for all of you participating in TSP, you ned to be aware of upcoming changes currently under review by your House Representatives:
http://www.fedsmith.com/article/1662/

Though TSP has been identified as the gold standard of 401k type plans, the fact that some Senators and Congressmen see it as a gold mind tends to be a little bit alarming:
http://www.cqpolitics.com/wmspage.cfm?parm1=1&docID=news-000002925645

Now to me having a couple of more options is nice, though I am not in favor expnding it for every Tom, Dick and Jane to get a crack at part of my retirement fund.

The other thing is that even though the TSP board just went nuts over what they called "frequent traders" to save us money, our Representatives are now looking to use TSP funds to pay for their pet projects.

Agree, or don't agree, does not matter - read and stay informed so you know what happened to your investments when you go to reach for them.

And oh yes, for those of you who become automatically enrolled - now you know why.

Moving to Finance at 0800 EST

Interesting how these links are allowed but others concerning finances are not...double standards once again.....

Okay here goes:

Automatic enrollment - the purpose is to help you save for retirement, you know when your old and broken down and can't easily or want to seek full time employement to continue to pay the bills? This is at least a supplement.

And there is a feature to opt out of saving, and receive a refund of what was deducted that is part of this provision.

Also for civilians under the FERS with the small, meager pension (compared to civilians under the old CSRS and the military formula), there is automatic agency contributions. No more waiting somewhere between 6 months to a year or worse, the agency not determining the date correctly and delaying the start.

The default fund for automatic enrollment is either what it is now the G Fund, or one of the L funds probably based on your DOB and projected retirement age (like one closest to the year you would turn 65).

When there are almost 4 million account holders you will always have some that will say they can do better with their money invested in some or ANY other fund other than the broad stock and bond indexes (that are passively managed);

Admitidly, your point on outside investment firms that would like a crack at investing some of this money (the fund mananagers for the TSP funds are selected via competive contract, must be large enough and are comingled trust fund managers -i.e. investing only retirement plan monies in their funds, no individual investors like a mutual fund), is quite valid.

Allowing self directed investments will let those WHO CHOOSE to and want to pay the expenses invovled in procesing (and the outside funds expenses and fees) to invest elsewhere. I can't wait to see the details on how this will work.

Roth contributions - nothing negative to see or say there, except the participant better figure out which tax advantaged investment will work best for them each year, over time, tax up front, with all employee contribuitons and earnings tax free, or get the tax deferral on the employee contributions now, invest and defer over the long haul and spread out taxes in retirement years.

Reports to congress - this plan is run by a federal agency Congress designated operate as a financial institution would, with a statutory requirement to keep expenses low and act on behalf of all particpants in the plan. They already publish financial statements, provide overall administrative expeses for each fund, and report to Congress, at its pleasure when Congress requests, just as any Federal agency would.

My only beef with this is the self directed investments - but again, I can stay right where I am and invest among the Funds TSP has (and do what I need to supplement investments on my own). The good part of this is those who think they can do better but want the tax advantages of an employer sponsered plan, will get their chance to do so with other investment plans; they will determine as time goes by whether the cost and dealing with that investment plans rules (hey good luck finding a plan that lets you frequently trade without them making sure you and the other traders cover the costs and then some!) was worth it.

Not all of these changes are bad or have some sinister underlying agenda to harm the participants.

Let's see where this will go and if it is signed into law.