Should Employees be Automatically Enrolled in the TSP?

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By on October 1, 2007 in Current Events with 0 Comments

A couple of weeks ago, I asked readers to send me their thoughts on whether new employees should be automatically enrolled in the TSP.  The response was underwhelming. 

A total of 43 individuals sent me emails in response to my question.  Some answers were short and some were quite detailed.  The final tally had 37 of the respondents favoring automatic enrollment and only 6 opposing it.  The six made up in strength of their opinions what they did not have in absolute numbers.  The phrase “nanny state” was used a few times.

Among those who favored automatic enrollment, the L fund was the top choice of the fund to which the contributions should be allocated.  Respondents felt that the L fund allowed for an age appropriate investment.   G and C also got votes.  No one suggested either S or I.

Agencies can request to have John Grobe, or another of Federal Career Experts' qualified instructors, deliver a retirement or transition seminar to their employees. FCE instructors are not financial advisers and will not sell or recommend financial products to class participants. Agency Benefits Officers can contact John Grobe at [email protected] to discuss schedules and costs.

© 2017 John Grobe. All rights reserved. This article may not be reproduced without express written consent from John Grobe.

About the Author

John Grobe is President of Federal Career Experts, a consulting firm that specializes in federal retirement and career transition issues. He is also affiliated with TSP Safety Net. John retired from federal service after 25 years of progressively more responsible human resources positions. He is the author of Understanding the Federal Retirement Systems and Career Transition: A Guide for Federal Employees, both published by the Federal Management Institute. Federal Career Experts provides pre-retirement seminars for a wide variety of federal agencies.