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:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.


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