Rubio (R-FLA) proposes opening TSP to all Americans

[James48843]

Would a TSP-for-All Constitute Government Overreach?

Policy experts have given mixed reviews to a proposal to open the Thrift Savings Plan to all Americans, with some conservative groups fearing an increased role for the federal government.


Sen. Marco Rubio, R-Fla., unveiled his plan last week as part of a larger retirement reform proposal. Rubio called it unfair that federal employees and lawmakers have access to the TSP -- a defined-contribution retirement savings account -- but the general public does not. He pitched offering the TSP to all American workers who lack access to a similar, employer-sponsored plan.


Some of Rubio’s fellow conservatives voiced criticism of the Florida Senator’s plan, however. The Heritage Foundation wrote a critique of the proposal, saying it would result in a “huge government-directed windfall” for BlackRock, the investment company with the largest contract with TSP.

Rubio wants everyone to have a TSP account-- read the article at Govexec.com:
Would a TSP-for-All Constitute Government Overreach? - Pay & Benefits - GovExec.com

 

[Firedog]

JMHO, but, this sounds like pure political maneuvering and not an honest attempt to prepare people for retirement. What none of them mention in this or any article that I've seen on this is that every working American already has access to a defined contribution retirement plan: The traditional or ROTH IRA.

If the idea is to give them the matching funds, like FERS, then that is a singularly stupid idea. What the hell is Social Security for?(and look how well thats been managed) Of all the retirement programs my wife and I participate in: TSP, 457b, roth and traditional IRAs, The TSP has the most limited options.

I think the root issue is that people just won't save(gotta spend it now) or have the discipine to save for their own retirements.

 

[Frixxxx]

JMHO, but, this sounds like pure political maneuvering and not an honest attempt to prepare people for retirement. What none of them mention in this or any article that I've seen on this is that every working American already has access to a defined contribution retirement plan: The traditional or ROTH IRA.

If the idea is to give them the matching funds, like FERS, then that is a singularly stupid idea. What the hell is Social Security for?(and look how well thats been managed) Of all the retirement programs my wife and I participate in: TSP, 457b, roth and traditional IRAs, The TSP has the most limited options.

I think the root issue is that people just won't save(gotta spend it now) or have the discipine to save for their own retirements.

The idea is not for matching funds, it is for those who do not have an employee-sponsored retirement plan. 78 million people currently don't have one. So, it's more to address not having a plan available. So, kinda going down the path of another gorverment project to allow the masses a path to something they currently don't have.

I agree though, there are many paths to invest out there....

The problem is we need to teach the horse to find the water on his own, instead of thinking we need to lead him to the source. Then he would drink for sure.

 

[jonfresno]

Rubio wants everyone to have a TSP account-- read the article at Govexec.com:
Would a TSP-for-All Constitute Government Overreach? - Pay & Benefits - GovExec.com

Oh man, looks like Marco just handed Rand Paul the 2x4 Rand will use to bludgeon him to death during the primaries...

 

[RealMoneyIssues]

I wonder who BlackRock is supporting...

 

[Bquat]

Social Security Redux: Get everyone in it and then change the law so they can borrow against it until the compounding interest can't perpetuate it either. It a switch and bale out the government policy.