Two members of the US House Government Reform Committee – Representative Jon Porter (R-Nevada) and Representative Chris Van Hollen (D-Maryland) – have introduced a bill that would allow a real estate investment trust fund option to the TSP, according to Govexec.com.
The TSP – which is a 401(k)-style plan for federal employees – currently has five fund options. The Thrift Board is also developing a sixth lifecycle fund, which is an automatically diversified mix of other funds.
The move will most likely face stern opposition with the Federal Retirement Thrift Investment Board in January deciding that it was against the introduction of a real estate fund into the mix. In the discussions, TSP Executive Director Gary Amelio noted that the plan already would be the 13th largest real estate mutual fund in the country, according to Govexec.com.