TSP Has Another Strong Month in October


All the funds in the Thrift Savings Plan made gains in October, marking the second consecutive month of across-the-board growth.

The C Fund, invested in common stocks, had the strongest October, increasing 4.6 percent. The I Fund, which invests in international stocks, saw a 3.38 percent jump, though that figure is down from a more than 7 percent increase in September. The C and I funds have both climbed 27.2 percent over the last 12 months.

The TSP saw expansive movement in October, as government employees reorganized their portfolios in light of the government shutdown and the threat of the U.S. Treasury defaulting on its debts. Participants made 128,000 inter-fund transfers during the 16-day shutdown, a “significant” number of which went into the government securities (G) fund, according to the Federal Thrift Retirement Investment Board. Thousands of federal employees also took hardship withdrawals from their accounts during the shutdown, meaning they cannot contribute to their plans for six months.

After the shutdown ended on Oct. 17, feds began moving their investments back into equity, transferring more than $1 billion into the S Fund alone on the first day of the government’s reopening. The S Fund, which is invested in small and midsize companies and tracks the Dow Jones Wilshire 4500 Index, was up 2.94 percent in October. It has been TSP’s strongest performer over the last 12 months, increasing 36.72 percent.

The G Fund once again rose 0.19 percent last month, and has gained 1.75 percent over the last year. Though the Treasury temporarily suspended investments into the G Fund as a part of “extraordinary measures” taken to delay the date at which the government would default on its debts, all payments have been restored.

Fixed income funds also saw modest growth in October, increasing 0.89 percent. The F Fund is the TSP’s only investment in the red over the last 12 months, down 0.75 percent.

Lifecycle funds -- designed to move investors to less risky portfolios as they near retirement -- also yielded positive returns, albeit slightly lower increases than in September. The L Income Fund for TSP participants who have already started withdrawing money ended October up 1.01 percent. L 2020 increased 2.23 percent for the month, L 2030 gained 2.75 percent, L 2040 was 3.11 percent in the black and L 2050 saw a 3.47 percent boost.

The lifecycle funds all have remained in the black for the last 12 months. L Income was up 6.6 percent; L 2020, 15.42 percent; L 2030, 19.35 percent; L 2040, 22.3 percent; and L 2050, 25.22 percent.

(Image via Kenishirotie/Shutterstock.com)

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 G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

  • 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 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.


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