Thrift Savings Plan may face "substantial difficulties" due to Senate bill

Kim Weaver, director of external affairs at the Federal Retirement Thrift Investment Board, discusses how Sen. Marco Rubio’s two bills would affect the Thrift Savings Plan and investments for participants ___________ Follow our social media for the latest updates: GM on Twitter: GM on LinkedIn: GM on Facebook: Subscribe to the Government Matters podcast: For more information, visit Government Matters is a multi-platform news program dedicated to providing non-partisan information and analysis to federal managers, contractors and those supporting the federal marketplace....(read more)

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Thrift Savings Plan (TSP), a retirement savings plan for federal employees, is facing significant challenges due to a Senate bill that proposes changes to its investment options. The bill, titled the TSP Modernization Act of 2017, calls for an expansion of investment options for TSP participants, including adding privately-run mutual funds as investment choices. The bill has been met with criticism from experts and TSP officials alike, who are concerned that the proposed changes could damage TSP's retirement savings program. According to TSP Executive Director Greg Long, the proposed changes could cause "significant challenges" for TSP participants because they would have to navigate a complex array of non-government-run mutual funds. One of the greatest concerns is the possibility that TSP participants could lose money by investing in these privately-managed mutual funds. While TSP currently offers low-cost index funds that track the stock and bond markets, the privately-run mutual funds may come with higher fees and expenses for participants. In addition, these funds could pose a greater risk of fraudulent activity or mismanagement, leaving participants with little recourse for recovering lost funds. Another concern is the potential for the expansion of investment options to damage TSP's ability to maintain low costs for its participants. TSP's current investment options are highly cost-effective, providing low-cost investment options that are managed by the federal government. The proposed expansion of investment options could cause TSP to lose its competitive advantage in the marketplace, which could lead to higher fees and expenses for its participants. Despite these concerns, supporters of the TSP Modernization Act of 2017 argue that expanding investment options will provide more choices for TSP participants and help to keep up with the changing investment landscape. By giving participants access to privately-managed mutual funds, the bill would allow them to invest in a wider range of industries and markets, potentially increasing the chances of higher returns on their investments. However, opponents of the bill argue that these benefits may not outweigh the risks and challenges that the proposed changes could bring to TSP participants. The expansion of investment options could lead to confusion for participants, who would have to navigate a complex array of non-government-run mutual funds, potentially causing them to make unwise investment decisions. In addition, the proposed changes could damage TSP's overall program structure, making it more difficult for it to provide low-cost investment options in the future. In conclusion, the proposed changes to thrift savings plan investment options are currently causing significant challenges to the program. While supporters of the TSP Modernization Act of 2017 argue that the changes would lead to more investment choices and potentially higher returns, opponents are concerned that the changes could expose TSP participants to higher fees, expenses, and risks. Ultimately, the future of TSP will depend on careful consideration of these concerns and the potential benefits of expanding investment options. https://inflationprotection.org/thrift-savings-plan-may-face-substantial-difficulties-due-to-senate-bill/?feed_id=88229&_unique_id=643b77ee40641 #Inflation #Retirement #GoldIRA #Wealth #Investing #abc7news #GovernmentMatters #wjla #ThriftSavingsPlan #abc7news #GovernmentMatters #wjla