TSP to Offer Mutual Fund Window in 2022

In 2022, the Thrift Savings Plan has hinted that it will offer both its civilian federal employee and uniformed services participants access to a mutual fund window by summertime. This will allow TSP investors to allocate funds in their account to more than 5,000 investments.

The Federal Retirement Thrift Investment Board (FRTIB), which is the agency that administers the TSP, has stated that the funds will include environmentally sustainable options such as environmental, social and governance funds (ESGs)

Recently, ESGs have been gaining momentum in popularity, and financial services experts are predicting there will be an increase in these investment options in the next year even outside of the TSP.

One financial advisor commented, “There’s a generational gap where, in some cases, younger generations care more about the impact of their investment than just making as much money as possible. As the older generation’s wealth transfers to younger generations, that will be a big catalyst for ESG investing.”

FRTIB spokesperson Kim Weaver told Roll Call last week, “We have heard requests for greater investment flexibility in all of the surveys we have done over the last eight years and we commonly hear this same viewpoint through all of our customer contact channels,”

Weaver went on to say that TSP participants won’t face any mandatory changes in the program next year. The five main funds (G,F,S,C and I) will still be intact. “To the extent participants wish to incorporate a particular investment outlook into their portfolio, they will have the means to do so through the mutual fund window,” Weaver said.

For more information on the TSP, become a member today to access our TSP Market Watch for allocation and fund recommendations.

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