Viewpoint: Let’s Keep a Level Playing Field for TSP Investors - November 25, 2019
Participants in the federal employee retirement savings program deserve the same investment options as other Americans.
The Federal Managers Association sits on the Employee Thrift Advisory Council (ETAC) which advises the Federal Retirement Thrift Investment Board (FRTIB). Clifford Dailing is Chair of ETAC, and Michael Kennedy is Chair of FRTIB.
By Michael Kennedy and Clifford Dailing, Government Executive
When President Ronald Reagan signed the Federal Employees’ Retirement System Act in 1986 flanked by a bipartisan, bicameral group of lawmakers, the intent was clear: to provide federal employees a defined contribution retirement plan like private employers’ 401(k) plans. The Thrift Savings Plan has grown to hold the retirement savings of more than 5.5 million participants from federal and military service, with total assets of $600 billion.
The statute creating the Federal Retirement Thrift Investment Board directed the governing board to select indexed investment funds that would offer participants best in class investment opportunities, and provide them with the options to help them maximize their hard-earned retirement savings. Recently, the TSP board has been urged to consider issues beyond those focused on investing for retirement, involving the appropriateness of certain foreign investments.