Someone forwarded me this message from an agency union regarding proposed changes to the mutual fund window. I thought it was interesting that they state only 3500 people, of the nearly 7 million TSP participants, have invested in them so far.

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Proposal Would Eliminate TSPMutual Fund Option

NTEU is onrecord supporting Thrift Savings Plan participants having ample choices forinvesting your own retirement dollars, which is why we are opposing an effortthat would eliminate one of those options.

There are now bills in the House and Senate that would prohibit the TSP’smutual fund window from using any environmental, social or corporate governanceinvestment strategies. Because there are more than 5,000 mutual fund options,TSP administrators say the result would be to eliminate the mutual fund windowfor the TSP, depriving current and future federal retirees of a viableinvestment tool that is commonly available in the private sector.

In addition, last week, NTEU successfully defeated a similar amendment offeredto the annual National Defense Authorization Act (NDAA). This amendment, whichdealt with TSP’s ability to make international investments, would have resultedin the elimination of both the mutual fund window and the TSP I Fund. Afterintense lobbying from NTEU and others, senators rejected this amendment.

The mutual fund window option is not for everyone and we encourage NTEU membersto do their research about the limits, risks and extra fees thatare involved. Over the last year, the number of TSP plan holders who havechosen to invest in the mutual fund window has grown slightly to more than3,500, which is a small fraction of all 6.8 million TSP accounts.

NTEU intends to fight to ensure these investment options continue to be part ofthe TSP.