for Agency and Service TSP Representatives
Announcement of Upcoming Change to the Automatic Enrollment Percentage for Thrift Savings Plan Participants
The Federal Retirement Thrift Investment Board (FRTIB), the agency that administers the Thrift Savings Plan (TSP), will increase the automatic enrollment percentage from 3% to 5% of pay for all participants who are automatically enrolled in the TSP on or after October 1, 2020. The Thrift Savings Plan Enhancement Act of 2009 grants us the authority for this change. This change will not affect the contribution rates in place for those participants who were enrolled in the TSP prior to October 1, 2020.
This bulletin is to notify agency payroll offices and HR personnel of this upcoming change so that agencies can take appropriate actions to ensure an efficient transition to the 5% automatic enrollment rate. We will issue a new bulletin formalizing the change after we publish the TSP regulations regarding the automatic enrollment percentage increase.