Terms & Definitions
Master the language of federal benefits. A complete glossary of retirement, insurance, and investment terminology.
A
Accepting Assignment
When a doctor or supplier agrees to accept the Medicare-approved amount as full payment for covered Part B services.
B
Basic Benefit Plan
The defined-benefit pension portion of FERS. It provides monthly annuity payments after retirement based on age, years of service, high-3 average salary, and the applicable pension formula.
C
C Fund
The TSP Common Stock Index Investment Fund. It is designed to track the performance of a broad U.S. large-company stock index.
D
12(d) Coverage
A common shorthand for special retirement coverage under FERS statutory references.
E
Early Retirement
A retirement that begins before normal voluntary retirement eligibility. In federal benefits, this can refer to VERA, discontinued service retirement, special provision retirement, or certain TSP/IRS withdrawal situations.
F
F Fund
The TSP Fixed Income Index Investment Fund. It is designed to track a broad U.S. bond index.
G
G Fund
The TSP Government Securities Investment Fund. It invests in special U.S. Treasury securities issued only to the TSP and is designed to preserve principal while earning interest.
H
High-3 Average Salary
The highest average basic pay earned during any three consecutive years of creditable federal service. High-3 is a key part of the FERS and CSRS pension calculation.
I
I Fund
The TSP International Stock Index Investment Fund. It is designed to track international stock market performance outside the United States.
J
No terms currently listed for the letter J. This section is intentionally left blank.
K
No terms currently listed for the letter K. This section is intentionally left blank.
L
L Fund
A TSP Lifecycle Fund. L Funds are diversified funds that automatically adjust their investment mix over time based on a target retirement date or withdrawal timeline.
M
Mandatory Retirement
A required separation age for certain federal employees, including some law enforcement officers, firefighters, air traffic controllers, nuclear materials couriers, and Customs and Border Protection officers.
N
Net Annuity
The annuity payment after deductions.
O
OASDI
Old-Age, Survivors, and Disability Insurance. The Social Security portion of payroll taxes and Social Security benefits.
P
Part B Premium
The monthly premium paid for Medicare Part B. It can be higher for people with higher income.
Q
Qualified Distribution
A distribution that meets tax-law requirements for favorable tax treatment. For Roth accounts, qualified distributions generally require meeting age and holding-period rules.
R
Reassignment
Movement of an employee to another position without promotion or change to lower grade.
S
S Fund
The TSP Small Capitalization Stock Index Investment Fund. It is designed to track U.S. stocks not included in the large-company index tracked by the C Fund.
T
Tax-Exempt Balance
A TSP balance from tax-exempt contributions, usually related to uniformed service in a combat zone tax exclusion situation.
U
Unpaid Compensation
Salary or other pay owed to a federal employee at death. It can be paid according to a beneficiary designation or order of precedence.
V
VA Disability Compensation
A tax-free benefit paid by the Department of Veterans Affairs to eligible veterans with service-connected disabilities. It is separate from FERS, TSP, FEHB, military retired pay, and Social Security.
W
Waiver of FEGLI
An election to decline FEGLI coverage. This matters because getting coverage back later may require a qualifying event, open season, or medical underwriting.
X
No terms currently listed for the letter X. This section is intentionally left blank.
Y
Year of Service
A period of creditable employment used to determine federal retirement eligibility and annuity computation. Not every type of service counts the same way.
Z
No terms currently listed for the letter Z. This section is intentionally left blank.