Sponsors (23)
The bill makes it easier and faster for federal employees to move TSP balances to brokerage retirement accounts and adds congressional reporting, at the cost of implementation expenses, added administrative responsibilities, and some operational risk during rollout.
Federal employees with Thrift Savings Plan (TSP) accounts can transfer funds electronically to qualified brokerage retirement plans, reducing paperwork, speeding transfers, and making it easier to consolidate and manage retirement investments.
Congress will receive a report on implementation, improving transparency and oversight of the new electronic-transfer authority.
Electronic transfers introduce a risk of errors or improper transfers during rollout, which could harm affected federal employees until systems and procedures are fully tested.
Implementing and operating the electronic-transfer capability will impose administrative and IT costs on the Federal Retirement Thrift Investment Board (FRTIB) and Treasury, potentially funded by taxpayers or TSP operations.
Creates a new administrative duty for the FRTIB Executive Director and Treasury to design and oversee the transfer process, diverting staff time and attention from other priorities.
Based on analysis of 2 sections of legislative text.
Authorizes electronic execution of permitted transfers from individual TSP accounts to qualified brokerage retirement plans and requires an implementation report to Congress.
Official title: To provide for the electronic transfer of amounts from Thrift Savings Fund accounts to qualified retirement plans, and for other purposes.
Introduced June 9, 2026 by Mike Bost · Last progress June 9, 2026
Requires the Thrift Savings Plan (TSP) to allow electronic transfers from an individual TSP account to a qualified retirement plan at a brokerage firm once the participant provides required information. Also directs the FRTIB Executive Director, in consultation with the Treasury Secretary, to report to Congress on implementing the electronic-transfer authority, with both the transfer option and the report due one year after enactment. The change updates how participants can move TSP funds to outside qualified plans by authorizing electronic execution of permitted transfers, aiming to simplify and speed up the process while ensuring participants supply the necessary information before a transfer is executed.