Federal Retirement Thrift Investment Board, Washington, is studying whether to automatically enroll federal employees in the $167.1 billion thrift savings plan, confirmed Tom Trabucco, a spokesman. The study was prompted by a provision in the broad pension legislation passed by the Senate in mid-November that would permit private employers to automatically sign up their workers in their defined contribution plans.
The board is also considering making its new lifecycle funds the default investment for workers who don't make an investment choice. Currently, the G Fund, which invests in government securities, is the default investment.
Congress would have to amend the Federal Employees' Retirement System Act to permit both automatic enrollment and the default investment change.
Separately, the board is expecting Ennis Knupp to present its findings before February on whether the indexes used for the plan's investment options are appropriate. The C Fund currently tracks the S&P 500 index; the S Fund tracks the Wilshire 4500 index; and the I Fund tracks the MSCI EAFE index. The F fund invests in the Lehman Aggregate Bond Fund, and the G Fund invests in government securities.
Ennis Knupp will also recommend if other investment options need to be added, Mr. Trabucco said.
