Federal Government Policy and Business

Survey: Thrift Savings Plan Participants Still Want Greater Flexibility

Government Executive: Officials with the federal government’s 401(k)-style retirement savings program said a new poll shows that 89 percent of participants are happy with the Thrift Savings Plan, although they still largely want greater flexibility in handling their investments.

At a meeting of the Federal Thrift Retirement Savings Board Monday, project manager Lorraine Terry said that while the vast majority of people enrolled in the TSP are happy with the service, 30 percent of active participants said they plan to transfer their money out of the program when they retire.

Of those respondents, 74 percent cited the TSP’s strict rules surrounding withdrawals as a key factor in that decision. Similarly, 35 percent of TSP participants who have already left government said they plan to withdraw from the program when they retire, of which 85 percent want more flexible withdrawal options.

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