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:

  • Sponsored by Brocade

    Best of 2016 Federal Forum eBook

    Earlier this summer, Federal and tech industry leaders convened to talk security, machine learning, network modernization, DevOps, and much more at the 2016 Federal Forum. This eBook includes a useful summary highlighting the best content shared at the 2016 Federal Forum to help agencies modernize their network infrastructure.

    Download
  • Sponsored by CDW-G

    GBC Flash Poll Series: Merger & Acquisitions

    Download this GBC Flash Poll to learn more about federal perspectives on the impact of industry consolidation.

    Download
  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

    Download
  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

    Download
  • Sponsored by Aquilent

    A DevOps Roadmap for the Federal Government

    This GBC Report discusses how DevOps is steadily gaining traction among some of government's leading IT developers and agencies.

    Download
  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

    Download
  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

    Download
  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.

    Download
  • Sponsored by CDW-G

    Joint Enterprise Licensing Agreements

    Read this eBook to learn how defense agencies can achieve savings and efficiencies with an Enterprise Software Agreement.

    Download
  • Sponsored by Cloudera

    Government Forum Content Library

    Get all the essential resources needed for effective technology strategies in the federal landscape.

    Download

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