Q: Do you know of any provisions in the Federal Erroneous Retirement Coverage Corrections Act that allows one to get a Thrift Savings Plan loan with agency matching funds in their TSP account? In April, while employed with the Department of the Army, the Army Benefit Center informed me that I was entitled to retirement plan corrective action under FERCCA. In July, I submitted my FERCCA election form to enroll me into Civil Service Retirement System Offset retirement coverage from the Federal Employees Retirement System. ABC sent letters to my previous employers notifying them of this change and informing them that they need to remove any agency matching funds and the automatic one percent from my TSP account. I understand this part of the process. However, recently I attempted to get a TSP loan and was told that I am not eligible for a loan because I have agency matching funds in my TSP account. The matching funds are there from when I was covered under FERS, and workers covered under CSRS are not eligible for agency matching funds. It’s been six months since my retirement plan changed and I still cannot borrow my own money.
A: I know of no such provisions. You should contact your employing agency and/or the TSP for further advice on how to have the excess employer contributions removed from your account.