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Show 16 NEWS Nov. 15, 1991 HHItop Times p 93SlfO American Forces Information Service the tax bracket and con5 tributes percent of salary would save about $500 in income taxes, said 2S-perce- nt Open season to join, quit or change investments in the Thrift Savings Plan for Federal Employees begins today and continues through Jan. 31, lf2. Federal civilian workers' investments and earnings in the program are valued at more than $10 billion. Record numbers of employees signed up for the plan during the last open season, according to program spokesman Tom Trabucco. Trabucco said new investors were probably attracted by the fact that now they too can invest in the plan's stock and bonds funds. Trabucco. Another advantage to the plan is that employees may borrow against their contribution and earnings to meet medical, educational and financial hardships or to purchase a primary residence. During October, employees could borrow at a 7.5 percent interest rate. Employees must repay the loan through payroll deduction. Home loans must be repaid in 15 years; Tom Trabucco, the Defense Department's Thrift Savings Plan spokesman, provided examples of how much money employees stand to earn if they take advantage of long-terthe personal investment program. For simplicity, all examples below assume the employee receives no pay increase and earns a conservative 7 percent annual rate of return. To date, all three securities, bonds and stocks have averaged more than five-year-o- ld percent of FERS employees' contribu- tions dollar for dollar, and the next 2 percent 50 cents on the dollar. For civilians in the older Civil Service Retirement System, the Thrift Savings Plan provides an excellent supplement to retirement income, he said. The government makes no contribution to these employees' ac- a r- -. . .. Musical . 2 ngunnes r, . I percent annual returns, but past records are no guarantee of future performance. Figures for Federal Employees Retirement System workers in , J s i .. ..... . (j 731-331- 231 1 For more information, call Ext 76142. Retirement System employees bution and matching contributions of up to 4 percent. Civil Service f drl Employ S Yrs receive no automatic or matching government contributions in the Thrift Savings Plan program. Rtirmnt System Account Baltnc Rtirmnt Civil Sarvic ' Account Balanc Employ Contributes: 1 3 5 10 S3.600 $4,500 $8,400 $10,500 $12,600 $12,000 $15000 $18,000 $16,000 $22,500 $27,000 $20,000 $25,000 $30,000 Employ 5 Contributes: 10 20 Years Account Balanc 1 3 If Years S If System 1 3 Employ 5 $1,200 $1,500 $1,800 $3,600 $4,500 $5,400 $6,000 $7,500 $9,000 Contributes: AmmIPiv S20.000 CS.000 00,000 20 Yre SS.4O0 Account Balanc II 3 1 Ami $20,000 $25,000 $30,000 $26,000 $32,500 $39,000 $60,800 $76,000 $91,200 30 Years Account Balanc If $87,000 $108,750 $130,500 $130,400 $163,000 $195,600 $20,000 $25,000 $30,000 Contributes: 10 30 Yiars Account Balanc 1 3 1 3 Employe 5 $61,000 $76,250 $91,500 $142,500 $178,250 $231,900 $203,600 $305,400 $254,500 $381,750 $305,400 $458,100 Employee Contributes: 5 $8,600 $10,750 $12,900 $26,000 S32.500 $43,410 $54,250 $85,100 $39,000 If Employe 5 Contributes: AmIPif ajMiPtr $20,000 $25,000 $30,000 If Per $20,000 $25,000 $30,000 $20,400 $25,500 $30,600 $61,000 $76,250 $91,500 $101,800 $127,250 $152,700 KEN'S . Off Christmas Items i i 0 Reg. $499.95 SPECIAL $379.93 COMPLETE LINE OF CAR ALARMS 1384 No. Angel HOURS: Layton s i i 7 PARTS AND EQUIPMENT Snapper Model No. 3202 - 3 HP. Sale Prices on Large Selection of Separates and Amps s.t 547-086- 8 IS IID1I MliniilEIEililllinillKEIIEIEininill clude the value of the government's automatic 1 percent annual contri- collectibles SPECIALTY WHOLESALERS 0 open season. 3 Unique gifts for those hard to please children of all ages! S Trabucco said account statements are sent to participants before every Tj oa a,ra 30 All balances. This booklet contains tables to help compute account values at a variety of interest rates for varying percentages of income contributed to the plan. It also tells more about the different funds and the loan program. T uirts tor Children rorceiain puting likely individual account (government securities), 8.48 percent. According to Trabucco, the average FERS employee's account totaled $8,800 in September, while the average Civil Service Retirement System account was $6,800. The September 1990 Summary of the Thrift Savings Plan for Federal ment 7 Bwuwofo Gtfct Ctuacecttojc J Tlce 4 i ti wa Employees, available from the Entitlements and Benefits office, Bldg. 1245, Rm. 12, provides information for com- others in four. Employees failing to repay loans will be liable for taxes and penalties. The annual rates of return for the period from Oct. 1, 1990. through inSept. 30, 1991, were: C Fund (stock dex), 31.10 percent; F Fund (bond index), 15.75 percent; and G Fund m funds-govern- counts. Taxes on all government contributions, employee investments and earnings are deferred until the funds are withdrawn. This reduces the worker's current taxable income. For example, a (sllfil Savings plan contributions really add up Under the Federal Employees System, the retirement which covers most employees system hired since 19s3. the government contributes the equivalent of 1 percent of the employees" base salaries to the plan, whether they contribute or not. The government matches the first 3 Retirement f Sl70nigS 0H an employee making $36,000 who is in by Evelyn 0. Harris 'a-g'- InlS li ... ... inn O2 733 W. 1700 S. Syracuse 825-229- 5 Don't miss out on one of the BEST Standard Options for 1992! Open to all federal employees. S5 ALL MILITARY: nn UJA 533 POSlWASTERSl u Standard Option Self & Family Coverage Mtf o o o PURCHASE PROGRAM WILL END DEC. 31, 1991! HURRY IN NOW AND TAKE ADVANTAGE OF WIS Mail-ord- Prescription program Surgical and hospitalization benefits $2,500 limit on your expenses Well Child Care Dental Maternity - Postal Monthly Self 86.78 Self & Family-H- igh 187.18 Option Self only Standard Option 20.04 Self & Family-StanOption 43.33 only-H- Option igh dard -- mmimmmmii 4201 l faftlllMIII''illlll!MIHMl!IHIIIimif( illiliilil'i"'1""'""1""""""""'! .uiuuiuiuitiiiuiflitriiniiiiiii TOLL I i hi n n ai lift!!! 1 mi 188.03 405.56 43.42 93.88 Bi-Wee- 71.66 154.54 5.01 1 0.83 This is a summary of the features of the Postmasters Benefit Plan. Our High Option plan provides different levels of coverage for some benefits. Before making a final decision, All benefits are subject to the please read the Plan's officially approved brochure definitions, limitations and exclusions set forth in the official brochure. 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