Lifecycle Fund Would Be Default Under TSP Plan

The default investment fund for certain federal employees and surviving spouses who participate in the Thrift Savings Plan would be changed from the TSP’s Government Securities Investment Fund (G Fund) to the age-appropriate TSP Lifecycle Fund (L Fund), under a proposed rule from the Federal Retirement Thrift Investment Board that was published in the July 13 Federal Register.

According to the board, the proposed rule (80 Fed. Reg. 39,974) would affect federal employees with newly established TSP accounts, rehired federal employees with zero account balances, and surviving spouse beneficiaries “of a deceased TSP participant for whom a ...