The TSP Open Season is your chance
 to start or change your contributions to your
 TSP account. You can also change the way
 your future payroll contributions are invested in
 the three TSP funds.

 FERS and CSRS employees hired before Janu-
 ary 1, 1999, are already eligible for the TSP.

 New FERS employees are eligible
 as follows:
                                        Open   Season
                                    November 15, 1999-January31, 2000
  January 1,1999
  June 30,1999
  July 1,1999-
  Dec 31,1999
  January 1,2000
  May 31,2000
November 15,1999-
January31,2000
April 15,2000-
JuneSO, 2000*
October 15,2000-
December31,2000*
First full pay
period in
January 2000
First full pay
period in
June 2000
First full pay
period in
December 2000
 Note: Open Season dates change in 2000.

If you are a rehired employee, or if you have
questions about your eligibility, contact your
personnel office.

Ask your personnel office for the TSP Election
Form (TSP-1) or download a copy from the
Forms & Publications section of the TSP Web
site. (Some agencies may be using an electronic
version of Form TSP-1. Check with your per-
sonnel office for guidance.) Submit your com-
pleted Form TSP-1 to your personnel office
before the end of the Open Season. Your con-
tributions will be made automatically from your
pay each pay period, as explained on the back
of Form TSP-1.

          Thrift Savings  Plan
          for Federal Employees
www.tsp.gov
                   ITSP1199

-------
 Tlie Thrift Savings Plan is a
 retirement savings plan for FERS (Federal
 Employees' Retirement System) and CSRS
 (Civil Service Retirement System) employees.
 Because your TSP account is for your retire-
 ment, there are restrictions on withdrawing
 your money while you are employed. However,
 a major advantage of the TSP is that you pay
 no taxes on contributions or earnings until you
 withdraw your account.

 If you are covered by FERS, you can
 contribute up to 10% of your basic pay each
 pay period, up to the annual Internal Revenue
 Service (IRS) limit ($10,000 for 1999). Your
 agency matches your contributions:
   - dollar for dollar on the first 3% you
    contribute each pay period, and
   - 50 cents on the dollar for the next 2%
    you contribute.

Also, your agency automatically contributes an
amount equal to 1% of your basic pay each pay
period, whether you contribute or not.

If you are covered by CSRS, you can
contribute up to 5% of your basic pay each pay
period, up to the annual IRS limit ($10,000 for
1999). You do not receive any agency contri-
butions.

You can choose among three
investment funds:

   9 Government Securities Investment
    (G) Fund — invested in short-term,
    risk-free U.S. Treasury securities that
    are specially issued  to the TSP
   • Common Stock Index Investment
    (C) Fund — invested in a stock index
    fund that tracks the Standard &
    Poor's (S&P) 500 stock index
  • Fixed Income Index Investment
    (F) Fund — invested in a bond index
    fund that tracks the Lehman Brothers
    U.S. Aggregate (LBA) bond index  .
 The annual rates of return of the three
 funds (after expenses) are shown below:

1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1989-1998
compound
annual rates
of return

8.8%
8.9%
8.1%
7.2%
6.1%
7.2%
7.0%
6.8%
6.8%
5.7%
7.3%

31.0%
-3.2%
30.8%
7.7%
10.1%
1.3%
37.4%
22.8%
33.2%
28.4%
19.1%
13.9%
8.0%
15.7%
7.2%
9.5%
-3.0%
18.3%
3.7%
9.6%
8.7%
9.0%
 There is no guarantee that future rates of
 return will replicate historical rates. There is
 risk of investment loss in both the C and
 F Funds.

 TSP returns are calculated monthly. You can
 get the most recent returns by calling the TSP
 ThriftLine at (504) 255-8777 or by visiting the
 TSP Web site at www.tsp.gov.

 More information about the TSP
 is available from your personnel office. Ask
 for the Summary of the Thrift Savings Plan for
 Federal Employees. Be sure to review the
 information in the Plan Summary before you
 make any TSP decisions. If you want more de-
 tailed information on TSP investment funds,
 ask for the Guide to TSP Investments. You can
 also get information from the TSP Web site.

Reminder to TSP participants: If
your address has changed, contact your agency
immediately to correct your TSP account
records.

-------