Senate Passes More Flexibility within TSP for Federal Employees

By August 10, 2017Benefits, Retirement, TSP

The Senate committee voted unanimously to send the TSP Modernization Act (S.873) to the full Senate. The legislation gives enrollees in the federal government’s 401(k)-style retirement savings program greater flexibility in how and when they can withdraw money from their accounts.

The bill, sponsored by Sens. Rob Portman, R-Ohio, and Tom Carper, D-Del., would allow federal employees to make multiple age-based withdrawals from their Thrift Savings Plan accounts and still remain eligible for partial withdrawals once they leave government. It also would allow those receiving monthly payments to change the amount and frequency of payments at any time, instead of only once per year.

The House Oversight and Government Affairs Committee voted last week to advance a companion bill (H.R.3031) to the floor. Tony Reardon, national president of the National Treasury Employees Union, thanked lawmakers in both chambers for their efforts on this issue.

“The rules for how federal employees can manage their accounts have not kept pace with the modern workforce, and these changes would make the TSP a more attractive and user-friendly choice for employees and retirees,” Reardon said in a statement. “Our members have been asking for these changes and we applaud these senators and House members for listening to their concerns.”

And on Monday, the House approved legislation requiring the Veterans Affairs Department to produce an annual report on bonuses paid to high-level executives at the agency.

The Department of Veterans Affairs Bonus Transparency Act (H.R.1690) requires the agency to include a list of every award or bonus issued to the directors of regional offices, VA medical centers and veterans integrated service networks, as well as any other employee in a senior executive position. The VA must also include the amount of each award, the recipient’s job title and their location.

The Senate passed a similar bill (S.114) in May, but the measure failed to receive the supermajority needed to pass by a voice vote in the House Monday. The House legislation has been sent to the other chamber, where it was referred to the Senate Veterans’ Affairs Committee.

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