The Thrift Savings Plan (TSP) turned 30 this month, and over the years NTEU has worked effectively to protect and improve it.
In June 1986, the Federal Employees’ Retirement System (FERS) Act was signed into law, introducing a new retirement system for federal employees. FERS established three different retirement sources: a retirement annuity, Social Security and the TSP. Since participants began contributing to the TSP in April 1987, it has grown and expanded.
Here are some ways NTEU has worked to improve the TSP for the approximately 4.9 million federal employees and retirees who have accounts:
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Adding a Roth-style investment fund, giving active employees the additional choice of making after-tax contributions.
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Increasing the maximum amount federal employees can contribute annually toward their TSP accounts.
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Introducing immediate automatic deposits, eliminating long wait times and allowing new employees to receive government matching funds from their first day.
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Eliminating the open season so that participants can enroll in the TSP and change how they contribute to the TSP at any time.
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Allowing widows and widowers to continue their investments in the TSP. Previously, surviving spouses were obligated to roll over the money into an outside individual retirement account.
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Making sure the federal budget includes funding for the TSP ThriftLine so that participants can speak with a person and get answers to their financial questions.
NTEU has also worked to protect the TSP from harmful changes as an outspoken member of the Employee Thrift Advisory Council, which advises the Federal Retirement Thrift Investment Board on policies related to the TSP.
Learn about the history of the TSP and hear from federal employees who participate in the plan on TSP’s website.