Contributing to a retirement account is one of the best ways to ensure financial stability in your senior years. Some accounts offer more benefits than others, especially those offered for federal employees or military members. Unfortunately, Americans no longer serving with the military lose access to a plan that may otherwise have helped provide more security in retirement. This could all change, however, thanks to the FORWARD Act. Keep reading to learn more about the legislation that would give more veterans a chance to comfortably save for retirement.
What the FORWARD Act means for veterans’ retirement
In August 2025, Congresswoman Jen Kiggans and Congressman Wesley Bell introduced a bill called the Financial Opportunities for Retirees and Warriors Advancing Retirement Development Act, or FORWARD Act for short. The legislation was designed to make it easier for veterans to contribute to retirement accounts (specifically Thrift Savings Plans) even after they leave the military.
“Empowering our veterans to continue building their long-term financial security through retirement savings is the least we can do,” Kiggans, a former Navy pilot, said in a press release. “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.”
How the Thrift Savings Plan works
The Thrift Savings Plan (also known as TSP) was formed in 1986 for federal employees, reports Stripes.com. It’s a “defined contribution plan” that allows people to invest some of their earnings so the investment can grow over time. In 2001, a law was passed that expanded this to military members who could use it to build a retirement fund, as well.
A TSP is similar to a 401(k) account utilized by private sector employees, and people have the option to contribute using pre-tax or post-tax dollars. In some cases, the government may even match contributions.
Under the current law, service members are no longer able to make contributions to their TSP once they return to civilian life. Instead, they have to open a new retirement account for their savings.
Who would qualify under the FORWARD Act
Since men and women in the military lose access to the TSP retirement accounts after their service ends, the FORWARD act is trying to change that. If the bill passes, retirees and veterans would still be able to voluntarily contribute to the account. They’ll also be able to use their disability compensation or retired military pay to do so.
Not every service member would be able to take advantage, however. Here’s are the eligibility requirements:
- Currently receiving military retirement pay (usually provided after 20 or more years or service) or have a 100% disability rating and get VA disability compensation.
- Must have had a TSP account while serving.
“It’s only fair that they can keep contributing to the Thrift Savings Plan they’ve spent years building,” Kiggans said. “They shouldn’t be forced to start over in a new system when they’ve already invested in one that works for them.”
One element not included in the legislation: matching contributions. Though qualified veterans could keep investing in a TSP account, the military would not be authorized to keep matching those investments.
What’s next for the FORWARD Act in Congress
Though the legislation sounds promising for veterans, it could take a while for military retirees to see any of the benefits as there is currently no hearing scheduled for the bill. Though Congressional hearings are not required, it can be tough for a bill to move forward without one.
In order for the FORWARD act to go into effect, the Federal Retirement Thrift Investment Board would also need to coordinate with the Defense Department and Department of Veteran Affairs. Then implementation rules for the act would have to be put into place within 180 days.
In the meantime, it’s a good idea for veterans to keep contributing to another retirement fund such as an Individual Retirement Account (IRA).
