While New TSP Options Roll Forward, Other Proposed Federal Benefits Get Stalled - ATC - Aviation Information

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While New TSP Options Roll Forward, Other Proposed Federal Benefits Get Stalled

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Following last week's Senate vote to approve new options in the Thrift Savings Plan in the so-called "Tobacco Bill" -- and the expectation that President Barack Obama will sign the bill this week -- many of the new perks for federal employees will roll out soon.

The bill included authorization for:

- newly hired federal employees to immediately be eligible for the 1 percent automatic agency contribution to their TSP accounts and automatic enrollment in the G fund

- surviving spouses of deceased TSP participants to be able to keep their TSP accounts

- allow TSP participants to invest after-tax income in a Roth option so that withdrawals in retirement would not be subject to income taxes

- permit TSP participants to invest in mutual fund options.

While not all of the new TSP options will roll out right away, some could be implemented later this summer, according to a report in today's Federal Times that outlines how the board governing the TSP will schedule and prioritize changes.

But what happened to other federal employee benefit components in the Tobacco bill?

Many federal employees were discouraged that other perks, including the FERS sick leave credit provision, were left out of the bill.

Yesterday, columnist Mike Causey of FederalNewsRadio.com gave insight as to perhaps why they were excluded: "Insiders say that Obama administration fiscal watchdogs quietly got out the word that nothing in the Tobacco bill that would cost the government/taxpayers money would be satisfactory to the administration."

Posted with permission from: MyFederalRetirement.com



While New TSP Options Roll Forward, Other Proposed Federal Benefits Get Stalled
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