Note - TSP

1 Fact SheetTSPFS24 (3/2020)AnnuitiesThis fact sheet explains life annuities, one of the TSP withdrawal options after you separate from service or have a beneficiary participant account established. For information about your other TSP withdrawal options TSP installment payments and single withdrawals see the TSP booklet Withdrawing From Your TSP Account for Separated and Beneficiary : A life annuity purchased with money from your TSP account is not the basic annuity or pension that you will receive as a result of your retirement coverage under FERS or CSRS, or the military retired pay that members of the uniformed services receive.

2 If you have questions about your eligibility for the basic annuity or military retired pay, contact your agency or is a life annuity?A life annuity is not like your TSP account, an IRA, a certificate of deposit, or a bank account. When you purchase a life annuity, you give up control of your money in exchange for lifetime monthly payments from the annuity of Your Life Annuity PaymentsThe factors that affect the amount of your monthly annuity payments include the following: the amount used to purchase your annuity your age when your annuity is purchased (and the age of your spouse or other joint annuitant if you choose a joint annuity)1 the annuity option you choose the interest rate index when your annuity is purchasedEstimating monthly annuity payments.

3 If you are interested in purchasing a life annuity, visit You will find a calculator to help you with your decision and to estimate your annuity payments. The exact amount of your monthly annuity payment cannot be determined until the date of For life annuity purposes, age is defined in whole years; months are not considered in the annuity an AnnuityThe process for purchasing an annuity using money from your TSP account is the same as for starting TSP installment payments or making a single withdrawal. Log into the My Account section of and click Withdrawals and Changes to Installment Payments.

4 Then use the online tool for withdrawals. See the TSP booklet Withdrawing From Your TSP Account for Separated and Beneficiary Participants for more minimum amount with which to purchase an annuity is $3,500. This minimum applies separately to each balance, traditional and Roth. That comes into play if you have both traditional and Roth balances and you choose not to have the money for your annuity purchase come solely from one balance or the other. When that happens, we take the money from your two balances pro rata, meaning in the proportion they make up of your total account balance.

5 This pro rata distribution, combined with the $3,500 minimum, can create some situations you need to be aware you choose to have money for an annuity purchase taken from both your traditional balance and your Roth balance,2 the following rules apply: 1. If you are using your total account balance to purchase an annuity and one of the balances is at least $3,500 but the other is not, we will purchase an annuity with the balance that is at least $3,500 2 When you have both types of money, traditional and Roth, withdrawing from both balances is the default method; it s what we ll use if you make no pay the other balance directly to you as a cash payment.

6 2. If you are using a portion of your account to purchase an annuity and either of your balances holds less than $3,500, we will reject your request. 3. If the result of the pro rata calculation results in either the Roth portion or the traditional portion of the purchase being less than $3,500, we will proceed as if you do not have the minimum : You have $80,000 in your traditional balance and $20,000 in your Roth balance and you request an annuity purchase of $10,000. We would calculate that the withdrawal used to purchase the annuity must be $8,000 in traditional money and $2,000 in Roth money.

7 Since that is less than $3,500, we would reject your request. Life Annuity OptionsThrough our annuity provider, we offer the following types of annuity options: single life annuity with level or increasing payments joint life annuity with your spouse with level or increasing payments joint life annuity with someone other than your spouse with level paymentsThese annuities are described here, followed by a description of several additional annuity features that you can consider. All of the annuities and their features are also summarized in the chart on page 3. You may only choose one type of annuity per withdrawal Life and Joint Life AnnuitiesSingle life annuity.

8 An annuity that provides monthly payments only to you as long as you live. Certain single life options cash refund and ten-year certain provide for a beneficiary who may receive payment(s) after your death. These options are explained on page life annuity. An annuity that provides monthly payments to you while you and the person with whom you choose to share your annuity (your joint annuitant ) are alive. (If you elect the cash refund feature explained on page 3, a beneficiary may receive a payment after you and your joint annuitant have died.) In most cases, the joint annuitant is the participant s spouse.

9 When you or your joint annuitant dies, monthly annuity payments will be made to the survivor for his or her lifetime. The amount of the payment while you and your joint annuitant are alive and the amount of the payment to the survivor depend on whether you choose a 100% or a 50% survivor annuity. If you want a joint life annuity, you will have to provide proof of your joint annuitant s you choose an annuity that provides for a joint annuitant other than your spouse, the joint annuitant must be either a former spouse or someone with an insurable interest in you. This means that the person is financially dependent on you and could reasonably expect to derive financial benefit from your continued life.

10 Blood relatives or adopted relatives (but not relatives by marriage) who are closer than first cousins are presumed to have an insurable interest in the person you name as your joint annuitant does not have a presumed insurable interest in you, you must submit an affidavit (a certification signed before a notary public) from someone with personal knowledge that the named person has an insurable interest in you. The certifier must know the relationship between you and the joint annuitant and must state why he or she believes that your joint annuitant might reasonably expect to benefit financially from your continued types of joint annuities are available:100% survivor annuity.