Federal Employee TSP (Thrift Savings Plan) Alert: The Winds of Change are Blowing  

The Thrift Savings Plan has been evolving and changing since its inception in 1987. Anytime major shifts happen they are accompanied by a great deal of noise, not unlike the tectonic plates shifting and settling as announced by the provincial upheaval of earthquakes and tsunamis. 

Fortunately, TSP shifts are not quite as dramatic as earthquakes, despite the noise!  

The first thing to note is there will be a period in which no changes can be made to your TSP account while these updates are implemented. This is known as a “Blackout Period,” and is quite common with 401k’s, 403b’s, and other employer sponsored defined contribution plans. According to www.tsp.gov, for the TSP this period will begin on May 26th and end the first week in June. During this time payroll contributions and loan payments will continue, and installment payments scheduled during this period will be disbursed early, on May 23rd. 

The second most noteworthy point for you to hear is that you can effectively ignore all changes and continue your relationship with your TSP account as you always have. (What changes? No one here but me and my five investment options!) 

So, what can we expect going forward? 

• Account access must be re–established – new username and password, update all contact information and set up your account security. 
• Access to over 5,000 mutual funds, with associated costs and fees, and a limit of 25% of your total account which can be invested in mutual funds. 
• Efficient withdrawals and distributions, with the introduction of electronic signatures and online requests 
• Increased withdrawal amount for financial hardship 

• Mobile App and text message transaction confirmations and statements 
• Online beneficiary maintenance 
• If you leave federal service with an outstanding loan, you will be able to continue making loan payments by check, money order, or direct debit. 

With any changing winds in your life, it may be an ideal time to reexamine your current position and be open to the benefits and risks change can bring. An evaluation of your expectations and options can bring a great deal clarity, and clear skies ahead! 

Resources:  www.tsp.gov, www.fedweek.com, www.military.com  

Linda Black is a Registered Representative and Investment Advisor Representative of LifeMark Securities Corp. Securities, and Investment Advisory Services are offered through LifeMark Securities Corp. 400 West Metro Park, Rochester, NY 14623, 585-424-5672, Member FINRA/SIPC