Uniformed Services Thrift Savings Plan: Analysis, Perceptions, and Alternatives
Abstract
Since January 1, 2002, uniformed service members have been able to set aside a portion of their income into a tax-sheltered, defined contribution plan. This study analyzed the level of understanding and perception that military members have concerning the UNISERV TSP. It also assessed the training, education, and awareness levels in the areas of personal finance and federal income tax incentives related to retirement savings vehicles. A 35-question written questionnaire was administered to 189 military members from 43 commands in Navy Region Southwest. The study revealed that the level of training received to date is inadequate and insufficient for Navy personnel to make educated and informed decisions regarding retirement savings in general, including the UNISERV TSP (p less than or equal to .01) . Related conclusions revealed that a non- matching UNISERV TSP has no measurable effect on retention or recruitment and a matching program could improve the contribution rate by 200 percent. The predominate recommendation is for senior leadership to increase their commitment and resources toward training all Navy personnel on the mechanics and long-term benefits of the UNISERV TSP and retirement savings.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 2002
- Accession Number
- ADA401618
Entities
People
- Bryan G. Van Veldhuizen
- Mark R. Garrigus
Organizations
- Naval Postgraduate School