As a Federal Employee or a member of the Uniformed Services, you have an opportunity to participate in the Thrift Savings Plan (TSP).

The TSP is a retirement benefit that is similar to "401(k)" plans available to many private sector employees. The purpose of the TSP is to give you the opportunity to participate in a long-term savings and investment plan. Saving for your retirement through the TSP provides numerous advantages, including:

• before-tax contributions and tax-deferred investment earnings
• automatic payroll deductions
• low administrative and investment expenses
• a diversified choice of investment options, including professionally designed lifecycle funds

Read More in the TSP Booklet and TSP Information Paper or visit the TSP Website at www.tsp.gov

The Savings Deposit Program (SDP) was established to provide members of the Uniformed Services a place to deposit money for savings purposes.  Unlike the Thrift Savings Plan, SDP is available only to those serving in designated combat zones.  Service members must be in receipt of Hostile Fire Pay and be deployed for at least 30 consecutive days or at least 1 day in each of 3 consecutive months.  Contact your Finance Office to verify your eligibility.

Interest accrues on the account at an annual rate of 10% (per Executive Order 11298) and compounds quarterly.  Although federal income earned in hazardous duty zones is tax-free, interest accrued on earnings deposited into the SDP is taxable.

Members can designate the allotment amount in five-dollar increments. The savings program is not new -- it provided Vietnam veterans a way to earn extra money while on their Southeast Asia tours. DOD reopened the program to Desert Storm troops in 1991, and extended it to troops in Bosnia in 1996.  The program was further expanded in 1997, 2001, and 2003.