RIF and TSP options


Q. I am a civilian federal employee with 24+ years in FERS. Is there information as to whether or not there will be a reduction in force for the Defense Department in the next six to 12 months? I am considering retirement but would like to qualify for a buyout if it becomes available.

What options are there for my Thrift Savings Plan at retirement? I’d like to roll over into more than one IRA, at separate financial institutions, if possible.

How long does it take to process retirement paperwork? I also need to apply for Social Security benefits.

A. Mike: You may continue your TSP for life, or you may roll your balance over to one or more IRAs.

Reg: No, there isn’t any information about whether DoD will announce a RIF in the next six to 12 months nor, if it does, which activities would be affected, and if buyouts would be offered.

The processing of paperwork for retirement occurs in two places, your agency and the Office of Personnel Management. While I have no idea how efficient your agency is, everyone knows that OPM has fallen behind in meeting its targets. How far behind is anyone’s guess.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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