Agency Matching Contributions

Part of the retirement saving program for federal employees that matches employee contributions up to a certain point.

So Jim the Customs Guy might set aside $100 every paycheck to go into his retirement fund. The employer (in this case, the government) has a program that matches that $100. So Jim now has $200 a month going into retirement, $100 from him and $100 in matching funds.

Under the federal government's agency matching contribution plan, employee contributions are matched dollar-for-dollar up to 3% of the employee's pay. The next 2% of the employee's pay is matched at a 50% rate.