Q. I am a retired federal employee and want to start taking my TSP annuity. I can choose from either a TSP annuity or one through MetLife. Which do most retirees choose? Should I split the amount in my account equally between a TSP annuity and a MetLife annuity? Do most retirees do that, or do they just choose the TSP annuity? What are the benefits and risks of either option?
A. The TSP annuity and the MetLife annuity are the same thing. There are not two TSP annuities to choose from. You may either use some or all of your TSP money to purchase an annuity — from MetLife through the TSP’s relationship with them, or another insurance company that you choose — or you may continue to maintain and manage your TSP account while you take monthly withdrawals. You may combine the two and use part of your TSP money to buy an annuity contract and leave the rest in the TSP. See forms TSP-70 and TSP-77 for a summary of your options.