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There's been plenty of research on the effects of factors such as employer matching and auto-enrollment on private-sector employees and 401(k)s, but when it comes to federal employees, it's been a veritable information desert.
So the Congressional Budget Office decided to check it out and see whether the same study-based assumptions for private-sector workers hold true for federal workers, and surprise, surprise – they don't. In fact, according to the CBO study, "most of the estimates from the literature substantially understate the effect of matching."
The study used data spanning the period 2008–2014, and tracking employee behavior on contributions to the Thrift Savings Plan, their balance in each asset, default contribution rates, eligibility for matching contributions and other information on their TSP activity.
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
