Date: April 17, 2005 (Revised May, 2009)
Subject: Changes in Processing Thrift Savings Plan Actions
Category: Non-SF-50 Actions
Reference: PS 05-06, Subject: Changes in Processing Thrift Savings Plan Actions, dated April 17, 2005. PS 05-06.1 supersedes PS 05-06. Please replace that letter with this one.
This letter provides new procedures for Human Resource (HR) Centers to follow regarding processing Thrift Savings Plan (TSP) actions. The procedures affect the following actions:
- TSP Transfer-In
- TSP Hardship Loans (In-Service Withdrawals)
- TSP Missed Contributions Letters
The new procedures become effective April 17, 2005 with the conversion of the HHS payroll system to the Defense Finance and Accounting Service (DFAS).
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TSP year-to-date (YTD) balances must be input in a timely manner to prevent erroneous contributions. When an employee transfers from another federal agency into HHS, it is important that the payroll system be updated with the TSP YTD employee contributions. The TSP YTD transfer-in amounts are input by the DFAS civilian payroll office based on the Standard Form (SF) 1150, or the employees last LES from the previous agency along with a memorandum certifying the transfer-in amounts if an SF 1150 is not provided by the losing payroll office.
The information must be sent to the Payroll Customer Service Team for processing. The information must be sent electronically using the Peregrine system using the Category: BENEFITS Subcategory: TSP along with a copy of the last LES from the previous agency.
The Peregrine screen contains a specific section to input the TSP information. The first line of the description field must indicate TSP Transfer-in. Include the information below in the Peregrine ticket:
- Employee ID (optional)
- TSP Status: Code and Date
- Date of Birth
- Retirement Code
- TSP YTD balance
- Copy of the employee’s last LES from his/her previous agency.
HR Centers will not be required to process TSP Hardship Loan actions. Upon accepting an employee request for an in-service withdrawal from their TSP account, the National Finance Center (NFC) will send an electronic file to DFAS to update the payroll system record. The employee TSP status code will change to either “T” or “S.”
The HR Center will be notified of this change in TSP status code by the Enterprise Human Resources and Payroll (EHRP) system.
DFAS will maintain the standard restrictions of the non-contribution period of six months from the date of disbursement of the withdrawal. The NFC will continue to be responsible for sending the employee an eligibility notice at the end of the six-month period. Resumption of employee contributions will still require that the employee submit the appropriate election form, TSP-1 to the HR Center.
HR Centers are no longer required to process thrift missed contributions actions. If an employee’s TSP action is not processed by the effective date indicated, the employee should receive a “missed contributions letter.” The TSP missed contributions letters will be mailed directly to the employee by the DFAS Payroll Office. The employee has thirty days to respond to the DFAS Payroll Office.
If an employee believes that a missed contributions letter should have been generated – or the letter is incorrect – the HR Center should intervene and send an inquiry to their Payroll Customer Service Team using the Peregrine system.
For further assistance or for questions regarding the information in this letter, please contact your Customer Service Team in the Payroll Services Division.