Benefits

Accidental TSP payments sent out last week

Nearly 10,000 participants received payments, some as much $10,000

Federal News Network Staff

January 4, 2011 10:05 am

< a min read

The Thrift Savings Plan accidentally sent out payments to nearly 10,000 participants last week, and now is asking for the money to be returned.

The Federal Retirement Thrift Investment Board’s Tom Trabucco told the Washington Post that a processing error was to blame, and resulted in payments to some participants as high as $10,000.

Approximately 9,700 of the TSP’s 4.4 million participants received notices and checks as part of minimum distributions, which is what participants receive at the age of 70 ½. Trabucco said that participants had been notified about the error, and would be given directed as to how to return the money. However, participants who received checks are not required to return the money; if they do choose to keep it though, they will be taxed for it.

“It’s their money,” Trabucco told the Post.

Trabucco spoke with the DorobekINSIDER recently about the “very postive” TSP returns in 2010.