Federal Pensions: Thrift Savings Plan Has Key Role in Retirement Benefits
HEHS-96-1
Published: Oct 19, 1995. Publicly Released: Nov 20, 1995.
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Highlights
Pursuant to a congressional request, GAO provided information on the Federal Employee Retirement System (FERS), focusing on: (1) the extent to which employees under FERS voluntarily contribute to the Thrift Savings Plan (TSP); (2) how well TSP educational materials address the importance of employee participation; and (3) whether there should be additional TSP investment options.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| To help ensure that TSP participants have investment opportunities similar to those available under comparable private-sector plans, Congress should enact legislation adding the two investment options sought by the TSP Board. | This recommendation was incorporated in section 659 of Public Law 104-208. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Retirement Thrift Investment Board | The TSP Board, in collaboration with the Office of Personnel Management, should include in TSP educational materials: (1) an explanation of the pivotal role of TSP in enabling employees under FERS to achieve their retirement income goals; and (2) explicit illustrations of the effects of TSP deferral rates on total FERS benefits. |
In the agency's report comments and December 8, 1995, letter to the Chairman, House Committee on Government Reform and Oversight, the TSP Board strongly objected to this recommendation, saying that such employee education was OPM's responsibility.
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