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Benefits August 27, 2025
Bipartisan Federal Bill Introduced to Help Veterans Save for Retirement
The legislation would allow certain military retirees and disabled veterans to continue contributing to their Thrift Savings Plan accounts after separating from the service.
Reported by James Van Bramer
Representative Jen Kiggans, R-Virginia, introduced on Monday the Financial Opportunities for Retirees and Warriors Advancing Retirement Development Act, a bill aimed at allowing certain military retirees and disabled veterans to continue contributing to their Thrift Savings Plan accounts after separating from service.
Representatives Wesley Bell, D-Missouri, and Eugene Simon Vindman, D-Virginia, co-sponsored the legislation.
The FORWARD Act would extend TSP contribution eligibility to former members of the uniformed services entitled to retirement pay; veterans receiving compensation for a 100% disability rating; and anyone who had an active TSP account before leaving military or civil service.
These individuals, even if no longer employed by the government, would be allowed to contribute a portion of their retired pay or disability compensation directly into their TSP accounts.
Currently, TSP contributions cease when service members separate from military or federal service, often forcing them to open new accounts elsewhere to continue saving.
The Congressional Research Service reported in 2024 that the average retirement age for a non-disability, active-duty enlisted service member was 42.1 years old, and for a non-disability, active-duty officer was 46.5 years old.
“Empowering our veterans to continue building their long-term financial security through retirement savings is the least we can do,” Kiggans said in a statement. “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.”
The legislation also clarifies that no additional government contributions would be made on behalf of these participants.
The Federal Retirement Thrift Investment Board, working with the Department of Defense and the Department of Veterans Affairs, would be required to issue regulations implementing the law within 180 days of enactment.
The bill was referred to the House Committee on Oversight and Government Reform.