The Thrift Savings Plan expects that the L (for lifecycle) fund that it plans to launch
in mid-year will offer between three and five target dates for investors to choose as
the year they expect to begin withdrawing their money from the TSP. The L fund will
allocate investments among the existing five TSP funds automatically according to a
predetermined ratio of risk and return for the time frame involved, with the money
reallocated periodically to take actual returns into account, and also to make the mix
more conservative as the planned withdrawal date approaches. The TSP recently issued a
contract to help develop a program to educate investors about the fund; previously it
issued one to help develop the fund itself.
