Administration to press for new TSP benefits

klunney@govexec.com

Newly hired federal employees could begin investing immediately in the Thrift Savings Plan and employees could roll over funds from private sector retirement plans into their TSP accounts, under a proposal President Clinton plans to include in his fiscal 2001 budget request.

Under current rules, new employees must wait a year before they can contribute to the TSP and there is no rollover provision.

Last year, the House passed a bill, H.R. 208, that would implement the changes the administration is endorsing in its fiscal 2001 budget proposal. The bill would offset the costs of the plan by requiring agencies to allocate more money to the civil service retirement fund.

"It's good policy, but it needs to be paid for," said Garry Ewing, staff director at the House Government Reform Subcommittee on the Civil Service.

As of December 1999, nearly $100 billion had been invested in the TSP by civilian federal employees. The TSP contains three funds: the C Fund (common stocks); the F Fund (fixed-income bonds); and the G Fund (government securities). The bulk of investments are in the C Fund.

A new computer system scheduled to debut later this year will give employees two additional investment options. If H.R. 208 is passed before October, it will take effect Oct. 1, the same day the new system is scheduled to come online.

In addition to the TSP proposal, the administration's 2001 budget proposal will include a 3.7 percent pay increase for federal employees and provisions allowing employees to pay their health insurance premiums out of pre-tax wages.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    Download
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    Download
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    Download
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    Download
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    Download

When you download a report, your information may be shared with the underwriters of that document.