The Federal Retirement Thrift Investment Board (FRTIB) has proposed a new rule allowing the Thrift Savings Plan (TSP) record keeper to calculate financial gains or losses, known as breakage, on late or erroneous small contributions and loan payments, even if they total less than $1.00. Previously, the TSP did not calculate breakage if the amount was under $1.00, but technological advancements have made this rule outdated. This proposed rule aims to ensure employees' investments are accurately tracked, even for minor discrepancies. Public comments on this proposal are accepted until February 18, 2025.
Simple Explanation
The Federal Retirement Thrift Investment Board wants to make sure that even the tiniest mistakes in people's retirement savings, like those less than a dollar, are fixed so everyone’s money is counted correctly. This idea is like making sure you get all your toy pieces back, even the little ones!