Bipartisan TSP Withdrawal Flexibilities Bill Advances in Committee

Today, a bipartisan bill on TSP Withdrawal Flexibilities was advanced by the House Oversight and Government Reform Committee.

604px-us-thriftsavingsplan-logo-svg_Today, the House Oversight and Government Reform Committee advanced a bipartisan Thrift Savings Plan (TSP) bill, the TSP Modernization Act, H.R. 3031. The bill would loosen restrictions on how federal employees and retirees can withdraw money from the TSP, and was introduced by Ranking Member Elijah Cummings (D-MD) and Subcommittee Chair Mark Meadows (R-NC). A companion Senate bill, S. 873, introduced by Senators Rob Portman (R-OH) and Tom Carper (D-DE) is expected to move soon.

NTEU has heard from many members over the years about the stringent withdrawal rules of the TSP, and the desire for additional payment and withdrawal options. In their role on the TSP’s Employee Thrift Advisory Council, NTEU has raised the issue many times, and pushed strongly for this legislation.

NTEU supports this legislation, and will continue to seek its enactment. Following potential passage and enactment of this legislation, it would take the Thrift Board some time to retool their systems to change the withdrawal rules.

We will keep you informed on further developments regarding these withdrawal options.