TSP participants look for safe investment choices

None Simon Fell/Getty Images
Participants in the government's Thrift Savings Plan continue to seek safety in their investment options, but the funds appear to be turning around after months of poor performances.

During a monthly meeting of the Federal Retirement Thrift Investment Board, staff reported that more and more TSP enrollees were moving their money to the stable government securities in the G Fund, as well as the F Fund, which invests in fixed-income bonds. Nearly 54 percent of all assets were in these accounts in September, up 4 percentage points since July, said Renee Wilder, director of research and strategic planning at TSP. Loan activity has increased but still falls behind other private sector plans at just over 18 percent, she added.

All but two of the investment options in the plan posted losses in September for the fifth month in a row, with each month bringing successively worse returns. According to Chief Investment Officer Tracey Ray, the TSP equity funds showed a "precipitous decline" and hit their lows for the year just a few days into October. All are back in the black for the month, however, she said.

Ray also said interfund transfers declined by more than 50 percent in September. Participants changed their investments in earlier months and are waiting it out, she said.

At the same time, TSP has continued to see growth in participation. The plan now has more than 4.5 million participants -- 85.5 percent of those eligible to contribute -- and is capturing 97.3 percent of new government hires through its automatic enrollment process.

"We continue to grow although markets continue to be difficult," TSP Executive Director Greg Long said.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by Brocade

    Best of 2016 Federal Forum eBook

    Earlier this summer, Federal and tech industry leaders convened to talk security, machine learning, network modernization, DevOps, and much more at the 2016 Federal Forum. This eBook includes a useful summary highlighting the best content shared at the 2016 Federal Forum to help agencies modernize their network infrastructure.

  • Sponsored by CDW-G

    GBC Flash Poll Series: Merger & Acquisitions

    Download this GBC Flash Poll to learn more about federal perspectives on the impact of industry consolidation.

  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

  • Sponsored by Aquilent

    A DevOps Roadmap for the Federal Government

    This GBC Report discusses how DevOps is steadily gaining traction among some of government's leading IT developers and agencies.

  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.

  • Sponsored by CDW-G

    Joint Enterprise Licensing Agreements

    Read this eBook to learn how defense agencies can achieve savings and efficiencies with an Enterprise Software Agreement.

  • Sponsored by Cloudera

    Government Forum Content Library

    Get all the essential resources needed for effective technology strategies in the federal landscape.


When you download a report, your information may be shared with the underwriters of that document.