Saving for retirement is important for everyone. That is why DFAS offers a retirement 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: