Washington, D.C. - United States Representatives Chris Van Hollen (D-MD) and Jon Porter (R-NV) today introduced a bill to add a real estate investment trust (REIT) fund to the five existing funds in the Thrift Savings Plan (TSP), the 401(k)-style plan offered to all federal legislative, executive, and judicial branch employees. The Real Estate Investment Thrift Act (REITS Act) would expand the retirement benefits available to Federal employees by providing an opportunity for participants to diversify their TSP portfolio with a real estate option.
Van Hollen, a member of the House Government Reform Committee’s Subcommittee on the Federal Workforce and Agency Organization, stated, “This legislation will help strengthen the retirement plans for the hardworking men and women of our federal workforce by providing them with more options for building a balanced retirement savings portfolio. They should have a broader range of choices, just like participants in private sector 401(k) plans. A real estate option can be a useful tool for greater diversification.”
TSPs were established by Congress in 1986 and currently offer federal participants a choice of five investment funds. REITs bring investors all the benefits of real estate ownership combined with the convenience of stocks, which can be valued and traded on a daily basis. Adding a REIT (R) Fund option to the TSP would allow participants to more fully diversify their investments.
“I look forward to continuing to fight for the issues that are important to America’s federal employees, such as improving their long-term investment options for retirement.”