April 8, 2025
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As the Thrift Savings Plan (TSP) celebrates the 38th birthday of its foundational G Fund, Jim Kaplan, Director of External Affairs at the Federal Retirement Thrift Investment Board, reflects on nearly four decades of growth and service. Since the very first dollar was deposited, the TSP has grown to serve 7.2 million participants and beneficiaries, with more than $900 billion in assets under management.
Kaplan shares that the G Fund, the original and still essential investment option in the TSP lineup, remains a significant part of many participants' portfolios. While lifecycle (L) funds have become the most popular option—especially for new federal employees, who are automatically enrolled into them—the G Fund remains a core component within those diversified offerings. For some participants, the G Fund continues to be their primary or sole investment vehicle due to its conservative and stable nature.
Auto-enrollment and automatic contribution settings are helping more federal employees take full advantage of their retirement benefits. Most new employees are enrolled at a 5% contribution rate, which qualifies them for full matching contributions from their agencies. Kaplan notes that participation in these full match levels has reached all-time highs: 88.5% for employees under the Federal Employees Retirement System (FERS), and nearly 90% for those under the Blended Retirement System.
This success is not by chance. The TSP has invested in targeted outreach efforts to encourage participants to maximize their contributions. Kaplan explains that their data scientists experiment with different email messaging strategies to boost engagement. Whether it's a simple reminder, or a message pointing out how close someone is to hitting the full match, these personalized nudges have proven effective. Messages that frame the opportunity as "leaving money on the table" tend to prompt slightly better response rates.
Transparency and trust are also essential to the TSP’s investment strategy. Kaplan emphasizes that the TSP’s funds are designed to match, not beat, their respective market indexes. Whether it’s the C Fund tracking the S&P 500 or the I Fund reflecting international markets, the TSP’s goal is to mirror these benchmarks as precisely as possible. Asset managers like BlackRock or State Street help execute trades, but they do not influence allocation decisions. That’s a critical distinction, Kaplan says, because the TSP is built on a passive investment model, keeping fees low and performance predictable.
For those who want more customized investment options, the TSP offers a mutual fund window. However, Kaplan reveals that fewer than 1% of participants use it, despite years of demand for specialty funds. This low uptake underscores the value and simplicity of the TSP’s core offerings.
Customer service is another area where the TSP shines. The ThriftLine boasts an average wait time of just 54 seconds, with nearly 85% of callers reaching a live representative within 20 seconds. Overall satisfaction stands at an impressive 93.5%. Despite concerns across government about workforce reductions and retirements, call volumes remain steady.
Through consistent strategy, participant-focused innovation, and top-tier service, the TSP continues to support federal employees planning for a secure retirement.