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Congress has passed the Thrift Savings Plan Modernization Act and the president signed it into law, so when will TSP account holders be able to see the results?
A new fact sheet states that the Federal Retirement Thrift Investment Board plans to have the new options available to account holders before the two-year deadline.
In response to inquiries about the delay, TSP officials say they need to time to make substantial programming changes, form revisions and web page updates. In addition, government rules require the new policies first be published and subject to public comment.
“We asked Congress for these new withdrawal options, so rest assured that we’re motivated to enact them as soon as possible,” the agency’s fact sheet states.
The TSP is also informing account holders that even if they already start making withdrawals under the old rules, they will still be able take advantage of the new rules once they are in place.
The new law, which NTEU strongly supported, allows active federal employees to make multiple age-based withdrawals and remain eligible for partial withdrawals once they leave government employment. Those who left the federal workforce can make multiple partial post-separation withdrawals. And it allows those receiving monthly payments to change the amount or frequency of their payment at any time, rather than just once a year.