TSP Updates Rules in Several Areas

The Thrift Savings Plan has issued final rules updating several policies, including a provision carrying out a law enacted last year that abolishes the TSP semi-annual open seasons, effective July 1. The open seasons traditionally had been the only time that those eligible for the program but not currently participating could join it, or that current participants could change the amounts of their ongoing investments. The rules reaffirm that even though open seasons are ending, newly hired employees still must go through the same waiting periods—which can be close to a year, depending on date of hiring—before they start receiving government contributions. The rules in the June 1 Federal Register also pave the way for the introduction of the lifecycle (L) funds—whose launch is expected within weeks—and make various administrative changes in areas including death benefit procedures.