Thrift Savings Plan makes changes to pay & benefits package
Kim Weaver, director of External Affairs at the Federal Retirement Thrift Investment Board, discusses changing the default contribution to five percent and updating TSP’s IT services.
The Thrift Saving Plan is introducing some changes to the federal employee retirement package. The most notable change is the default contribution. Starting in October 2019, newly hired federal workers will contribute five percent of wages to their retirement fund, instead of the current three percent default.
“We have to make changes to our communications, we have to inform agencies… because it is their payroll systems that will auto enroll people,” said Kim Weaver, director of External Affairs at the Federal Retirement Thrift Investment Board. “The reason we are pushing it out to 2020, we wanted to allow agencies that time and to the extent they need to budget the extra 1% because it is 50-cent on the dollar, 4 and 5, we wanted to give them time to build that money into their budget.”