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What Changes to the Thrift Savings Plan Mean for Investors

Some funds in the retirement plan for federal employees are shifting from a conservative glide path to a more typical one.

The Thrift Savings Plan--the defined-contribution retirement plan for federal employees--is the largest retirement plan in the United States. It has rock-bottom fees and a simple investment lineup, which is great for participants.

Yet as good as it is, the TSP has also historically had an unusually conservative glide path for its target-date funds, which could hurt participants who expect their retirement portfolio allocations to look like typical retirement plans' allocations. Recently the TSP Lifecycle funds, as its target-date funds are called, have started to shift into a much more typical glide path. Participants in the largest defined-contribution plan in the U.S. need to understand what this means for them.