Ask The Experts: Money Matters

By Mike Miles

Rehired annuitant covered only by Social Security

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Q. My wife was RIFed in 2008 at age 48 with 28 years of service with a $7,000 Thrift Savings Plan balance and was placed on CSRS discontinued service retirement. She was re-employed by the government five months later with a different agency. Because she is a re-employed annuitant, she can no longer contribute to TSP and is covered by Social Security’s Old Age, Survivors and Disability Insurance only. Emails and telephone calls to TSP have proved less than helpful; TSP has advised her that the only action possible is to leave the fund as is. We both wanted to verify TSP’s advice.

A. From the bulletin available at https://www.tsp.gov/PDF/bulletins/09-9.pdf: “Employees appointed to positions that are not covered by FERS or CSRS (e.g., a position covered by Social Security (FICA) only) are not eligible to participate in the TSP.” I encourage you to read the relevant parts of the bulletin for more details that may apply to you.

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