Federal Retirement Thrift Investment Board   •   1250 H Street, NW    •   Washington, DC 20005

10-U-8Thrift Savings Plan

BULLETIN for Service TSP Representatives

Subject: RetirementoftheL2010FundandtheLaunchoftheL2050Fund

Date: October21,2010

InAugust2005,theTSPintroduceditsfivelifecycleorLFunds.Theyaredesignedtoprovideparticipantswithaneasy,convenientwayofinvestingtheirThriftSavingsPlan(TSP)accountsamongthefiveindividualTSPfundsbasedonwhentheparticipantswillneedthemoneyinre-tirement.Oneoftheprincipalcharacteristicsofthefundsisthattheirinvestmentmixesbecomeprogressivelymoreconservativeastheyreachtheirtargetdates.Ultimately,eachofthefundswill“rolldown”intotheLIncomeFund.Whenthishappens,thefundwillberetiredandanewLFundwithatimehorizon(targetdate)laterthantheexistingfundswillbeestablished.

ThefirstofthefundstoreachitstimehorizonistheL2010Fund.ThisbulletindescribestheactivitiesassociatedwiththeprocessofretiringtheL2010Fundanditsimpactonuniformedservicesandpayrolloffices.

I.RetiringtheL2010Fund

A. InJuly2010,theL2010Fundreacheditstimehorizonandattainedanassetallo-cationidenticaltotheL2010Fund.OnDecember31,2010,theL2010Fundwillberetired.Asaresult,afterallofthetransactionsforDecember31havebeenpro-cessed,allsharesoftheL2010Fundwillbe“sold”andsharesoftheLIncomeFundwillbe“purchased.”ThenumberofsharesoftheLIncomeFundthattheparticipantreceiveswilldependupontheDecember31sharepricesoftheL 2010FundandtheLIncomeFund.Participantswhohaveallocatedsomeportionoftheirfuturecontributions(andloanpaymentsandtransferstotheTSP)totheL2010FundwillhavethatallocationautomaticallychangedtotheLIncomeFund.Participantsaffect-edbythefund’sretirementwillbemailedaconfirmationnotice(ornotices)(similartotheinterfundtransferandcontributionallocationconfirmations)andthetransac-tionswillbereflectedonthe4thquarterparticipantstatements.

B. AftertheL2010Fundisretired,nonewinvestmentstothatfundwillbeaccept-ed.TheTSPwebsite,theThriftLine,andourParticipantServiceRepresentativeswillnotpermitanyonetorequestanallocationtotheL2010Fund.Ifwereceive

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Inquiries: QuestionsconcerningthisbulletinshouldbedirectedtotheFederalRetirementThriftInvestmentBoardat202-942-1460.

Chapter: ThisbulletinmaybefiledinChapter2,GeneralInformation.

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anInvestmentAllocationform,TSP-50,withanallocationtotheL2010Fund,wewilladdthepercentageofthatallocationtothepercentagefortheLIncomeFundandprocesstheform.

SpecialNote:WiththeretirementoftheL2010Fund,thependingestablishmentoftheL2050Fund,andtheimplementationoftheRothTSPfeatureinJanuary2012,wearephasingoutFormTSP-50,InvestmentAllocation.Over99%ofallcontributionallocationsandinterfundtransfersarecurrentlymadethroughthewebsite,theThriftLine,orthecallcentersandwedonotbelievethattheelimi-nationoftheInvestmentAllocationformwillbeanobstacletoourparticipants.

AlthoughwewillcontinuetoaccepttheInvestmentAllocationformsin2011,wearenotupdatingtheformfortheL2050Fundandwewillstopsendingtheformwiththe“WelcometotheTSP”letter.Further,wewillnotremovethelinkinBulletinTSP05-11,RevisionofFormTSP-50,InvestmentAllocation(datedAugust1,2005)totheFormTSP-50.However,participantsshouldbestronglyencouragedtousethewebsiteandtheautomatedportionoftheThriftLinetorequestcontributionallocationsandinterfundtransfers.OurParticipantServiceRepresentativesatthecallcentersarealsoavailabletoassistparticipants.

II. EstablishmentoftheL2050Fund

TheL2050FundwillopenonJanuary31,2011,attheinitialsharepriceof$10.ParticipantswillbeabletobeginmakingcontributionallocationandinterfundtransfersintotheL2050Fundbeginningat12noonEasterntimeonJanuary28,2011.TheseelectionswillbecomeeffectiveonJanuary31.ThefundwillbeappropriateforparticipantswhoexpecttoneedmoneyfromtheirTSPaccountsin2045orlater.

III. BreakageandnegativeadjustmentcalculationsinvolvingtheL2010Fund

InordertocalculatebreakageandthevalueofnegativeadjustmentswhentheparticipanthadmoneyintheL2010Fundonthe“asof”dateofthetransaction,theTSPwilluseaconstructedsharepricefortheL2010Fund.Thisapproachissimilartotheonethatweuseforbreakageandnegativeadjustmentcalculationsfor“asof”datespriortoJanuary1,2000.

TheconstructedsharepriceoftheL2010Fundisasfollows:

Otherwise,thereisnochangeinthemethodologyusedtocalculateeitherbreakageornegativeadjustments.

ConstructedLFundSharePrice=December31,2010LIncomeFundshareprice

December31,2010L2010FundsharepricextheLIncomeFundprice

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IV. ImpactontheUniformedServicesandthePayrollOffices

Theuniformedservicesandtheirservicingpayrollofficesshouldnotexperienceanymajorimpactasaresultofthesechanges.AsidefrombeingabletoexplainthattheL2010FundisbeingretiredandthattheL2050Fundisbeingintroduced,themostsignificantchangewillbeontheformatofsomeoftheadhocreportstheTSPprovidestothepayrollofficesthroughtheTSP’sWeb-basedJVandDataSubmissionApplication.WewillbeaddingacolumnfortheL2050Fundonthosereportswhichprovideinvestmentinformation.SeeBulletin02-U-17,PayrollOfficeReportsProducedbyNewRecordKeepingSystem(datedJune12,2002),foramoredetailedexplanationofthevariousreports.

A. NoneoftheroutinereportswillbeaffectedbytheadditionoftheL2050Fund.

(1) Report1702,PayrollOfficeRecapofJournalVoucherProcessing

(2) Report1701,ErrorReport

(3) Report1703,AnalysisofPayrollOfficeErrors

(4) Report31504,SummaryReportofNegativeAdjustmentsProcessed

(5) Report5014,SummaryofBreakageCharges

(6) Report1802,PayrollOfficeRecapofLoanJVReporting

(7) Report19401,LoanStatusReport

(8) Report5501,ListingofParticipantsforWhomFinancialHardshipIn-ServiceWithdrawalsWereDisbursed

(9) Report1902,PayrollOfficeRecapofEarningsAdjustmentJVProcessing

(10)Report35002,PayrollOfficeRecapofRecharacterizationJVProcessing

(11)Report35003,RecharacterizationRecordRejectedReport

(12)Report1700,Header/TrailerErrorReport(optional)

(13)Report1603,SF-224Abstract(PayrollOfficeDetail)report(optional)

(14)EDTSTrailerReport(optional)

B. ThefollowingadhocreportsavailablefromtheTSP’sWeb-basedJVandDataSubmissionApplicationwillbeaffectedbytheadditionoftheL2050Fund.

(1) ReportTSP31503,ReportofDetailNegativeAdjustmentRecordsProcessed(Attachment1)

Thisreportshowstheprocessingofanindividualnegativeadjustmentre-cordandcanbeusedtoanswerquestionsfromparticipantsregardingtheeffectofthenegativeadjustmentontheiraccounts.ReportTSP31503willbemodifiedbyaddingacolumnfortheL2050FundbetweentheexistingcolumnsforL2040andTotal.

(2) ReportTSP5015,BreakageReportbyParticipant(Attachment2)

Thisreportprovidesdetailsforeachparticipantforwhombreakagewascalculated.Itcanbeusedtoanswermostofthequestionsfromparticipantsregardingthebreakage(orlostearnings)thattheyreceivedasaresultofamakeuporlatecontribution.ReportTSP5015willbemodifiedbyaddingacolumnL2050afterL2040.

(3) ReportTSP5016,DetailedBreakageReportbyParticipant(Attachment3)

Thisreportprovidesmoredetailsforeachparticipantforwhombreakagewascalculated.ReportTSP5016willbemodifiedbyaddingacolumnafterL2040.

(4) ReportTSP5001,ParticipantTransactionHistoryReport(Attachment4)

Thisreportshowstransactionspostedwithintherecordkeepingsystemhistory.AlinefortheL2050Fundwillbeaddedtothefirstsectionofthereport.

(5) Benefitsextract

Thiselectronicreport,usedbytheFederalcivilianagencies,providesinfor-mationfortheiremployeebenefitsstatements.Wewilladd50bytestotheendoftherecordtoaccommodatetheL2050Fundinformation.

(6) Report33011,DetailedReportofLostEarningsRecordsProcessed

Thisreportisobsoleteandisbeingeliminated.

C. EDTSDataRecordFormats

AlthoughtheroutinereportsavailableviaEDTSwillnotbeaffectedbythesechanges,wearetakingthisopportunitytoreissuetheUniformedServicesGuideforReportDescriptionsandDataRecordFormats.IthasbeenpostedontheTSPwebsiteinthepayrollofficesectionoftheInformationforTSPRepresentatives.

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V. Communications

InadditiontoupdatingtheTSPwebsiteandTSPpublicationswiththeinformationabouttheL2050Fund,theTSPhas:

A. SentaletterinearlyOctober2010toallparticipantswhohavemoneyintheL2010Fundand/oracontributionallocationwithanallocationtotheL2010Fund.TheletterexplainedtheretirementofthefundandwhatwillhappentotheirL 2010Fundinvestmentsiftheytakenoaction.Acopyoftheletterisat-tachedtothisbulletin.

B. AnnouncedtheretirementoftheL2010FundintheOctoberTSPHighlights.

TheTSPwillalso:

C. AnnouncetheestablishmentoftheL2050FundintheJanuary/FebruaryTSPHighlights.

D. ContinuetoannouncetheclosingoftheL2010FundandthedebutoftheL2050FundonthehomepageoftheTSPwebsite,linkedtothePlanNewsandtheOcto-berTSPHighlights.

E. ConsidersendingatargetedmailinginFebruary/March2011tothosepartici-pantswhomaybenefitfromtheL2050Fund(e.g.,participantswhowillturnage60intheyear2045orlater).

F. MakeavailabletheDVD,InvestingintheTSP,whichreferencesboththeretire-mentoftheL2010FundandtheestablishmentoftheL2050Fund.

Additionalcommunicationswillbemadeasnecessaryorastheopportunityarises.

PAMELA-JEANNEMORANDirectorOfficeofParticipantServices

Attachments: ReportTSP31503 ReportTSP5015 ReportTSP5016 ReportTSP5001 LettertoL2010Participants(OC10-17)

Thrift Savings Plan P.O. Box 385021

Birmingham, AL 35238

Website: www.tsp.gov ThriftLine: 1-TSP-YOU-FRST (1-877-968-3778) TDD: 1-TSP-THRIFT5 (1-877-847-4385) Fax number: 1-866-817-5023

Dear Participant:

We have sent you this notice because you have a balance in the Thrift Savings Plan’s L 2010 Fund and/or a contribution allocation on file to direct incoming money to the L 2010 Fund.

The L 2010 Fund will be retired at the end of the year. On July 1, the L 2010 Fund reached its time horizon, and attained a final asset allocation that is identical to the L Income Fund. Therefore, effective December 31, the L 2010 Fund will be closed and investments that remain in the L 2010 Fund will be moved to the L Income Fund.

Beginning 12:00 noon Eastern time on December 31, 2010, the Plan will no longer accept any interfund transfer or contribution allocation requests for the L 2010 Fund via the Web or ThriftLine. Paper forms for interfund transfers or contribution allocations for the L 2010 Fund will be accepted, but percentages transferred or allocated to the L 2010 Fund will be invested in or allocated to the L Income Fund. If you wish to change your contribution allocation or the distribution of the investments in your account, you may do so on the TSP website or by calling the ThriftLine and using either the automated service or speaking to a Participant Service Representative.

If you have any questions, call the toll-free ThriftLine at 1-877-968-3778. Callers outside the United States and Canada should call 404-233-4400 (not a toll-free number). The TSP’s hours are Monday through Friday, 7 a.m. to 9 p.m., Eastern time. You can also write to the TSP. Please include your daytime telephone number and TSP account number (or your Social Security number) on all correspondence so that we can identify your account. Note: If you are a member of the uniformed services, do not provide your Defense Switched Network (DSN) telephone number.