The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Two Dems Want Active Funds in the TSP Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, December 22, 2014

Two Dems Want Active Funds in the TSP

News summary by MFWire's editors

If a pair of Congressional Democrats have their way, active managers may gain access to the largest defined contribution plan in the country. But don't bet your year-end bonus on it.

On December 11, Representative Gregory Meeks (D-New York) introduced H.R. 5877, with Representative Maxine Waters (D-California) cosponsoring. Emile Hallez of Ignites reported on the proposed legislation, which would require the Federal Thrift Savings Plan to include actively managed funds in its lineup. The bill has been referred to both the House Oversight and Government Reform Committee and the House Education and the Workforce Committee.

And that's not all. The trade publication reports that the bill would also require 401(k) plan sponsor to consider using funds from asset managers backed by minorities, veterans or women. (The bill would amend the Employee Retirement Income Security Act (ERISA) accordingly.)

Currently, the TSP's nearly $400 billion in assets are in passive options powered mainly by BlackRock [profile]. Ignites notes that a 2009 law already allows the TSP board to include active funds, but they haven't done so; the new bill would require them to do so.

It's unclear what motivated the Queens Congressman, whose district is not known as an asset management stronghold, to introduce the legislation. The trade publication notes that Meeks has received donations from a number of asset managers' parents, including Credit Suisse, Goldman Sachs (his second-biggest donor last time around), MassMutual, New York Life and UBS.

Don't go counting your hypothetical TSP inflows just yet, though. Meeks is a Democrat, after all, in a House controlled by Republicans (and next to a Senate soon-to-be controlled by Republicans, too.) Govtrack.us estimates that Meeks' bill has a two percent chance of getting out of committee and a one percent chance of actually becoming law. 

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use