TSP board on debt ceiling: No cause for concern

Pincasso/Shutterstock.com

Hitting the debt ceiling would not have any long-term effects on the Thrift Saving Plan’s G Fund, despite any temporary investment suspensions, according to the board that manages the retirement savings plan.

TSP Executive Director Greg Long issued a statement Monday to remind federal employees the G Fund -- which invests in government securities -- is protected under the “make-whole” provision of the 1987 TSP Investment Act, meaning the fund’s investors are fully protected and its earnings are fully guaranteed by the federal government.

Treasury Secretary Timothy Geithner recently said in a letter to Congress he may direct his agency to “suspend the daily reinvestment” of securities held by the G Fund as part of “extraordinary measures” to give the United States more time before it defaults on its debts.

The Government Accountability Office confirmed in a July report the G Fund is ultimately unaffected by temporary investment suspensions.

Susan Crowder, acting chief financial officer of the Federal Retirement Thrift Investment Board, recently said it will be “business as usual” for the G Fund, should Treasury hit its borrowing limit.

(Image via Pincasso/Shutterstock.com)

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

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

  • Sponsored by eSignLive by VASCO

    Mobile E-Signatures for Government

    Learn 5 key trends that accelerate government demand for mobile signing.

    Download
  • Sponsored by Management Concepts

    SPONSORED: Successful Change Management Practices in the Public Sector

    How governmental agencies implement organizational change management.

    Download
  • Sponsored by Kronos

    Solving the Workforce Compliance Challenge

    Download this eBook to learn how data and automation can help state and local agencies.

    Download

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