The L Funds are intended to meet the investment needs of Thrift Savings Plan (TSP) participants with time horizons that fall into 10 different date ranges. The 10 L Funds were designed for the TSP by Mercer Investment Consulting, Inc.

The asset allocations are based on Mercer assumptions regarding future investment returns, inflation, economic growth, and interest rates. The TSP will review these assumptions at least annually and determine whether changes to the allocations are warranted.

L2065 thru L2025 are for participants with time horizons that fall within the defined date ranges. The asset allocations of these funds are adjusted quarterly, moving to a more conservative mix, gradually approaching that of the L Income Fund. Between quarterly adjustments, the asset allocation of each fund is maintained through daily rebalancing to that fund’s target allocation. When a fund reaches its horizon, it will roll into the L Income Fund, and a new fund will be added with a more distant time horizon. L Fund Allocations as of January 2023:

L Income Fund
G 69.84%
F 5.66%
C 12.81%
S 3.11%
I 8.58%

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