Thrift Savings Plan Investors React To Economic Climate, Possible New TSP Features

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By MyFederalRetirement
Posted: 04-24-2009


In November, the Thrift Savings Plan (TSP) conducted the 2008 TSP Participant Survey to measure participant satisfaction with TSP features, services, and communications. The survey also gauged participant interest in possible new services and investment options.

According to the TSP, survey respondents were randomly selected, and all individual responses were confidential. Nearly 5,000 civilian and uniformed services participants completed the survey.

Here are a few of the results:

Satisfaction with the TSP

Even in today's volatile financial market, participants continue to be satisfied with the TSP.



Reaction to the Current Economic Climate

Survey respondents are still "investing for the long haul." Despite recent economic uncertainties, they are not taking any special action with regard to their TSP accounts. This is what respondents said:



Interest in New Features

Survey respondents were asked to indicate their interest in potential investment features for the TSP.

Roth 401(k)

Fifty-six percent of survey respondents indicated the TSP would be improved if a Roth 401(k) option, which allows for after-tax contributions, were added to the program.



Participants realize that making the decision to contribute to a Roth 401(k) is a complicated one, as over 50% noted the need for professional tax assistance.



Self-Directed Mutual Fund Window

Thirty-nine percent of survey respondents felt the TSP would be improved by offering access to a broad spectrum of retail mutual funds.



Almost 50% indicated the desire for professional investment assistance before utilizing a mutual fund window.



More information about the survey can be found at: The Official TSP Home Page, maintained by FRTIB; 2008-05-22 in the What's New section.

Posted with Permission from: MyFederalRetirement.com