Three proposals hiding in the fiscal 2017 budget plan House Republicans submitted last week could potentially impact federal employees’ pay and retirement benefits in the future.
Fewer federal employees made hardship withdrawals from their Thrift Savings Plan accounts in 2015 compared to the previous year. But more feds took age-based withdrawals from the TSP last year.
The Federal Retirement Thrift Investment Board approved changes in how the TSP allocates investments in its lifecycle funds.
Just weeks after new federal employees began placing their retirement savings into Lifecycle Funds by default, the board that governs the plans is considering changing how it allocates investments in the funds. Kim Weaver, director of external affairs at the Federal Retirement Thrift Investment Board, the panel that oversees the TSP, talked to In Depth with Francis Rose about the L funds, and some of the changes the board is looking at.
The Congressional Budget Office says the TSP G Fund investments will stop on Oct. 30 unless Congress can reach a deal, but feds won’t see their savings dip.
The Thrift Savings Plan has something federal agencies don’t have. The Federal Retirement Thrift Investment Board approved a $219 million budget for the coming year. In Depth with Francis Rose told Kim Weaver, director of External Affairs at the TSP, that TSP participants are probably jealous of her agency since it’s budget is already in place.
Within the $219 million budget is money to speed up the board’s cybersecurity plans and prepare for changes to the military retirement system. The board is also considering automatic escalation of contribution levels.
Getting your money out of your Thrift Savings Plan account could get easier in the future. The Federal Retirement Thrift Investment Board approves the pursuit of changes to withdrawal options for TSP participants. Kim Weaver is director of external affairs at the Federal Retirement Thrift Investment Board. She tells In Depth with Francis Rose why the TSP wants to make the change.
At its monthly meeting on Monday, the Federal Retirement Thrift Investment Board made two decisions that could have a big impact for federal employees participating in the Thrift Savings Plan.
The Senate is working on a long-term highway spending bill that taps billions of dollars from the Thrift Savings Plan to help pay for it. House budget writers say the G-fund is just too good of a deal and they want to base the fund’s interest rate on a three month average instead of the current four-year average. Kim Weaver of the Federal Retirement Thrift Investment Board says that would make the G-fund virtually worthless for TSP participants. Jessica Klement is legislative director of the National Active and Retired Federal Employees Association. She tells In Depth with Francis Rose that NARFE wants Congress to come up with another solution.