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House passes bills to change TSP default fund, extend whistleblower protections

Jul. 15, 2014 - 06:23PM   |  
By ANDY MEDICI   |   Comments
US Republican Representative Darrell Iss
Rep. Darrell Issa supported a change to the TSP. (TIM SLOAN / AFP/Getty Images)

Federal workers who do not choose a fund for their Thrift Savings Plan contributions will be placed into a mixture of investments based on age, under legislation passed by the House July 14.

The House unanimously passed the Smart Savings Act, which changes the current default plan for federal workers who do not choose a specific TSP fund to invest in. Right now, federal employees are automatically placed into the G fund, which invests in government bonds and securities.

Under the new legislation, employees would be placed into a fund with a mixture of stocks and bonds that starts with more risk and grows more conservative as the employee reaches retirement, which gives employees a better return on investment, bill sponsors say.

Darrell Issa, R-Calif., the chairman of the House Oversight and Government Reform Committee, said the legislation would help government operate more effectively and help workers better prepare for retirement.

The House also passed legislation that would extend a pilot program that would allow federal employee whistleblowers to appeal court decisions outside of the federal circuit court. The pilot was set to expire in 2014 but will now expire in 2017.

The House also passed the Federal Register Modernization Act, which would remove the requirement to print the federal register and for agencies to submit multiple copies of documents to be published in the register.

"These bills are common-sense, good-government measures that will improve the operations of the federal government and the District of Columbia,” said Elijah Cummings, D-Md., the ranking member of the committee “They should be passed by the Senate and enacted into law."

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