Federal Retirement Thrift Savings Plan, Washington, will make lifecycle funds available to government workers participating in the $159 billion plan on Aug. 1. The new "L" funds will automatically allocate assets among the five underlying investment plans the plan offers, which cover "all the major food groups at an exceptionally low cost to participants," said Gary A. Amelio, executive director of the Federal Retirement Thrift Investment Board, which manages the plan. The plan offers an S&P 500 index fund, a domestic small-cap index fund, an international equity index fund, a domestic fixed-income index fund, and a government securities fund.
"Proper asset allocation is critical to optimum long-term growth in retirement savings. This is a wonderful opportunity for participants to receive the benefit of a professionally determined asset allocations with virtually no ongoing effort on their part and at no charge," he said in a statement.
