TSP REIT Idea Not Dead

The Government Reform Committee also said it will continue to examine the possibility of adding a real estate investment trust index fund to the Thrift Savings Plan, saying that “research has demonstrated that the limited number of offerings in the TSP may hinder an employee’s ability to properly diversify his or her portfolio and therefore may suffer financially upon retirement. The committee’s goal is to investigate expanding the portfolio and therefore protect the retirement income of the government’s employees.” The TSP itself is cool to the idea, however, and an employee advisory group recently recommended against it. The committee also said it would: examine the possibility of transferring oversight of the TSP from the Department of Labor to the OPM; consider strengthening congressional oversight of the TSP, and consider making government contributions to newly hired employees effective immediately, rather than after a waiting period that in some cases can last nearly a year.