Legislation that would change the default TSP allocations for newly hired federal employees has passed Congress and is on its way to the president’s desk for signature. If signed into law, the legislation will change the default enrollment in the Thrift Savings Plan for new hires from the G Fund to the lifecycle (L) funds according to an individual employee’s age.
The change in the default investment allocation will apply only for employees hired after the TSP finishes issuing the new rules which is currently projected to be around October 2015.
The bill is known as the Smart Savings Act (H.R. 4193). For more on this legislation and how it would work, be sure to read Changing the Automatic TSP Allocations for New Employees.
