This provision requires that all new hires, transfers, and reappointments be automatically enrolled in the Thrift Savings Plan (TSP).
Before this bill, federal agencies allowed employees to choose to participate in TSP. Agencies were already required by law to automatically contribute one percent of a new employee’s pay into an individual TSP account. Employees then had the option of contributing a percentage of their own salary into their account and receiving matching contributions from their agencies. Employee contributions are matched dollar for dollar up to three percent of an employee’s pay and 50 cents on the dollar for the next two percent of pay.
Agencies will now automatically sign up new employees for the TSP and employees would contribute a percentage of their pay into an individual TSP account. Employees wishing to opt out will be permitted do so, and they will also be able change the level of their contributions. The Thrift Savings Board will decide the initial amount that participants will automatically contribute, but the bill requires that it be no less than two percent of pay and no more than five percent.
Read Section 102 of H.R. 1256.< Back