Labor Department Issues Final Rule On Two New Funds For Federal Thrift Savings Plan

Archived News Release — Caution: Information may be out of date.

The U.S. Department of Labor’s Pension and Welfare Benefits Administration published in the May 30, 2000, Federal Register a final rule that authorizes the executive director of the Federal Retirement Thrift Investment Board to allocate to investment managers certain fiduciary responsibilities for two new investment funds that are to become part of the federal government’s Thrift Savings Plan.

The Thrift Savings Plan is a retirement savings plan created for federal employees under the Federal Employees’ Retirement System Act of 1986. The new rule helps to implement the Thrift Savings Investment Funds Act of 1996, which authorizes the creation by the Thrift Investment Board of the Small Capitalization Index Investment Fund and the International Stock Index Investment Fund. Under current regulations governing the Thrift Savings Plan, the Thrift Investment Board’s executive director already allocates certain fiduciary responsibilities to investment managers with regard to the plan’s existing three funds — the Fixed Income Investment Fund, the Government Securities Investment Fund, and the Common Stock Investment Fund. The new rule will also amend the definition of “investment manager” in current regulations to agree with a November 1997 amendment under the Employee Retirement Income Security Act.

The new rule is slated to become effective on July 14, 2000, unless the department receives significant adverse comments from the public on the rule by June 29.

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Archived News Release — Caution: Information may be out of date.