Make a Fund Investment Election

Employees have three methods to make a fund investment election:

• Web site: Go to the TSP Web site at www.tsp.gov.

• Telephone: Call the TSP ThriftLine toll-free at 877-968-3778; the TDD toll-free number is 877-847-4385.

• Mail: Mail Form TSP-50, Investment Allocation (dated August 2002), 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 but only from the MDC. Personnel offices should maintain a supply of Form TSP-50. The relevant ordering information is as follows:

PSIN: TSP-50
PSN: 7530-05-000-4305
Unit of Measure: EA
Minimum Order Quantity: N/A
Quick Pick Number: N/A
Bulk Pack Quantity: 3,800
Price: $0.00

The TSP Web site and ThriftLine are convenient methods for making fund investment elections. Employees' elections will take effect more quickly by using the TSP Web site and ThriftLine than by using form TSP-50. To use the TSP Web site or TSP ThriftLine, participants must use their TSP PIN.

Using PINs to Make TSP Elections

To make TSP elections, use two PINs: USPS PIN and TSP PIN.

USPS PIN

The 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) cancel TSP participation via PostalEASE. If employees do not know their USPS PIN, they must contact PostalEASE at 877-4PS-EASE (877-477-3273) and follow these steps when prompted: (1) press 1 for PostalEASE; (2) enter their Employee ID (this number is found on their earnings statement); (3) when prompted to enter their PIN, pause and then press 2. Employees' USPS PIN will be mailed to their address of record, usually by the next business day.

Note: When an employee requests his or her USPS PIN, the 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 PIN

The TSP PIN is maintained by the 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 two 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 or TSP service office toll-free at 877-968-3778, and then follow the instructions.

Once the TSP has received an employee's TSP PIN request, his or her former TSP PIN is no longer valid.

Direct Mailings to Employees

Headquarters will mail to career employees leaflet TSP0405, TSP Open Season, and PostalEASE instructions at their mailing address of record during April.

In addition to receiving TSP1004, newly eligible career employees receive from Headquarters a direct mailing of TSPBK08, Summary of the Thrift Savings Plan for Federal Employees, as well as a cover letter and PostalEASE instructions at their mailing address of record soon after their accession PS Form 50, Notification of Personnel Action, is processed.

The return address for undeliverable TSP enrollment information for newly eligible employees is the employing office of record. The disposition of returned items is at the discretion of the district office or other administering office. When employees receive a forwarded enrollment package at their employing office of record, they should submit a correct PS Form 1216, Employee's Current Mailing Address (dated June 1993). (Employees with access to Web job bidding on the intranet should make address changes via the Web. Other employees should return a completed PS Form 1216 to their local personnel office.)

Personnel offices should maintain a supply of PS Form 1216. They may obtain it from the Postal Service PolicyNet Web site; go to http://blue.usps.gov; under "Essential Links," click on Forms. They may also order PS Form 1216 from the MDC using the following information:

PSIN: PS 1216
PSN: 7530-02-000-7354
Unit of Measure: SE
Minimum Order Quantity: N/A
Quick Pick Number: 118
Bulk Pack Quantity: 4,000
Price: $0.0147

Eligibility

All career employees are eligible to make employee contribution elections this open season (subject to financial hardship withdrawal and cancellation exclusions). FERS employees hired before December 1, 2004, receive Agency Automatic (1 percent) Contributions and Agency Matching Contributions (as appropriate) beginning in June 2005.

All employees who participated in TSP and cancelled their TSP contributions after December 31, 2004, are not eligible to participate in this TSP open season. They must wait for the elimination of TSP open season beginning July 1, 2005.

Effective Dates

PostalEASE automates the processing of TSP elections. The windows of opportunity for employees to make TSP open season elections and the resulting effective dates are as follows.

Because PostalEASE provides employees the ability to complete a TSP open season election without contacting the local personnel office and automates the processing of such elections, using PostalEASE should minimize the use of PS Form 6886, Thrift Savings Plan - Request for Retroactive Contributions. PS Form 6886 is used to correct administrative errors for TSP open season elections.

Personnel offices have the authority to determine whether an administrative error has occurred. If an error has delayed a TSP open season election past the appropriate effective date, personnel offices and the employee must complete PS Form 6886 and submit it to the Eagan Accounting Service Center (ASC). The effective dates for employees' elections delayed due to an administrative error must be made retroactive to June 11 or June 25, 2005, depending on the date the employee would have otherwise entered his or her open season election via PostalEASE.

Note: PS Form 6886 must be reproduced locally as needed. See page 6 for a copy of PS Form 6886.

Personnel offices also have the authority to determine whether a belated open season election opportunity exists. In such instances, personnel must submit the employee's election to the Eagan ASC for processing, in accordance with administrative instructions provided to personnel offices regarding PostalEASE. Belated open season elections are not retroactive in most circumstances. All other TSP exception-to-policy requests must be submitted via e-mail to Compensation at Headquarters for approval.

Note: The processing dates and the closing dates of this TSP open season fall within a two pay-period time frame, as indicated above.

Open Season Materials

In addition to the direct mailing of TSP information to employees, the MDC will automatically distribute residual supplies of the open season leaflet TSP0405, TSP Open Season, to Human Resources at district offices, area offices, processing and distribution centers/facilities (PDC/Fs), bulk mail centers (BMCs), airport mail centers/facilities (AMC/Fs), remote encoding centers, the Office of Inspector General, Postal Inspection Service divisions, Headquarters, and selected Headquarters field units.

Non-Open Season Materials

Most of the current TSP publications and forms have been revised for the new TSP record-keeping system, which was implemented in June 2003.

The MDC has completed its automatic distribution of all non-open season items to Human Resources at district offices, area offices, PDC/Fs, BMCs, AMC/Fs, remote encoding centers, the Office of Inspector General, Postal Inspection Service divisions, Headquarters, and selected Headquarters field units.

Ordering TSP Items

Offices may place orders for new or revised TSP forms and/or publications with the MDC on an as-needed basis. It is not necessary to maintain a large stock of TSPBK08 because Headquarters mails this booklet to each newly hired career employee and newly eligible employee. In all cases where the MDC will stock a new or revised TSP item, the MDC will make an initial distribution to Human Resources at installations as noted earlier. Offices may check the TSP Web site for new or revised items.

Note: Form TSP-50 is not available from the TSP Web site.

Participant Statements

Employees with TSP accounts may view their participant statements online or, if they have elected to receive a paper copy, they will receive participant statements from the TSP service office in April 2005, mailed to their address of record.

Publicity

Human Resources at district offices, area offices, PDC/Fs, BMCs, AMC/Fs, remote encoding centers, the Office of Inspector General, Postal Inspection Service divisions, Headquarters, and selected Headquarters field units will receive a supply of posters this open season from the MDC. Installations that receive the posters must distribute them widely and post them on bulletin boards.

To assist in publicizing this TSP open season, all offices must post on bulletin boards (1) the open season notice provided on page 5 of this Postal Bulletin through June 30, 2005, and (2) the current TSP fact sheet.

- Compensation,
Employee Resource Management, 3-31-05

Now Accepting Nominations for the "Dot Sharpe" Lifetime Achievement Award

Dot Sharpe was an individual who knew what it was like to help others. She gave unselfishly to so many - a commitment that never waned. Dot enjoyed helping others and welcomed the opportunity to do so. She was a driving force for change, an innovator, whose actions created synergy and inspiration. During her service to our organization, Dot was instrumental in implementing, administering, and monitoring diversity development policies and actions to ensure compliance with corporate-wide diversity development goals and objectives. Dot was often recognized for her exceptional achievements in affirmative action and the women's program. Her dedication to the United States Postal Service® and her commitment to her fellow employees have left a positive, lasting impact on everyone.

On March 30, 2005, Diversity Development will invite our employees to participate in the National Awards Program for Diversity Achievement. This award program recognizes individuals who have promoted and encouraged diversity in the workplace and in the communities we live and serve.

As part of the National Awards Program for Diversity Achievement, the Postal ServiceTM recognizes the lifetime achievements of an employee who has been a champion for diversity with the Dot Sharpe Lifetime Achievement Award. The award honors that individual whose day-to-day practices emulate the actions of a true visionary and leader - someone who values diversity and what it means to our lives and the world in which we live.

Do you know an employee who is a lifetime champion of diversity in our organization? If so, you are encouraged to complete and submit a nomination for the "Dot Sharpe" Lifetime Achievement Award. To place a nomination, visit the National Awards Program for Diversity Achievement Web page at http://blue.usps.gov/ diversitynet/awards/welcome.htm. Be a part of the program and help us recognize our diversity champions.

- Headquarters and Field Programs,
Diversity Development, 3-31-05