There are more changes coming to the Thrift Savings Plan’s L Funds than simply changing the funds to five year increments from their current ten year increments. In 2020 the L funds will change to from the current five funds to ten funds. The new funds will include the current L Income, L 2030, L 2040 and L 2050 funds. The L 2020 fund goes away and is combined with the L Income fund at that time (after all; it’ll be 2020). Added to the mix will be the L 2025, 2035, 2045, 2055, 2060 and 2065 funds.

But there are additional changes that will be affecting the L funds. Detailed information can be found in the Thrift Board’s September 2018 minutes, that we will summarize here. The changes are the result of recommendations made by consulting firm Aon Hewitt. In their study, Aon Hewitt found that the L funds had a more conservative allocation and a smaller international holding than did the target date funds offered in the vast majority of defined contribution plans.


1) Stock percentages will be increased from 20% to 30% in the L Income fund.

2) The current stock and bond allocations in the existing L 2030, 2040 and 2050 funds will be frozen until they reach the same “glide path” as the, soon to be introduced, L 2060 fund. The 2060 fund will have a higher percentage of stocks that did the L 2050 fund at its introduction. “Glide path” refers to the gradual (quarterly) changes in the funds that result in lower stock percentages as time passes. Imagine a glider released at 10,000 feet, slowly descending to the ground.

3) The non-U.S. share of the stock portion of each I fund will be increased from 30% to 35%.

The L fund pie charts reflecting the new allocations can be found on the TSP website.

See also, the Pros and Cons of the Lifecycle Funds

TSP Lifecycle Fund explainer from the TSP: