The TSP governing board has approved to changes to the program, involving the makeup of the international stock I fund and the number of lifecycle L funds, although there is no firm schedule for the former and the latter won’t occur for another three years.

The board approved a consultant’s recommendation to broaden the scope of the I fund, which currently reflects an index of large company stocks in 20 countries, mostly in Western Europe and the Far East–companies of Japan account for about a quarter of the value, those of the United Kingdom for nearly a fifth and those of France, Germany, Switzerland and Australia for nearly a tenth each.

Under the plan, the I fund would be expanded to also reflect stocks in Canada, in developing countries, and small-company international stocks. The goal is to make the fund more diversified and more fully reflective of international stock markets. However, many details would need to be worked out; there is no timetable for the change.

The other change, to add lifecycle funds, will take effect in 2020, when the 2020 fund will have the same investment profile as the Income fund and the two will be merged–the lifecycle funds mix investments in the underlying G, F, C, S and I funds, and those mixes grow slightly more conservative over time as the projected withdrawal date approaches. At that time a 2025 fund will be added, as will funds for 2035, 2045, 2055, 2060 and 2065.

That also reflects recommendation of the consultant who said that five-year increments are the bellwether practice among mutual funds that offer target-date funds.

The consultant also investigated adding funds that would track specific market sectors such as real estate investment trusts, high-yield bonds and hedge funds but recommended against it.