Thrift Savings Plan to Double in Size by 2024
According to an estimate released Monday by the board governing federal employees’ retirement investment, the Thrift Savings Plan (TSP) will double in size over the next eight years.
The Federal Retirement Thrift Investment Board (FRTIB) is preparing for a massive participation increase in 2018 when military members will default into TSP accounts for the first time since it was codified in the 2016 National Defense Authorization Act.
As of January, FRTIB reported an 88.9% participation rate among Federal Employees Retirement System personnel – a record high. According to FRTIB’s acting director for the participant operations and policy office, Renee Wilder Guerin, this rate is on track to surpass the goal of 90% participation in the near future.
“We’re already the biggest plan in the world,” FRTIB Executive Director Greg Long said. “We’ll be going from massive to even more massive.”
The agency will face some hurdles as this influx will require modifications to current systems – such as increasing capacity so call centers can effectively manage the uptick in volume – and new challenges, including working with the Defense Department to ensure military members are aware of their options.
With expected market growth and these additional factors, the total assets in TSP – more than $450 billion currently – is expected to double by 2024.
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