James48843
08-02-2010, 02:54 PM
TSP launches automatic enrollment for new hires
By Elizabeth Newell enewell@govexec.com (enewell@govexec.com)
August 2, 2010
As of Aug. 1, all new civilian employees are enrolled automatically in the Thrift Savings Plan, the federal government's retirement program.
New hires automatically will be signed up to contribute 3 percent of basic pay to the G Fund unless they choose to terminate their contributions or change the amount. The G Fund is the lowest risk investment of the TSP (http://topics.govexec.com/tsp/) options. These investments are made in government securities specially issued for the TSP, and investors face only the risk of inflation.
According to the July 27 Federal Register notice (http://www.federalregister.gov/articles/2010/07/27/2010-18346/employee-contribution-elections-and-contribution-allocations#p-35) announcing the change, government employee unions endorsed the switch to automatic contributions, but provided the Federal Retirement Thrift Investment Board with suggestions on how to ensure new employees were aware of their rights and obligations under the automatic enrollment program.
Source: http://www.govexec.com/story_page.cfm?articleid=45820&oref=todaysnews
By Elizabeth Newell enewell@govexec.com (enewell@govexec.com)
August 2, 2010
As of Aug. 1, all new civilian employees are enrolled automatically in the Thrift Savings Plan, the federal government's retirement program.
New hires automatically will be signed up to contribute 3 percent of basic pay to the G Fund unless they choose to terminate their contributions or change the amount. The G Fund is the lowest risk investment of the TSP (http://topics.govexec.com/tsp/) options. These investments are made in government securities specially issued for the TSP, and investors face only the risk of inflation.
According to the July 27 Federal Register notice (http://www.federalregister.gov/articles/2010/07/27/2010-18346/employee-contribution-elections-and-contribution-allocations#p-35) announcing the change, government employee unions endorsed the switch to automatic contributions, but provided the Federal Retirement Thrift Investment Board with suggestions on how to ensure new employees were aware of their rights and obligations under the automatic enrollment program.
Source: http://www.govexec.com/story_page.cfm?articleid=45820&oref=todaysnews