Some updates to report on retirement benefits for federal employees including a rule change on loans, some new fund options, and more feds becoming retirement millionaires.\u00a0<\/p>\n
First, a new rule<\/a> published in the Federal Register will make some adjustments for workers who take loans from their retirement plans and are seeking to reamortize the loan.\u00a0<\/p>\n The rule will allow borrowers to combine the accrued interest and loan principal into a single amount that is repaid directly to the participant\u2019s account. Previously, accrued interest had to be paid before any current interest and\/or principal was paid.\u00a0<\/p>\n Federal employees may reamortize their loans if they are shifting payrolls systems or returning from non-pay status like military service or family leave.\u00a0<\/p>\n The rule change will affect<\/a> about one percent of all loans made from the Thrift Savings Plan (TSP).\u00a0<\/p>\n TSP Lifecycle Changes<\/p>\n The TSP is adding some options<\/a> for the youngest federal employees with its Lifecycle funds, which are targeted toward specific retirement dates. <\/p>\n Just launched was the L 2075 fund, designed for workers born after 2009, or those planning to withdraw from their TSP account in the year 2073 or later.\u00a0<\/p>\n Also, the L 2025 reached its target date and was rolled into the L Income Fund.\u00a0<\/p>\n There are currently 11 life cycle funds on offer. They automatically adjust<\/a> (except the income fund) their allocations every quarter.\u00a0<\/p>\n Federal Retirement Millionaires Rise<\/p>\n