U.S. Reps. Jen Kiggans (R-VA) and Wesley Bell (D-MO) introduced legislation that would enable military retirees and disabled veterans to continue contributing to their retirement accounts even after separation from service.
Under current laws, contributions to a servicemember’s Thrift Savings Plan (TSP) must stop when the individual leaves military or federal service. The Financial Opportunities for Retirees and Warriors Advancing Retirement Development (FORWARD) Act addresses this gap by allowing qualified retirees and veterans to continue making voluntary contributions from their retired pay or VA disability compensation.
Specifically, the legislation directs the Federal Retirement Thrift Investment Board—working in coordination with the Department of Defense and the Department of Veterans Affairs—to implement this change. Ultimately, it would provide retired service members and disabled veterans with the ability to continue growing their TSP savings.
“Empowering our veterans to continue building their long-term financial security through retirement savings is the least we can do. These brave men and women have sacrificed so much for our country and deserve to know they will be able to live secure, comfortable lives in retirement,” Kiggans said. “For our 20-year retirees and veterans with a 100% disability rating, it’s only fair that they can keep contributing to the Thrift Savings Plan they’ve spent years building. They shouldn’t be forced to start over in a new system when they’ve already invested in one that works for them.”
Kiggans is a former Navy pilot, is married to a former fighter pilot, and her son is currently in flight school.
“Our veterans have earned the right to build a secure future using the retirement tools they know and trust,” Bell said. “Right now, retired service-members and disabled veterans are being forced off their existing plans the day they hang up the uniform. The FORWARD Act is a commonsense fix that removes that barrier, so they can continue planning for retirement in a plan they’ve relied on throughout their service to our nation.”