James M. Jeffords: “I wish to discuss the amendment Senator Cleland and I have proposed. Specifically, we propose allowing our men and women…”

“I wish to discuss the amendment Senator Cleland and I have proposed. Specifically, we propose allowing our men and women in the Guard and Reserve the opportunity to participate in the Thrift Savings Plan (TSP) in the same manner S. 4 provides to their colleagues on active duty. Allowing members of the Guard and Reserve to participate in the Federal Employees TSP is long overdue and I strongly support the proposal to make it law. This program is good for federal workers and it would benefit members of the Guard and Reserve financially for them to participate in the TSP. Under this system, they would be the sole contributors to their accounts, much like civil servants who are under the old Civil Service Retirement System. Since there would be no federal match to their accounts the cost would be very low to the branches of the military and to the taxpayers, as well. Additional savings in individual accounts will be important to those individuals who serve our Nation in regular, but temporary capacities. The payroll deduction feature of the TSP is an easy way to save. The accounts are managed prudently by the Thrift Savings Board. Participation in the system is high and satisfaction with it is also very high. Those of us on the Health, Education, Labor, and Pension Committees have been spending quite a bit of energy trying to encourage Americans to save more money. As a New Englander, I speak for my constituents when I say that we know a lot about thrift.”