Under the TSP vesting rules, every dollar you contribute from your own paycheck and every dollar of agency matching is yours the moment it lands in your account. The only piece with a waiting period is the Agency or Service Automatic (1%) Contribution, which most federal civilian employees must work three years to keep, and most uniformed service members under the Blended Retirement System must work two. Leave a day short and that slice, plus its earnings, is forfeited.
What’s Yours From Day One
Your own contributions are fully nonforfeitable the moment they are made, whether you chose traditional or Roth tax treatment.1Office of the Law Revision Counsel. 5 USC 8432 – Contributions Quit after a single pay period and you walk away with the full balance of what you put in, plus any investment growth on it. No service requirement applies.
Agency Matching Contributions are treated the same way. If you’re covered by FERS or the Blended Retirement System and your agency is matching your deferrals, those matching dollars and their earnings are yours immediately.2Thrift Savings Plan. Summary of the Thrift Savings Plan This surprises people used to private-sector 401(k) plans, where employer matches often vest gradually over several years. The TSP does not work that way.
The One Piece With a Vesting Clock
The Agency or Service Automatic (1%) Contribution is the only part of your account subject to vesting. Your agency deposits an amount equal to 1% of your basic pay every pay period whether you contribute anything yourself or not, but you have to stay long enough to earn permanent ownership of it.3Thrift Savings Plan. Thrift Savings Plan (TSP) – Contribution Types
This is cliff vesting. You either own all of it or none of it. There is no partial credit for completing part of the service requirement.
Three Years for Most FERS Employees
Most FERS employees must complete three years of federal civilian service to vest in the automatic 1% contributions and their earnings.1Office of the Law Revision Counsel. 5 USC 8432 – Contributions
Two Years for Certain Positions
Under 5 U.S.C. § 8432(g), a two-year requirement applies to noncareer Senior Executive Service appointees; Executive Schedule positions listed in 5 U.S.C. §§ 5312–5316 or placed in Level IV or V under § 5317; confidential or policy-determining positions in the Executive branch excepted from the competitive service; and Members of Congress and congressional employees.1Office of the Law Revision Counsel. 5 USC 8432 – Contributions
Two Years for the Uniformed Services Under BRS
Members of the uniformed services enrolled in the Blended Retirement System vest in the Service Automatic (1%) Contribution after two years of service. Personal contributions and service matching remain immediately vested.4Military Compensation and Financial Readiness. Defined Contribution (TSP)
How Your Service Time Is Counted
Your vesting clock runs on the TSP Service Computation Date (TSP-SCD), not just your hire date. Any non-military civilian service creditable under FERS or CSRS retirement law counts, including service for which you took a refund of retirement contributions, and potentially creditable civilian service for which no contributions were made. Your agency personnel office verifies the date using your Official Personnel Folder.5Thrift Savings Plan. Thrift Savings Plan Vesting Requirements and the TSP Service Computation Date
Vesting is measured in years, not hours. A part-time employee’s calendar time counts the same as a full-time employee’s, and you don’t need to actively contribute to the TSP during that time for the service to count.2Thrift Savings Plan. Summary of the Thrift Savings Plan
Leave Without Pay
Nonpay status counts toward your TSP-SCD, but only up to six months in aggregate per calendar year. Time beyond six months in a given year generally does not count. Two exceptions: if you’re on nonpay status because of a work-related injury and receiving workers’ compensation, the whole period counts; and if you’re absent for military service and later return under USERRA, that time counts in full.5Thrift Savings Plan. Thrift Savings Plan Vesting Requirements and the TSP Service Computation Date
Military Service
Standalone military service performed before you entered the federal civilian workforce does not count toward TSP vesting. If you leave a federal civilian job for military service and are reemployed under the Uniformed Services Employment and Reemployment Rights Act (USERRA), the entire period of your military absence is added to your TSP-SCD.5Thrift Savings Plan. Thrift Savings Plan Vesting Requirements and the TSP Service Computation Date Two years of civilian service, a year of active duty, and a return to your federal job puts you at three full years for vesting purposes on the day you’re reemployed.
If You Leave Before You Vest
Separate from federal service before meeting the vesting requirement and the Agency Automatic (1%) Contributions, plus every dollar of earnings on them, are forfeited. Your agency processes this automatically at separation. The money goes back to the TSP, not to you, and being close to the finish line is not grounds for appeal.2Thrift Savings Plan. Summary of the Thrift Savings Plan
Everything else stays yours. Your personal contributions, agency matching, and all earnings on both remain available to withdraw, roll over, or leave invested. Only the automatic 1% piece and its growth disappear.
If your separation was for military service and you are later reemployed under USERRA, the forfeited automatic contributions can be restored. Your reemploying agency initiates that by submitting corrected records and a restoration request to the TSP.6Thrift Savings Plan. TSP Forfeitures and Forfeiture Restoration Procedures
When the Requirement Is Waived
Death in federal service waives the vesting requirement automatically. You’re treated as fully vested in everything, including the automatic 1% contributions and their earnings, and your beneficiaries receive the full account balance regardless of length of service.2Thrift Savings Plan. Summary of the Thrift Savings Plan
A Note for CSRS Employees
If you’re covered by the Civil Service Retirement System rather than FERS, vesting is largely a non-issue. CSRS employees can contribute to the TSP but do not receive Agency Automatic (1%) or Agency Matching Contributions. Since those are the only funds subject to vesting, a CSRS employee’s entire TSP balance is fully owned from the start.
Fixing a Wrong Vesting Date
Agencies sometimes calculate the TSP-SCD incorrectly, especially where there is prior federal service, a break in service, or a period of military duty. If you think yours is wrong, file a written claim with your employing agency. The agency must respond within 30 days or explain why it needs more time. Any denial must be in writing and must explain the reasons, cite the relevant regulations, describe what additional documentation could strengthen your case, and outline how to appeal.7eCFR. 5 CFR Part 1605 – Correction of Administrative Errors
You then have at least 30 days to file a written appeal with the agency official named in the denial, attaching supporting documents such as prior appointment records, military discharge paperwork, or corrected personnel actions. The agency has 30 days to decide the appeal.7eCFR. 5 CFR Part 1605 – Correction of Administrative Errors If the agency denies your appeal or fails to respond on time, you have exhausted your administrative remedies and can file suit under 5 U.S.C. § 8477. There is no further administrative appeal to the Federal Retirement Thrift Investment Board. Check your TSP-SCD early in your career, not at separation, when the stakes are highest and the window to fix things is tightest.