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Thrift Savings Plan Enhancement Act of 2009

The Thrift Savings Plan Enhancement Act of 2009 (H.R. 1984)* changes the federal retirement savings plan. The Thrift Savings Plan (TSP) is similar to a 401(k) plan and allows federal civil service employees to make voluntary tax deferred contributions into individual retirement accounts. For employees covered by the Federal Employee Retirement System, contributions are matched up to a certain percentage by employing agencies, and agencies are required to automatically put one percent of an employee’s pay into an account.

H.R. 1984 adds these features to the TSP:

• Automatic enrollment
• Roth contribution feature
• New investment options
• Annual Report to Congress

At one time the bill included an additional provision that would have given federal workers covered by the Federal Employee Retirement System (FERS) pension credit for unused sick leave.

The bill was signed into law by the President. [June 22, 2009]

Visit the TSP’s home page to learn more about the Thrift Savings Plan.

Visit the Office of Personnel Management’s Retirement Information & Services page to learn about other retirement benefits for civil service employees of the federal government.

Read a report prepared by the Congressional Research Service on the Thrift Savings Plan Enhancement Act of 2008 (H.R. 6500), a prior version of the bill.

*The Thrift Savings Plan Enhancement Act of 2009 is included in H.R. 1984, which is entitled the Family Smoking Prevention and Tobacco Control Act.