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.

  • Federal IT Applications: Assessing Government's Core Drivers

    In order to better understand the current state of external and internal-facing agency workplace applications, Government Business Council (GBC) and Riverbed undertook an in-depth research study of federal employees. Overall, survey findings indicate that federal IT applications still face a gamut of challenges with regard to quality, reliability, and performance management.

  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security


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