The debut of two new investment options in the federal Thrift Savings Plan scheduled for May 1 has been delayed until October, the Federal Retirement Thrift Investment Board announced Tuesday.
The board, which oversees TSP operations, said that a new computer system needs more testing before it can be fielded. The new investment options, as well as several new services for TSP participants, will have to be pushed back five months.
"Although the new system has been almost entirely designed and developed, and has no apparent problems, the exhaustive testing of its functions is not yet complete and will require additional time," said Roger W. Mehle, executive director of the board.
At a meeting with the board last week, Fairfax, Va.-based American Management Systems, the contractor developing the new system, recommended a delay in the system's rollout because of recent delays in the testing program. A board spokesperson said the delays were not Y2K-related.
The primary features of the new system for TSP participants are daily valuation of accounts and two new investment funds: the Small Capitalization Index Investment (S) Fund and the International Stock Index Investment (I) Fund. Currently, federal employees have three investment options available through the TSP: the C Fund, which invests in stocks, the F Fund, which invests in bonds and the G Fund, which invests in government securities.
The TSP is the government's 401(k)-style retirement plan. More than 2.4 million participants have about $95 billion invested through the TSP.
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