TSP participation declining

Participation by military members remained steady at 39.3 percent. Participation by military members remained steady at 39.3 percent. Defense Department
The rate of federal employee participation in the 401(k)-like Thrift Savings Plan is "softening," according to new data from the Federal Retirement Thrift Investment Board.

TSP participation was at 85.4 percent in October, before showing a slight dip to 85.2 in November. The decline marked a "trend that appears to be continuing," said Renee Wilder, the board's director of research and strategic planning.

Participation by military members remained steady at 39.3 percent. Military reserves' participation was 15.7 percent in November, up from 14.5 percent in October, according to the new data.

Wilder said the board found three factors contributing to the "softening" of participation: employees hitting their contribution limits toward the calendar year's end; separations from service in the federal government, such as reductions as a result of troop withdrawals; and an uptick in "hardship withdrawals."

"Expect to see more and more separation -- either retiring or leaving -- particularly with the current budget status," said Pamela-Jeanne Moran, the board's director of participant services. The shrinking population of Civil Service Retirement System employees is also a factor, she said.

She added, however, that many people retire in January, and "with the hiring freeze included, if we replaced the people who are leaving, they'd be automatically enrolled [in TSP]."

As previously reported, November was a disappointing month for TSP funds. The L Income, G and F funds posted positive returns, but the C, S and I funds all posted losses between October and November.

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.