Count Those Pay Dates Carefully

Some federal employees will have 27 pay dates in calendar year 2007, which could affect TSP investment planning for some FERS employees. All investors are limited to a $15,500 dollar cap for the year, but FERS investors planning to put in the full amount must be sure to continue investing through every pay period of the year in order to capture the maximum government contribution. If they set up their investments on the assumption of 26 pay dates, they would not be able to make an investment in a 27th, and they would lose matching contributions for that pay period (that’s not a concern for CSRS participants, who get no government contributions). Pay dates vary according to payroll systems, which differ from agency to agency and even within agencies in some cases. Employees should check with their payroll office, taking note that the key distinction is not how many pay periods are in the year for them, but how many pay dates. TSP investors can change their investment levels at any time.