The 2075 fund was launched June 30 at the initial share price of $10, although participants were able to begin making fund reallocations and fund transfers into it as of noon Eastern time on June 27, effective June 30. Image: beast01 / Shutterstock.com
By: FEDweek StaffThe TSP has issued a technical explanation of the “retirement” effective June 30 of its 2025 lifecycle L fund—that is, its merger with the Income L fund—and the parallel launch of a 2075 fund.
Said the TSP in a bulletin designed mainly for agency payroll personnel, “After all the transactions for June 27, 2025, were processed, all shares of the L 2025 Fund were “sold” and shares of the L Income Fund were “purchased.” The number of shares of the L Income Fund that the participant received depended on the June 27, 2025 share price of the L 2025 Fund and the L Income Fund.”
“Participants with investment elections to the L 2025 Fund had that election automatically changed to the L Income Fund. Participants who were invested (or had investment elections) in the L 2025 Fund as of May 8, 2025, were emailed/mailed a communication describing the change and the investment transactions will be reflected on their quarterly and annual statements,” it said.
No new investment elections, fund reallocations, or fund transfers to the 2025 fund will be accepted, it added.
As of the end of May, the 2025 fund had $10.6 billion in assets and the Income fund $27.3 billion, out of the $244.8 billion in all L funds collectively.
The 2075 fund meanwhile was launched June 30 at the initial share price of $10, although participants were able to begin making fund reallocations and fund transfers into it as of noon Eastern time on June 27, effective June 30.
“Investment elections into the new L 2075 Fund became available beginning June 30, 2025, effective for contributions made on or after July 1, 2025,” it says.
The notice says that the 2075 fund is designed for who expect to begin withdrawals in 2073 or later; the Income fund for those already taking withdrawals or who expect to begin withdrawing before 2028; and the 2030-2070 funds fall in five-year increments in between.
However, those numbers are used primarily for determining the appropriate default fund for newly hired employees. Investors are free to invest in any—or none—of the L funds at their choice, although in practice many stick with the L fund designated for them by default at their hiring.
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See also,
TSP Takes Step toward Upcoming In-Plan Roth Conversions
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