Preparations for New Fund Begin

The new TSP L fund likely won’t be available until sometime in 2005, due to the need to choose a company to administer such a fund and make preliminary arrangements. There also would be separate contract to educate TSP participants about how such funds work. The TSP board had considered, but ultimately rejected, creating a separate fund called a “lifestyles” fund, in which the investors would pick target allocations themselves and the investments would be adjusted to maintain those allocations. A lifecycle fund is easier to explain to investors and does not require that they determine their risk tolerance, a memo to the board from TSP executive director Gary Amelio said.