The Lifecycle (L) Funds are designed to provide participants with an easy, convenient way of investing their Thrift Savings Plan (TSP) accounts among the five individual TSP funds based on when the participants will need the money in retirement. One of the principal characteristics of the funds is that the investment mix becomes progressively more conservative over time. Ultimately, each of the funds will have an investment mix that is the same as the L Income Fund. When this happens, that fund will be retired and a new L Fund with a time horizon (target date) 5 years later than the latest dated existing fund will be established.On June 27, 2025, the L 2025 Fund investment mix became identical to the L Income Fund and therefore was retired. The TSP also added the new L 2075 Fund, as of June 30, 2025.
This bulletin describes the activities associated with the process of retiring the L 2025 Fund and implementing the new L 2075 Fund, and how these changes impact agencies, services, and payroll offices. It supersedes TSP Bulletin 20-5, Retirement of the L 2020 Fund and the Launch of New L Funds, dated July 1, 2020, and TSP Bulletin 24-3, Launch of the New L 2070 Fund and Default DOB Changes, dated July 26, 2024.
Retirement of the L 2025 Fund
On June 27, 2025, the L 2025 Fund attained an investment mix identical to the L Income Fund and was retired. As a result, after all the transactions for June 27, 2025, were processed, all shares of the L 2025 Fund were “sold” and shares of the L Income Fund were “purchased.” The number of shares of the L Income Fund that the participant received depended on the June 27, 2025 share price of the L 2025 Fund and the L Income Fund. Participants with investment elections to the L 2025 Fund had that election automatically changed to the L Income Fund. Participants who were invested (or had investment elections) in the L 2025 Fund as of May 8, 2025, were emailed/mailed a communication describing the change and the investment transactions will be reflected on their quarterly and annual statements.
Since the L 2025 Fund has been retired, no new investment elections, fund reallocations, or fund transfers to that fund will be accepted.
Establishment of the new L 2075 Fund
As of June 30, 2025, participants will have the option to invest in the following L Funds:
| Default Fund | For those born in years: | Expected TSP drawdown in: |
|---|---|---|
| L Income | 1964 or earlier | Already withdrawing, or will start withdrawing before 2028 |
| L 2030 | 1965 – 1969 | 2028 – 2032 |
| L 2035 | 1970 – 1974 | 2033 – 2037 |
| L 2040 | 1975 – 1979 | 2038 – 2042 |
| L 2045 | 1980 – 1984 | 2043 – 2047 |
| L 2050 | 1985 – 1989 | 2048 – 2052 |
| L 2055 | 1990 – 1994 | 2053 – 2057 |
| L 2060 | 1995 – 1999 | 2058 – 2062 |
| L 2065 | 2000 – 2004 | 2063 – 2067 |
| L 2070 | 2005 – 2009 | 2068 – 2072 |
| L 2075 (New) | 2010 and later | 2073 and later |
The new L 2075 Fund has been opened, effective June 30, 2025, at the initial share price of $10. Participants were able to begin making fund reallocations and fund transfers into the new L 2075 Fund at noon eastern time on June 27, 2025. These transactions became effective on June 30, 2025. Investment elections into the new L 2075 Fund became available beginning June 30, 2025, effective for contributions made on or after July 1, 2025.