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 G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download
  • Federal IT Applications: Assessing Government's Core Drivers

    In order to better understand the current state of external and internal-facing agency workplace applications, Government Business Council (GBC) and Riverbed undertook an in-depth research study of federal employees. Overall, survey findings indicate that federal IT applications still face a gamut of challenges with regard to quality, reliability, and performance management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download

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