Retirement

Defense Finance
and Accounting Service
Providing payment services of the U.S. Department of Defense
MyPay

Retirement

Saving for retirement is important for everyone. That is why DFAS offers a Retirement-Social Security-Basic Benefit Plan-Thrift Savings Planretirement program that helps provide financial security for you and your family.  This is one of the most important benefits you receive as a Federal employee.  Almost all new employees are automatically covered by the Federal Employees Retirement System (FERS). FERS is a three tiered retirement plan. The three tiers are:

  • Social Security Benefits:  You pay Social Security taxes and DFAS pays an equal amount.
  • Basic Benefit Plan:  You pay a small contribution to the Basic Benefit Plan and DFAS funds the rest.
  • Thrift Savings Plan (TSP):   TSP offers the same types of savings and tax benefits that many private corporations offer their employees under 401(k) plans.  You can choose to make tax-deferred contributions to the TSP and a portion is matched by the Government. DFAS will automatically contribute an amount equal to 1% of your basic pay each pay period to your TSP account, even if you don’t choose to make contributions.

    We also invest $1.00 for every $1.00 you invest for the first 3 percent of your basic salary, and 50 cents for each $1.00 you invest for the next 2 percent of your basic salary. The agency contributions are not taken out of your salary; they are an extra benefit to you.  You can start, change, stop, and resume TSP contributions at any time. There is no waiting period.

More information on the FERS Program:

Page updated June 22, 2016.