TSP Open Season Bill Moves in House

The House Government Reform Committee has passed legislation (HR-4324) to allow employees at any time to begin investing in the Thrift Savings Plan or to change the amount of their ongoing investments. The measure would end the practice of holding twice-yearly open seasons in the TSP, which currently are the only times those decisions can be made. However, the House measure differs in several ways from one (S-2479) that recently passed the Senate. The House bill would have automatic government contributions begin immediately for newly hired employees and matching contributions for FERS employees begin as soon as an individual starts investing his or her own money; the Senate measure would keep the existing schedule for government contributions, which do not begin until the second open season after hiring. The House bill also lacks provisions in the Senate version designed to improve education of employees about the TSP.