TSP auto enrollment shows early success

Tom Trabucco of the Federal Thrift Investment Board joins the DorobekINSIDER with the latest figures of Aug.-Oct. 2010 on automatic enrollment.

Since Aug. 1, new federal hires were automatically enrolled in the Thrift Savings Plan at 3 percent in the G Fund.

The latest figures (see below) from the Federal Retirement Thrift Investment Board show that the overwhelming majority of feds have continued to contribute to their TSP.

The TSP automatic enrollment is more convenient for feds who “may not be ready to think about [enrolling in TSP] on day one of the job, but day one becomes week one, month one, year one and time goes on,” said Tom Trabucco, director of external affairs at board, in an interview with the DorobekINSIDER.

“The sooner you start, the sooner you get compound interest working in your favor,” he said.

Also, the more people who are invested in the fund, the lower the administration costs, Trabucco said.

More than half of the 27,709 new hires between August and October elected to stay enrolled in TSP without any changes. About 30 percent changed the amount and type of investment.

“What they’re doing is showing signs of life,” Trabucco said of this second group. “They enrolled and now they pull the levers and kick the tires and make sure everything is going the way they want it to.”

More than 16 percent enrolled themselves before automatic enrollment took effect. Only 2 percent opted out of or declined the automatic enrollment. Thrift Savings Plan participation rates: October 2010

Copyright © 2024 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.

    OPM retirement numbers

    OPM retirement backlog continues improvement in processed claims for March

    Read more
    Veterans Homeless Grants

    VA reviewing 4,000 positions at risk of pay downgrade

    Read more
    Thrift Savings Plan (TSP)

    Three good reasons to save toward TSP-millionaire status

    Read more