Bill will push new real estate fund for Thrift Savings Plan

The Thrift Savings Plan might be gaining a real estate fund option, according to legislation that will be introduced Monday by two members of the House Government Reform Committee.

Rep. Jon Porter, R-Nev., chairman of the House Government Reform Subcommittee on the Federal Workforce and Agency Organization, and Rep. Chris Van Hollen, D-Md., announced Friday that they will introduce a bill to add a real estate investment trust fund option to the Thrift Savings Plan. In January, the Federal Retirement Thrift Investment Board discussed that option and decided they were against the introduction of a real estate fund.

The TSP, a 401(k)-style plan for federal employees, currently has five available fund options. The Thrift Board is also developing a sixth-the life-cycle fund, an automatically diversified collection of existing funds.

During a January meeting, the Thrift Board was told that lobbyists from the National Association of Real Estate Investment Trusts were on Capitol Hill pushing for a real estate fund in the TSP. Several board members-including Chairman Andrew Saul-said they were against the idea. No one spoke in favor. TSP Executive Director Gary Amelio noted that the Thrift plan already would be the 13th largest real estate mutual fund in the country, based on holdings in the five existing funds. Thrift officials were not immediately available Friday afternoon to comment on the proposed bill.

Congressional staffers said they are aware of the Thrift Board's position and have discussed the issue with Amelio.

"We met with them, and we've had back-and-forth correspondence, and we still think it's a great option," said Porter spokesman Chad Bungard.

According to Bungard, Amelio said that a real estate fund would be a logical choice for a sixth fund, but the TSP chief is opposed to the addition of any funds at all.

"We have been talking with Gary Amelio," Bungard said. "He's trying to keep it simple."

House Government Reform Committee Chairman Tom Davis, R-Va., is scheduled to appear with Porter and Van Hollen on Monday to introduce the bill.

"There were other opinions that contradicted the Thrift Board," said a Democratic staffer who asked not to be identified. "It's just an option; it's elective. It's very similar to what is available in 401(k)s. Federal employees should have the same option."