Thrift Savings Plan: Mid-Year Update - United Benefits

From benchmark index updates to enhanced withdrawal flexibility, here’s what you need to know about changes to the Thrift Savings Plan (TSP).

I Fund Benchmark Index Change in 2024

As previously announced, in an effort to improve performance and align with broader market opportunities, the FRTIB Board has decided to update the I Fund’s benchmark index in 2024. The I Fund’s current benchmark is the MSCI Europe, Australasia and Far East (MSCI EAFE) Index. The future I Fund benchmark will be the MSCI All Country World Investable Market Index ex USA ex China ex Hong Kong (MSCI ACWI IMI ex USA ex China ex Hong Kong) Index. TSP fund managers must sell some stocks and buy others to move to the new benchmark index. Therefore, the transition will take place over the course of the year

What this means for investors: The I Fund has consistently underperformed other international funds and indexes with high volatility year-to-year. The new index should offer opportunities for higher returns without a significant increase in risk. However, TSP participants who want exposure to the Chinese and Hong Kong markets will continue to be denied this opportunity.

No 30-day waiting period between withdrawal requests

One of the major pain points for TSP participants has been the limited access to their funds. The removal of the 30-day waiting period between withdrawal requests provides much-needed flexibility for those using their TSP accounts for income. This means you can now manage your withdrawals more efficiently, adapting to changing financial needs without unnecessary delays.

No changes to Lifecycle Funds

After the TSP ordered an outside review of its lifecycle L funds, no changes were planned in the makeup of the funds, according to a presentation at the most recent meeting of the TSP board. The 10 L funds are invested in the five core TSP funds in varying ratios, and a 2018 study found that they were too conservative given the stated goals. Changes were implemented, and they were satisfactory to the TSP Board and its consultants.

Valuable Opportunity: Is it time for a Portfolio Review?

Is it time to reassess your portfolio? Complete the form below, and a United Benefits retirement specialist will contact you for a free, no-obligation review of your accounts. This is a valuable opportunity to ensure your investments are aligned with your retirement goals.

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