In one of its last actions before recessing, the House attached provisions involving the TSP and FERS sick leave policy to an unrelated bill on tobacco policy (HR-1108) and passed that bill. The TSP language incorporates a bill passed recently out of a House committee to require the TSP to create a Roth option—in which money goes in after-tax but comes out with its earnings tax-free—and to automatically enroll all newly hired employees with a required personal contribution of between 2 and 5 percent—presumably 3 percent—unless the individual opted out. In addition, the TSP would have the option of changing the default investment fund from the government securities fund to a lifecycle fund for those who do not specify investment choices, and the option of offering new investment choices, if certain standards were met. The TSP supports automatic investing and changing the default fund but has been cool toward adding a Roth option and new investment funds.
