TSP Wants Agencies to Automatically Enroll New Employees

Norton urged the TSP to survey employees again, saying she was concerned that 14 percent of FERS-covered employees were not making contributions. "I would like to know who they are, their GS [General Schedule pay and grade] ratings, and where they work," Norton said.

Long said the TSP was trying to reach out to those who do not contribute. This year, the plan will send letters to employees who get the 1 percent agency match required by law but who have not signed up for payroll deductions.

Rep. Danny K. Davis (D-Ill.), chairman of the federal workforce subcommittee, pointed out that cost considerations were a key factor in deciding which bills go to the House floor for votes this year. Automatic enrollment would probably lower revenue for the Treasury because contributions are made with pretax dollars, reducing taxable income.

Long said the proposal "could generate a potentially significant cost. I hope that a way can be found to overcome that obstacle so that more employees will make full use of the TSP in order to be better prepared for their retirement."

Rep. Elijah E. Cummings (D-Md.), a subcommittee member, briefly changed the hearing's focus, telling Long that he found the TSP Web site "not the easiest thing to navigate."

Cummings said he had spent about half an hour trying to figure out how to use the Web site and then called for help. "I was so frustrated," he said.

Long said the TSP hired a consultant to conduct focus groups and recommend ways to improve the Web site. He said a report with recommendations should be available in about three months.

Cummings urged Long to move faster on the project, noting that many agencies promise action but don't follow through. Long said he would send Cummings a letter within a week setting a date for an overhaul of the TSP Web site.