![]() Sustainable investment strategies may be a popular selection for many TSP participants, especially younger ones, Levin said. ![]() “To the extent participants wish to incorporate a particular investment outlook into their portfolio, they will have the means to do so through the mutual fund window,” Weaver said. The mutual fund window simply allows participants to customize their retirement portfolios by expanding options to include ESG funds and other “do-it-yourself” diversification, Weaver said. There won’t be any mandatory changes for TSP participants next year. These retirement savings vehicles contrast with defined benefit plans, such as traditional pensions. This category, which includes 401(k)s, passively invests workers’ contributions in capital markets and generally offers a range of growth strategies from aggressive to conservative. TSP is the largest defined contribution retirement plan in the world. “We have heard requests for greater investment flexibility in all of the surveys we have done over the last eight years and we commonly hear this same viewpoint through all of our customer contact channels,” Weaver said. “ESG aligns people’s long-term financial interest with their values, and it makes investors feel good.”įRTIB spokesperson Kim Weaver confirmed in an email that investor demand for more flexibility in their investment portfolios drove the board to develop the mutual fund window. He also helped establish a green energy company in Michigan before entering Congress. “TSP is doing this because there is a demand for it,” said Levin, who has a background in pensions from his prior labor union work. Levin indicated he plans to make the selection himself when it becomes available. Members of Congress are federal employees and TSP participants. ![]() Andy Levin, D-Mich., said in an interview. The Thrift Savings Plan, a $762 billion defined contribution plan akin to a 401(k) for most federal government workers, will become the latest and the largest retirement plan to offer participants ESG investment options.īy next summer, the plan’s 6.3 million participants from federal civilian agencies and uniformed services will gain access to a mutual fund window in which they can designate portions of their accounts to any of more than 5,000 funds, including some that consider ESG factors, according to the Federal Retirement Thrift Investment Board, which administers the TSP. Millions of federal workers will soon have the option to direct their retirement savings to funds that incorporate environmental, social and governance factors in their investment decisions.
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