TSP Open Seasons Could Be Abolished

Among the topics under consideration by the TSP’s governing board is the concept of abolishing the twice-yearly open seasons the TSP conducts. During open seasons, eligible employees not currently participating may join the program, and all investors may change the amount of their regular biweekly payroll withholding. However, many other transactions-such as changing the allocations of ongoing investments or current account balances, or making “catch-up” contributions-need not be done during an open season. Further, the government contributions for newly hired employees under the FERS system are linked to open seasons, meaning a delay in those contributions of potentially upwards of a year. The TSP board believes that abolishing open seasons would simplify the program and improve participation, but such a change would require legislation.