Federal employees will soon have more choices in how they manage their Thrift Savings Plan accounts after the president signed the TSP Modernization Act into law Friday night.
NTEU was a leading advocate for the legislation, which will provide TSP account holders with better withdrawal options and allow them to make the best financial decisions for their families.
The legislation allows active federal employees to make multiple age-based withdrawals and remain eligible for partial withdrawals once they leave government employment. Those who left the federal workforce can make multiple partial post-separation withdrawals. And it allows those receiving monthly payments to change the amount or frequency of their payment at any time, rather than just once a year.
The Federal Retirement Thrift Investment Board now has two years to implement the changes. NTEU, as a member of the Employee Thrift Advisory Council, is already working with the board to speed up the process and implement the changes as soon as possible.
The TSP Modernization Act had broad bipartisan congressional support and is a victory for federal employees and NTEU.