What is thrift savings plan in SAP PSM-FG - Functions for U.S. Federal Government?

SAP Term: thrift savings plan

• Component: PSM-FG

• Component Name: Functions for U.S. Federal Government

• Description: A retirement savings plan for civilians who are employed by the United States Government and members of the uniformed services.

Smart SAP Assistant

• Key Concepts: 
  A Thrift Savings Plan (TSP) is a retirement savings and investment plan offered to U.S. federal government employees and members of the uniformed services. It is similar to a 401(k) plan offered by private employers, but with some key differences. The TSP is administered by the Federal Retirement Thrift Investment Board (FRTIB).
  
  How to use it: 
  The TSP allows federal employees and members of the uniformed services to save for retirement on a tax-deferred basis. Contributions are made through payroll deductions and are invested in one or more of five different funds: the Government Securities Investment Fund (G Fund), the Fixed Income Index Investment Fund (F Fund), the Common Stock Index Investment Fund (C Fund), the Small Capitalization Stock Index Investment Fund (S Fund), and the International Stock Index Investment Fund (I Fund).
  
  Tips & Tricks: 
  The TSP offers several advantages over other retirement savings plans, including lower fees, tax-deferred growth, and the ability to transfer funds between accounts. Additionally, participants can take advantage of special features such as catch-up contributions for those age 50 or older, loan provisions, and withdrawal options.
  
  Related Information: 
  The SAP PSM-FG Functions for U.S. Federal Government module provides an integrated solution for managing Thrift Savings Plans. It enables organizations to manage employee contributions, investments, loans, withdrawals, and other transactions related to TSPs. The module also provides reporting capabilities to help organizations comply with applicable regulations.