The Thrift Board revealed that new managers for its F and I Funds would be chosen. In November 2017, the Board sent out a “Request for Proposals” for a new F Fund manager, and it hopes a decision on that Fund would be announced soon.
The Board has yet to issue an RFP for the I Fund manager but intends to later in the year. The I Fund manager will need to deal with the index change the I Fund watches. Right now, the I Fund watches the MSCI EAFE index, which looks at the economies of developed countries only – think the FarEast and Europe.
Not too long ago, the Thrift Board voted to change the index guidance for the I Fund, using the MSCI All World index. This index will look at everywhere but the U.S. It’s believed the change will occur early in 2019.
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The L Funds biggest change is still scheduled to be implemented in 2020when it goes from a 10-year interval to a five-year one. The Board opted to make the change because the majority of private sector target dates are based on a five-year interval. This lets individuals target their money better.
The new Blended Retirement System is currently being executed for uniformed services. The Board reminded members that a TSP account was needed to be eligible for the BRS. Service members who have a TSP account can opt in the BRS program to have government matching contributions allocated to the account. Those without a TSP account and want the BRS one must set up a TSP account.
The TSP Modernization Act will bring some big changes to the TSP, which the Board plans to implement before the two-year deadline approaches the legislation imposed.
