House members moved Wednesday to approve a bill that could add an automatic enrollment feature and a self-directed investment option to federal employees’ Thrift Savings Plan.
The bill, H.R. 1804, the Federal Retirement Reform Act, passed by a voice vote.
One provision would permit civil service employees to receive credit for unused sick leave when they retire.
Another provision would add the auto enrollment feature.
The default TSP contribution percentage would be 3%, “or such other percentage, not less than 2% nor more than 5%, as the board may by regulation prescribe,” according to the bill text.
The self-directed investment provision would permit plan participants to allocate assets to “low-cost, passively-managed index funds that offer diversification benefits” and to “other investment options, if the board determines the options to be appropriate retirement investment vehicles for participants.”
The bill also would permit federal employees to set up retirement plan Roth accounts.
The bill was introduced Rep. Edolphus Towns, D-N.Y., chairman of the House Oversight and Government Reform Committee.