In just 16 days, more than 13,000 Thrift Savings Plan participants have taken advantage of a temporarily available withdrawal option offered as part of the federal government’s response to the coronavirus pandemic.
Next week, officials at the federal government's 401(k)-style retirement savings program will begin offering lifecycle funds in five-year increments, moving the options in line with private sector counterparts.
Michael Kennedy has served on the board for a decade, overseeing several major initiatives including implementing an employer match for military service members through the blended retirement system and making it easier for participants to access their money.
Although all of the funds in the federal government’s 401(k)-style retirement savings program posted modest increases in May, it was not enough to make up for the economic crash at the start of the coronavirus pandemic.
New loan and withdrawal options enacted through the CARES Act will become available in June and July, respectively, while officials have noted other options for participants to access their money are already in place.
Although board members stated the pause was because of the turmoil caused by the worldwide coronavirus pandemic, they pleaded with their newly nominated replacements not to allow politics to enter the decision-making process.
The nomination of three new board members follows months of lobbying by Republican lawmakers and advocacy groups to stop the Thrift Savings Plan from changing its international fund to include investments in Chinese companies.