TSP Catch-Up Bill Passes House

The House has passed legislation (HR-3440) to allow Thrift Savings Plan investors aged 50 and above to make special catch-up contributions, bringing policy for TSP investors in line with a change enacted for private sector workers last year. The bill would allow catch-up contributions of $2,000 in calendar 2003, with the amount rising by $1,000 each year until hitting $5,000 in 2006, and adjusted for inflation afterward. The measure, which had been long delayed by budget scorekeeping disputes, now moves to the Senate, where quick action is possible since a similar measure has cleared the committee level there. The catch-up contributions would be over and above the dollar or percentage of salary limits applying to TSP investors.