More Flexibilities in line for Feds after Senate Votes to Eliminate TSP Open Seasons

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By on December 8, 2004 in Retirement with 0 Comments

Federal employees are one step closer to having more flexibility in managing their accounts in the Thrift Savings Plan after the Senate approved a bill Tuesday that would eliminate the plan’s twice a year open seasons.

The bill, which would give federal employees the flexibility to make contribution changes toward their retirement any time instead of only twice a year under the current system, now moves to President Bush for his signature.

Currently, federal employees are allowed to make TSP contribution changes only twice a year – April 15-June 30 and Oct. 15-Dec. 31. Employees wanting to make changes outside of those dates have been forced to wait until the next open season begins, sometimes forcing a delay of nearly a year.

Rep. Thomas M. Davis III (R-Va.) chairman of the House Government Reform Committee, sponsored the bill on the House floor. Sen. Susan M. Collins (R-Maine) sponsored the legislation on the Senate side.

Once the president signs the bill, the TSP will issue rules and begin phasing out the open seasons over the next year.

© 2019 Ralph R. Smith. All rights reserved. This article may not be reproduced without express written consent from Ralph R. Smith.

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Ralph Smith has several decades of experience working with federal human resources issues. He has written extensively on a full range of human resources topics in books and newsletters and is a co-founder of two companies and several newsletters on federal human resources. Follow Ralph on Twitter: @RalphSmith47

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