July 1, 2025
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Jim Kaplan, Director of External Affairs at the Federal Retirement Thrift Investment Board, shares a major milestone for the
Kaplan says the L Funds are designed to help participants make a single investment decision. Once they select an L Fund—based on their target retirement date—the fund automatically shifts investments over time. Early on, it’s more aggressive, favoring market-oriented funds like the C, S, and I Funds. As the participant nears retirement, the allocation gradually becomes more conservative, moving toward the G Fund and other lower-risk investments. “It starts when you’re young,” Kaplan explains, and “every quarter slowly shifts” toward more secure assets.
He also notes the importance of the L Funds becoming the default investment for new TSP accounts. Whether someone joins through military enlistment or starts a federal civilian job, the system now automatically enrolls them in the appropriate L Fund based on their date of birth. Kaplan says this shift has contributed heavily to the fund’s growth and popularity. “Almost as many people every month are putting money into the L Fund as are putting into the G Fund,” he observes.
When asked about participant behavior, Kaplan acknowledges that people do move funds around, and some follow advice that suggests choosing an L Fund with a later target date if they expect to live longer. While TSP doesn’t track all those movements in detail, he believes it’s an area worth exploring further.
Kaplan also addresses a long-standing confusion from early L Fund adopters—whether it’s helpful to invest in both an L Fund and individual funds like the G or C Funds. He clarifies that the L Funds are already diversified mixes of all five core TSP funds. “There’s nothing new in the L Fund,” he says. “If you have an L Fund and then also put money into another fund, you might be changing your risk profile without realizing it.” He encourages participants to review how their L Fund allocation evolves over time, and to understand that the fund’s mix is built by professionals to suit a participant’s expected retirement horizon.
Kaplan also outlines a recent improvement to TSP operations. Previously, when a payment—via check or direct deposit—was returned due to outdated information, the system waited for the participant to report it. Now, TSP initiates contact as soon as a payment fails. “We were successful in reaching out to 98% of them,” he says. This change cut the average time to reissue a payment from 22 days to 12.
As a final note, Kaplan encourages regular account maintenance. Whether during spring cleaning or on one’s birthday, participants should confirm their contact details, beneficiaries, and bank accounts are up to date—especially if they’re traveling or relocating, as many military personnel do.
He closes with a point of pride: 90% of military members in the Blended Retirement System now receive their full match. “That’s an all-time high,” Kaplan says—proof that more participants are making the most of the benefits they’ve earned.