Pension Policy

Thrift Savings Plan Enhancement Act of 2008

The Thrift Savings Plan Enhancement Act of 2008 (H.R. 6500) proposes to make changes to the federal retirement savings plan. The Thrift Savings Plan (TSP) is similar to a 401(k) plan and allows federal civil service employees to make voluntary tax deferred contributions into individual retirement accounts. For employees covered by the Federal Employee Retirement System, contributions are matched up to a certain percentage by employing agencies, and agencies are required to automatically put one percent of an employee’s pay into an account.

H.R. 6500 would add these features to the TSP:

• Automatic enrollment
• Roth contribution feature
• New investment options
• Annual Report to Congress

An additional provision that would give federal workers covered by the Federal Employee Retirement System (FERS) pension credit for unused sick leave has been included in the Family Smoking Prevention and Tobacco Control Act (H.R. 1108). H.R. 1108 also contains the same provisions of H.R. 6500.

All five provisions passed the House and are pending in the Senate. [August 21, 2008]

Visit the TSP’s home page to learn more.

Visit the Office of Personnel Management’s Retirement Information & Services page to learn about other retirement benefits for civil service employees of the federal government.

Read a report prepared by the Congressional Research Service on the Thrift Savings Plan Enhancement Act of 2008 (H.R. 6500)