A Labor Department pilot project for increasing participation in the TSP by its employees produced some positive results and is being held up as a model for other agencies to try. The Labor Department initiative involved emails sent in the spring to employees not investing in the TSP and to FERS employees investing less than the 5 percent of salary needed to capture the maximum government contribution for them. The messages told recipients that they were “missing out on free money every pay period.” OPM this week is hosting a presentation for other agencies on the project as a model for them to potentially follow, since government-wide more than a quarter of FERS employees do not invest enough to receive the full match. According to information prepared for that presentation, the emails did increase the number of employees receiving the full employer match, with the largest impact among younger employees already investing at least something personally—in many cases, the 3 percent default investment for those first hired since 2010 which they never changed. The average employee who increased their contribution boosted the amount by about $3,000 annually and gained 1 percent of salary in matching contributions. It said that during a measuring period, more than 4 percent of employees already investing boosted their savings to at least 5 percent of salary, more than double that of a period before the messages were sent. However, the emails made less of difference in encouraging employees not personally investing at all to begin, it said.
|TSP||G Fund||F Fund||C Fund||S Fund||I Fund|