Problems with the TSP and the New Consolidated Special Pays

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I was forwarded this message regarding a new problem with the Thrift Saving Plan (TSP) contributions and those converting to the new consolidated pay plan. I don’t fully understand it and was debating whether I should even post it, but I decided to do so. In my opinion, the take home messages are:

  • If you are contributing to the TSP using your special pays, you should probably just use a percentage of your base pay, if possible. This is what I do, and I converted to the new pay plan in June without any TSP issues.
  • If you don’t regularly check your TSP contributions, you probably should after you convert to the new pay plan.

Here is the message:

All, I was just apprised of this issue with TSP, and the new special pays, and wanted to get it out as quickly. This is very important and needs to get out ASAP. I am sure I have listed all command coordinators, so for NMC San Diego, and NMC Portsmouth, appreciate if you could send this to the Regional Command DFA, so they can get it out to all
the commands.

My office was not made aware of this issue until today. Due to workarounds DFAS has had to do, particularly for the MC and DC in order to pay what was previously MSP and DOMRB, it has effected individuals elections to TSP.

My office has nothing to do with TSP, and would not be able to answer any questions, or resolve any issues, so individuals need to contact their PSD, or email the DFAS TSP office at dfas.cleveland-oh.jfl.mbx.ccl-military-tsp@mail.mil.

DFAS has a draft message they will be releasing this weekend to the PSDs, but the important information individuals need to know about claiming TSP for the new pays, which is under paragraph 5 of the message is below. No one should be electing the legacy special pays anymore (A – C), so only (D -F) are the ones they should be concerning themselves with.

For MC and DC, what DFAS has done is convert all MSP and DOMRB to CRNA-ISP in their system to ensure anniversary payments are made. The reason is the DFAS system has a failsafe to prevent a non-MC or non-DC from receiving the pay, and that is the member must have a resident VSP in the system at the time the anniversary MSP or DOMRB payment is due. If the MC/DC officer has converting to the new CSP then their VSP was stopped, and the anniversary MSP/DOMRB payment would reject.

THE FOLLOWING INFORMATION WILL ASSIST WITH TSP ELECTION:
A. LEGACY BCP: SHOULD ELECT SPECIAL PAY FOR TSP CONTRIBUTION PURPOSES, ALONG WITH ITS PERCENTAGE.
B. LEGACY VSP DC: SHOULD ELECT SPECIAL PAY FOR TSP CONTRIBUTION PURPOSES, ALONG WITH ITS PERCENTAGE.
C. LEGACY VSP MC: SHOULD ELECT SPECIAL PAY FOR TSP CONTRIBUTION PURPOSES, ALONG WITH ITS PERCENTAGE.

D. HPO BCP: SHOULD ELECT INCENTIVE PAY FOR TSP CONTRIBUTION PURPOSES, ALONG WITH ITS PERCENTAGE.
E. HPO IP: SHOULD ELECT INCENTIVE PAY FOR TSP CONTRIBUTION PURPOSES, ALONG WITH ITS PERCENTAGE.
F. RETENTION BONUS: SHOULD ELECT SPECIAL PAY FOR TSP CONTRIBUTION PURPOSES, ALONG WITH ITS PERCENTAGE.

Again, if there are any questions they should be addressed to the PSD, or the DFAS TSP email Address above.

SEMPER FI!

William L. “Bill” Marin
Program Manager, Navy Medical Special Pays Program
Chief, Bureau of Medicine and Surgery (M13)
7700 Arlington Blvd. (Suite 5125)
Falls Church, VA 22042-5125

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