April 12, 2016

Warren and Enzi Support Creation of Online Retirement Savings Transfer Process for Federal Workers

Text of the letter available here

Washington, DC - United States Senators Elizabeth Warren (D-Mass.) and Mike Enzi (R-Wyo.) wrote today to the Federal Retirement Thrift Investment Board to encourage the creation of an online process that would allow federal workers to transfer or roll over funds from existing retirement accounts to their federal Thrift Savings Plan (TSP) accounts.  

TSP accounts have low fees and a variety of simple, effective investments options. However, to transfer savings from other accounts workers currently must navigate a "cumbersome procedure that can involve multiple paper mail correspondences between the worker, the TSP, and the IRA or plan representative."

"We are concerned that the current process is deterring individuals from making the most of their TSP accounts and is needlessly undermining their retirement security," Warren and Enzi wrote. The senators asked the Federal Retirement Thrift Investment Board for information about steps it has taken to create an online option for TSP participants, and when it expects this option to become available.

"Making this activity as quick and easy as possible by creating an online process for transfers and rollovers is a small step that would yield significant benefits, and we urge you to make this a top priority as you work to improve the TSP so it can continue to meet the retirement savings needs of our federal workforce," wrote Warren and Enzi.