Thrift Savings Plan 

Participant Survey Results 

2006-07

Presented to the 

Federal Retirement Thrift 

Investment Board

November 2007
Table of Contents 

Executive Summary.......................................................................................................... 2 

About the Survey............................................................................................................... 4 

Part A: Savings and Contributions to the TSP ............................................................. 6 

Level of TSP Participation ................................................................................... 6 

Savings Rates in the TSP.................................................................................... 12 

Conclusion on TSP Participation and Savings Rates ...................................... 15 

Part B: TSP Benefits and Services ............................................................................... 16 

Overall Satisfaction with TSP and Customer Service..................................... 16 

Making Administrative Changes....................................................................... 18 

Information and Resources................................................................................ 19 

Current TSP Design............................................................................................ 23 

Asset Allocation in the TSP................................................................................ 25 

Sources of Retirement Income........................................................................... 32 

Retirement Goals and Expectations.................................................................. 35 

Conclusion on TSP Benefits and Services......................................................... 39 

Part C: Potential Changes to the TSP........................................................................... 41 

Introduction......................................................................................................... 41 

Automatic Enrollment........................................................................................ 41 

Automatic Enrollment and Default Elections .................................................. 43 

Additional Investment Options and Services ................................................... 46 

Adding the Roth 401(k) Option ......................................................................... 47 

Additional Investment Options.......................................................................... 49 

Adding Specific Investment Options................................................................. 51 

Conclusion on Potential Changes to the TSP ................................................... 60 

In Summary..................................................................................................................... 61 

Appendices 

Appendix A: Survey Instrument ...................................................................... 63 

Appendix B: Factors Driving the Margin of Error ....................................... 72 

Appendix C: Demographics............................................................................. 73 

Appendix D: Plan Satisfaction......................................................................... 76 
2

Executive Summary 

The Federal Retirement Thrift Investment Board (FRTIB) contracted with Watson Wyatt 

Worldwide, an independent consultancy, to study the opinions of Federal employees and 

uniformed services members with regard to their needs, attitudes, understanding, and 

satisfaction with the Thrift Savings Plan (TSP) plan. The survey was also designed to 

gauge participants’ reactions to some potential changes to the TSP that are under 

consideration. A survey was conducted in two phases, first in November 2006 then 

repeated in March 2007, through a paper-based mailing to the homes of a random sample 

of Federal workers and uniformed service members. 

A stratified sampling design was utilized to obtain a representative number of responses 

from each retirement system and various demographic groups. The results of the survey 

can be statistically generalized at the overall Plan level with a margin of error of less than 

plus or minus two percent and at the system-level of CSRS, FERS, and the Uniformed 

Services of approximately plus or minus three percent with a ninety-five percent 

confidence level. While survey responses for other groups of interest are included in this 

report for descriptive purposes, the margins of error for these smaller groups are not 

provided. 

The key findings of the survey include: 

 TSP participants are generally more satisfied with the plan than comparable 

employees in the private sector are with their 401(k) plans. 

 TSP participants are satisfied with the administration of the plan and find the 

web-based information provided by the TSP as critical for building program 

understanding and financial literacy. Those who make use of this information 

exhibit significantly different investment behavior in their TSP account. 

 Federal workers and uniformed service members identify their TSP account as a 

cornerstone of their future retirement income. 
3

 FERS members identify matching contributions as a key reason why they 

participate in the TSP program while CSRS employees note tax benefits as their 

primary motivation for contributing. 

 TSP participants are generally in favor of automatic enrollment of new Federal 

employees and service members in the TSP program. 

 TSP participants believe that adding a Roth 401(k) option to the program will 

make it a better program. This sentiment is particularly strong among uniformed 

service members. However, use of a Roth IRA is weak among those expressing 

interest in a Roth 401(k) option. 

 TSP participants generally favor adding additional investment options to the TSP. 

However, they are very price-sensitive to adding specific investment options – 

preferring to add options only if they cost about the same as existing funds. The 

strongest support for a new fund option is for a TIPS Fund. 
4

About the Survey 

The Federal Retirement Thrift Investment Board (FRTIB) partnered with Watson Wyatt 

in September 2006 to conduct a survey of participants in the Thrift Savings Plan (TSP). 

The objectives of the survey included gaining a better understanding of participants’ 

needs, attitudes, understanding, and satisfaction with a number of elements of the plan. 

The study also sought to gauge participants’ reactions to some potential changes to the 

TSP that are under consideration. 

To create a valid survey instrument, Watson Wyatt and FRTIB collaborated to refine 

survey content through an iterative process. As part of this exercise, the team 

administered two pretest sessions with FRTIB employees and Federal employees and 

uniformed service members outside of FRTIB to solicit feedback on the ease and 

appropriateness of the instrument. The final instrument contained 46 closed-ended items 

(including sub-items) as well as one open-ended question in which participants were 

asked to provide comments or suggestions regarding the TSP. The survey also included 

several demographic questions to allow segmentation of results. The final survey content 

was approved by senior leadership, including the Executive Director of the FRTIB, prior 

to survey administration. The final survey instrument is included as Appendix A to this 

report. Watson Wyatt performed all survey distribution, data collection, and data analysis 

to ensure confidentiality. 

Over two phases of data collection, Watson Wyatt mailed paper survey packets to 29,216 

randomly selected Federal employees and uniformed service members to achieve a 

statistically reliable, representative sample. There were 2,364 survey packets returned as 

undeliverable, leaving 26,852 eligible for completion. Survey administration for the first 

phase occurred between November 3 and November 22, 2006, and for the second phase 

between March 3 and March 26, 2007. A total of 5,053 FRTIB participants returned a 

completed survey, representing a total response rate of 19 percent. Figure 1.1 presents 

response counts for each retirement system and figure 1.2 presents the distribution of 

respondents by retirement system. 
5

The table below provides the standard errors at the total program level as well as at the 

retirement system level for a 95 percent confidence interval (see Figure 1.1). In 

analyzing any particular survey item, the actual margin of error will vary based on the 

number of respondents who answered that item and the actual estimated distribution of 

the responses. 

Fig. 1.1 Number Responding and Estimated Margins of Error by Retirement System 

Retirement System Number Mailed Number Responding Margin of Error

TSP Overall 29,2161 5,053 1.4% 

Civil Service Retirement System (CSRS) 1,506 2.5% 

Federal Employees’ Retirement System (FERS) 1,403 2.6% 

Uniformed Services (Active Duty and Reserves) 2,144 2.1% 1 Overall, 2,364 surveys were unable to be delivered, resulting in a adjusted response rate of 19%. 

Fig. 1.2 Distribution of Respondents by Retirement System 

Uniformed 

Services, 

42.4%

Federal 

Employees’ 

Retirement 

System 

(FERS), 27.8%

Civil Service 

Retirement 

System (CSRS), 

29.8%
6

Part A: Savings and Contributions to the TSP 

Level of TSP Participation 

All survey respondents currently have a TSP account with a non-zero balance. 

Employees in the Federal Employees’ Retirement System (FERS) can make salary 

deferrals immediately after being hired. In addition, usually 6 to 12 months after they are 

hired by the Federal government, they become eligible to receive a one percent nonmatching contribution as well as matching contribution. Respondents to this survey 

include FERS members who deferred a portion of their pay and also FERS members who 

do not contribute but receive the 1 percent non-matching agency contribution. Civil 

Service Retirement System (CSRS) and uniformed service participants can make salary 

deferral contributions immediately after being hired but do not receive agency 

contributions.1 As such, this survey includes only CSRS or uniformed service members 

who contributed a portion of their pay to the TSP at some point during their career. 

Federal workers were asked whether they had contributed to the TSP over the last two 

years. The survey reflects a FERS employee participation rate of 87.1 percent (See 

Figure 2.1 and 2.2). This rate is consistent with the known FERS participation rate from 

the record keeping system data where during 2006 the FERS participation rate ranged 

from 85.7 percent to 86.3 percent. Also, participation rates among FERS members are 

quite a bit higher than the average 401(k) plan, which typically has three in four 

employees contributing money to the plan at any one time.2

 However, it is important to 

note that the lowest FERS participation rates are for workers age 50 and older with pay 

less than $40K, which likely represent the long-term and low paid segment of the FERS 

workforce. 

 

1

 While there is a pilot program currently in place for a small group of U.S. Army members to receive 

matching agency contributions, none of these members participated in this survey. 2

 Average plan-weighted participation in the private sector is 74 percent and rates among large companies 

with over 5,000 employees are typically lower at 68 percent. See Vanguard, 2006. How America Saves 

2006, A Report on Vanguard 2005 Defined Contribution Plan Data. 

www.vanguardretirementresearch.com. 
7

Fig. 2.1 FERS TSP Participation Rates by Age and Pay

Q1. In the past two years, have you contributed to the TSP? 

 Pay Groups 

Less than $40K $40K to $80K $80K and Over All 

All (N=1212) 77.6% 89.5% 94.7% 87.1%

Less than Age 40 86.0% 91.1% 95.7% 90.0%

40s 79.1% 92.4% 97.6% 90.3%

Age 50 and Over 69.7% 86.0% 92.2% 82.7%

 

Males (N=686) 78.3% 88.3% 94.3% 87.4% 

Less than Age 40 95.5% 90.4% 97.1% 93.1% 

40s 82.4% 93.3% 98.1% 92.7% 

Age 50 and Over 68.2% 83.0% 90.9% 81.0% 

 

Females (N=526) 76.9% 91.1% 95.7% 86.6% 

Less than Age 40 80.5% 91.8% - 87.2% 

40s 76.9% 91.0% 96.6% 87.2% 

Age 50 and Over 71.9% 90.4% 96.4% 85.5% 

Notes: Includes non-retirees who are currently employed by the Federal Government and members of the FERS. 

Fig. 2.2 FERS TSP Participation Rates by Age and Tenure

Q1. In the past two years, have you contributed to the TSP?

Tenure Group 

Less than 2 2 to 5 5 to 15 15+ All 

All (N=1203) 82.3% 84.2% 89.8% 90.0% 86.9%

Less than Age 40 90.0% 89.6% 91.5% - 90.1%

40s 79.6% 85.9% 89.4% 94.8% 89.4%

Age 50 and Over 74.2% 75.8% 88.2% 87.2% 82.9%

 

Males (N=682) 84.4% 84.4% 90.9% 88.4% 87.4% 

Less than Age 40 95.7% 93.1% 91.8% - 93.1% 

40s 86.4% 87.5% 93.2% 94.7% 92.2% 

Age 50 and Over 74.6% 73.7% 88.3% 84.3% 81.3% 

 

Females (N=521) 80.0% 83.9% 88.5% 93.5% 86.4% 

Less than Age 40 85.7% 86.6% 91.2% - 87.4% 

40s 74.1% 84.4% 86.0% 95.0% 85.9% 

Age 50 and Over 73.3% 78.9% 88.0% 93.7% 85.6% 

Notes: Includes non-retirees who are currently employed by the Federal Government. 

Among non-contributors, the top reasons Federal workers are not currently contributing 

to the TSP is because they are saving in other ways and the lack of money (See Figure 
8

3.1 to 3.3). Not having enough money is most often cited as a reason by CSRS members 

at 25.9 percent while only 14 percent of uniformed service members indicate such. 

Slightly more than 20 percent of respondents indicate they are saving for retirement in 

other ways, and this is the top reason among uniformed service members. Roughly 8 

percent of respondents report they are not contributing due to hardship withdrawals that 

suspended their contributions. Very few respondents indicate that the TSP is too 

complex or that they are unsure of how to sign up for the plan. However, any confusion 

about signing up or indication of plan complexity is almost exclusively linked to FERS 

members. This is not surprising given that all CSRS and uniformed service respondents 

had at one point voluntarily signed up to contribute a portion of pay to the plan. 

Fig. 3.1 Top Reasons for NOT Participating in the TSP 

Q3. Why aren’t you currently contributing to the TSP?

 Retirement System 

 CSRS FERS

Uniformed 

Services All

N 189 309 279 777 

Saving in other ways 24.3% 14.6% 24.0% 20.3% 

Don't have enough money 25.9 20.1 14.3 19.4 

Hardship withdrawal 16.9 7.1 2.5 7.9 

Can't access money before retirement 9.5 3.9 5.0 5.7 

Not sure how to sign up 0.5 11.0 0.7 4.8 

Not satisfied with investment options 4.8 1.9 6.1 4.1 

Too complex 0.5 5.8 2.2 3.2 

Already contributed the maximum 3.2 0.3 6.1 3.1 

Not eligible to contribute 4.2 1.3 2.5 2.5 

New employee and don't get matching 

contributions 0.0 3.6 0.7 1.7 

Notes: Includes active employees who are not currently contributing to the TSP. Participation is based on administrative 

records, since it reflects current contribution decisions, while the survey captures whether the respondent contributed over 

the last two years. 
9

Fig. 3.2 Top Reasons for NOT Participating in the TSP by Age and Pay 

Q3. Why aren’t you currently contributing to the TSP?

 Age Pay 

Less than 

Age 40 40s 

Over Age 

40 

Less than 

$40K 

$40K to 

$80K 

$80K and 

Over All 

Saving in other ways 21.1% 16.8% 22.6% 15.7% 18.7% 26.3% 20.3% 

Don't have enough money 19.6 16.3 21.8 26.7 20.8 12.7 19.4 

Hardship withdrawal 6.4 6.2 9.7 5.8 10.2 6.6 7.9 

Can't access money before retirement 2.9 4.3 8.0 3.1 7.5 4.8 5.7 

Not sure how to sign up 4.9 4.3 5.2 13.6 3.3 0.0 4.8 

Not satisfied with investment options 4.9 3.4 4.3 4.2 4.8 3.1 4.1 

Too complex 2.0 4.8 3.2 6.3 3.0 1.3 3.2 

Already contributed the maximum 2.5 4.8 2.6 0.0 1.5 7.9 3.1 

Not eligible to contribute 2.0 1.4 3.4 2.6 2.1 2.2 2.5 

New employee and don't get matching 

contributions 0.5 0.5 3.2 3.7 0.9 1.3 1.7 

Notes: Includes active employees who are not currently contributing to the TSP. Participation is based on administrative 

records, since it reflects current contribution decisions, while the survey captures whether the respondent contributed over 

the last two years. 

Fig. 3.3 Top Reasons for NOT Participating in the TSP by Education 

Q3. Why aren’t you currently contributing to the TSP?

High School 

or Less Some College 

College 

Graduate or 

Some Grad 

Graduate 

Degree All 

N 93 216 239 199 747 

Saving in other ways 12.9% 18.5% 24.7% 19.1% 20.3% 

Don't have enough money 26.9 22.7 21.3 11.1 19.4 

Hardship withdrawal 17.2 10.2 7.1 2.0 7.9 

Can't access money before retirement 2.2 6.9 7.1 2.5 5.7 

Not sure how to sign up 7.5 7.4 3.8 1.5 4.8 

Not satisfied with investment options 0.0 6.0 3.8 3.5 4.1 

Too complex 4.3 5.6 2.5 0.5 3.2 

Already contributed the maximum 0.0 0.9 1.3 9.1 3.1 

Not eligible to contribute 2.2 2.3 2.5 2.5 2.5 

New employee and don't get matching 

contributions 3.2 1.9 1.3 1.5 1.7 

Notes: Includes active employees who are not currently contributing to the TSP. Participation is based on administrative 

records, since it reflects current contribution decisions, while the survey captures whether the respondent contributed over 

the last two years. 

Overall, respondents report tax benefits as the top reason for contributing to the TSP (See 

Figures 4.1 & 4.2). Over 75 percent of CSRS members highlight this reason compared to 

63 percent of FERS respondents. Matching contributions is the top reason FERS 

members contribute to the TSP – cited by more than 85 percent of respondents. In 
10

addition, survey results indicate that word of mouth from co-workers or supervisors is not 

a major driver of employee participation. 

Fig. 4.1 Top Reason for Participating in the TSP 

Q4. Whether or not you are contributing to the TSP, which of the following are (or would be) your reasons 

for contributing to the TSP? 

 FERS CSRS

Uniformed 

Services All

N 1266 1040 1497 3803 

Tax benefits 63.4% 75.7% 70.5% 69.6% 

Convenience of payroll deduction 55.1 61.4 56.0 57.2 

Matching contributions 85.4 10.8 34.1 44.8 

So I can retire when I want to 41.1 36.9 41.4 40.1 

Administrative costs are low 15.2 26.3 26.0 22.5 

Co-worker recommended 8.5 6.4 4.8 6.4 

My supervisor recommended 3.4 0.9 3.5 2.7 

Notes: Includes non-retirees who are currently employed by the Federal Government. 

Fig. 4.2 Top Reason for Participating in the TSP by Age and Pay 

Q4. Whether or not you are contributing to the TSP, which of the following are (or would be) your reasons 

for contributing to the TSP?

 Age Pay 

Less than 

Age 40 40s 

Age 50 

and Over

Less than 

$40K 

$40K to 

$80K 

$80K and 

Over All 

Tax benefits 58.8% 72.8% 75.5% 48.9% 67.9% 85.3% 69.6% 

Convenience of payroll deduction 52.9 56.0 61.5 49.3 58.9 61.0 57.2 

Matching contributions 53.6 49.7 37.8 56.6 47.7 35.9 44.8 

So I can retire when I want to 47.7 43.9 34.0 38.5 40.4 42.3 40.1 

Administrative costs are low 17.5 21.9 26.3 13.4 18.4 34.0 22.5 

Co-worker recommended 8.5 6.1 5.4 10.8 6.8 3.8 6.4 

My supervisor recommended 5.8 2.4 1.2 7.0 2.2 1.1 2.7 

Notes: Includes non-retirees who are currently employed by the Federal Government. 

When asked about what changes would encourage greater Federal worker 

participation, two out of three respondents say that immediate matching 

contributions would increase the number of contributors (see Figures 5.1 & 5.2). 

Also, a majority of respondents say that automatic enrollment would boost the 

number of workers contributing to the TSP. However, only one in four says that 

more investment choices would have an effect. Eleven percent of respondents indicate 

an option other than what was specifically listed on the questionnaire. Of those selecting 
11

this option, the largest group found that adding matching contributions would encourage 

higher participation. This was especially true among uniformed service members. Many 

respondents also believe that more education and communication would encourage 

Federal workers and uniformed service members who are not contributing today to do so 

in the future. 

Fig. 5.1 Changes to TSP that will Encourage Higher Participation 

Q26. Which of the following changes to the TSP do you think will encourage more Federal 

employees/service members to become contributors to the TSP?

FERS CSRS

Uniformed 

Services All

N 1403 1506 2144 5053 

Immediate matching contributions 70.2% 62.0% 72.9% 68.9% 

Automatic enrollment 56.9 59.6 51.4 55.4 

More investment choices 28.3 24.7 26.9 26.6 

Other 9.9 7.8 13.5 10.8 

None 4.3 6.1 3.8 4.6 

Notes: Based on all respondents.

Fig. 5.2 Changes to TSP that will Encourage Higher Participation by Age and Pay 

Q26. Which of the following changes to the TSP do you think will encourage more Federal 

employees/service members to become contributors to the TSP?

Age Pay 

Less than 

Age 40 40s 

Age 50 

and Over 

Less than 

$40K 

$40K to 

$80K 

$80K and 

Over All 

Immediate matching contributions 73.1% 68.8% 68.8% 68.5% 68.4% 72.8% 68.9% 

Automatic enrollment 47.6 55.0 60.7 49.0 55.1 61.8 55.4 

More investment choices 28.0 27.2 26.3 27.2 26.5 27.4 26.6 

Other 14.6 11.7 8.9 9.3 11.8 11.2 10.8 

None 4.4 4.8 4.7 6.3 4.3 4.1 4.6 

Notes: Based on all respondents.
12

Savings Rates in the TSP 

In a typical employer-sponsored savings plan like the TSP, employees are the primary 

source of funding and employer contributions play a secondary role. For CSRS and most 

uniformed service members, however, employee contributions represent the only source 

of savings. As such, the level of participant contributions is a critical determinant of 

whether the plan will generate an adequate level of savings for retirement. 

 

TSP survey respondents indicate saving on average 10.2 percent of their income (see 

Figures 6.1 to 6.4). The median participant contribution rate is 10.0 percent, meaning 

that half of participants are saving above this rate and half are saving below it. These 

contribution rates are over three percentage points higher than typical private sector 

savings plan contributions of 7.3 percent in 2005.3

 This finding can be partly explained 

by the comparatively older workforce within the Federal Government. However, after 

controlling for age and pay, TSP savings rates are still higher than those observed in 

the private sector. The savings rates represented by this survey are self-reported and 

exclude eligible employees who are not currently contributing to the TSP. 

Average savings rates among FERS and CSRS participants are not significantly different 

(9.0% vs. 9.1%), although, there is a two percentage point difference between median 

saving rates (7.2% vs. 10.0%). The lower median saving rate among FERS participants 

is due to nearly a third of all members contributing at the 5 percent of pay threshold, 

which is the maximum rate that FERS participants receive in matching contributions. 

The highest savings rates belong to members of the Uniformed Services, who report 

savings rates almost 3 percentage points above FERS and CSRS members and almost 5 

percentage points above the average participant in the private sector. However, the 

median rate is equal to the overall Federal employee rate of 10 percent indicating that a 

disproportionate share of uniformed service members are contributing a very high 

percentage of their pay to the TSP. In fact, nearly 11 percent members of the 

 

3

 Vanguard, 2006. How America Saves 2006, A Report on Vanguard 2005 Defined Contribution Plan Data. 

www.vanguardretirementresearch.com. 
13

Uniformed Services indicate contributing 20 percent of pay or higher to the TSP 

compared to 4.1 percent of FERS members and 4.2 percent of CSRS members.4 

Fig. 6.1 TSP Average Participant Contribution Rates by Retirement System and Gender

Q2. What percentage of your pay are you currently contributing to the TSP?

Contribution Rates 

FERS CSRS Uniformed Services All 

N=2,958 Mean Median Mean Median Mean Median Mean Median 

Male 9.1% 8.0% 9.5% 10.0% 11.9% 10.0% 10.5% 10.0% 

Female 8.8 6.0 8.7 9.0 11.6 10.0 9.4 8.0 

All 9.0 7.2 9.1 10.0 11.9 10.0 10.2 10.0 

Notes: Includes non-retirees who are currently employed by the Federal Government and who are currently 

contributing a portion of pay to the TSP. 

Fig. 6.2 TSP Average Participant Contribution Amount by Retirement System and Gender

Q2. What percentage of your pay are you currently contributing to the TSP?

FERS CSRS Uniformed Services All 

N=2,958 Mean Median Mean Median Mean Median Mean Median 

Male $6,271 $4,875 $8,558 $7,200 $9,019 $6,300 $8,084 $6,250 

Female $5,223 $3,125 $6,629 $5,044 $7,078 $5,000 $6,144 $4,500 

All $5,824 $4,000 $7,689 $7,000 $8,612 $6,250 $7,413 $5,000 

Notes: Includes non-retirees who are currently employed by the Federal Government and who are currently 

contributing a portion of pay to the TSP. Contribution amounts were derived using respondent’s self-reported 

contribution rates times the mid-point of their annual pay group. 

 

4

 In part, this can be attributed to the fact that members of the Uniformed Services may receive tax-exempt 

contributions which are not limited by IRS rules 402(g), which restricted pre-tax contributions to $15,000 

in 2006. Tax-exempt contributions are only limited by the 415(c) rules. 
14

Fig. 6.3 TSP Average Participant Contribution Rates by Retirement Age and Pay

Q2. What percentage of your pay are you currently contributing to the TSP?

Pay Group 

 N=2,958 

Less than 

$40K $40K to $60K $60K to $80K 

$80K to 

$100K 

$100K and 

Over All 

Less than Age 30 9.4% 7.8% 12.5% 10.6% - 10.1% 

30 to 39 8.4 9.2 11.6 10.7 10.6 10.1 

40s 8.3 8.8 10.2 10.9 10.7 9.8 

50 to 59 10.3 9.5 10.5 12.1 10.5 10.6 

Age 60 and Over 8.0 9.9 10.6 11.1 11.8 10.2 

All 8.9 9.0 11.1 11.1 10.9 10.2 

Notes: Includes non-retirees who are currently employed by the Federal Government and who are currently 

contributing a portion of pay to the TSP. 

Fig. 6.4 TSP Average Participant Contribution Rates by Retirement Age and Tenure

Q2. What percentage of your pay are you currently contributing to the TSP?

 Tenure Group 

 N=2,958 Less than 2 2 to 5 5 to 15 15 to 25 25+ All 

Less than Age 30 7.0% 9.0% 10.8% - - 9.4% 

30 to 39 6.8 9.8 10.1 10.8% - 9.9 

40s 8.5 8.0 10.3 10.3 9.8% 9.9 

50 to 59 7.6 8.2 10.2 10.9 11.0 10.6 

Age 60 and Over 9.5 9.3 9.7 13.7 10.1 10.5 

All 7.7% 9.0% 10.3% 10.8% 10.4% 10.1% 

Notes: Includes non-retirees who are currently employed by the Federal Government and who are currently 

contributing a portion of pay to the TSP
15

Conclusion on TSP Participation and Savings Rates 

Survey results indicate that Federal employees and uniformed service members are 

highly engaged in the TSP. Eighty-seven percent of FERS members indicate having 

contributed a portion of their pay to the TSP over the last two years, and among all 

participants, the average respondent is contributing over 10 percent of pay to the plan. 

FERS members most often cite matching contributions as the main reason for 

participating in the TSP. However, among members of each of the retirement systems, 

participants also highlight the tax benefits and the convenience of payroll deductions as 

key reasons for participating. The main reasons Federal workers and uniformed service 

members do not participate in the TSP is because they either do not have the money or 

they are saving in other ways. Overwhelmingly, they feel the key to higher participation 

rates is through immediate matching contributions. Automatic enrollment is also 

highlighted as an effective means to boosting the number of contributors. 
16

Part B: TSP Benefits and Services 

Overall Satisfaction with TSP and Customer Service 

As a whole, respondents have a high level of satisfaction with the TSP, reporting an 

85 percent favorable rating (see Figure 7.1 to 7.4). This result compares favorably 

to the 68 percent of private-sector participants who indicate a favorable rating on 

their 401(k) plan.5

 Specific indicators of high participant satisfaction with the TSP 

include the quality of available plan services and the level of customer service. Eightyone percent of respondents report satisfaction with the service options available to them. 

Fig. 7.1 Satisfaction with the TSP 

85%

81%

65%

52%

12%

16%

27%

41% 7%

3%

7%

20. Overall satisfaction with the TSP 3%

19i. Overall quality of services provided by the

TSP (i.e., Web-based services, automated

ThriftLine, and TSP telephone service

representatives)

19h. Accuracy and timeliness of the processing of

forms submitted to the TSP

19g. Quality of services provided by the TSP

telephone service representatives (ThriftLine)

Favorable Neutral Unfavorable

 Notes: Based on all respondents. 

The majority of respondents do not have an opinion about the quality of service received 

from TSP telephone service representatives on the ThriftLine. Of those who did respond 

to the question, slightly more than half (52 percent) report they are satisfied, while 

 

5

 Watson Wyatt Retirement Attitude Survey (2004) collected responses on overall 401(k) plan satisfaction 

from 7,911 private sector employees at 982 firms. 

20. Overall satisfaction with the TSP 

19i. Overall quality of services provided by 

the TSP (i.e., Web-based services, 

automated ThriftLine, and TSP telephone 

service representatives) 

19h. Accuracy and timeliness of the 

processing of forms submitted to the TSP 

19g. Quality of services provided by the 

TSP telephone service representatives 

(ThriftLine)
17

another 40 percent were “neutral”. This is not surprising given participants strong 

preference for the web over phone interaction. For those who submitted forms to the TSP 

for processing, approximately two-thirds are satisfied with the accuracy and timeliness of 

this service. 

Fig. 7.2 Satisfaction with the TSP by Retirement System 

Q19. 

 CSRS FERS Uniformed Service 

 Favorable Unfavorable Favorable Unfavorable Favorable Unfavorable 

Q19g. Quality of services provided by the ThriftLine 60.4% 7.8% 54.9% 5.2% 44.3% 8.1% 

Q19h. Accuracy and timeliness of the processing of 

forms submitted to the TSP 74.0 5.0 65.2 7.0 59.1 9.1 

Q19i. Overall quality of services provided by the TSP 83.6 2.6 81.1 3.1 78.9 4.0 

Q20. Overall satisfaction with the TSP 87.7 2.7 85.4 2.4 83.2 3.8 

Notes: Based on all respondents. 

Fig. 7.3 Satisfaction with the TSP by Salary 

Q19. 

Less than $40K $40K to $80K $80K and Over

 Favorable Unfavorable Favorable Unfavorable Favorable Unfavorable 

Q19g. Quality of services provided by the ThriftLine 53.1% 7.6% 54.2% 5.3% 47.5% 9.2% 

Q19h. Accuracy and timeliness of the processing of 

forms submitted to the TSP 60.8 10.2 67.1 5.8 65.5 7.3 

Q19i. Overall quality of services provided by the TSP 75.3 5.0 82.4 2.2 82.4 3.5 

Q20. Overall satisfaction with the TSP 78.9 5.0 86.1 2.7 88.0 2.1 

Notes: Based on all respondents.

Fig. 7.4 Satisfaction with the TSP by Age 

Q19. 

Less than Age 40 40s Over Age 40 

 Favorable Unfavorable Favorable Unfavorable Favorable Unfavorable 

Q19g. Quality of services provided by the ThriftLine 46.2% 7.2% 51.4% 5.8% 55.7% 7.7% 

Q19h. Accuracy and timeliness of the processing of 

forms submitted to the TSP 62.1 8.9 65.8 6.4 66.6 6.8 

Q19i. Overall quality of services provided by the TSP 81.1 3.4 80.9 3.2 80.9 3.3 

Q20. Overall satisfaction with the TSP 84.4 3.6 84.5 3.0 85.9 2.8 

Notes: Based on all respondents.
18

Making Administrative Changes 

Survey respondents report a high level of satisfaction with their ability to make changes 

to their TSP accounts (See Figures 8.1 to 8.3). Eighty-four percent report that it is easy to 

make changes to their TSP investment allocations, and 82 percent note that it is easy to 

make changes to their contribution amounts. 

Fig. 8.1 Ease of Administrative Changes 

84%

81%

11%

12%

5%

7%

18c. It's easy to make

changes to the way

my TSP money is

invested.

18d. It's easy to make

changes to the

amount of pay I

contribute to the TSP.

Favorable Neutral Unfavorable

Notes: Based on all respondents. 

Fig. 8.2 Ease of Administrative Changes by Retirement System 

Q18. TSP Information and changes in individual options

 CSRS FERS Uniformed Service 

Favorable Unfavorable Favorable Unfavorable Favorable Unfavorable 

18c. It's easy to make changes to the 

way my TSP money is invested 85.5% 4.6% 82.3% 4.7% 85.2% 4.9% 

18d. It's easy to make changes to the 

amount of pay I contribute to the TSP 83.5 5.2 82.3 6.4 83.1 7.9 

Notes: Based on all respondents. 

Fig. 8.3 Ease of Administrative Changes by Salary 

Q18. TSP Information and changes in individual options

Less than $40K $40K to $80K $80K and Over 

Favorable Unfavorable Favorable Unfavorable Favorable Unfavorable 

18c. It's easy to make changes to the 

way my TSP money is invested 76.9% 7.4% 85.1% 4.2% 87.4% 4.0% 

18d. It's easy to make changes to the 

amount of pay I contribute to the TSP 80.5 7.8 83.3 6.0 83.8 7.1 

Notes: Based on all respondents.

18c. It's easy to make changes to the 

way my TSP money is invested. 

18d. It's easy to make changes to the 

amount of pay I contribute to the TSP. 
19

Information and Resources 

American workers assume a significant role in preparing for and ensuring a secure 

retirement. Employers, however, must provide the essential information, education and 

resources to help their employees meet this goal. The ability to access account 

information easily and as often as needed is an important step for employers in ensuring 

retirement preparedness. 

TSP participants overwhelmingly note that the Internet (See Figures 9.1 & 9.2) is 

their preferred means for accessing and receiving TSP account information. 

Participants generally favor accessing their account information on-line from home (49 

percent). Uniformed Service members are particularly Internet savvy, as nearly 3 in 5 

reports accessing their TSP account information on-line from home. In addition, younger 

Federal workers also have a proclivity for retrieving their account information through 

their home Internet connection. Dedicating greater resources to enhancing the TSP’s 

web-based information and tools would have wide-ranging affects for TSP participants. 

Despite today’s high-tech information age, a large number of participants (29.7 percent) 

continue to favor paper statements for their account information. The number of paper 

statements that are printed and mailed by the TSP is actually about 11 percent of the 

population. The difference may be attributable to the TSP’s on-line capability, where a 

participant can print their statement via the Web. Only 3 percent of respondents rely on 

the TSP ThriftLine for regular updates on their account. In fact, only slightly more than 

one third of all TSP participants (37.1 percent) indicate having ever contacted the TSP 

ThriftLine and spoken to a telephone service representative about their account. 
20

Fig. 9.1 How TSP Participants Usually Access Account Information 

Q14. How do you usually access/receive your TSP account information?

CSRS FERS 

Uniformed 

Services All 

On-line from home 40.9% 45.0% 58.2% 49.4% 

On-line from work 37.9 41.6 35.7 38.0 

Receive paper statements 36.9 30.6 24.2 29.7 

I don't review 3.4 10.5 6.3 6.6 

Call the TSP ThriftLine 5.7 3.0 1.6 3.2 

Notes: Based on all respondents.

Fig. 9.2 How TSP Participants Usually Access Account Information by Age and Pay 

Q14. How do you usually access/receive your TSP account information?

 Age Pay 

Less than 

Age 40 40s 

Age 50 

and Over

Less than 

$40K 

$40K to 

$80K 

$80K and 

Over All 

On line from home 56.8 51.1 46.1 44.4 49.7 54.0 49.4 

On line from work 43.6 42.5 33.9 25.5 40.2 46.5 38.0 

Receive paper statements 22.0 28.3 35.0 34.7 28.8 27.7 29.7 

I don't review 9.4 6.2 5.6 13.0 6.3 3.1 6.6 

Call the TSP ThriftLine 1.6 2.5 4.4 4.3 3.9 1.8 3.2 

Notes: Based on all respondents.

TSP participants generally find the information about the TSP as being useful to 

participants and easy to access (See Figures 10.1 to 10.3). Four out of five respondents 

report that available TSP information helped to explain the plan’s benefits. Seventy-four 

percent also note that this information aided with decisions regarding their TSP account. 

In general, survey respondents are satisfied with their ability to access information about 

their account and with the plan’s overall features. Respondents report higher satisfaction 

with getting their information through the TSP Web site rather than the ThriftLine (83 

percent versus 69 percent favorable, respectively, as shown in Figure 10). This is not a 

surprising finding since most respondents cite the Internet as their main method for 

accessing or receiving TSP account information. 
21

Fig. 10.1 Satisfaction with TSP Information

79%

74%

83%

69%

15%

20%

12%

26%

6%

7%

5%

5%

18a. The information available about the TSP is

helpful in explaining the benefits that I receive from

the plan

18b. The information available about the TSP helps

me make decisions about my TSP account

19e. Ability to access information about my account

and general plan features on the TSP Web site

19f. Ability to access information about my account

and general plan features through the automated TSP

ThriftLine

Favorable Neutral Unfavorable

Fig. 10.2 Satisfaction with TSP Information by Retirement System 

Q18 & Q19. TSP Information and changes in individual options

 CSRS FERS Uniformed Service 

Favorable Unfavorable Favorable Unfavorable Favorable Unfavorable 

Q18a. Information is helpful in 

explaining benefits that I receive 

from the TSP 

82.4% 3.9% 77.1% 7.3% 77.9% 6.4% 

Q18b. Information helps me make 

decisions about my TSP account 76.7 4.1 70.2 7.9 72.3 6.7 

Q19e. Ability to access information about 

my account and general plan features on 

the TSP Web site 

84.8 4.2 83.5 4.3 81.9 5.8 

Q19f. Ability to access information about 

my account and general plan features 

through the automated TSP ThriftLine 

74.9 5.7 71.7 4.5 62.2 6.0 

Notes: Based on all respondents.

18a. The information available about the TSP is 

helpful in explaining the benefits that I receive 

from the plan 

18b. The information available about the TSP 

helps me make decisions about my TSP 

account 

19e. Ability to access information about my 

account and general plan features on the TSP 

Web site 

19f. Ability to access information about my 

account and general plan features through the 

automated TSP ThriftLine 
22

Fig. 10.3 Satisfaction with TSP Information by Pay 

Q18 & Q19. TSP Information and changes in individual options

Less than $40K $40K to $80K $80K and Over 

Favorable Unfavorable Favorable Unfavorable Favorable Unfavorable 

Q18a. Information is helpful in 

explaining benefits that I receive from 

the TSP 

70.9 9.4 79.6 5.9 82.8 4.1 

Q18b. Information helps me make 

decisions about my TSP account 64.9 9.1 73.2 6.0 76.9 5.1 

Q19e. Ability to access information about 

my account and general plan features on 

the TSP Web site 

77.9 6.5 83.7 4.3 86.0 4.6 

Q19f. Ability to access information about 

my account and general plan features 

through the automated TSP ThriftLine 

65.9 6.7 69.7 4.4 69.4 5.6 

Notes: Based on all respondents.

Participants who take an active role in the management of their investment choices and 

savings rates today have the best opportunity to achieve retirement savings goals and 

expectations in the future. One step in actively managing an account is to review account 

information regularly. Overall, participants appear to be highly engaged in reviewing 

their accounts. Over two-thirds of TSP participants review their account at least quarterly 

(See Figures 11.1 and 11.2). It is likely that many FERS employees only have the agency 

automatic 1% contribution. 

Fig. 11.1 How often do you review your TSP account? 

Q13. How often do you review your TSP account? 

Frequency that Members Review Account 

 Monthly or Semi-Annually or Rarely or 

Quarterly Annually Never 

FERS 63.6% 14.1% 22.3% 

CSRS 67.0 18.7 14.3 

Uniformed Services 64.6 17.8 17.6 

All 65.1 17.0 17.9 

Notes: Based on all respondents. 
23

Fig. 11.2 How often do you review your TSP account? (by Age and Pay) 

Q13. How often do you review your TSP account? 

Frequency that Members Review Account

Monthly or Semi-Annually or Rarely or 

 Quarterly Annually Never 

Age

Less than Age 40 65.3% 14.3% 20.4% 

40s 63.0 18.6 18.4 

Age 50 and Over 66.0 17.5 16.5 

Pay 

Less than $40K 54.1% 17.5% 28.4% 

$40K to $80K 65.9 16.6 17.4 

$80K and Over 70.8 17.8 11.4 

Current TSP Design 

Survey participants were asked for their opinions about specific elements of the current 

TSP. Many respondents did not have an opinion or were uncertain about how to respond. 

The selection of “Don’t Know/Not Applicable” by survey respondents may indicate that 

some plan options are not available to them. This response also may suggest a lack of 

knowledge about specific plan elements or the inability to spontaneously recall specific 

plan elements. 

FERS participants are the most satisfied with the level of matching contributions, while 

uniformed service members are the most dissatisfied with the level of matching 

contributions (See Figure 12). Satisfaction with matching contributions by participants in 

systems other than the FERS suggests that they are either unaware that a match is not 

provided or are aware but accept this fact. FERS members are generally favorable 

towards the waiting period to receive agency contributions as respondents are nearly 

twice as likely to respond favorably as opposed to unfavorably. 

A participant’s ability to withdraw money from his/her TSP account after separation from 

service and the ability to borrow from the account while actively employed is generally 

viewed favorably (See Figure 12). While these favorable rankings are not particularly 

high, these two questions receive many “neutral” responses, suggesting that participants 
24

may be indifferent to the ability to withdraw or borrow money from their accounts. 

There are also a significant number of respondents who replied “Don’t Know/Not 

Applicable” to these items, which reinforces the high degree of indifference among 

respondents to withdraw or borrow money from their accounts. However, it may also 

reveal a degree of indifference because these participants have not yet had the need to 

investigate the availability of the benefits. 

26%

33%

29%

27%

36%

36%

12%

8%

32%

20%

14%

60%

23%

14%

21%

27%

18%

24%

22%

13%

28%

13%

12%

15%

4%

4%

2%

4%

3%

3%

9%

2%

17%

39%

12%

12%

47%

49%

48%

42%

43%

37%

57%

78%

23%

28%

62%

13%

U.S.

CSRS

FERS

U.S.

CSRS

FERS

U.S.

CSRS

FERS

U.S.

CSRS

FERS

Favorable Neutral Unfavorable Don't Know/NA

Q19a. Amount of 

agency/uniformed 

services matching 

contributions 

Q19c. Ability to borrow 

money while actively 

employed 

Q19b. Waiting period 

for a new FERS employee 

to be eligible for agency 

contributions 

Fig. 12. Satisfaction with Characteristics of the TSP 

Q19d. Ability to withdraw 

money after separation 

from service 
25

Asset Allocation in the TSP 

In addition to employee contributions to retirement accounts, how funds are invested over 

a participant’s career can significantly affect the level of funds available at retirement. 

Similar to private sector defined contribution plans, the responsibility for making 

investment decisions rests with TSP members. Like other employer-sponsors of selfdirected savings plans, the FRTIB seeks to ensure that TSP participants have sufficient 

education and information in order to make informed contribution and investment 

decisions. If members do not make asset allocation decisions, funds in their accounts are 

invested in the G Fund, which invests in short-term U.S. Treasury securities with no risk 

of loss of principal. 

The survey asked members to describe their approach for investing in the TSP. Overall, 

the distribution of risk approaches is concentrated between moderate risk and balanced – 

comprising nearly three in five responses (See Figure 13). A sizeable minority of TSP 

members, nearly 30 percent, identify their approach as low risk or no risk. However, 

slightly more than 10 percent of respondents indicate that they follow a high risk 

approach to investing their TSP funds. 

The approach taken by TSP members is highly linked to a respondent’s age. It is 

important to note that the age-based results are based on the sample sizes of the 

respondents and margins of error are not provided. Based on survey responses, younger 

workers report, as expected, taking on more risk in investing their TSP assets. 

Professional financial advisers typically suggest that workers early in their careers and 

with a long investment horizon are well-matched to invest a higher proportion of their 

retirement assets in riskier equity funds and shift to more stable fixed-income assets later 

in their careers. This common approach – known as time diversification – is based on the 

principle that the longer the time horizon the greater an investor’s ability to weather 

short-term declines. 
26

Fig. 13. Self-Reported Approach to Investing TSP Assets 

Q 16. How would you describe your approach for investing the money in your TSP account? 

High Risk Moderate Risk Balanced Low Risk No Risk 

Retirement System

CSRS 9.3 24.7 29.6 22.8 13.6 

FERS 10.5 26.0 34.2 18.7 10.6 

Uniformed Service 14.2 32.4 31.0 15.4 7.0 

Age 

Less than Age 30 16.7 30.7 31.0 14.6 7.1 

30 to 39 20.0 34.6 29.2 10.1 6.1 

40s 13.5 30.8 33.7 15.3 6.8 

50 to 59 8.3 26.9 32.6 22.1 10.1 

Age 60 and Over 6.4 21.9 29.2 24.9 17.5 

Pay 

Less than $40K 9.5 22.1 30.8 23.8 13.8 

$40K to $60K 11.8 24.5 33.2 20.0 10.5 

$60K to $80K 13.2 30.2 32.6 15.3 8.6 

$80K to $100K 13.1 33.8 29.7 15.6 7.9 

$100K and Over 11.7 34.2 30.2 17.0 6.9 

 

All 11.8 28.5 31.5 18.6 9.7 

Notes: Based on all respondents. 

TSP members can select from five individual investment funds that provide a wide range 

of investment risks to meet a wide range of participant objectives. The G Fund is the 

most conservative option and is based on investing in short-term Treasury securities 

without risk of loss. The F Fund, a conservative option that tracks the Lehman Brothers 

U.S. Aggregate Index, requires investors to bear market and credit risks not exhibited by 

the G Fund. TSP’s equity options are provided by the C Fund, S Fund and I Fund. The 

C Fund invests in a fund of medium-to-large U.S. companies that replicates the S&P 500 

Index. The S Fund invests in a broad market fund of small- and medium-sized U.S. 

companies that track closely to the Dow Jones Wilshire 4500 Completion Index. The I 

Fund invests in a stock index fund that replicates the Morgan Stanley Capital 

International EAFE Index, a broad international market index comprised primarily of 

large companies in 21 developed countries. For members who do not have the time, 

experience or interest in managing their accounts, the TSP also offers five L Funds – 

Lifecycle Funds – with differing time horizons. Each L Fund invests in a mix of the five 
27

individual TSP funds described above. The mix is chosen by experts based on each 

fund’s time horizon. 

Survey results indicate a very strong link between participant risk approaches and actual 

investment choices (See Figure 14). Respondents who indicate a high or moderate 

investment risk approach report a much higher share of equities in their actual TSP 

account. Those who chose a very aggressive or high risk strategy hold only 17 percent of 

their assets in the more conservative G Fund and F Fund. Conversely, the majority of 

those who indicate a low or no risk investment strategy primarily invest in the G Fund. 

The decision to invest in the L Fund appears indifferent to self-reported risk 

tolerance except among those reporting to be very cautious. 

Fig. 14. TSP Investment Allocations Aligned with Self-Reported Risk Tolerances 

Percentage of Total TSP Account Balance by Fund TSP Account Balance 

G Fund F Fund C Fund S Fund I Fund L Fund Mean Median 

High Risk 17.4% 2.1% 30.7% 18.1% 21.7% 9.9% $38,831 $12,770 

Moderate Risk 25.0% 3.3% 31.1% 14.4% 13.9% 12.2% $40,367 $18,113 

Balanced 41.8% 6.1% 22.0% 7.3% 6.8% 15.6% $41,941 $18,583 

Low Risk 65.9% 4.5% 13.7% 2.1% 2.5% 10.5% $37,126 $16,257 

No Risk 90.9% 1.1% 4.3% 0.4% 0.8% 2.4% $36,372 $20,894 

Notes: Based on all respondents. 

From an investment perspective, an asset allocation of about 70 percent to equities 

appears reasonable in light of the long-term retirement objectives of most defined 

contribution savings plans. In 2005, Employee Benefit Research Institute (EBRI) and the 

Investment Company Institute (ICI) collaborated and estimated the average asset 

allocation of funds in over 3.5 million self-directed accounts. Based on their estimates, at 

year-end 2005, equity securities – equity funds, the equity portion of balanced funds, and 

company stock – represented about two-thirds of 401(k) plan participants’ assets.6

 On 

average, the largest portion was invested directly in equity funds at almost 48 percent. 

 

6

 EBRI Issue Brief, “401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2005, No. 296, 

August 2006. 
28

Direct exposure to equities is particularly high among younger workers with 52 percent 

investing in equity funds compared to workers in their 60s who invest in equity funds at 

38 percent. Older workers invest a much higher share of their assets in fixed-income 

securities, which is consistent with the time-diversification approach (See Figure 15). 

Fig. 15. Average Asset Allocation in Private Sector 401(k) Accounts by Participant Age, 

2005 

Age Group 

Fixed-Income 

Securities Balanced Funds Equity Funds Company Stock 

Under 30 20.2% 15.5% 51.9% 10.4% 

30 to 39 17.2 11.6 57.6 11.4 

40 to 49 20.2 10.9 52.9 13.6 

50 to 59 27.6 11.0 45.3 13.7 

60 to 69 38.6 10.2 37.8 11.1 

All 26.0 10.9 47.9 12.9 

Notes: Based on participant-weighted averages. 

Source: EBRI Issue Brief, “401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2005, No. 296, August 

2006. 

However, survey respondents, on average, invest far less in equities. Overall, TSP 

participants invest nearly an equal share of their assets in fixed-income securities and 

equity funds (See Figure 16.1 to 16.4). The average TSP account – that equally weights 

each participant’s investment allocation – has almost half of its assets invested in the G 

Fund and F Fund. The fixed-income share is lower among participants age 30 to 49 and 

rises as workers approach retirement. However, the share of TSP funds invested in 

equities – particularly the C Fund – rises as years of service with Federal 

government/uniformed services grows. In particular, the share of assets invested in the 

G Fund drops significantly after participants reach five years of service. 

One explanation for this relatively low share of TSP participants invested in equities may 

be attributed to Federal employees being more conservative investors than private sector 

employees. There is also some sense that Federal workers, who take great pride in their 

jobs, may view the G Fund like private sector employees view their company’s stock. 

An alternative explanation may be the high level of participant inertia with a 

disproportionate share of members not making active investment decisions and instead 

settling for the default portfolio – 100 percent G Fund. In fact, overall equity exposure 
29

rises when the distribution of funds is based on a dollar-weighted estimate, meaning that 

the percentage of all assets exposed to equities is higher than is implied by the average of 

all account balances. As such, there are a large number of smaller than average account 

balances with a greater concentration of assets invested in fixed-income funds. This is 

reinforced by the fact that a disproportionate share of low-tenured Federal workers is 

highly invested in the G Fund – likely the result of the G Fund being the default. 

Fig. 16.1 Average Asset Allocation of TSP Accounts by Participant Age 

Percentage of Total TSP Account Balance by Fund TSP Account Balance 

G Fund F Fund C Fund S Fund I Fund L Fund Mean Median 

Less than Age 30 56.7% 2.3% 9.5% 7.5% 8.4% 15.4% $4,739 $1,941 

30 to 39 38.7% 3.7% 19.6% 11.0% 11.2% 15.6% $13,018 $5,645 

40s 40.7% 4.1% 23.6% 10.2% 9.3% 12.0% $32,436 $13,997 

50 to 59 46.9% 4.1% 22.4% 7.9% 8.3% 10.1% $46,748 $26,907 

Age 60 and Over 53.0% 4.2% 23.7% 5.0% 6.8% 6.3% $62,152 $39,526 

Participant-Weighted1 46.3% 3.9% 21.4% 8.3% 8.6% 11.1%

Dollar- Weighted 35.3% 4.5% 31.3% 8.6% 9.4% 10.3%

$37,493 $15,371 

Notes: 1

 Equal-weighted by share of assets in participant account. Distribution of funds is based on administrative records 

for all respondents. 

Fig. 16.2 Average Asset Allocation of TSP Accounts by Participant Years of Service 

Percentage of Total TSP Account Balance by Fund TSP Account Balance 

G Fund F Fund C Fund S Fund I Fund L Fund Mean Median 

Less than 2 years 67.8% 1.4% 6.5% 5.3% 5.0% 13.3% $3,694 $766 

2 to 5 years 57.9% 2.1% 10.4% 6.7% 8.0% 14.7% $7,926 $2,711 

5 to 15 years 44.6% 4.4% 20.2% 9.4% 9.2% 12.2% $19,115 $6,947 

15 to 25 years 42.6% 4.3% 21.5% 10.5% 9.9% 10.7% $40,826 $14,589 

25+ years 43.1% 4.2% 26.8% 7.3% 8.4% 9.7% $56,056 $39,421 

Participant-Weighted1 46.3% 3.9% 21.4% 8.3% 8.6% 11.1%

Dollar- Weighted 35.3% 4.5% 31.3% 8.6% 9.4% 10.3%

$37,493 $15,371 

Notes: 1

 Equal-weighted by share of assets in participant account. Distribution of funds is based on administrative records 

for all respondents. 
30

Fig. 16.3 Average Asset Allocation of TSP Accounts by Participant Pay 

Percentage of Total TSP Account Balance by Fund TSP Account Balance 

G Fund F Fund C Fund S Fund I Fund L Fund Mean Median 

Less than $40K 64.1% 2.8% 12.3% 5.3% 5.7% 9.7% $12,772 $3,055 

$40K to $60K 48.1% 3.9% 20.0% 6.8% 8.1% 12.6% $25,130 $11,690 

$60K to $80K 41.2% 4.5% 21.8% 9.4% 9.9% 12.8% $35,881 $18,148 

$80K to $100K 34.7% 4.4% 27.3% 11.7% 11.0% 10.7% $50,929 $28,009 

$100K and Over 36.8% 4.2% 28.5% 10.7% 9.9% 9.7% $74,181 $48,898 

Participant-Weighted1 46.3% 3.9% 21.4% 8.3% 8.6% 11.1%

Dollar- Weighted 35.3% 4.5% 31.3% 8.6% 9.4% 10.3%

$37,493 $15,371 

Notes: 1

 Equal-weighted by share of assets in participant account. Distribution of funds is based on administrative records 

for all respondents. 

Fig. 16.4 Average Asset Allocation of TSP Accounts in the G Fund and F Fund by 

Participant Age and Years of Service 

Percentage of Total TSP Account Balance Invested in The G & F Funds 

Less than 2 years 2 to 5 years 5 to 15 years 15 to 25 years 25+ years All 

Less than Age 30 74.5% 58.1% 54.2% - - 59.1% 

30 to 39 49.5% 48.9% 39.7% 40.8% - 42.3% 

40s 62.9% 66.0% 49.4% 41.9% 37.8% 44.6% 

50 to 59 85.3% 67.8% 57.6% 55.5% 45.7% 51.0% 

Age 60 and Over 74.0% 72.9% 68.9% 56.8% 53.9% 57.1% 

All 69.1% 60.1% 49.0% 46.8% 47.3% 50.0% 

The extent to which TSP investment allocations differ based on the resources members 

used in making their fund allocations may provide some insight on how informed their 

choices have been. In fact, respondents who received professional advice or reviewed the 

TSP website or publications tend to choose a more risky asset portfolio with a greater 

share of their TSP account in equities (See Figure 17.1 to 17.3). These findings indicate 

that TSP members are actively using the educational materials provided through 

the TSP. These materials are also playing an important role in developing financial 
31

literacy and promoting sound investment decisions among TSP members. Figure 

17.2 supports the idea that higher income workers are more likely to seek professional 

advice on their accounts. 

Fig. 17.1 Resources Used by TSP Members to Determine Investment Strategy 

Q17. How did you determine where to invest your TSP money? 

CSRS FERS 

Uniformed 

Services All 

Reviewed TSP website/publications 33.0% 27.9% 36.5% 33.1% 

Advice from a financial professional 14.9 11.3 15.7 14.3 

Advice from co-workers 17.3 12.6 7.7 11.9 

Advice from family/friends 14.2 13.9 9.0 11.9 

Spoke with TSP representative 1.4 1.6 3.2 2.2 

Fig. 17.2 Resources Used by TSP Members to Determine Investment Strategy by Age and 

Pay 

Q17. How did you determine where to invest your TSP money? 

Age Pay Age 

Less than 

Age 40 40s 

Age 50 

and Over 

Less than 

$40K 

$40K to 

$80K 

$80K and 

Over All 

Reviewed TSP website/publications 33.1% 36.1% 32.4% 22.7% 34.5% 39.7% 33.1% 

Advice from a financial professional 12.3 15.4 15.1 7.2 12.3 22.2 14.3 

Advice from co-workers 11.7 12.1 12.3 14.5 13.2 9.1 11.9 

Advice from family/friends 13.6 12.9 10.9 12.0 12.7 11.0 11.9 

Spoke with TSP representative 2.1 2.3 2.2 3.3 2.0 1.8 2.2 

Fig. 17.3 Resources Used by TSP Members to Determine Investment Strategy and 

Corresponding Assets Invested in the G and F Funds 

Q17. How did you determine where to invest your TSP money? 

 Percentage of Assets invested in the 

G and F Funds 

Resources Percentage That 

Use Resource Use Resource Don’t Use Resource

Reviewed TSP website/publications 33.1% 37.5% 56.5% 

Advice from a financial professional 14.3 35.8% 52.6% 

Advice from family/friends 11.9 52.1% 50.0% 

Advice from co-workers 11.9 45.7% 50.8% 

Spoke with agency/service representative 2.2 68.3% 49.8% 

Notes: Distribution of funds is based on administrative records for all respondents. 
32

Sources of Retirement Income 

Retirees typically depend on multiple sources of income during retirement. TSP 

participants were asked to rank their top three expected sources of retirement income. In 

general, respondents report that they consider each “leg of the stool” but believe their 

Federal Government-sponsored retirement plans to be the most important (See Figures 

18.1 to 18.3). 

FERS members underline many different sources of retirement income (See Figure 18.1). 

The TSP is mentioned by nearly one in four FERS members as being the primary income 

source in retirement. In fact, more than 67 percent of FERS members identify the TSP 

account as an important retirement resource, which is twice as high as the ranking given 

to the FERS annuity plan. FERS members also view Social Security as a critical source 

of future retirement income. 

It is not at all surprising that members of the CSRS and the uniformed services identify 

their respective annuity-based pensions most often as critical sources of future retirement 

income (See Figures 18.2 & 18.3). The CSRS annuity plan is mentioned by nearly three 

in four CSRS members as the most important source of future retirement income and in 

total, it is mentioned by nearly four in five as being among the top three sources. 

Fig. 18.1 Top 3 Most Important Sources of Future Retirement Income for FERS Members 

Q7. Rank your TOP 3 most important expected sources of retirement income. 

 Ranking of Sources 

 1st 2nd 3rd % Mentioned 

TSP account 23.4% 25.7% 18.0% 67.1% 

Social Security 13.1 22.3 27.5 62.9 

FERS/CSRS annuity 12.1 11.1 10.4 33.6 

Military pension 11.5 4.3 2.4 18.2 

Income from work 10.4 5.7 7.5 23.6 

Personal savings (e.g. IRA) 9.9 13.0 12.4 35.4 

Other retirement plan (non-gov't) 7.9 6.3 5.6 19.8 

Home Equity 4.5 4.4 7.2 16.1 

Notes: Based on FERS respondents. 

While nearly as many uniformed service members identify their military pension as 

critical (73 percent), only 40 percent highlight it as their top choice. Both CSRS 
33

members and those in the Uniformed Services identify the TSP as a very important 

supplementary source of future income. Compared to other sources of retirement income, 

it is the second most mentioned income source for both. 

Fig. 18.2 Top 3 Most Important Sources of Future Retirement Income for CSRS Members 

Q7. Rank your TOP 3 most important expected sources of retirement income. 

 Ranking of Sources 

 1st 2nd 3rd % Mentioned 

FERS/CSRS annuity 72.4% 4.7% 0.7% 77.8% 

Income from work 9.7 6.5 6.6 22.8 

Home Equity 2.1 4.5 9.7 16.3 

Other retirement plan (non-gov't) 2.1 3.8 3.5 9.4 

Personal savings (e.g. IRA) 1.7 18.5 21.4 41.5 

Social Security 1.3 10.0 11.8 23.0 

Military pension 1.2 3.9 0.7 5.7 

TSP account 1.1 38.6 30.2 69.8 

Notes: Based on CSRS respondents. 

Fig. 18.3 Top 3 Most Important Sources of Future Retirement Income for Uniformed Service

Members 

Q7. Rank your TOP 3 most important expected sources of retirement income. 

 Ranking of Sources 

 1st 2nd 3rd % Mentioned 

Military pension 40.3% 21.9% 11.7% 73.8% 

Other retirement plan (non-gov't) 15.7 9.7 5.9 31.3 

Personal savings (e.g. IRA) 11.7 21.0 13.7 46.4 

Income from work 9.9 7.0 5.6 22.4 

FERS/CSRS annuity 6.1 3.2 2.2 11.5 

TSP account 5.6 16.4 25.4 47.4 

Social Security 3.1 12.3 23.7 39.0 

Home Equity 2.1 3.0 5.3 10.4 

Notes: Based on Uniformed Service respondents. 

When combined into a single table, the relative importance of annuity plans and the TSP 

as a future source of retirement income to Federal workers and uniformed service 

members becomes even more apparent (See Figure 19). It is quite clear that the Federal 

workers and service members heavily rely on the Federal government’s retirement 

program for a secure retirement. While not mentioned as often, personal savings and 

Social Security are also viewed as critical to a secure retirement. Finally, nearly a 

quarter of all Federal workers and uniformed service members expect to receive 

retirement income from work and this is consistent across respondents from the different 

retirement systems. 
34

Fig. 19. Sources of Future Retirement Income Mentioned as Top 3 Most Important by 

Retirement System

Q7. Rank your TOP 3 most important expected sources of retirement income.

All FERS CSRS 

Uniformed 

Services

TSP account 59.5% 67.1% 69.8% 47.4% 

Personal savings (e.g. IRA) 41.9 35.4 41.5 46.4 

Social Security 40.9 62.9 23.0 39.0 

Military pension 38.1 18.2 5.7 73.8 

FERS/CSRS annuity 37.4 33.6 77.8 11.5 

Income from work 22.8 23.6 22.8 22.4 

Other retirement plan (non-gov't) 21.6 19.8 9.4 31.3 

Home Equity 13.7 16.1 16.3 10.4 

Notes: Based on all respondents. 

FERS members respond quite differently from CSRS and uniformed service members to 

the questions regarding sources of future retirement income. The retirement package 

provided to FERS members closely resembles those offered by large private sector 

organizations, with more balance between employer-directed plans and self-directed 

accounts. The Watson Wyatt Retirement Attitude Survey (WWRAS—2004) asked over 

8,000 employees from nearly 1,000 large private sector organizations to identify their 

most important source of future retirement income. In general, survey responses from 

FERS members closely parallel those made by WWRAS respondents. About an equal 

percentage identify the annuity plans and the self-directed account plan as their most 

important source of future retirement income (See Figure 20). 

Fig. 20. Most Important Source of Future Retirement Income 

Q7. Rank your TOP 3 most important expected sources of retirement income. 

TSP Survey WWRAS* 

FERS CSRS 

Uniformed 

Services Overall 

FERS/CSRS annuity 12.1% 72.4% 6.1% 

Military pension 11.5 1.2 40.3 

25.6% 

TSP account 23.4 1.1 5.6 28.3 

Social Security 13.1 1.3 3.1 18.8 

Personal savings (e.g., IRA) 9.9 1.7 11.7 13.7 

Income from work 10.4 9.7 9.9 5.7 

Notes: Based on all respondents. N=3467 

*Source: Watson Wyatt Retirement Attitude Survey (2004) 
35

Retirement Goals and Expectations 

Financial planners often recommend that workers strive for retirement income of at least 

70 percent of their pre-retirement earnings. Many respondents report expectations that 

align very closely with this conventional wisdom. In fact, over one third of survey 

participants believe they will need more than 80 percent of their annual income in order 

to live comfortably in retirement (See Figure 21.1 & 21.2). This belief varies by 

retirement system, with CSRS employees generally reporting that they need a lower 

percentage of their working income in retirement. When results from this survey are 

matched to the WWRAS, Federal workers and members of the Uniformed Services 

provide very similar responses to those of private sector employees who are covered by 

both defined benefit and defined contribution plans. 

Fig. 21.1 Percentage of Pre-Retirement Income Required to Live Comfortably in Retirement 

Q5. Approximately what percentage of your annual pre-retirement pay do you think you need to live 

comfortably when you retire? 

TSP Survey WWRAS* 

All FERS CSRS 

Uniformed 

Services 

Covered by 

DB & DC 

Less than 40% 1.9% 1.9% 1.3% 2.3% 1% 

40 to 59% 15.4 15.6% 14.1% 16.2% 15% 

60 to 79% 36.4 29.9% 40.3% 37.9% 35% 

80 to 99% 22.4 21.1% 23.8% 22.4% 25% 

100%+ 13.4 17.9% 10.3% 12.6% 16% 

Don’t Know 10.5 13.6% 10.2% 8.6% 8% 

Notes: Based on all respondents. 

*Source: Watson Wyatt Retirement Attitude Survey (2004) 

Fig. 21.2 Percentage of Pre-Retirement Income Required to Live Comfortably in Retirement 

by Age and Pay 

Q5. Approximately what percentage of your annual pre-retirement pay do you think you need to live 

comfortably when you retire? 

Age Pay 

Less than 

Age 40 40s 

Age 50 and 

Over 

Less than 

$40K 

$40K to 

$80K 

$80K and 

Over All 

Less than 40% 1.5% 1.6% 2.1% 2.8% 1.9% 1.4% 1.9% 

40 to 59% 14.9 12.8 17.3 16.2 15.4 15.6 15.4 

60 to 79% 34.5 38.5 37.2 26.6 38.0 42.6 36.4 

80 to 99% 19.3 25.8 22.7 15.8 21.5 29.1 22.4 

100%+ 17.9 13.2 11.7 21.7 14.2 7.7 13.4 

Don’t Know 12.0 8.1 9.0 16.9 9.0 3.6 10.5 

Notes: Based on all respondents. 
36

Some workers, however, may be underestimating their income needs in retirement. 

Overall, about 17 percent of respondents believe they can retire comfortably on less than 

60 percent of their pre-retirement annual income. Of greater concern, 10 percent of 

respondents can not estimate how much income they would need in retirement. Taken 

together, more than a quarter of all surveyed workers (slightly higher for FERS members) 

either believe they need less than financial planners generally recommend or are unable 

to estimate their income needs. 

One question that remains hotly debated by academics and practitioners is whether the 70 

percent pre-retirement income target will be sufficient given the imminent costs that will 

be borne by the America’s retirement system as the Baby Boom Generation begins 

retiring. Results from EBRI’s 2006 Retirement Confidence Survey show that over 50 

percent of retirees believe they needed about the same or more than their pre-retirement 

income, which is significantly higher than current expectations of the Federal workforce 

and the Uniformed Services.7

 It is very important for workers to set realistic expectations 

about their retirement income needs so they are not overly complacent about saving for 

retirement throughout their career. 

For workers born in 1960 or later, normal retirement age under Social Security is 67. 

However, many Federal workers plan to retire much sooner. Thirty-six percent of TSP 

members anticipate retiring by age 60, which is 5 percentage points higher than private 

sector employees covered by both a company-sponsored defined benefit and a defined 

contribution plan (See Figure 22.1 & 22.2) reported. More than two out of five (42 

percent) CSRS members plan to enter full retirement in their fifties compared to one in 

four (26 percent) FERS members. This means that the average CSRS member anticipates 

a retirement period of more than 20 years; a significant share of CSRS members, in fact, 

expect a retirement period approaching 25 years. 

 

7

 See Ruth Helman, Mathew Greenwald & Associates, Craig Copeland, and Jack VanDerhei, 2006. “Will 

More of Us Be Working Forever? The 2006 Retirement Confidence Survey,” EBRI Issue Brief No. 292, 

April. 
37

Fig. 22.1 Planned Retirement Age by Retirement System 

Q8. At what age do you plan to retire from all full-time employment? 

TSP Survey WWRAS* 

Overall FERS CSRS 

Uniformed 

Services 

Covered by 

DB & DC 

Younger than 55 5.8% 4.4% 2.4% 8.7% 6% 

55 to 59 28.1 20.3 38.8 26.8 25% 

60 to 61 13.6 10.4 13.3 15.7 15% 

62 to 64 17.0 19.8 19.1 14.0 18% 

65 13.0 14.7 9.3 14.0 22% 

66 or older 22.5 30.4 17.1 20.8 13% 

Notes: Excludes respondents who self-report as being already retired or Don’t Know. N=2801 

*Source: Watson Wyatt Retirement Attitude Survey (2004) 

Fig. 22.2 Planned Retirement Age by Age and Pay 

Q8. At what age do you plan to retire from all full-time employment? 

Age Pay

Less than 

Age 40 40s 

Age 50 and 

Over

Less than 

$40K 

$40K to 

$80K 

$80K and 

Over All 

Younger than 55 12.6% 6.6% 1.5% 8.1% 5.7% 4.7% 5.8% 

55 to 59 33.2 35.1 20.8 23.0 30.6 28.0 28.1 

60 to 61 15.1 13.0 13.2 12.2 14.3 13.4 13.6 

62 to 64 9.1 15.9 22.2 14.5 16.7 18.6 17.0 

65 13.5 12.4 13.2 14.1 12.3 12.9 13.0 

66 or older 16.5 17.1 29.2 28.1 20.4 22.4 22.5 

Notes: Excludes respondents who self-report as being already retired or Don’t Know

For those who plan to retire younger – before age 60 – there appears to be a strong 

connection to the size of their account balance. For respondents in their forties, nearly 

three out of five respondents with a TSP account balance over $50,000 plan to retire 

before age 60, while only a third with smaller account balances (under $25,000) see 

themselves exiting the workforce at that age (See Figure 23.1 & 23.2). Many 

respondents with low TSP account balances anticipate retiring much later with nearly 37 

percent planning to retire at age 65 or older. 

Fig. 23.1. Planned Retirement Age for Workers in their Forties 

TSP Account Balance 

N=1,114 

Less than 

$5K 

$5K to 

$25K $25K to $50K 

$50K to 

$100K 

$100K and 

Over 

Before 60 34.3% 38.0% 48.2% 55.5% 61.9% 

Between 60 & 65 30.0 32.8 26.2 27.4 25.0 

65 and Older 35.8 29.2 25.7 17.1 13.1 

Notes: Excludes respondents who self-report as being already retired and Don’t Know. 
38

Fig. 23.2 Planned Retirement Age for Workers in their Fifties 

TSP Account Balance 

N=1,160 

Less than 

$5K 

$5K to 

$25K $25K to $50K 

$50K to 

$100K 

$100K and 

Over 

Before 60 18.5% 31.7% 35.8% 46.7% 40.4% 

Between 60 & 65 34.7% 37.5% 37.3% 35.5% 49.3% 

65 and Older 46.8% 30.8% 26.9% 17.8% 10.3% 

Notes: Excludes respondents who self-report as being already retired and Don’t Know. 

Working during retirement is a growing trend in the U.S. labor market. With the aging of 

the workforce and the potential for skills shortages with the retiring of the Baby Boom 

Generation, older workers have become a new value proposition for U.S. companies. In 

fact, America’s largest corporations have developed formal programs such as phased 

retirement and flexible work arrangements – to appeal to an aging workforce and 

encourage longer working lives. 

Federal employees and those in the Uniformed Services indicate a somewhat modest 

appetite for working after retiring from the Federal government. Less than one third of 

respondents indicate a strong interest in working following retirement while another third 

indicate they are somewhat likely to work post-retirement. The final one third is 

indifferent or indicates that they were unlikely to work after retiring from the Federal 

government. 

Fig. 24.1 Likelihood to Work after Retiring from the Federal Government by Retirement 

System 

Q11. Assume you continue to work for the Federal Government until you can retire. What is the likelihood 

that you will work for pay after you retire? 

N=4,078 FERS CSRS Uniformed 

Services All

Very Likely to Work 25.3% 27.2% 35.0% 29.9% 

Somewhat Likely to Work 35.8% 31.6% 34.7% 34.7% 

Less Likely to Work 38.9% 41.3% 30.3% 35.8% 

Notes: Includes Actives only. Very Likely to Work includes those who respond “Very Likely” to work (1 out of 5) 

after retiring for the Federal Government. Somewhat Likely to Work includes those who respond “Somewhat Likely” to 

work (2 out of 5). Less Likely to Work includes those who respond “Neither Likely Nor Unlikely”, “Somewhat 

Unlikely” or “Very Unlikely” to work (3, 4, or 5 out of 5). 
39

For near retirees, expectations about working after retirement appear to be influenced by 

the amount of funds in their TSP accounts. However, this is not the case for workers 

over a decade from retirement (see Figure 24.2). On average, workers who are less likely 

to work after retiring have nearly $20,000 more in their TSP accounts than those who 

indicate a strong likelihood of working later in life. This finding may reflect both the 

need to work for financial reasons, as well as a desire to remain active. The difference in 

the average TSP account balances is likely not sufficient to make a significant difference 

in filling the income needs in retirement. It is unclear whether those with higher TSP 

account balances also have higher savings elsewhere. 

Fig. 24.2 TSP Account Balances by Participant Age and Likelihood to Work after Retiring 

from the Federal Government 

Q11. Assume you continue to work for the Federal Government until you can retire. What is the likelihood 

that you will work for pay after you retire? 

 Age Group

N=4,078 <40 40s 50+ All

Very Likely to Work 30.0% $9,990 $37,110 $45,598 $34,390 

Somewhat Likely to Work 34.2% $8,567 $33,879 $48,469 $31,691 

Less Likely to Work 35.8% $12,152 $29,274 $61,743 $42,345 

All $10,056 $33,264 $52,859 $36,302 

Notes: Includes Actives only. Very Likely to Work includes those who respond “Very Likely” to work (1 out of 5) after 

retiring for the Federal Government. Somewhat Likely to Work includes those who respond “Somewhat Likely” to work (2 

out of 5). Less Likely to Work includes those who respond “Neither Likely Nor Unlikely”, “Somewhat Unlikely” or “Very 

Unlikely” to work (3, 4, or 5 out of 5). 

Conclusion on TSP Benefits and Services 

Overall, participants are highly satisfied with the TSP. Eighty-five percent of 

respondents gave the TSP a favorable rating when asked about their overall satisfaction 

with the plan. Members are highly satisfied with the ease of making changes in their 

investment allocations and contribution percentage. Members are also generally satisfied 

with the information available to them about the TSP especially that which is available 

through the TSP Web site. In general, TSP participants have a more conservative 

investment approach than is typically seen in the private sector 401(k) plans. However, 

participants who review the TSP Web site tend to invest a greater share of their TSP 

funds in equities. 

 
40

Participants see the TSP as a very important source of their retirement income. FERS 

members indicate that it is the most important, as over 7 in 10 rank it among their top 

three most important sources of retirement income. CSRS and uniformed services 

members highlight their annuity plans most often but mention the TSP as the next most 

important to providing a secure retirement. 
41

Part C: Potential Changes to the TSP 

Introduction 

In Section C of the survey, we asked participants to respond to possible changes to the 

TSP services and investments that are under consideration by the FRTIB. As some 

participants may be unfamiliar with these issues, a “don’t know” response was offered for 

most questions. In addition, a significant number of participants declined to offer any 

response to some questions. As the number of people who select “don’t know” or skip 

these questions is particularly relevant in gauging TSP participants’ awareness of, and 

desire for, certain services or investments, we have discussed this group separately in our 

findings. 

Automatic Enrollment 

In response to recent pension reform legislation, many organizations are considering 

automatically enrolling new employees in their 401(k) system unless they expressly 

choose not to be enrolled – creating an opt-out system. The TSP program is an opt-in 

system. New employees or service members do not have contributions to the TSP 

deducted from their paycheck unless they specifically elect those deductions. Some 

Federal employees and uniformed service members do not contribute to the TSP. The 

TSP is considering automatic enrollment for new Federal employees and uniformed 

services members by having agencies or services automatically deduct employee 

contributions, unless an individual specifically chooses not to participate. Academic 

research shows that automatic enrollment tends to increase overall participation rates and 

encourages many employees to better prepare for their retirement. However, automatic 

enrollment can lead to contribution rates that are too low and asset allocations that are 

excessively concentrated in the default fund. Survey participants were asked to assess 

whether automatically enrolling new employees or service members is a good idea. 
42

Overall, respondents are strongly in favor of automatic enrollment. Nearly two 

thirds of all respondents agree that automatic enrollment of new employees in TSP 

is a good idea compared to only 20 percent who disagree (See Figure 25.1-4). 

Automatic enrollment is popular in all three retirement systems. In addition, there is not 

a large difference between the degree of support for automation by the lowest paid 

respondents versus the highest paid respondents (see Figure 25.3). There is also no 

difference in support by people in the FERS system who only have the automatic 1.1% 

agency contribution (see Figure 25.4). 

Fig. 25.1. Automatic Enrollment of new employees or service members is a good idea...

(by Retirement System) 

System Agree Neutral Disagree 

Don’t Know/No 

response 

FERS 67% 10% 18% 5% 

CSRS 67% 9% 16% 8% 

Uniformed Services 63% 8% 24% 4% 

All Respondents 66% 9% 20% 6% 

Fig. 25.2. Automatic Enrollment of new employees or service members is a good idea... 

(by Age) 

Age Agree Neutral Disagree 

Don’t Know/No 

response 

< 40 63% 9% 25% 3% 

40-49 66% 8% 23% 3% 

50 and over 68% 9% 17% 6% 

All Respondents 66% 9% 20% 6% 

Fig. 25.3. Automatic Enrollment of new employees or service members is a good idea... 

(by Pay) 

Income Agree Neutral Disagree 

Don’t Know/No 

response 

< $40,000 63% 10% 21% 6% 

$40,000 - $80,000 65% 9% 21% 5% 

$80,000 and over 70% 8% 19% 3% 

All Respondents 66% 9% 20% 6% 

Fig. 25.4. Automatic Enrollment of new employees or service members is a good idea...

(by Non-Participants) 

Income Agree Neutral Disagree 

Don’t Know/No 

response 

Non-participants* 70% 17% 6% 8% 

*Non-participants are respondents in the FERS system who only have the 1.1% agency automatic contribution – i.e. 

have not made any contributions themselves over the past 2 years. 
43

Automatic Enrollment and Default Elections 

Participants may choose how their TSP money is allocated across the available 

investment options (i.e., the G, F, C, S, I and L Funds). When participants do not make 

allocation choices, their contributions are automatically invested in the Government 

Securities (G) Fund. The G Fund earns interest and does not incur losses, but may not 

provide a high enough return to meet long-term retirement goals. The TSP is considering 

changing the default election to automatically invest these contributions in an ageappropriate Lifecycle (L) Fund, based upon the specific participant’s estimated retirement 

date. In the Lifecycle Funds, money is allocated more heavily toward stocks for younger 

participants which may result in greater asset fluctuation but have higher expected returns. 

As retirement nears, the L Fund is invested more heavily in Government securities and 

bonds. 

Survey respondents were asked to select which of these two fund types – the Government 

Securities (G) Fund or an age appropriate Lifecycle (L) Fund – should be used as a 

default fund for those TSP contributors who do not specify where to invest their funds. 

As shown in Figure 26, almost half (49 percent) of respondents prefer the L Fund, 

compared to 27 percent of respondents who prefer the G Fund. The remaining 24 

percent of respondents have no preference between these two funds. These results are 

closely tied to attitudes regarding automatic enrollment in general. Those who agree that 

automatic enrollment is a good idea (nearly 70 percent of all respondents) favor the L 

Fund over the G Fund by 55 percent to 24 percent. For those who are neutral about 

automatic enrollment, a plurality are also neutral between the L and G funds as the 

default fund. However, this group is more likely to select the L Fund than the G Fund as 

the default fund. Of those who disagree with the statement that automatic enrollment is a 

good idea, 40 percent prefer the L Fund over the G Fund – although the difference is not 

statistically significant at conventional levels. 

 
44

Fig. 26. Default Fund Preference both Overall and By Support for Automatic Enrollment 

Automatic Enrollment is a good idea 

Default Fund Agree Neutral Disagree Overall 

Prefer age-appropriate Lifecycle (L) Fund 55% 34% 40% 49% 

No preference 21% 39% 26% 24% 

Prefer the Government (G) Fund 24% 27% 34% 27% 

Total 100% 100% 100% 100% 

Don’t Know/No response 47 6 13 66 

*Percentages are based on number of respondents who gave that answer divided by the total number of responses to 

that item, excluding “don’t know’s”, “not applicable’s” or no response. 

Overall, respondents who express a preference between the L Fund and the G Fund as the 

default investment fund are twice as likely to prefer the L Fund (See Figure 27). 

Fig. 27. Preference for Default Fund (All Respondents) 

No Preference

24%

Prefer G Fund

27%

Prefer L Fund

49%

There is a strong relation between a respondent’s individual TSP investment strategy and 

their preferred default fund. Respondents were asked to describe their approach for 

investing the money in their TSP account on a scale ranging from very aggressive/high 

risk to very cautious/low risk. Their responses to this question are reflected in their 

preferences for the L or G Fund as the default investment fund (See Figure 28). A 

substantial majority of those who pursue an aggressive investment strategy with their 

TSP funds prefer the L Fund (63 percent) over the G Fund (18 percent) as the default 

fund. Respondents who report a balanced investment strategy between aggressive and 

cautious are twice as likely to prefer the L Fund over the G Fund—50 percent to 25 

percent. However, those who describe their own investment strategy as cautious with 

low or no risk are slightly more likely to prefer the G Fund to the L Fund (41 percent vs. 

35 percent). 
45

Figure 28. Default Fund Preference by Respondent Investment Strategy

Default Fund Preference 

Investment Strategy N Prefer G Fund No Preference Prefer L Fund

Aggressively 

Moderate to High Risk 1808 18% 19% 63% 

Balanced between 

Aggressive and Cautious 1410 25% 25% 50% 

Cautious 

Low to No risk 1278 41% 24% 35% 

Preferences for the default fund differ among the individual systems (See Figure 29.1). 

Forty-two percent of CSRS participants prefer the L Fund as the default fund, while 54 

percent of uniformed service members prefer the L Fund. The difference in preferences 

between the L Fund and the G Fund was highest at 29 percentage points for respondents 

in the Uniformed Services and lowest at 11 percentage points for those in the CSRS 

system. There is no retirement system where respondents are more likely to select the G 

Fund as the default investment fund over the L Fund. 

Fig. 29.1. Default Fund Preference by Retirement System 

Default Fund 

System N Prefer G Fund No Preference Prefer L Fund 

FERS 1349 24% 27% 49% 

CSRS 1440 31% 26% 42% 

Uniformed services 2090 25% 21% 54% 

Fig. 29.2. Default Fund Preference by Age 

Default Fund 

Age N Prefer G Fund No Preference Prefer L Fund 

< 40 1151 21% 24% 55% 

40-49 1277 25% 22% 53% 

50 and over 2417 29% 26% 45% 

Fig. 29.3. Default Fund Preference by Income 

Default Fund 

Income N Prefer G Fund No Preference Prefer L Fund 

< $40,000 1029 29% 29% 42% 

$40,000 - $80,000 2098 26% 26% 48% 

$80,000 and over 1604 25% 20% 56% 
46

Fig. 29.4 Preference for L Fund vs. G Fund as the Default Option by Participation Status

Q22. Preference for L Fund vs. G Fund as the Default Option

Default Fund

 N Prefer the L Fund Neutral Prefer the G Fund 

Non-Participants(1) 768 45.7% 29.4% 24.9% 

Participants 2991 51.6% 23.4% 25.1% 

Notes: (1) Includes active employees who are not currently contributing to the TSP. Participation is based on 

administrative records, since it reflects current contribution decisions while the survey captures whether the respondent 

contributed over the last two years. 

Additional Investment Options and Services 

There are currently five investment funds available to TSP participants– the Government 

(G) Fund, the Fixed Income (F) Fund, the Common Stock Index Investment (C) Fund, 

the Small Capitalization Stock Index (S) Fund, the International Stock Index Investment 

(I) Fund – as well as a group of age-appropriate Lifecycle (L) Funds. The L Funds are 

the most recent additions. The TSP is considering adding new funds and services, which 

would modestly increase the expenses that all participants pay. The new funds that are 

being considered may provide participants greater flexibility and opportunities for 

investment diversification. Furthermore, new services may aid participants in tax 

planning decisions. At the same time, these changes may increase the complexity of the 

plan. The flexibility, diversification, and tax planning benefits of the new funds and 

services may or may not be worth the increased expense and complexity. 

TSP survey respondents were asked to consider both the positive and negative aspects of 

proposed changes and to indicate whether adding a Roth 401(k) – which would allow 

participants to have some or all of their future contributions treated differently for tax 

purposes - or a wider selection of investment options would make the TSP a better 

program. As shown in Figure 30, a majority of respondents (60%) agree that providing 

an option to contribute to a Roth 401(k) account would make the TSP a better program, 

while a plurality (46%) agree that offering a wider selection of investment options would 

do so. 
47

Fig. 30. Overall Respondent Support for additional Investment Services and Options 

The TSP would be a better program if it ........

Item Agree Neutral Disagree Don’t Know/No Answer 

....provided an option to contribute to a 

Roth 401(k) account 60% 16% 11% 12% 

.....offered a wider selection of investment 

options. 46% 24% 19% 12% 

Adding the Roth 401(k) Option 

A strong majority of respondents favor adding an option to contribute to a Roth 401(k) 

account to the TSP program while very few respondents disagree (60 percent favorable to 

11 percent unfavorable – see Figure 31). The strongest support for adding this option is 

in the uniformed services system. The primary advantage of a traditional 401(k) account 

is to allow participants to make pre-tax contributions during working years when income 

and tax rates are typically higher, and to defer taxes until retirement years when expected 

income and tax rates will typically be lower. The Roth 401(k) plan requires making 

after-tax contributions but provides tax advantages in the future. For many participants in 

the Uniformed Services, current income and tax rates may be as low as or lower than 

their expected future tax rates. For someone in this position, the advantage of the Roth 

401(k) is substantial. In the civilian sector the support for adding the Roth 401(k) is 

slightly weaker (56 percent in both the FERS and the CSRS) but still represents a 

significant majority of respondents. There is no system with more than 15 percent of 

respondents who disagree that adding an option to contribute to a Roth 401(k) account 

would make TSP a better program. However, there are also a significant number of 

people (approximately 12 percent of all respondents) who are unable or unwilling to 

respond to this item, suggesting a potential lack of awareness of what a Roth 401(k) 

option is. 

 Fig. 31.1. Support for adding the Roth 401(k) account by retirement system 

The TSP would be a better program if it provided an option to contribute to a Roth 401(k) account. 

System Agree Neutral Disagree 

Don’t Know/No 

Response 

FERS 56% 20% 10% 14% 

CSRS 56% 16% 13% 16% 

Uniformed Services 66% 15% 11% 9% 

All Respondents 60% 16% 11% 12% 
48

 Fig. 31.2. Support for adding the Roth 401(k) account by age 

The TSP would be a better program if it provided an option to contribute to a Roth 401(k) account. 

Age Agree Neutral Disagree 

Don’t Know/No 

Response 

< 40 65% 16% 10% 10% 

40-49 62% 16% 13% 9% 

50 and over 58% 17% 11% 14% 

All Respondents 60% 16% 11% 12% 

 Fig. 31.3. Support for adding the Roth 401(k) account by income – All Participants 

The TSP would be a better program if it provided an option to contribute to a Roth 401(k) account. 

Income Agree Neutral Disagree 

Don’t Know/No 

Response 

< $40,000 59% 18% 8% 16% 

$40,000 - $80,000 61% 17% 11% 11% 

$80,000 and over 63% 15% 15% 8% 

All Respondents 60% 16% 11% 12% 

Fig. 31.4. Support for adding the Roth 401(k) account by income - Unmarried Participants 

The TSP would be a better program if it provided an option to contribute to a Roth 401(k) account. 

Income Agree Neutral Disagree 

Don’t Know 

/No Response 

% with 

Roth IRA 

< $40,000 60% 18% 5% 17% 21% 

$40,000 - $80,000 59% 17% 10% 14% 30% 

$80,000 -$100,000 60% 16% 12% 12% 40% 

$100,000 or more 59% 12% 22% 7% 43% 

All Respondents 59% 17% 10% 14% 30% 

Additionally, there appears to be some disconnect between respondents preference for 

adding a Roth feature to the TSP and their actual usage of Roth account benefits. Roth 

IRA’s have been in existence since 1997. A participant in the TSP, or any similar 

qualified retirement plan, may make Roth IRA contributions as long as their adjusted 

gross income (AGI) is below certain limits. The specific limits are $95,000 for single 

filers and $150,000 for joint filers. The tax benefits offered through a Roth account 

within the TSP would be substantially the same as those offered by the Roth IRA, except 

that there would not be an income limit. While 60 percent of respondents prefer 

adding a Roth account to the TSP, only 32 percent have established a Roth IRA 

account. 
49

This differential may be partially explained by the income limitation imposed on the Roth 

IRA, but our preliminary data suggests that this is not the case for most participants. The 

data for unmarried participants (Figure 31.4) shows while there is no difference in the 

percentage of respondents who prefer having a Roth account in the TSP for those with an 

income less than $80,000 – who would not be subject to income restrictions – and those 

with reported income of $80,000-$100,000, who might be and $100,000 or more who are 

definitely subject to income restrictions,8

 there are differences in the percentage who 

currently have one. Participants with income of $80,000-$100,000 or $100,000+ are 

roughly two times as likely to report having a Roth IRA than participants with incomes 

less than $40,000, who are more likely to be bound by liquidity constraints. This higher 

income group may derive some benefit from adding Roth IRA option to the TSP. 

Additional Investment Options 

More than twice as many respondents agree than disagree that the TSP would be a better 

program if it provided a wider selection of investment options (see Figures 32.1-3). This 

support is strongest among those in the uniformed services system – where 51 percent of 

respondents agree – and weakest for those in the CSRS system – where only 38 percent 

of respondents agree. 

Fig. 32.1. Support for adding investment options by retirement system.

The TSP would be a better program if it offered a wider selection of investment options 

System Agree Neutral Disagree 

Don’t Know/No 

Response 

FERS 47% 26% 15% 12% 

CSRS 38% 24% 22% 16% 

Uniformed Services 51% 22% 19% 8% 

All Respondents 46% 24% 19% 12% 

 

8

 Note that it is not possible to determine whether married participants are subject to income restrictions on 

making contributions to a Roth IRA because we do not know their total household income. 
50

Fig. 32.2. Support for adding investment options by age.

The TSP would be a better program if it offered a wider selection of investment options 

Age Agree Neutral Disagree 

Don’t Know/No 

Response 

< 40 54% 23% 16% 7% 

40-49 48% 24% 20% 9% 

50 and over 42% 25% 20% 13% 

All Respondents 46% 24% 19% 12% 

Fig. 32.3. Support for adding investment options by income.

The TSP would be a better program if it offered a wider selection of investment options 

Income Agree Neutral Disagree 

Don’t Know/No 

Response 

< $40,000 46% 25% 14% 14% 

$40,000 - $80,000 46% 25% 17% 11% 

$80,000 and over 48% 22% 24% 7% 

All Respondents 46% 24% 19% 12% 

The proportion of respondents who believe that adding additional investment options 

would make the TSP a better program is strongly related to the belief that adding 

investment options will encourage more Federal employees or service members to 

become contributors to the TSP (see Figure 33). For those who agree with this statement, 

75 percent agree that providing additional investment options would make TSP a better 

program, compared to only 35 percent of respondents who do not believe it would 

encourage more people to become contributors. 

Fig. 33. 

The TSP would be a better program if it 

offered a wider selection of investment options. 

More investment options will encourage 

people to become contributors to the 

TSP

Agree Neutral Disagree Don’t Know/No 

Response 

Yes (27% of respondents) 75% 14% 5% 6% 

No (73% of respondents) 35% 27% 24% 14% 

All Respondents 46% 24% 19% 12% 

Very few people (only 27 percent of respondents) believe that providing additional 

investment options will encourage more Federal employees or service members to 

become contributors to the TSP. This is consistent with the fact that only 5 percent of 

survey respondents who are active employees and not contributing to the TSP cite not 
51

being satisfied with the investment options as a reason they do not contribute to the TSP. 

Academic research shows that extensive choice may hinder participation rates in 401(k) 

plans (see: How Much Choice is Too Much?: Contributions to 401(k) Retirement 

Plans by Sheena S. Iyengar, Wei Jiang, and Gur Huberman). 

Adding Specific Investment Options 

If the FRTIB decides to provide additional investment options in the TSP, it must 

determine what type of fund to offer. Many possible funds could be added to the TSP 

investment options, each with its own investment characteristics. In addition, each new 

fund will have its own cost, which may also be a factor in whether TSP participants want 

to invest in that specific fund. Currently, individual funds in the TSP cost participants 

about $3 a year for every $10,000 they have in their accounts. If new funds are added to 

the TSP, they might have expenses that are significantly higher than this. Of course, the 

annual expenses of any new fund would be assessed only to participants who invested 

money in that fund. 

Survey respondents were asked to indicate the cost level, in comparison to current TSP 

funds, at which they believe adding each of the investment options would be beneficial 

for most TSP participants. Many respondents were either unable or unwilling to answer 

these questions. The number of respondents who did not answer or responded with 

“don’t know” was significantly higher on these items than for other items within the 

survey, ranging from 26 to 33 percent of respondents (see Figure 34). This high 

proportion of “don’t knows” is likely to be the result of a combination of the complexity 

and length of the items as well as a perceived lack of adequate information to accurately 

assess the value of providing these types of funds. The figures that follow report the 

percentage of individuals who provided a particular answer to an item, such as to add the 

item even if it costs more, as a percentage of those who responded to the item, excluding 

those who responded “don’t know”. As a result, these percentages will be higher than the 
52

proportion of TSP participants who would be interested in investing in that fund if it is 

added, unless this is accompanied by an intensive education program about the fund. 

While TSP participants believe that providing additional investment options would make 

the TSP a better program, when it comes to adding specific funds, respondents are price 

sensitive. None of the additional options that participants were asked to rate has a 

majority of respondents who are willing to add the fund if the costs are higher than 

current TSP funds. Most respondents indicate that most funds should be added only if 

the costs for the new funds are about the same as the cost of current TSP funds (see 

Figure 34). In most cases the percentage of respondents who do not want to add the fund 

regardless of the cost is roughly equal to the percentage of respondents who are willing to 

add the fund even if the costs are higher than the costs of current TSP funds. 

One factor that impacts how price sensitive respondents are to adding any specific fund is 

their attitude about adding new investment options. Respondents who disagree that 

adding wider investment options will make the TSP a better program are also more likely 

to report that specific investment options should not be added regardless of their costs. 

Respondents who agree that the TSP would be a better program if it added more 

investment options are more likely to believe specific options should be added even if 

they have higher costs than current ones. 
53

Fig. 34.1 New Investment Options for the TSP 

Preferences About Additional Investment Options

29%

26% 23% 21%

26%

20%

29%

9%

53%

50%

54% 56%

52% 53%

48%

61%

18%

24% 23% 23% 23%

27%

23%

30%

0%

10%

20%

30%

40%

50%

60%

70%

Emerging

Markets

Bond Fund

Emerging

Markets

Stock Fund

High Yield

Bond Fund

International

Bond Fund

Precious

Metals Fund

Real Estate

Investment

Trust (REIT)

Fund

Socially

Responsible

Fund

Treasury

Inflation

Protected

Securities

(TIPS) Fund

Don't Add Fund Add if costs are about the same Add even if costs are higher

Fig 34.2 New Investment Options for the TSP: % of non-respondents by Fund Type 

Fund Type % of don’t knows or no response 

Emerging Markets Bond Fund 33% 

Emerging Markets Stock Fund 31% 

High Yield Bond Fund 30% 

International Bond Fund 30% 

Precious Metals Fund 30% 

Real Estate Investment Trust (REIT) Fund 30% 

Socially Responsible Fund 31% 

Treasury Inflation Protected Securities (TIPS) Fund 26% 

As shown in Figure 35.1, respondents who disagree that offering a wider selection of 

investments will make the TSP a better program are at least 3 times more likely to not 

want to add a fund regardless of cost than they are to want to add a fund, even if the costs 

are higher. This finding is consistent for every fund except the TIPS Fund. Between 40 

percent and 53 percent of respondents who do not believe adding a wider selection of 

funds will make the TSP a better program believe that every fund, other than the TIPS 

Fund, should not be added, regardless of cost. In addition, almost 30 percent of 
54

respondents said that the TSP should not add an Emerging Markets Bond Fund or a 

Socially Responsible Fund. In both cases, this was significantly more than the 

percentage of respondents who would support adding the fund regardless of cost. These 

individuals are generally inclined to oppose adding any new funds – perhaps believing 

that the additional complexity would offset any improvements of having more choices. 

However, in most cases these respondents are willing to add specific funds if their costs 

are about the same as existing TSP funds. 

Fig. 35 Preferences toward specific investment options by attitudes about offering wider 

investment options 

The TSP would be a better program if it offered a wider selection of investment options. 

Disagree Neutral Agree 

Fund 

Don’t 

add 

Fund 

Add if 

costs are 

same 

Add 

even if 

costs 

are 

higher 

Don’t 

add 

Fund 

Add if 

costs are 

same 

Add 

even if 

costs 

are 

higher 

Don’t 

add 

Fund 

Add if 

costs are 

same 

Add 

even if 

costs 

are 

higher 

Emerging Markets 

Bond Fund 53% 39% 8% 25% 59% 16% 19% 57% 24% 

Emerging Markets 

Stock Fund 48% 40% 13% 23% 57% 21% 17% 52% 32% 

High Yield Bond 

Fund 45% 44% 11% 20% 60% 21% 15% 56% 30% 

International Bond 

Fund 41% 48% 11% 16% 62% 21% 14% 56% 30% 

Precious Metals 

Fund 48% 41% 11% 22% 58% 20% 17% 54% 30% 

Real Estate 

Investment Trust 

(REIT) Fund 

40% 47% 13% 20% 59% 21% 12% 53% 36% 

Socially Responsible 

Fund 46% 39% 15% 26% 53% 21% 23% 49% 28% 

Treasury Inflation 

Protected Securities 

(TIPS) Fund 

18% 61% 21% 6% 64% 30% 7% 59% 34% 

*Percentages are based on number of respondents who gave that answer divided by the total number of responses to 

that item, excluding “don’t know’s”, “not applicable’s” or no response. 

Respondents who believe the TSP will be a better program if it offers a wider selection of 

investment options may be the core constituency for new funds. These are the people 

who are most likely to be receptive to adding new funds and may be more likely to invest 

in the funds if they are added. These respondents are more likely to support adding each 

new fund even if the costs are higher than to say not to add the fund, regardless of cost, 
55

for every fund. (This preference is not statistically significant for either the Emerging 

Markets Bond Fund or the Socially Responsible Fund.) Respondents who say that adding 

a wider selection of investment options will make the TSP a better program express the 

strongest support for the TIPS Fund. 

Fig. 36.1 Preferences About Individual Investment Options by Retirement System 

Preferences in FERS System

55%

51%

54% 55% 55% 56%

49%

59%

16%

21% 20% 23% 21%

23% 22%

29% 30%

0%

10%

20%

30%

40%

50%

60%

70%

Emerging

Markets

Bond Fund

Emerging

Markets

Stock Fund

High Yield

Bond Fund

International

Bond Fund

Precious

Metals Fund

Real Estate

Investment

Trust (REIT)

Fund

Socially

Responsible

Fund

Treasury

Inflation

Protected

Securities

(TIPS) Fund

Don’t add Fund Add if costs are same Add even if costs are higher

CSRS and uniformed services participants have significantly different attitudes on 

whether adding a wider selection of investment options will make the TSP a better 

program. We would expect to see these differences reflected in the attitudes regarding 

which funds to add, if any. There is no fund which even 30 percent of respondents from 

the CSRS would add if it costs more than existing TSP funds (see Figures 36.1-36.4). 

The TIPS Fund is also the only fund which members of the CSRS system are more likely 

to support adding even if its costs are higher than the costs of current TSP funds than they 

are to say not to add it, regardless of the cost. Participants in the FERS system have 
56

attitudes similar to those in the CSRS, although they are generally less opposed to adding 

specific new funds overall. 

Compared to employees in the FERS or CSRS systems, participants in the Uniformed 

Services are generally more likely to say to add specific investment funds even if they 

cost more than existing TSP funds. For people in the Uniformed Services, these gaps are 

strongest for the TIPS and the REIT funds, but are also positive for the International 

Bond Fund and Precious Metals Fund. 

Fig. 36.2 

Preferences in CSRS System

36%

33%

28% 26%

31%

24%

33%

9%

48% 47%

53% 55%

50%

53%

46%

63%

16%

20% 20% 19% 19%

23% 20%

28%

0%

10%

20%

30%

40%

50%

60%

70%

Emerging

Markets

Bond Fund

Emerging

Markets

Stock Fund

High Yield

Bond Fund

International

Bond Fund

Precious

Metals Fund

Real Estate

Investment

Trust (REIT)

Fund

Socially

Responsible

Fund

Treasury

Inflation

Protected

Securities

(TIPS) Fund

Don’t add Fund Add if costs are same Add even if costs are higher
57

Fig. 36.3. 

Preferences in Uniformed Services System

25%

20% 19% 17%

23%

17%

27%

9%

54% 51% 54% 57%

51% 52%

48%

59%

21%

29% 26% 26% 26%

31%

25%

32%

0%

10%

20%

30%

40%

50%

60%

70%

Emerging

Markets

Bond Fund

Emerging

Markets

Stock Fund

High Yield

Bond Fund

International

Bond Fund

Precious

Metals Fund

Real Estate

Investment

Trust (REIT)

Fund

Socially

Responsible

Fund

Treasury

Inflation

Protected

Securities

(TIPS) Fund

Don’t add Fund Add if costs are same Add even if costs are higher

Fig. 36.4. Preferences toward specific investment options by attitudes about offering 

wider investment options: % of non-responses by Retirement System 

Fund FERS CSRS Uniformed Services 

Emerging Markets Bond Fund 37% 37% 26% 

Emerging Markets Stock Fund 36% 37% 25% 

High Yield Bond Fund 34% 34% 24% 

International Bond Fund 34% 35% 25% 

Precious Metals Fund 34% 34% 25% 

Real Estate Investment Trust (REIT) Fund 34% 33% 24% 

Socially Responsible Fund 35% 35% 25% 

Treasury Inflation Protected Securities 

(TIPS) Fund 30% 28% 22% 
58

Fig. 37.1 

Preferences toward specific investment options by Age 

Age 

Less than 40 40-49 50 and older 

Fund 

Don’t 

add 

Fund 

Add if 

costs are 

same 

Add even 

if costs 

are 

higher 

Don’t 

add 

Fund 

Add if costs 

are same 

Add even 

if costs 

are 

higher 

Don’t 

add 

Fund 

Add if costs 

are same 

Add even 

if costs 

are 

higher 

Emerging Markets 

Bond Fund 23% 54% 23% 29% 54% 17% 32% 51% 17% 

Emerging Markets 

Stock Fund 20% 48% 32% 24% 52% 25% 29% 50% 21% 

High Yield Bond 

Fund 19% 51% 29% 23% 56% 21% 26% 53% 21% 

International Bond 

Fund 17% 52% 31% 19% 58% 23% 24% 56% 20% 

Precious Metals 

Fund 16% 51% 32% 26% 53% 21% 30% 51% 19% 

Real Estate 

Investment Trust 

(REIT) Fund 

17% 49% 35% 21% 54% 25% 22% 54% 24% 

Socially Responsible 

Fund 25% 46% 29% 29% 50% 21% 31% 48% 21% 

Treasury Inflation 

Protected Securities 

(TIPS) Fund 

9% 55% 36% 10% 61% 29% 9% 63% 28% 

*Percentages are based on number of respondents who gave that answer divided by the total number of responses to 

that item, excluding “don’t know’s”, “not applicable’s” or no response. 

Fig. 37.2 

Preferences toward specific investment options by attitudes about offering wider 

investment options: % of non-responses by Age 

Age 

Fund Less than 40 40-49 50 and older 

Emerging Markets Bond Fund 33% 28% 33% 

Emerging Markets Stock Fund 31% 27% 32% 

High Yield Bond Fund 30% 26% 30% 

International Bond Fund 31% 26% 31% 

Precious Metals Fund 31% 26% 30% 

Real Estate Investment Trust (REIT) Fund 30% 26% 29% 

Socially Responsible Fund 29% 27% 31% 

Treasury Inflation Protected Securities 

(TIPS) Fund 28% 23% 25% 
59

Fig. 37.3 

Preferences toward specific investment options by Income 

Income 

Less than $40,000 $40,000 - $80,000 $80,000 or more 

Fund 

Don’t 

add 

Fund 

Add if 

costs are 

same 

Add even 

if costs 

are 

higher 

Don’t 

add 

Fund 

Add if costs 

are same 

Add even 

if costs 

are 

higher 

Don’t 

add 

Fund 

Add if costs 

are same 

Add even 

if costs 

are 

higher 

Emerging Markets 

Bond Fund 32% 53% 16% 29% 54% 16% 27% 52% 21% 

Emerging Markets 

Stock Fund 29% 53% 18% 27% 51% 22% 22% 48% 30% 

High Yield Bond 

Fund 25% 54% 21% 23% 55% 21% 22% 52% 26% 

International Bond 

Fund 23% 56% 22% 21% 57% 22% 19% 55% 25% 

Precious Metals 

Fund 24% 55% 21% 23% 54% 23% 30% 47% 23% 

Real Estate 

Investment Trust 

(REIT) Fund 

22% 55% 23% 20% 55% 25% 19% 50% 31% 

Socially Responsible 

Fund 27% 49% 24% 28% 49% 23% 32% 45% 23% 

Treasury Inflation 

Protected Securities 

(TIPS) Fund 

9% 59% 32% 9% 61% 30% 9% 61% 30% 

*Percentages are based on number of respondents who gave that answer divided by the total number of responses to 

that item, excluding “don’t know’s”, “not applicable’s” or no response. 

Fig. 37.4. 

Preferences toward specific investment options by attitudes about offering wider 

investment options: % of non-responses by Income 

Income 

Fund Less than $40,000 $40,000 - $80,000 $80,000 or more 

Emerging Markets Bond Fund 43% 33% 22% 

Emerging Markets Stock Fund 41% 32% 21% 

High Yield Bond Fund 40% 30% 20% 

International Bond Fund 40% 31% 20% 

Precious Metals Fund 39% 30% 21% 

Real Estate Investment Trust (REIT) Fund 38% 31% 19% 

Socially Responsible Fund 39% 32% 20% 

Treasury Inflation Protected Securities 

(TIPS) Fund 34% 27% 17% 

If the FRTIB decides to add a new fund this may lead to other changes that might affect 

participants’ attitudes about the benefit of adding these funds. Survey participants were 
60

told that adding new funds may require the TSP to establish restrictions on the number of 

interfund transfers participants can make and/or the amount participants can invest in 

some funds and asked to evaluate the impact of these potential restrictions on whether 

they believe adding funds will benefit TSP participants. Among participants who agree 

that offering a wider selection of investment options would make the TSP a better 

program, only 28 percent of respondents would not change their opinion if restrictions 

were required, while 14 percent would definitely change their mind and a plurality might 

depending on how the restrictions were imposed (see Figure 38). Amongst those who 

disagreed that adding investment options would make the TSP a better program, only 21 

percent would change their opinion if restrictions were required, compared to a total of 

42 percent who do not think new funds should be added or who would not change their 

opinion. 

Fig. 38. Impact of Potential Restrictions on Participant Attitudes toward offering a wider 

selection of Investment Options 

The TSP would be a better program if it offered 

a wider selection of investment options. 

Would adding funds still benefit TSP 

participants if restrictions were required? Disagree Neutral Agree 

I don’t think any new funds should be added. 22% 6% 3% 

New restrictions would not change my 

opinion. 20% 20% 28% 

New restrictions would change my opinion. 21% 15% 14% 

It depends on how the specific restrictions 

would be imposed. 29% 36% 43% 

I don’t know. 7% 23% 12% 

Total 100% 100% 100% 

Conclusion on Potential Changes to the TSP 

Respondents strongly believe that automatic enrollment of new employees is a good idea. 

Since overall satisfaction with the TSP is very high at 85 percent, respondents may favor 

automatic enrollment because it will encourage people to achieve a desirable outcome—

participation in a highly valued retirement system. These findings indicate support for 
61

changing the system to include automatic enrollment with an “opt-out” provision from its 

current opt-in form. 

The evidence from survey participants shows support for adding new investment options 

and services to the TSP. A significant majority of respondents – 60 percent – think the 

TSP would be a better program if it offered a Roth 401(k) option. Support for adding this 

service is strongest in the Uniformed Services but a significant majority agrees across all 

three systems. 

A plurality (46%) of the respondents agree that the TSP will be a better program if it 

offers a wider selection of investment options, compared to 19 percent of respondents 

who disagree and over 12 percent don’t know or did not respond. When asked to 

evaluate specific fund types that might be added, between one fourth and one third of 

respondents don’t know or did not respond. Among those who did respond, the 

consensus among survey participants is that any fund with costs about the same as the 

costs of the funds currently in the TSP (roughly $3 per $10,000 in asset balance per year) 

can be added. There are no funds where a majority of respondents said not to add the 

fund, regardless of the cost or to add it if it costs more than current funds do. A majority 

of respondents believe that the TSP program would be better if it offered a wider variety 

of investment options provided whatever new options are added cost about the same as 

existing TSP funds. This support is likely to be reduced if adding new funds requires 

adding restrictions to the number of interfund transfers or the amount participants can 

invest in some funds. 

In Summary 

Federal workers and uniformed service members who participate in the TSP have a high 

level of satisfaction with the TSP plan, as indicated by their responses in the survey. 

They believe it will be an important vehicle for their financial security in their retirement. 

Their feedback to the survey provides key insight into participants’ views about what 

they think about the plan’s current features and services, as well as the kinds of features 

and services they may or may not want to add to the plan. 
62

For instance, they believe the plan can be improved by automatically enrolling new 

Federal workers and service members and by adding a Roth 401(k) option. Participants 

value the TSP information they receive and their access to this information. When 

participants make use of this information, beneficial behavior results. 

Having completed two phases of data collection slated, the findings have stayed 

consistent from the first phase to the second, with acceptable significance levels for 

conclusions observed between the main retirement systems. 
63

Appendix A: Survey Instrument 
Page 1

Continued on next page...

March 1, 2007

Dear TSP Participant: 

I am pleased to inform you that you have been randomly selected to complete a confidential survey regarding the Thrift Savings Plan (TSP).

By sharing your thoughts and impressions in this survey, you will directly contribute to our efforts to continually improve the TSP. 

This survey has been developed by an independent consulting firm in partnership with the Federal Retirement Thrift Investment Board. 

Your feedback will allow us to measure participant satisfaction with TSP plan features, services, and communications. By improving our 

understanding of why participants join the TSP and make contributions, you will help us identify ways to increase TSP participation. The 

survey will also identify participant interest in new services and investment options. 

Please complete the survey and mail it in the enclosed pre-paid envelope by March 26, 2007. We are eager to receive your feedback 

and study participants’ impressions of the TSP. Your feedback is extremely valuable. I therefore encourage you to complete the survey 

with others in your family or anyone else who helps you with your retirement decisions. Please be assured that your individual responses to 

the survey will be kept strictly confidential. All responses will be collected and held in confidence by our independent consultant, Watson 

Wyatt Worldwide. 

On behalf of all TSP participants who will benefit from this survey, I thank you in advance for your efforts.

Very truly yours,

Thomas K. Emswiler

Executive Director (Acting)

Federal Retirement Thrift Investment Board

Participant Survey 2006 / 2007

Thrift Savings Plan 

PRIVACY ACT NOTICE

The Federal Retirement Thrift Investment Board is authorized to solicit this information under Section 8474 of the Federal Employees 

Retirement System Act (Public Law 99-335). Your individual responses to the survey will be kept strictly confidential. Our staff and 

consultants will use the information to prepare summary statistical reports of all responses received. This information will help us improve 

our TSP communications and services, and may lead to the introduction of new TSP features. Furnishing this information is voluntary. 

Although we need your help and urge you to respond, if you do not do so, it will have no effect on you.

6591-34968-3093-4423-1
INSTRUCTIONS

• If you make a mistake, please put a line through it and mark the correct response. 

Answer the questions based on how you personally feel, not on how you think others may feel. 

If you do not have an opinion on an item or it does not apply to you, select the "Don't Know / Not Applicable" response.

There is a set of responses for most questions in the survey. To answer any question, simply mark the response that corresponds

to your answer for that question. Please use a black ballpoint pen.

•

•

•

Some tips to keep in mind as you complete the survey:

to the Thrift Savings Plan (TSP).

Part A: Please answer the following questions regarding your retirement savings and your contributions

Page 2

3. Why aren’t you currently contributing to the TSP? (Mark all that apply.)

I am contributing to the TSP. 

I have already contributed the maximum amount allowed.

The TSP is too complex.

I don’t have enough money to save right now.

I’m saving in other ways.

I can’t access my money before I retire.

I’m not satisfied with the investment options.

I’m not sure how to sign up for the TSP.

I’m not eligible to participate in the TSP.

I'm a new employee, and I don't yet qualify for matching contributions.

My contributions were suspended because of my hardship withdrawal.

2. What percentage of your pay are you currently contributing to the TSP? (ENTER 0 IF YOU ARE NOT CONTRIBUTING.)

I don't know

% of pay OR $ per pay period

1. In the past two years, have you contributed to the TSP?

Yes

No

TSP? (Mark all that apply.)

4. Whether or not you are contributing to the TSP, which of the following are (or would be) your reasons for contributing to the 

Tax benefits

Matching contributions

My supervisor/superior recommended that I do so.

A co-worker/friend recommended I do so.

So I can retire when I want to

Administrative costs are low.

Convenience of payroll deduction

Other (Please specify)

Don’t know

*4423/2/2/* 6591-34968-3093-4423-2

Correct Mark Incorrect Marks
Continued on next page...

Page 3

indicate the 2nd most important, and a “3” to indicate the 3rd most important source. 

7. Rank your TOP 3 most important expected sources of retirement income. Use a “1” to indicate the most important, a “2” to 

Home equity

Income from work

Other retirement plan (not TSP) from a non-Federal employer

Personal savings (including IRA funds)

Social Security

FERS/CSRS annuity 

Military pension

TSP account

Other (Please specify)

(DO NOT include your contributions to the TSP or your FERS/CSRS annuity or military pension.) (Mark all that apply.)

6. If you have set aside money specifically for retirement, indicate the type of accounts where you have retirement savings. 

I have no other retirement savings accounts.

Bank/credit union account (not including checking accounts)

Traditional IRA 

Roth IRA

Other employer’s tax-deferred account (e.g. 401(k) or 403(b)) 

Mutual funds, stocks, bonds or brokerage accounts (not tax-deferred)

Other (Please specify)

amount as you currently earn, choose “100% or more.” ....

“40% to 59%”; if you think you will require the same 

you will require half as much annual pay, please choose 

comfortably when you retire? For example, if you think 

retirement pay do you think you will need to live 

5. Approximately what percentage of your annual preannual pay

40% of my

Less than

annual pay

59% of my

40% to

annual pay

79% of my

60% to

annual pay

99% of my

80% to

pay

my annual

more of 

100% or 

know

Don't

8. At what age do you plan to retire from all full-time employment? 

I'm already retired. (Skip to question #12.)

Younger than 55

55 to 59

60 to 61

62 to 64

65

66 or older

I never plan to retire.

Don’t know

*4423/3/2/* 6591-34968-3093-4423-3
Page 4

the next two years. ........................................................

9. I plan to stay with the Federal Government for at least 

Agree

Strongly Agree

Disagree

Agree Nor 

Neither Disagree

Disagree

Strongly

Applicable

Know/ Not

Don’t

until I reach retirement age. ..........................................

10. I plan to continue working for the Federal Government 

Indicate whether you agree/disagree with the following 

statements.

likelihood that you will work for pay after you retire?

Government until you can retire. What is the 

11. Assume you continue to work for the Federal 

Likely

Very

Likely

Somewhat

Unlikely

Likely Nor 

Neither 

Unlikely

Somewhat

Unlikely

Very

Applicable

Know/ Not

Don’t

12. At what age do you anticipate starting to withdraw money from your TSP account? 

I’ve already started withdrawals.

Before I am 55

55 to 59

60 to 61

62 to 64

65

66 or older

Don’t know/ Not applicable

15. When was the last time you called the TSP ThriftLine and spoke to a telephone service representative?

Within the last month

Within the last 6 months

Within the last year

More than a year ago

I have never called the ThriftLine.

I don’t know.

14. How do you usually access/receive your TSP account information? (Mark all that apply.)

On line from work

On line from home

Receive paper statements

Call the TSP ThriftLine

I don’t review it.

13. How often do you review your TSP account?

At least monthly

Quarterly 

Twice a year 

Annually 

Rarely 

Never 

Part B: The following questions are about the TSP benefits and services available to you.

*4423/4/2/* 6591-34968-3093-4423-4
Continued on next page...

Page 5

explaining the benefits that I receive from the plan. .......

a. The information available about the TSP is helpful in 

Agree

Strongly Agree

Disagree

Agree Nor 

Neither Disagree

Disagree

Strongly

Applicable

Know/ Not

Don’t

program. ........................................................................

e. In the past two years, the TSP has become a better 

contribute to the TSP. ....................................................

d. It’s easy to make changes to the amount of pay I 

is invested. .....................................................................

c. It’s easy to make changes to the way my TSP money 

make decisions about my TSP account. ........................

b. The information available about the TSP helps me 

18. Indicate whether you agree/disagree with the following statements: (Mark only one response per row.)

17. How did you determine where to invest your TSP money? (Mark all that apply.)

Kept my money in the G Fund

Selected one of the L Funds, so my investment mix is professionally determined

Received advice from a financial professional

Received advice from family/friends

Received advice from co-workers

Reviewed TSP website/publications

Spoke with agency/uniformed services representative

Other (Please specify)

16. How would you describe your approach for investing the money in your TSP account? (Mark one response only.) 

Very aggressive - High risk

Somewhat aggressive - Moderate risk

Balanced between aggressive and cautious

Somewhat cautious - Low risk

Very cautious - No risk

Don’t know/ Not applicable

general plan features on the TSP Web site ...................

e. Ability to access information about my account and 

Satisfied

Very Satisfied

satisfied

Nor DisSatisfied

Neither 

satisfied

DissatisfiedVery DisApplicable

Know/ Not

Don’t

separation from service .................................................

d. Ability to withdraw money from my account after 

employed .......................................................................

c. Ability to borrow from my account while actively 

become eligible for agency contributions .......................

b. Waiting period required for a new FERS employee to 

contributions ..................................................................

a. Amount of agency/uniformed services matching 

19. How satisfied are you with each of the following characteristics of the TSP? (Mark only one response per row.)

*4423/5/2/* 6591-34968-3093-4423-5
Page 6

ThriftLine ........................................................................

general plan features through the automated TSP 

f. Ability to access information about my account and 

Satisfied

Very Satisfied

satisfied

Nor DisSatisfied

Neither 

satisfied

DissatisfiedVery DisApplicable

Know/ Not

Don’t

telephone service representatives) ................................

Web-based services, automated ThriftLine, and TSP 

i. Overall quality of services provided by the TSP (i.e., 

submitted to the TSP .....................................................

h. Accuracy and timeliness of the processing of forms 

service representatives (ThriftLine) ...............................

g. Quality of services provided by the TSP telephone 

20. Overall satisfaction with the TSP .....................................

OVERALL SATISFACTION

most TSP participants and improve the overall value of the program.

respond to the following questions, please consider whether you believe these changes would benefit

Part C: The TSP is considering changes to help participants better prepare for retirement. As you

estimated retirement date.

based on the participant's 

appropriate Lifecycle (L) Fund, 

money should be invested in the 

an investment choice, his or her 

If a participant does not make 

Fund

prefer the L

Strongly

Fund

Prefer the L

Preference

or No

Don't Know

Fund

Prefer the G

Fund

prefer the G

Strongly

If a TSP participant does not make an investment decision, his/her contribution is automatically invested in the Government Securities 

(G) Fund. The G Fund earns interest and does not incur losses, but may not provide a high enough return to meet long-term 

retirement goals. The TSP is considering changing this process to automatically invest these contributions in an age-appropriate 

Lifecycle (L) Fund, based upon the specific participant’s estimated retirement date. In the Lifecycle funds, money is allocated more 

heavily toward stocks for younger employees/members - with greater asset fluctuation, but higher expected returns. As retirement 

nears, the fund is invested more heavily in Government securities and bonds. Please indicate which of these options you would 

prefer.

22.

If a participant does not make 

an investment choice, his or 

her money should be invested 

in the G Fund.

the TSP is a good idea. ....................................................

21. Automatically enrolling new employees/members in 

Agree

Strongly Agree

Disagree

Agree Nor 

Neither Disagree

Disagree

Strongly

Know

I Don’t

Some Federal employees and uniformed service members do not sign up for the TSP. The TSP is considering automatic enrollment for 

new employees and members by having their agencies or services automatically begin deducting employee contributions, unless a person 

chooses not to participate. Indicate whether you agree or disagree with the following statement.

*4423/6/2/* 6591-34968-3093-4423-6
Continued on next page...

Page 7

that guarantee a return above inflation .........................

Fund - A fund which invests in U.S. Treasury bonds 

h. Treasury Inflation Protected Securities (TIPS) 

of cost

regardless

fund

Do not add

funds

current TSP

same as

be about the

costs would

Add fund if 

funds

current TSP

higher than

somewhat

would be

even if costs

Add fund

of cost

regardless

Add fund I Don’t Know

environmental beliefs ...................................................

in companies that adhere to social, moral or 

g. Socially Responsible Fund - A fund that holds stock 

producing commercial real estate ................................

investment companies that own portfolios of incomewhich invests in publicly traded real estate 

f. Real Estate Investment Trust (REIT) Fund - A fund 

chromium), strategic minerals, or diamonds ................

platinum), strategic metals (e.g. titanium, 

upon the value of "precious metals" (e.g. gold, silver, 

e. Precious Metals Fund - A fund whose value is based 

outside the United States .............................................

higher-quality corporate and government bonds from 

d. International Bond Fund - A fund that invests in 

have a higher risk of default .........................................

and private bonds that pay higher rates of return, but 

c. High Yield Bond Fund - A fund that invests in public 

Eastern Europe ............................................................

countries, such as nations in Southeast Asia and 

in companies from emerging or developing 

b. Emerging Markets Stock Fund - A fund that invests 

Asia and Eastern Europe .............................................

developing countries, such as nations in Southeast 

corporate and government bonds from emerging or 

a. Emerging Markets Bond Fund - A fund that invests in 

Mark only one response per row. 

The individual funds in the TSP currently cost participants about $4 a year for every $10,000 they have in their accounts. If new funds are 

added to the TSP, they might have expenses that are significantly higher than this. The annual expenses of any new fund would be 

assessed only to participants who invest money in that fund. Considering this information, indicate the cost level, in comparison to 

current TSP funds, where you think adding each of the investment options listed below would be beneficial for most TSP 

participants. 

24.

treated differently for tax purposes.) .......................

have some or all of their future contributions 

401(k) account. (This would allow participants to 

a. provided an option to contribute to a Roth 

Agree

Strongly Agree

Disagree

Agree Nor 

Neither Disagree

Disagree

Strongly

Know

I Don’t

b. offered a wider selection of investment options.

The TSP would be a better program if it...: 

The TSP is considering adding new funds and services, which would modestly increase the expenses that all participants pay. The

new funds that are being considered may provide participants greater flexibility and opportunities for investment diversification. The 

new services may aid participants in tax planning decisions. At the same time, these changes may increase the complexity of the plan. 

The flexibility, diversification, and tax planning benefits of the added new funds and services may or may not be worth the increased 

expense and complexity. Considering both the positive and negative aspects, indicate whether you agree or disagree with the 

following statements. (Mark only one response per row.)

23.

*4423/7/2/* 6591-34968-3093-4423-7
Thank you for your participation!

Government/uniformed services. (please round) 

7. Number of years employed by the Federal 

Years

which you have worked full time.

8. Number of different non-U.S. Government employers for 

9. Do you have Internet access from home?

Yes No

9a. If yes, is it high-speed or dial-up?

High-speed Dial-up

10. Do you have Internet access from work?

Yes, all the time

Yes, on a limited basis

No

6. Marital Status 

Single Married

retirement benefit by his or her employer? 

6a. If you selected “Married”, is your spouse offered a 

Yes No

5. Homeowner

Yes No

4. Highest Education Level

Some High School

High School Graduate

Some College

College Graduate

Graduate Education

Some Advanced/ PostGraduate Degree

Advanced/ Post3. Annual Pay

Less than $25,000

$25,000 to $40,000

$40,000 to $60,000

$60,000 to $80,000

$80,000 to $100,000

$100,000+

2. Gender 

Male Female

1. Age

Under 30

30-39

40-49

50-59

60-69

70 or over

Demographics

27. Please provide any comments or suggestions that you may have regarding the TSP. 

Page 8

contributors to the TSP? (Mark all that apply.) 

26. Which of the following changes to the TSP do you think will encourage more Federal employees/service members to become 

Automatic enrollment of new employees/members

More investment choices 

Immediate matching contributions for new employees/members

Other (Please specify)

None of the above

(Mark one response only.)

appropriate to add to the TSP; would adding those funds still benefit TSP participants if restrictions were required? 

and/or the amount participants can invest in some funds. Consider the fund(s) in the previous question that you selected as 

25. Adding new funds may require the TSP to establish restrictions on the number of interfund transfers participants can make 

I do not think any new funds should be added.

New restrictions would not change my opinion.

New restrictions would change my opinion.

It depends on how the specific restrictions would be imposed.

I don't know.

*4423/8/2/* 6591-34968-3093-4423-8
72

Appendix B: Factors Driving the Margin of Error 

This report contains analyses for different data cuts below the retirement system level. 

These analyses should be treated as preliminary findings for descriptive purposes only. 

There are four factors that drive the reported margin of error: the size of the underlying 

population, the sample size, the desired confidence level and the standard deviation of the 

statistic being measured. 

All else equal, the margin of error decreases proportionally to the square root of the 

sample size – i.e., larger samples result in increasingly smaller reductions in the margin 

of error. If the population size is small relative to the sample size then it is customary to 

employ a small sample correction to estimate the margin of error. All else equal, the 

same sample size will result in a smaller margin of error for a smaller underlying 

population. Since the number of people in the TSP is quite large relative to our sample, 

the impact of this factor would be negligible. 

The third factor is the desired level of confidence. The confidence level reflects the 

probability that the true value of the statistic for the population as a whole lies within the 

reported margin of error of the value of the statistic calculated from the sample of survey 

respondents. It is customary to report margins of error that represent a 95 percent 

confidence interval, meaning that the probability that the true value of the underlying 

statistic being outside the reported margin of error is only 5 percent. 

The final consideration is the standard error of the underlying variable. In most of the 

tables, we report the percentage of respondents who have provided that answer. The 

convention for reporting margins of error is to make the most conservative possible 

assumption that the responses to an item are divided evenly – for example between 

favorable responses and other responses – and report the margin of error for the given 

sample size that would result. 
73

Appendix C: Demographics 

Fig. C.1 Age Distribution by Retirement System 

Demographics 1 

 CSRS FERS 

Uniformed 

Services All 

N 1475 1381 2107 4963 

Less than Age 30 0.0% 11.8% 13.0% 8.8% 

30 to 39 0.1 16.0 24.3 14.8 

40s 20.2 27.5 29.6 26.2 

50 to 59 36.8 25.7 26.2 29.2 

Age 60 and Over 42.9 19.0 6.8 20.9 

 Fig. C.2 Percentage Male and Female by Retirement System 

Demographics 2 

 CSRS FERS 

Uniformed 

Services All 

N 1455 1369 2093 4917 

Male 56% 56% 78% 66% 

Female 44% 44% 22% 34% 

 Fig. C.3 Annual Pay Distribution by Retirement System 

Demographics 3 – Annual Pay 

CSRS FERS 

Uniformed 

Services All 

N 1418 1353 2069 4840 

Less than $40K 13.0% 31.4% 21.8% 21.9% 

$40K to $60K 27.2 32.7 19.8 25.6 

$60K to $80K 21.3 16.0 19.0 18.9 

$80K to $100K 18.3 9.6 17.1 15.4 

$100K and Over 20.3 10.2 22.3 18.3 

 Fig. C.4 Percentage of Respondents Actively Employed by the Federal Government 

or Uniformed Services by Retirement System 

Q8

 

CSRS FERS 

Uniformed 

Services All 

Active

 N 1,081 1,278 1,524 3,883 

 % 71.8% 91.1% 71.1% 76.9% 

Retired (Q8.1) 

 N 308 67 95 470 

 % 20.5% 4.8% 4.4% 9.3% 
74

Fig. C.5 Tenure Distribution by Retirement System 

Demographics 7 – Number of years employed by the Federal Government/uniformed services 

 CSRS FERS 

Uniformed 

Services All 

N 1486 1384 2115 4985 

Less than 2 0.1% 19.1% 1.3% 5.9% 

2 to 4.9 0.1 22.4 7.3 9.3 

5 to 9.9 0.1 19.0 14.2 11.4 

10 to 14.9 0.8 8.1 12.5 7.8 

15 to 19.9 1.9 9.2 17.5 10.6 

20 to 24.9 10.8 12.5 19.4 14.9 

25 to 29.9 34.4 5.1 13.7 17.5 

30+ 51.8 4.6 14.0 22.7 

 Fig. C.6 Number of Different non-U.S. Government Employers Respondents 

Worked for by Retirement System 

Demographics 8 – Number of different non-U.S. Government employers for which you have worked full 

time. 

 CSRS FERS 

Uniformed 

Services All 

N 1390 1314 2003 4707 

0 22.2% 13.5% 20.4% 19.0% 

1 24.2 20.4 23.9 23.0 

2 21.2 20.2 18.6 19.8 

3 14.0 14.7 14.2 14.3 

4 8.3 10.0 8.0 8.7 

5+ 10.1 21.2 14.8 15.2 

 Fig. C.7 Distribution of Education Groups by Retirement System 

Demographics 4 – Highest Education Level 

 CSRS FERS 

Uniformed 

Services All 

N 1435 1364 2088 4887 

Some High School 0.3% 1.0% 0.1% 0.4% 

High School Graduate 13.7 9.8 5.0 8.9 

Some College 33.5 26.8 23.0 27.2 

College Graduate 24.4 30.8 24.6 26.3 

Some Advanced/Post-Graduate Education 9.9 9.0 10.2 9.8 

Advanced/Post-Graduate Degree 18.1 22.7 37.2 27.5 
75

Fig. C.8 Distribution of Homeowner, Marital Status and Internet Access by 

Retirement System 

Demographics 5, 6, 9 

 CSRS FERS 

Uniformed 

Services All 

Homeowner 93.2% 79.4% 79.2% 83.4% 

Married 70.2 68.2 74.3 71.4 

 Married whose spouse is offered retirement plan 64.0 58.7 52.8 57.6 

Internet Access 83.7 87.6 94.8 89.5 

 High-speed 71.5 76.6 86.3 79.6 

 Dial-up 28.5 23.4 13.7 20.5 

Fig. C.9 Internet at Work by Retirement System 

Demographics 10 

 CSRS FERS 

Uniformed 

Services All 

Internet access at work all the time 60.6% 63.8% 71.2% 66.1% 

Internet access at work on a limited basis 12.1 16.6 16.8 15.4 

No Internet access at work 27.3 19.6 12.0 18.5 
76

Appendix D: Plan Satisfaction 

Fig. D.1 Satisfaction with the TSP by Retirement System 

Q18. TSP Information and changes in individual options

 CSRS FERS Uniformed Service 

Favorable Unfavorable Favorable Unfavorable Favorable Unfavorable 

Information is helpful in explaining 

benefits that I receive from the TSP 82.4% 3.9% 77.1% 7.3% 77.9% 6.4% 

Information helps me make decisions 

about my TSP account 76.7 4.1 70.2 7.9 72.3 6.7 

It's easy to make changes to the way 

my TSP money is invested 85.5 4.6 82.3 4.7 85.2 4.9 

It's easy to make changes to the 

amount of pay I contribute to the TSP 83.5 5.2 82.3 6.4 83.1 7.9 

In the past two years, the TSP has 

become a better program 68.8 2.9 57.4 2.3 63.0 3.7 

Notes: Based on all respondents. 

Fig. D.2 Satisfaction with the TSP by Pay 

Q18. TSP Information and changes in individual options

Less than $40K $40K to $80K $80K and Over 

Favorable Unfavorable Favorable Unfavorable Favorable Unfavorable 

Information is helpful in explaining 

benefits that I receive from the TSP 70.9% 9.4% 79.6% 5.9% 82.8% 4.1% 

Information helps me make decisions 

about my TSP account 64.9 9.1 73.2 6.0 76.9 5.1 

It's easy to make changes to the way 

my TSP money is invested 76.9 7.4 85.1 4.2 87.4 4.0 

It's easy to make changes to the 

amount of pay I contribute to the TSP 80.5 7.8 83.3 6.0 83.8 7.1 

In the past two years, the TSP has 

become a better program 51.8 4.3 65.7 3.1 65.7 2.4 

Notes: Based on all respondents.
77

Fig. D.3 Satisfaction with the TSP by Retirement System 

Q19. 

 CSRS FERS Uniformed Service 

 Favorable Unfavorable Favorable Unfavorable Favorable Unfavorable 

Amount of agency services matching contributions 37.0% 31.7% 69.3% 14.1% 28.4% 54.0% 

Waiting period required for a new FERS employee to 

become eligible for agency contributions 33.7 8.7 41.7 22.4 28.3 20.1 

Ability to borrow from my account while actively 

employed 62.4 5.8 57.7 4.3 46.0 6.8 

Ability to withdraw money from my account after 

separation from service 64.2 7.7 56.2 3.7 48.7 7.3 

Ability to access information about my account and 

general plan features on the TSP Web site 84.8 4.2 83.5 4.3 81.9 5.8 

Ability to access information about my account and 

general plan features through the automated TSP 

ThriftLine 74.9 5.7 71.7 4.5 62.2 6.0 

Quality of services provided by the ThriftLine 60.4 7.8 54.9 5.2 44.3 8.1 

Accuracy and timeliness of the processing of forms 

submitted to the TSP 74.0 5.0 65.2 7.0 59.1 9.1 

Overall quality of services provided by the TSP 83.6 2.6 81.1 3.1 78.9 4.0 

Overall satisfaction with the TSP 87.7 2.7 85.4 2.4 83.2 3.8 

Notes: Based on all respondents. 

Fig. D.4 Satisfaction with the TSP by Pay 

Q19. 

Less than $40K $40K to $80K $80K and Over

 Favorable Unfavorable Favorable Unfavorable Favorable Unfavorable 

Amount of agency services matching contributions 55.2% 24.5% 48.7% 31.8% 32.0% 48.5% 

Waiting period required for a new FERS employee to 

become eligible for agency contributions 41.3 17.1 37.1 18.6 26.6 22.8 

Ability to borrow from my account while actively 

employed 53.0 7.6 56.6 5.7 51.8 4.7 

Ability to withdraw money from my account after 

separation from service 55.7 9.6 54.6 5.0 55.3 5.9 

Ability to access information about my account and 

general plan features on the TSP Web site 77.9 6.5 83.7 4.3 86.0 4.6 

Ability to access information about my account and 

general plan features through the automated TSP 

ThriftLine 65.9 6.7 69.7 4.4 69.4 5.6 

Quality of services provided by the ThriftLine 53.1 7.6 54.2 5.3 47.5 9.2 

Accuracy and timeliness of the processing of forms 

submitted to the TSP 60.8 10.2 67.1 5.8 65.5 7.3 

Overall quality of services provided by the TSP 75.3 5.0 82.4 2.2 82.4 3.5 

Overall satisfaction with the TSP 78.9 5.0 86.1 2.7 88.0 2.1 

Notes: Based on all respondents.