WHATS HAPPENING ON CAPITOL HILL?
LEGISLATORS ASK FOR COMMENTS ON POTENTIAL TSP CHANGES Last month, the top leaders of the House Oversight and Government Reform Committee sent a letter to Andrew Saul, Chairman of the Federal Retirement Thrift Investment Board (FRTIB), requesting comments on potential legislative changes to the Thrift Savings Plan (TSP). The Committee is considering three options: to automatically enroll federal employees in the TSP; to make the life-cycle funds the default option for employees who do not select a fund; and, to make a Roth option available to participants. Currently under the system, participants invest pretax dollars in the plan and pay taxes when they withdraw their earnings in retirement. Under a Roth option, participants would invest after-tax earnings and withdraw them tax-free in retirement. Also, as it stands now, employees must voluntarily elect to participate in the TSP program. The change as advocated by the lawmakers would automatically enroll both military and civilian emplo
