TSP Proposal Sent to Hill

By: fedweek

The TSP has sent to Congress proposed legislation to change the program from an “opt in” arrangement for new employees to an “opt out” arrangement by requiring that those newly hired invest 3 percent of salary by default unless they choose a different amount or choose not to invest at all. The proposal also would make a lifecycle fund, rather than the government securities fund, the default option for those who do not choose a fund for their investments to go into. The proposals could be examined at House hearings on federal pay and benefits scheduled for next week.