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.