RAAUZYUW RUDIDFB1700 0341200-UUUU--RHMCSUU. ZNR UUUUU R 031200Z FEB 10 ZYB FM DFAS CLEVELAND OH TO AIG 4676 AIG 4678 BT UNCLAS //NO7220// MSGID/GENADMIN/NMPO/JFLF// SUBJ/PROCESSING PROCEDURES FOR THRIFT SAVINGS PLAN (TSP) CATCH-UP CONTRIBUTIONS// MILITARY PAY ADVISORY 09/10// REF/A/PUBLIC LAW 107-304/TITLE 5 SEC 8432/NOV 27 2002// REF/B/NAVY DJMS PROCEDURES TRAINING GUIDE (PTG), PART 7 CHAPTER 10// NARR/REF A IS THE LEGISLATION AUTHORIZING ADDITIONAL CONTRIBUTIONS TO THE TSP. REF B IS THE TSP CATCH UP CONTRIBUTION PROCEDURES CONTAINED IN REF B, PARA 71006.// POC/SHARONNE AYERS AND GARY GABERDIEL/CODE JFLFC/216-522-5915/ DSN 580-5915// RMKS/1. THIS MILITARY PAY ADVISORY IS BEING ISSUED TO REITERATE PROCESSING PROCEDURES TO NAVY PAY PERSONNEL OFFICES ON STARTING, CHANGING, AND STOPPING TSP CATCH-UP, WHICH WAS AUTHORIZED BY REF A AND CONTAINED IN REF B. 2. ELIGIBILITY. A MEMBER MUST BE IN A PAY STATUS AND ALSO SELF CERTIFY THAT THEY WILL MAKE (OR HAVE MADE) THE MAXIMUM REGULAR CONTRIBUTION BY THE END OF (OR FOR) THE RELEVANT YEAR. THE MEMBER MUST BE AT LEAST 50 YEARS OLD IN THE YEAR THE CATCH-UP CONTRIBUTIONS ARE MADE. THE MEMBER MUST NOT BE IN THE 6-MONTH NON-CONTRIBUTION PERIOD FOLLOWING RECEIPT OF A FINANCIAL HARDSHIP IN-SERVICE WITHDRAWAL. 3. A MEMBER WHO IS CURRENTLY CONTRIBUTING TO BOTH CIVILIAN AND UNIFORMED SERVICES TSP ACCOUNTS CAN MAKE SEPARATE CATCH-UP CONTRIBUTIONS TO EACH ACCOUNT, AS LONG AS THE TOTAL FOR BOTH ACCOUNTS COMBINED DOES NOT EXCEED THE ANNUAL CATCH-UP LIMIT OF $5500.00 FOR TAX YEAR 2010. TSP WILL CHECK FOR EXCESS CONTRIBUTIONS AND WILL CONTACT THE MEMBER DIRECTLY IF EXCESS CONTRIBUTION HAS BEEN MADE. 4. A MEMBER, WHO MAKES CATCH-UP CONTRIBUTIONS TO THE TSP AND A PRIVATE SECTOR PENSION PLAN, MUST ENSURE THAT THE CONTRIBUTIONS, MADE TO BOTH PLANS COMBINED, DO NOT EXCEED THE ANNUAL CATCH-UP LIMIT. IF A MEMBER DOES EXCEED THE LIMIT, HE OR SHE MAY REQUEST A REFUND OF THE EXCESS CONTRIBUTIONS DIRECTLY FROM TSP. 5. THE TSP CATCH-UP WORKAROUND IS TO PROCESS A 'DS' (MISCELLANEOUS DEBT) TRANSACTION. FIELD ACTIVITIES SHOULD PROCESS THE APPROPRIATE DS TRANSACTIONS, SUCH AS STARTS, CHANGES, AND STOPS IMMEDIATELY ON RECEIPT. THE FOLLOWING PROCEDURES SHOULD BE USED WHEN SUBMITTING THE MISCELLANEOUS DEBT START (DS01), CHANGE (DS04), AND STOP (DS02) TRANSACTIONS: A. DS01 (START MISCELLANEOUS DEBT) TRANSACTION: 1. FIRST SCREEN YR-MO-START: CURRENT YEAR AND MONTH APPROP-CODE-DEPT: 17 AMT-SPEC-INDEBT: MUST BE THE TOTAL AMOUNT ELECTED FOR CURRENT CALENDAR YEAR CANNOT EXCEED $5500 FOR CALENDAR YEAR 2010. AMT-SPEC-DEDTN-CR-MO: MONTHLY AMOUNT TO BE DEDUCTED (FOUND ON THE TSP-U-1-C FORM BLOCK 7) FY-OR-CAL-YR: 10 (CURRENT CALENDAR YEAR) INDEBT-TYPE: H (USED FOR TSP CATCH-UP ONLY) CO-CODE: LEAVE BLANK INDEBT-RSN-SUSP: MUST BE ZERO 2. SECOND SCREEN: APPROP-CODE: 17 F38827001 OBJ.CL: ZERO FILLED BCN-FAN: ZERO FILLED RANK-RATE-SUB-A LOT: ZERO FILLED AAA: 380100 TYPE: ZERO FILLED PROJECT-PROP-ACCT: ZERO FILLED COST-CODE: ZERO FILLED SDN: MUST BE BLANK B. DS04 (CHANGE MISCELLANEOUS DEBT) TRANSACTION: YR-MO-START: CURRENT PROCESSING YEAR AND MONTH AMT-SPEC-INDBT: TOTAL AMOUNT OF INDEBTEDNESS AND IT MUST MATCH THE SPECIFIC INDEBTEDNESS ON THE MMPA AMT-SPEC-DEDTN-CRNT-MO: NEW MONTHLY DEDUCTION AMOUNT FY-OR-CAL-YR: CALENDAR YEAR THE INDEBTEDNESS OCCURRED INDBT-TYPE: MUST MATCH INDEBTEDNESS TYPE ON THE MMPA CO-CODE-(NEW): LEAVE BLANK CO-CODE-(OLD): LEAVE BLANK C. DS02 (STOP MISCELLANEOUS DEBT) TRANSACTION: YR-MO-STOP: YYMM DEDUCTION STOPS (MUST BE CURRENT OR FIRST PRIOR PROCESSING MONTH) AMT-SPEC-INDBT: TOTAL AMOUNT OF INDEBTEDNESS (MUST MATCH THE SPECIFIC INDEBTEDNESS ON THE MMPA) FY-OR-CAL-YR: CALENDAR YEAR THE INDEBTEDNESS OCCURRED (MUST MATCH THE MMPA) INDBT-TYPE: MUST MATCH THE INDEBTEDNESS TYPE ON THE MMPA INDBT-AMT-FRGVN: MUST BE EQUAL TO THE BALANCE DUE IF STOP DATE IS CURRENT PROCESSING MONTH (MUST BE EQUAL TO BALANCE DUE PLUS CURRENT MONTH DEDUCTION IF STOP IS THE FIRST PRIOR PROCESSING MONTH) 6. THE ABOVE PROCEDURES WILL REMAIN IN EFFECT UNTIL TSP CATCH-UP CONTRIBUTIONS ARE AUTOMATED IN DJMS. 7. REQUEST WIDEST DISSEMINATION OF THIS MESSAGE.// BT #1700 NNNN