P 241613Z NOV 14
FM DFAS CLEVELAND OH
TO AIG 4730//
AIG 4676//
AIG 4678//
BT
UNCLAS
SUBJ/INFORMATION AND ACTION REQUIRED FOR NAVY MEMBERS BEING PAID ON
THE DEFENSE JOINT MILITARY PAY SYSTEM (DJMS) ACTIVE COMPONENT ON NEW
SYSTEM IMPROVEMENTS FOR ROTH THRIFT SAVINGS PLAN (TSP) AND CATCH-UP
CONTRIBUTIONS//
MILITARY PAY ADVISORY 47/14//
POC/BARBARA BLOCK/CODE JFLQ/TEL: 216-204-4308//
RMKS/1.  THIS MILITARY PAY ADVISORY PROVIDES INFORMATION AND
ACTION REQUIRED FOR NAVY MEMBERS BEING PAID ON THE DJMS PAY SYSTEM ON
NEW SYSTEM IMPROVEMENTS FOR ROTH TSP AND CATCH-UP CONTRIBUTIONS.
2.  IN JANUARY 2015, NAVY MEMBERS PAID ON THE DJMS PAY SYSTEM ACTIVE
COMPONENT WHO WANT TO CONTINUE THEIR ROTH TSP CONTRIBUTIONS MUST
SUBMIT A NEW ROTH TSP ELECTION ON MYPAY OR SUBMIT A TSP ELECTION FORM
TO THEIR FINANCE OFFICE. IF THE MEMBERS DO NOT SUBMIT A NEW ELECTION
THEN THEIR ROTH TSP CONTRIBUTIONS WILL BE STOPPED AT THE END OF
JANUARY 2015. THIS REQUIREMENT IS DUE TO DJMS PAY SYSTEM IMPROVEMENTS
THAT WILL MORE FULLY AUTOMATE PROCESSING AND PROVIDE BETTER CUSTOMER
SERVICE.
3.  CURRENTLY THE MEMBER MAY ELECT ROTH OR TRADITIONAL TSP CONTRIBUTIONS
OR BOTH. IF ROTH IS ELECTED, THE ELECTION MUST BE IN A DOLLAR AMOUNT
THAT INCLUDES HIS/HER COMBINED ELECTIONS FOR BASIC PAY, SPECIAL PAY, AND
INCENTIVE PAY AND A SEPARATE DOLLAR AMOUNT ELECTION FOR A ONE TIME
ENTITLEMENT. THE MAIN CHANGE WILL BE THAT THE MEMBER WILL BE ABLE TO
ELECT SEPARATE PERCENTAGES OF BASIC PAY, SPECIAL PAY, INCENTIVE PAY AND
BONUSES FOR ROTH TSP. AS WITH TRADITIONAL TSP ANY ELECTIONS FOR PAYS NOT
CURRENTLY BEING RECEIVED WILL BE MAINTAINED ON THE MEMBERS ACCOUNT
AND APPLIED IF THE MEMBERS RECEIVE THOSE PAYS.
4.  ROTH CONTRIBUTIONS FOR FEBRUARY WILL BE ACCEPTED JANUARY 1, 2015 TO
JANUARY 31, 2015. THE MEMBER MAY MAKE THEIR ELECTION ONLINE WITH MYPAY
OR SUBMIT THE PAPER ELECTION FORM, TSP-U-1, AVAILABLE ON WWW.TSP.GOV
TO THEIR FINANCE OFFICE. A REVISED FORM WILL BE AVAILABLE JANUARY 2015
ON WWW.TSP.GOV. NAVY STANDARD INTEGRATED PERSONNEL SYSTEM (NSIPS)
WILL NOT BE AVAILABLE UNTIL AFTER JANUARY 31, 2015 FOR SUBMITTING ROTH
TRANSACTIONS.DEFENSE MILPAY OFFICE WILL BE READY TO ACCEPT
TRANSACTIONS BEGINNING JANUARY 1, 2015.
5.  THESE CONTRIBUTIONS WILL BE EFFECTIVE BEGINNING FEBRUARY 2015. THE
FINAL DOLLAR AMOUNT FOR ROTH CONTRIBUTIONS WILL BE DEDUCTED FROM THE
END OF MONTH PAY ON JANUARY 30, 2015.
6. SINCE ROTH TSP IS CALCULATED BASED ON GROSS PAY BUT DEDUCTED FROM NET
PAY, THE MEMBER NEEDS TO DO THE MATH TO MAKE SURE THEY HAVE SUFFICIENT NET
PAY FOR THE ROTH CONTRIBUTION. TRADITIONAL TSP ALSO HAS A NUMBER OF
DEDUCTIONS TAKEN FIRST SO THE MEMBERS WILL NEED TO MAKE SURE THEY HAVE
SUFFICIENT NET PAY FOR TRADITIONAL TSP. AN EXAMPLE WOULD BE IF A MEMBER
ELECTED 51 PERCENT BASE PAY FOR TRADITIONAL, THEY WOULD ONLY BE ABLE TO
ELECT 27 PERCENT BASE PAY FOR ROTH TSP. THERE WILL BE WORKSHEETS AND
CHARTS AVAILABLE TO ASSIST MEMBERS IN MAKING A ROTH TSP ELECTION AND A
TRADITIONAL ELECTION OR BOTH. THE WEB SITE IS:
http://www.dfas.mil/militarymembers/tspformilitary/tspac.html.
7.  IF A MEMBER IS 50 OR OVER (OR TURNS 50 DURING THE CALENDAR YEAR WHICH
THEY MAKE ELECTION) AND PLANS TO CONTRIBUTE THE MAXIMUM DEFERRAL
AMOUNT TO TRADITIONAL AND/OR ROTH TSP OR AN EQUIVALENT EMPLOYER PLAN,
 THEY MAY BE ELIGIBLE TO MAKE ADDITIONAL CONTRIBUTIONS TO TSP CALLED
CATCH-UP CONTRIBUTIONS. STARTING IN JANUARY 2015, MEMBERS WILL BE ABLE
TO START THEIR ROTH OR TRADITIONAL CATCH-UP ELECTIONS ON MYPAY.  TO
STOP OR CHANGE THE AMOUNT OF THE MEMBERS MONTHLY CONTRIBUTION,
THE MEMBER WILL NEED TO SUBMIT A TSP-U-1C FROM TO THEIR FINANCE
OFFICE AS THEY DO NOW.  THAT FORM WILL ALSO BE AVAILABLE ON
WWW.TSP.GOV TO START CATCH-UP CONTRIBUTIONS IF THE MEMBER DOES
NOT HAVE ACCESS TO MYPAY.
8.  REQUEST WIDEST DISSEMINATION POSSIBLE.//
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