Number: 113-22
Date: September 19, 2014
Senate Passes S. 2117, the Smart Savings Act
On September 16, 2014, the Senate amended and passed, by unanimous consent, S. 2117, the Smart Savings Act. A companion bill, H.R. 4193, previously passed the House on
July 14, 2014. However, for procedural reasons, one chamber will have to formally approve the other’s legislation before the bill can be sent to the President for his action.
The Smart Savings Act affects enrollment in the Thrift Savings Plan (TSP). Following are provisions of interest to Social Security employees:
- Would change the default TSP investment fund—the fund used when an employee declines to elect his or her investment funds—from the Government Securities Investment Fund (i.e., the G Fund) to the appropriate target date asset allocation fund (i.e. the Lifecycle or L Fund), based on the employee’s age. The G Fund would remain the default option for members of the uniformed services.
- Would require an employee who is automatically enrolled in a default L Fund to sign a statement, prior to contributing to the TSP, acknowledging understanding that investment is at his or her own risk.
- Would require the Thrift Savings Board to issue guidance implementing these changes within 9 months of enactment.