Changes

Employees are automatically vested for their contributions and associated earnings on those from day one, but are not vested in automatic/matching contributions and associated earnings on those until three years after employment (two years in some cases); if the employee leaves those contributions are forfeited (and used to pay administrative fees, which makes the TSP among the lowest-cost plans available).

Employees are automatically vested for their contributions and associated earnings on those from day one, but are not vested in automatic/matching contributions and associated earnings on those until three years after employment (two years in some cases); if the employee leaves those contributions are forfeited (and used to pay administrative fees, which makes the TSP among the lowest-cost plans available).

The TSP offers ten fund options, five of which operate like traditional index [[mutual fund]]s and five are "Lifecycle" (target-date) funds:

The TSP offers ten fund options, five of which operate like traditional index [[mutual fund]]s and five are "Lifecycle" (target-date) funds:

*S (Small Capitalization Stock) Fund -- invests in the BlackRock Extended Market Index Fund, which attempts to track the Dow Jones U.S. Completion TSM index.

*S (Small Capitalization Stock) Fund -- invests in the BlackRock Extended Market Index Fund, which attempts to track the Dow Jones U.S. Completion TSM index.

*I (International Stock) Fund -- invests in the BlackRock EAFE Index Fund, which attempts to track the net version of the MSCI EAFE index.

*I (International Stock) Fund -- invests in the BlackRock EAFE Index Fund, which attempts to track the net version of the MSCI EAFE index.

*L (Lifecycle) Funds -- invests in a specified mix of the five traditional funds.  Those funds with target years in the distant future have higher percentages of investments in the C, I, and S Funds, and as the target year approaches the percentages shift to predominantly in the G and F Funds.  Every ten years, in years ending in zero, the fund for that target year is merged into the L Income fund, and a new fund established.<ref>Current legislation has this changing, beginning in 2020, to every five years, consistent with target date funds offered in the private sector, but implementing regulations have not been established.  The expected date of changes such as this, and others mentioned below, is September 2019; the law requires implementation by November 1, 2019.</ref>  Unless a new employee chooses a different fund, the employee will automatically have all contributions established in an L fund based on an expected retirement date of 62.

*L (Lifecycle) Funds -- invests in a specified mix of the five traditional funds.  Those funds with target years in the distant future have higher percentages of investments in the C, I, and S Funds, and as the target year approaches the percentages shift to predominantly in the G and F Funds.  Every ten years, in years ending in zero, the fund for that target year is merged into the L Income fund, and a new fund established.<ref>Current legislation has this changing, beginning in 2020, to every five years, consistent with target date funds offered in the private sector, but implementing regulations have not been established.  The expected date of changes such as this, and others mentioned below, is September 2019; the law requires implementation by November 1, 2019.</ref>  Unless a new employee chooses differently, s/he will automatically have all contributions established in an L fund based on an expected retirement date of 62<ref>Members of the uniformed services have their contributions placed in the G Fund.</ref>.

**L Income -- individuals currently receiving monthly payments

**L Income -- individuals currently receiving monthly payments

**L2020 -- individuals with retirement dates between 2015 and 2024

**L2020 -- individuals with retirement dates between 2015 and 2024