VC Program Is Not an Urban Myth

Voluntary contribution accounts are available only to CSRS and CSRSOffset employees; those employees may invest an amount equal to up to 10 percent of their career federal basic pay in such accounts, where the money earns interest tax-deferred until withdrawn. Withdrawals are allowed either as lump-sums at any time or as annuities at retirement. Although the voluntary contributions program has existed for many decades, many employees still are unaware of it, as are many personnel officials. Some employees who have expressed interest in opening such accounts report they have been met with either blank stares or outright statements that no such program exists. Also, there is a degree of confusion with the Thrift Savings Plan; some employees have been told that the TSP superseded the VC program. In fact, the two programs are separate and participation in one does not affect the other. To open a VC account, file form SF 2804 at the address on the form.