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2007 Catch-Up Contributions for Participants Age 50 and Older

New Dates and Contribution Limits

If you are a Thrift Savings Plan (TSP) participant age 50 or older, you may be eligible to participate in the Catch-Up Contributions for the TSP. Note the new dates and contributions limits that follow:

• These contributions supplement your regular TSP employee contributions; that is, they do not count against the Internal Revenue Service (IRS) annual limit on elective deferrals ($15,500 in 2007), but they do have their own annual Catch-Up limit, which is $5,000 in 2007.

• There are no Postal ServiceTM matching contributions associated with TSP Catch-Up Contributions.

• Your initial election for 2007 can be effective no earlier than the first pay period (PP) in the 2007 calendar year (PP 01-07), which begins December 23, 2006.

• For your initial elections to be effective during that first pay period, you should make your election using PostalEASE between Wednesday, December 20, 2006, at 12:01 P.M. CT and Wednesday, January 3, 2007, at 11:59 A.M. CT.

• After December 23, 2006, you will be able to elect Catch-Up Contributions at any time. Once you do, you can change the amount or stop at any time, using PostalEASE, without affecting your regular contributions.

Eligibility for Catch-Up Contributions

To elect Catch-Up Contributions, you must:

• Be age 50 or older, or turn 50 in the calendar year the election is submitted and processed.

• Be able to self-certify that by the end of the calendar year you will have contributed the IRS annual deferral limit, $15,500 - through regular contributions to TSP and/or to other plans subject to the elective deferral limit.

• Be in a pay status. Contributions are made from basic pay through payroll deductions only.

• Not be in the 6-month noncontribution period following the receipt of a financial hardship in-service withdrawal.

Note: There is no "look-back" provision to see what you could have contributed but did not. If you are eligible to participate, you simply have the right to contribute the additional funds up to the annual Catch-Up Contribution limit. If you have been performing active duty military service, however, you may be eligible to make missed Catch-Up Contributions under the Uniformed Services Employment and Reemployment Rights Act (USERRA).

How to Enroll in TSP 50+ Catch-Up Contributions for Calendar Year 2007

To prepare to start TSP 50+ Catch-Up Contributions, before accessing PostalEASE, read the instructions in the TSP Catch-Up Contributions material sent to your address of record and then complete the enclosed worksheet. If you did not receive the mailing, call the Employee Service Line toll-free at 877-477-3273 to reach the Human Resources Shared Service Center (HRSSC).

You may access PostalEASE on the Employee Web on the Internet at, on the Postal Service Intranet Blue, or at an employee self-service kiosk. Using one of these may be easier than using the telephone. Just follow the instructions. Otherwise, call the Employee Service Line toll-free line at 877-477-3273 to reach PostalEASE.

You must have available your Employee ID (found at the top of your earnings statement) and your USPS personal identification number (PIN). Instructions for obtaining your USPS PIN are on the worksheet.

Catch-Up Contributions will be invested in your account based on the most current contribution allocation on file with TSP. Your contribution allocations must be made with the TSP using the TSP Web site, ThriftLine, or Form TSP-50, Investment Allocation.

Other Information

Making elections after PP 01 - You may make more than one election in any given calendar year (so long as you do not exceed the annual Catch-Up Contributions limit). You must complete your election using PostalEASE by 11:59 A.M. CT the second Wednesday (day 12) of each pay period in order for the election to be effective in that pay period.

Keeping within your tax deferral limit - The annual amount of your Catch-Up Contributions is combined with your regular tax-deferred contributions and shown in the deferral block of IRS Form W-2. If the amount shown exceeds the IRS limit for regular contributions, the IRS will check your date of birth with the Social Security Administration and assume any amount over the limit is attributable to the Catch-Up Contributions. If you see that you will exceed the Catch-Up Contributions limit (usually by contributing to more than one plan), you may contact the TSP and request a refund of the excess Catch-Up Contributions.

Terminating Catch-Up Contributions after withdrawals - If you receive a financial hardship in-service withdrawal, your Catch-Up Contributions must stop along with any regular employee contributions for a period of 6 months.

Making elections next year - Your Catch-Up Contribution election terminates automatically with the last pay date of the calendar year to which it applies unless you have previously terminated the election or you have reached the annual Catch-Up Contribution limit. You will need to make a new election for each calendar year in which you wish to make Catch-Up Contributions.

Questions - If you have questions about TSP or PostalEASE, contact the HRSSC for assistance.

— Compensation,
Human Resources, 12-7-06