The mutual fund window will give those enrolled in the Federal Thrift Savings Plan the opportunity to select mutual funds – including sustainable funds
WASHINGTON, DC, June 14, 2022 /24-7PressRelease/ — US SIF: The Forum for Sustainable and Responsible Investment is pleased that the Federal Thrift Savings Plan (TSP), the nation’s largest retirement plan, managing $782.2 billion in assets for more than 6.5 million federal employees and retirees, has opened a limited mutual fund window (MFW). This will give those enrolled in the TSP the opportunity to select mutual funds – including sustainable funds – in addition to the basic core options.
“Since the early days of the Obama administration our organization has advocated for making sustainable investment options available to TSP participants,” said Lisa Woll, CEO US SIF. “Federal employees should have access to the kind of sustainable investment options already offered in some public and private sector plans. Despite many delays, the MFW will now provide participants with new investment options and the opportunity to choose from several sustainable investment funds. While this is great news for plan participants, it comes with obstacles than need to be addressed so that using the MFW is more attractive.”
“We encourage The Federal Thrift Retirement Investment Board (FTRIB), which oversees the TSP, to address two significant limitations. First, participants must have $40,000 saved in their plan before they can use the MFW. This eliminates most, if not all, early career or newer participants who have not had time to accumulate that sum in their accounts. These investors, many of whom may be Millennial or Gen Z, are among the demographic most interested in sustainable investing.
“In addition, participants who elect to participate in the MFW will need to pay additional fees to select investments via the MFW. These added fees, especially on smaller accounts, could potentially make participating in the sustainable investment window economically less attractive for interested participants.
“We encourage eligible Thrift Savings Plan participants to examine the new offerings presented in the mutual fund window and consider how they can leverage their investments for positive impact,” said Woll.
The US SIF Foundation offers educational materials for TSP participants interested in learning more about how they can incorporate sustainable investing into their portfolios. The organization’s free resources for individual investors include Sustainable Investing: An Online Course For Individual Investors and Getting Started in Sustainable Investing: A Guide for Retail Investors.
About US SIF and the US SIF Foundation
US SIF: The Forum for Sustainable and Responsible Investment is the leading voice advancing sustainable investing across all asset classes. Its mission is to rapidly shift investment practices toward sustainability, focusing on long-term investment and the generation of positive social and environmental impacts. US SIF members include investment management and advisory firms, mutual fund companies, asset owners, research firms, financial planners and advisors, community investing organizations and nonprofit associations.
US SIF is supported in its work by the US SIF Foundation, a 501(C)(3) organization that undertakes educational and research activities to advance the mission of US SIF, including offering trainings for advisors and other financial professionals on the Fundamentals of Sustainable and Impact Investment.
Learn more at ussif.org.
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