New Thrift Savings Plan funds debut

Two investment options debuted Tuesday for federal Thrift Savings Plan participants.

May 1, 2001

Two investment options debuted Tuesday for federal Thrift Savings Plan participants.

The S Fund, which invests in small- and mid-sized companies, and the I Fund, which invests in international stocks, became available to TSP investors. The TSP, which is the government's 401k-style retirement savings program, has three additional funds. The C Fund invests in large companies' stocks, the F Fund invests in bonds and the G Fund invests in government securities.

Taken as a whole, the five funds will provide broad coverage of the domestic and international stock, bond and Treasury markets, TSP board officials say.

In addition to the new funds, several changes over the next several months will let federal employees put more money in their TSP accounts, give participants more control over their investments and make the TSP available to more people.

The Federal Retirement Thrift Investment Board has published the following before-and-after chart to help people keep track of the changes.

TSP Changes for 2001
Before May 1, 2001	After May 1, 2001
The TSP had three investment funds: the Government Securities Investment (G) Fund, the Fixed Income Index Investment (F) Fund, and the Common Stock Index Investment (C) Fund.	Beginning May 1, 2001, the TSP will have five investment funds: In addition to the G, F, and C Funds, there will be the Small Capitalization Stock Index Investment (S) Fund and the International Stock Index Investment (I) Fund.
You could start contributing to the TSP during the second open season after you were hired. If you were rehired (after a break in service of 31 or more full calendar days) and were previously eligible to participate in the TSP, you could sign up to contribute to the TSP during the first open season after you were rehired.	During the May 15 - July 31, 2001 open season, all FERS and CSRS employees will be eligible to enroll in the TSP. After June 30, 2001, all newly hired and rehired FERS and CSRS employees will be immediately eligible to enroll during an initial 60-day sign-up period.
You could change the way your payroll contributions were allocated only by submitting Form TSP-1 to your agency during an open season.	Beginning May 1, 2001, you may allocate future contributions among TSP funds at any time by using the TSP Web site or the ThriftLine, or by mailing Form TSP-50 to the TSP record keeper.
The TSP Web site and ThriftLine provided general Plan information and allowed you to make an interfund transfer, change or request a PIN, check the status of a loan or withdrawal request, and determine your current account balance and the amount available for a loan. On the Web site, you could also download TSP forms and materials and use interactive calculators to project a future account balance or estimate annuity payments.	Beginning May 1, 2001, in addition to everything you could do before on the Web site and ThriftLine, you may also change the way your future contributions are invested by changing your contribution allocation. On the ThriftLine, you may speak to a service representative during business hours by pressing "0."
All loan and withdrawal requests had to be approved by the fourth business day of the month for payment in that month. Payments were generally made around mid-month.	Beginning May 1, 2001, loan and withdrawal requests must be approved by the last business day of the month for payment in the following month. Payments will be made earlier in the month.
FERS employees could contribute up to 10 percent of their salaries. CSRS employees could contribute up to 5 percent of their salaries.	Effective July 2001, FERS employees may contribute up to 11 percent of their salaries. CSRS employees may contribute up to 6 percent of their salaries. All participants may submit a request to increase their contributions during the May 15 - July 31, 2001 open season.
You could not transfer funds into the TSP from other retirement plans.	Beginning in July 2001, you may transfer funds into your TSP account from 401(k) plans and other qualified retirement plans established by your previous employer(s) or from conduit Individual Retirement Accounts (IRAs).
Participation in the TSP was limited to federal civilian employees.	Beginning October 9, 2001, members of the uniformed services on active duty and members of the Ready Reserve may enroll in the TSP, with contributions to commence in January 2002.

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