Bill eliminating TSP open seasons headed to White House

The Senate passed legislation Tuesday that would allow federal employees to enroll in or make changes to their Thrift Savings Plan accounts at any time. The bill now awaits President Bush's signature.

The 2004 Thrift Savings Plan Open Elections Act (H.R. 4324), introduced by House Government Reform Chairman Tom Davis, R-Va., was approved by House lawmakers on Nov. 19.

Open seasons have been used since the inception of the 401(k)-style federal retirement savings plan to restrict TSP participants from altering their contributions too often. This year, federal workers could adjust their retirement contributions during two periods, the first ended June 30 while the second began on Oct. 15 and ends on Dec. 31.

"Today is a great day for federal employees," Davis said on the House floor Tuesday. "Every day, federal employees across the nation and around the globe perform critical duties that keep this nation running smoothly. Away from work, they experience all of life's events -- births or deaths in the family, new homes, new jobs, salary adjustments and so on."

According to Davis, once H.R. 4324 is enacted, "TSP participants can adapt their retirement savings to meet their changing circumstances."

The bill also includes a section devoted to enhancing financial literacy for federal employees. According to a Senate Governmental Affairs staffer, the financial literacy provision requires the Thrift Board to periodically evaluate the tools plan participants need to evaluate and compare financial products and services. The board must also report annually to the Senate Governmental Affairs and House Government Reform Committees on its TSP education efforts, and requires OPM to develop and implement a retirement financial literacy and education strategy for federal employees.

"As for all Americans, financial literacy education is essential for federal employees to develop a base of knowledge so that they can participate effectively in the modern economy," Sen. Daniel Akaka, D-Hawaii, said following the bill's passage. "I believe that provisions in this bill will give federal employees the tools needed to empower them to make informed decisions regarding their retirement and financial security."

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.