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FEDERAL RETIREMENT THRIFT INVESTMENT BOARD IMPLEMENTS THRIFT SAVINGS PLAN ENHANCEMENTS AND ANNOUNCES RELEASE OF NEW INFORMATIONAL MATERIALS

        Washington, D.C. (April 30, 2001) — The Federal Retirement Thrift Investment Board announced today that new Thrift Savings Plan benefits authorized last year by Congress will be made available to participants beginning this May.  These benefits include the elimination of the six to twelve month waiting period for employee contributions to the TSP and an increase in the amounts that may be contributed.  Both will become available when the forthcoming TSP open season begins on May 15, with elections to take effect as early as July 1.

        Additionally, two new investment funds, the Small Capitalization Stock Index Investment (S) Fund and the International Stock Index Investment (I) Fund, will be added to the three existing TSP funds as of May 1.  On and after that date, Plan participants may file an election to reallocate their future payroll contributions to the new funds via the TSP Web site (www.tsp.gov), the ThriftLine automated telephone service (1-504-255-8777), or by mailing Form TSP-50 to the Plan record keeper.  These elections will take effect when the next payroll contribution is received from the participant’s employing agency.  Additionally, requests to reallocate existing account balances among the five investment funds received by May 15 will take effect as of May 31.

        Beginning in July, participants may transfer funds into their TSP accounts from qualified 401(k) plans and other retirement plans established by their previous employer(s) or from conduit Individual Retirement Accounts.  Later this year, beginning on October 9, members of the uniformed services (both active and reserve) will be able to enroll in the TSP with their elections to take effect in January 2002.

        Two comprehensive TSP informational booklets — the Summary of the Thrift Savings Plan for Federal Employees and the Guide to TSP Investments — have been completely updated.  They are being sent to employing agencies for distribution during the forthcoming open season.  Copies are now available for preview on the TSP Web site.  Additionally, a "Before and After" summary description of the changes is also available on the Web site.

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