NEW FIVE-YEAR LIFECYCLE FOR THRIFT SAVINGS PLAN - June 1, 2017
Thrift Savings Plan Board Approves Five-Year Lifecycle Fund Increments
By Erich Wagner, Government Executive
The Federal Managers Association sits on the Employee Thrift Advisory Council which serves to represent the interests of federal employees before the Federal Retirement Thrift Investment Board. FMA was represented at this joint meeting by Executive Director Todd Wells who inquired about several issues of concern to feds.
The panel that oversees the retirement savings plan for federal employees on Wednesday unanimously approved offering lifecycle funds targeted to within five years of participants’ expected retirement date rather than the current 10-year increments.
A report on the TSP’s investment options by consultants at Aon Hewitt recommended following a trend in private 401(k) providers to offer lifecycle funds – which move investors to a more conservative portfolio as they near their anticipated retirement date -- on a five-year basis.