TSP Has Strong September

All the funds in the Thrift Savings Plan made gains in September, according to the latest figures from the Federal Retirement Thrift Investment Board.

Last month was a welcome change from August’s returns, which were in the red, save for the government securities (G) fund. The C Fund, invested in common stocks, increased 3.14 percent in September, while international stocks in the I Fund jumped 7.41 percent last month. The C Fund has climbed 19.35 percent during the last 12 months; the I Fund was up 24.1 percent during the same period.

The small and midsize companies represented in the S Fund increased 5.98 percent in September and gained 31.08 percent during the last 12 months -- the most of all the funds during that time frame. Fixed income funds and the government securities fund grew more modestly last month, inching up 0.99 percent and 0.19 percent, respectively. The F Fund has lost 1.43 percent during the last 12 months while the stable G Fund increased 1.67 percent during the same time.

Lifecycle funds -- designed to move investors to less risky portfolios as they near retirement – also yielded positive returns. The L Income Fund for TSP participants who have already started withdrawing money ended September up 1.12 percent. L 2020 increased 2.71 percent for the month, L 2030 gained 3.4 percent, L 2040 was 3.9 percent in the black and L 2050 saw a 4.42 percent boost.

The lifecycle funds all have remained in the black for the last 12 months. L Income was up 5.42 percent; L 2020, 12.39 percent; L 2030, 15.46 percent; L 2040, 17.76 percent; and L 2050, 20.06 percent.

The government shut down on Oct. 1 due to a lapse in appropriations. Since employee TSP contributions must come from payroll deductions, employees on unpaid leave cannot make payments to their plans. Agencies also are prohibited from matching contributions into their employees’ plans during this time. Those contributions could be retroactively paid, however, should Congress decide to issue back pay to furloughed employees. Click here for more information on how a government shutdown affects your TSP plan.

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