Federal Daily News

House panel approves TSP bill

A House committee has approved legislation that would change the way new federal employees are enrolled in the government's Thrift Savings Plan retirement program, Government Executive reports.

According to the report, the House Oversight and Government Reform Committee on March 12 approved the Smart Savings Act, which would automatically enroll new federal employees into one of TSP's Lifecycle (L) Funds by default. New workers currently default into the ultra-safe government securities G Fund. L funds are invested across a number of TSP funds, have a higher yield, and adjust risk to conform to a target retirement date.

The bill would apply only to new federal employees who are auto-enrolled in the TSP; those who were already auto-enrolled will not be affected, the article notes.


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