TSP’s Winning Streak and Other Good News

A weekly roundup of pay and benefits news.

February continued a solid growth streak for the Thrift Savings Plan, with all of its funds ending the month in the black. Common stocks in the C Fund were the top performers for the month, increasing 3.97 percent. They were up 5.95 percent for 2017.

Here are the details for the other funds:

  • The small and midsize companies represented in the S Fund were the second-highest earners last month, growing 2.45 percent. They were up 4.66 percent for the year to date. International stocks in the I Fund grew 1.44 percent in February and 4.37 percent for 2017.  
  • The more stable but lower growth fixed income bonds in the F Fund gained 0.71 percent last month and 0.94 percent for this year, while the government securities in the G Fund ended February up 0.18 percent. The G Fund has grown 0.38 percent for the year so far.
  • TSP’s lifecycle (L) funds -- which move investors to a less risky portfolio as they near retirement -- had a similarly strong performance in February. L Income, for those who have already started withdrawing money, increased 0.77 percent; L 2020 was up 1.36 percent; L 2030 grew 1.96 percent; L2040, 2.25 percent; and L 2050, 2.51 percent.
  • L Income increased 1.39 percent for 2017; L 2020, 2.42 percent; L 2030, 3.47 percent; L 2040, 3.99 percent; and L 2050, 4.47 percent.

A bullish stock market may account for increased interest in the military’s new blended retirement system, which begins enrolling new service members on Jan. 1, 2018. The new retirement system moves away from the military’s current 20-year, all-or-nothing pension system that benefits only the 17 percent of troops who serve for a full career.

As Eric Katz reported last month, “under the system, new troops would automatically be enrolled in the Thrift Savings Plan and receive a matching contribution from the government.” Current service members are grandfathered into the existing system, but many will be eligible to opt in to the blended retirement system if they want.

According to the First Command Financial Behaviors Index, 44 percent of military families (commissioned officers and senior NCOs in pay grades E-5 and above with household incomes of at least $50,000) say they want to opt in to the new system, up from just 8 percent in August.

Scott Spiker, CEO of First Command Financial Services, said the blended retirement option may not be the best bet for current service members who plan to serve out a full military career. “The guarantees and lifetime financial security offered by the traditional military pension makes it a powerful choice for the vast majority of current service members,” he said in a statement.

Politicians love to praise the men and women who serve in law enforcement, but for about 30,000 federal police officers, the words ring a little hollow. That’s because a legal loophole prevents them from receiving the same level of benefits as other law enforcement officers.

Sens. Cory Booker, D-N.J., and Rob Portman, R-Ohio, have re-introduced the Law Enforcement Officers' Equity Act in a bid to change that inequity (a similar bill failed last year).

“Due to the high level of training required for their job and the ever-present danger in their profession, Congress determined that Federal law enforcement officers should receive higher salaries and enhanced benefits compared to other Federal employees,” Booker said when introducing S.424, adding:

“Unfortunately, due to a technical error, nearly 30,000 Federal law enforcement officers classified as G5-0083 police officers do not receive enhanced benefits under the United States Code. As a result, certain officers who work for Federal agencies -- such as the Department of Defense, Department of Veterans Affairs, Federal Bureau of Investigation, U.S. Postal Service, U.S. Mint, National Institute of Health and many more -- receive lower pensions as compared to other law enforcement officers with similar responsibilities. It makes no sense that postal police officers or any other Federal law enforcement officers receive less benefits even though they have the similar duties and functions as other law enforcement officers.”

The bill would expand the definition of “law enforcement officer'' for retirement purposes to include employees authorized to carry a firearm and whose duties include the investigation or apprehension of suspected criminals; IRS employees who collect delinquent taxes; Postal Inspection Service employees; and Veterans Affairs Department police officers.

“These officers face the same risks and challenges as the men and women currently classified properly under Federal law,” Booker said.

The legislation is supported by the Fraternal Order of police, the Federal Law Enforcement Officers' Association, and the Law Enforcement Action Network.

Another legislative proposal that would benefit all retirees was put forward by Rep. John Garamendi, D-Calif., who introduced the CPI-E Act of 2017. The bill would require that the Cost of Living Adjustment (COLA) methodology be based on the Consumer Price Index for the Elderly as opposed to the Consumer Price Index for Urban Wage Earners and Clerical Workers, which is calculated monthly by the Bureau of Labor Statistics.

The National Active and Retired Federal Employees Association, which represents five million federal employees, retirees, and families, has long argued for the adjustment, which more accurately reflects the rising healthcare costs experienced by older Americans.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.