Lower TSP Fees, Higher Satisfaction: What’s Driving the Change?

Federal employees and retirees are seeing lower fees and better service in their Thrift Savings Plan (TSP). Jim Kaplan, Director of External Affairs at the Federal Retirement Thrift Investment Board, joins the show to discuss how administrative cost reductions have led to lower fees for participants. With TSP expenses dropping over the past two years, participants are now paying just 3.6 basis points in administrative costs—down from 4.8 basis points in 2023. That translates to only 36 cents per $1,000 in retirement savings.Kaplan also highlights improvements to the TSP’s record-keeping system, Converge, which has driven higher participant satisfaction across all service channels. More federal employees are now using the TSP mobile app, and call center response times have improved. A recent participant survey shows overall satisfaction is on the rise, with 87% of those withdrawing their funds reporting they were happy with the TSP service.Looking ahead, Kaplan previews two major rollouts coming in 2025: in-plan Roth conversions, allowing participants to move funds within the TSP to a Roth account, and the launch of the L 2075 Fund, designed for younger employees targeting long-term retirement growth.For more insights and resources, visit FedGovToday.com, and don’t miss Fed Gov Today TV, airing Sunday mornings at 10:30 on ABC7 in Washington and available on-demand on YouTube. Stay up to date with the latest federal technology and workforce trends by following the Fed Gov Today podcast on Apple Podcasts, Spotify, or your favorite podcast platform.