Categories: Fedweek

More Fund Choices May Be Ahead

The full Senate is scheduled to vote this week on a tobacco policy bill (S-982) that is a counterpart to one that passed the House earlier (HR-1256) containing several potential changes to the TSP, including the option to add more investment choices. The Senate bill as offered does not contain the TSP provisions or several other retirement-related provisions including crediting of unused sick leave toward FERS retirement benefits but they might be added by amendment, or the Senate might accept the House language in a conference or through another procedural move. The exact investment funds would be decided later, but a survey last year of TSP participants showed support was strongest for adding a Treasury Inflation-Protected Securities bond fund, a real estate investment trust fund, and an international bond fund. Support was lowest for a socially responsible stock fund, an emerging markets bond fund, a precious metals fund and an emerging markets stock fund. However, even among those funds there was general support, with only about a quarter of respondents saying the fund shouldn’t be added.

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