FORWARD Act

This bill lets certain former service members keep adding money to their Thrift Savings Plan (TSP) after they leave the military. Retired members, or veterans with a 100% disability rating who receive VA compensation, could choose to put part of their retired pay or disability payments into their existing TSP accounts. There would be no government matching or automatic contributions—just the individual’s own deposits. To use this option, the person must already have had a TSP account before leaving service or federal employment.

The TSP board, working with the Defense Department and the VA, would have 180 days after the law takes effect to set the rules to make this work.

• Who is affected: Former uniformed service members who get retired pay, or veterans with a 100% VA disability rating, who are not currently federal employees and already had a TSP account before separating.
• What changes: They can contribute part of their retired pay or disability compensation to their TSP; no government matching is allowed under this option.
• When: Rules must be issued within 180 days after the law is enacted.