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Legislative bills

Introducing the FORWARD Act: Empowering Veterans' Financial Security

Strategic Insights

— 1 min read

Congresswoman Jen Kiggans (R-VA-02) and Congressman Wesley Bell (D-MO-01) have introduced the Financial Opportunities for Retirees and Warriors Advancing Retirement Development (FORWARD) Act. This legislation aims to enable military retirees and 100% disabled veterans to continue contributing to their retirement accounts even after separation from service. The bill addresses a current law gap that forces veterans to start over in a new system when they separate from the military. Rep. Kiggans, a former Navy pilot, emphasizes the importance of allowing veterans to continue building their long-term financial security through retirement savings.

Key Takeaways:

  • The FORWARD Act will enable military retirees and 100% disabled veterans to continue contributing to their Thrift Savings Plan (TSP) even after separation from service.
  • Under current law, contributions to a servicemember's TSP must stop when the individual leaves military or federal service.
  • The legislation directs the Federal Retirement Thrift Investment Board to implement the change, giving retired service members and disabled veterans the ability to continue growing their TSP savings.
  • The bill allows qualified retirees and veterans to make voluntary contributions from their retired pay or VA disability compensation.
  • Rep. Kiggans, a former Navy pilot, has personal experience with the issue, as her son is currently in flight school and her husband is a former fighter pilot.
  • Rep. Kiggans emphasizes the need for veterans to have the opportunity to invest in their futures and build long-term financial security.
  • The bill is a commonsense fix that removes the barrier of having to start over in a new system when veterans leave the military.

Statistics:

  • 100% of disabled veterans will be affected by the current law gap addressed by the FORWARD Act.
  • The TSP has over $700 billion in assets and serves over 5.5 million customer accounts.
  • 20-year retirees and veterans with a 100% disability rating will be able to continue contributing to the Thrift Savings Plan under the FORWARD Act.

Sources:

  • Office of Virginia Rep. Jen Kiggans
  • Read the bill [FORWARD Act](https://www.congress.gov/)
  • Read the one-pager [FORWARD Act](https://www.congress.gov/)
  • Background: [Under current law, contributions to a servicemember's TSP must stop when the individual leaves military or federal service.]

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