Government affairs

Legislative Updates

Senate approves ‘TSP Modernization Act’

Following the House of Representative’s passage last month of the Thrift Savings Plan Modernization Act of 2017 (H.R. 3031), the Senate followed suit by unanimously passing the legislation on Nov. 7. The bill now awaits President Donald Trump’s signature.

As previously reported, H.R. 3031 calls for eliminating restrictions on age-based withdrawals from the TSP, allowing for active federal employees older than 59½ to make multiple age-based withdrawals while still working and allowing retirees to make multiple, partial post-separation withdrawals. Once signed into law, the bill will allow participants to stop quarterly or annual payments, permit periodic withdrawals to be changed at any point during the year, and save the option to purchase an annuity while recovering monthly benefits.

“Passage of this legislation is a great step toward providing flexibility to letter carriers and federal employees who are investors,” NALC President Fredric Rolando said. “NALC applauds Congress for its swift action on this bipartisan measure and we look forward to it being signed into law.”

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