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Thrift Savings Plan Responds to CARES Act

In recent history, The Thrift Savings Plan has not been able to quickly adapt to required changes to the TSP that were part of federal legislation. The TSP’s response to the important temporary changes in the CARES Act is no different, as it is taking four months for them to fully implement changes that were supposed to be offered to participants as quickly as possible. Below is a summary of what the TSP has already done and what still has to be completed, along with a non-CARES Act major change to the TSP.

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Military Blended Retirement System

On January 1, 2018, the Department of Defense (DOD) will be rolling out a new retirement system called the “Blended Retirement System” or “BRS”. It is a big change to the current military retirement system and focuses on benefiting service members who do not plan on staying in the military for the 20 years that it takes to become eligible for the military retirement pension.

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