The Federal Retirement Thrift Investment Board, administrator of the Thrift Savings Program (TSP), has made temporary changes in the financial hardship withdrawal rules for employees affected by Hurricane Sandy.
For a limited time, TSP participants can make hardship withdrawals either for themselves or for their family members.
Also, TSP is waiving its rule barring contributions for a 6-month period following a hardship withdrawal, allowing participants to more quickly restore their savings.
To qualify for a hardship withdrawal, participants must meet the following criteria:
- The participant’s primary residence or place of employment must be in a covered disaster area.
- The loss must have been a result of Hurricane Sandy.
- Participant’s hardship withdrawal request will be used for themselves or to assist an eligible family member who lives or works in a covered disaster area and incurred a loss as a result of Hurricane Sandy.
- The participant must be a federal employee.
- The participant must write “Hurricane Sandy” on the top of page 1 of Form TSP-76.
- The participant must check the “Personal Casualty” box on page 2 of the request form, as the reason for requesting financial hardship.
- The participant request must be received by Jan. 25, 2013. The distribution must occur before Feb. 1, 2013.
Participants who want to stop making TSP
contributions must complete Form TSP-1,
Election Form, or use the applicable automated system.