Thrift Savings Plan

Federal workers are seeing positive gains in their Thrift Savings Plan investments.

The Thrift Savings Plan (TSP) posted across-the-board increases in all funds in November. According to Government Executive, that represents the second consecutive month of positive gains. November also marked the first time since June all TSP funds realized gains, Government Executive reported.

Similar to a 401 (k), the Thrift Savings Plan places the investment decision in your hands. It was designed to complement the retirement income you receive from your basic pension annuity and Social Security.

Ultimately, you decide how much of your paycheck you want to invest in the fund. Federal Employees Retirement System participants automatically receive a contribution equal to one percent of their base pay from their agency. If you decide not to make your own contribution, you still earn this free money. This contribution is, however, subject to vesting rules.

Agencies will also match — not always “dollar for dollar” — on the first, 5 percent of pay you contribute to your TSP. The first, three percent will be matched “dollar for dollar.”

According to Government Executive, the “C” Fund increased 2.7 percent in November. This gain was the most significant increase compared to all the other funds. They also reported the C-Fund has “been the strongest performer in 2014, jumping more than 14 percent for the year.”

Federal workers can choose to invest in six major funds: “C” Fund, “F” Fund, “G” Fund, “S” Fund, “I” Fund, and the “L” Fund. Each fund offers particular risks and rewards.

Please contact one of our benefits experts for a free consultation. We can help you understand your TSP and suggest other investment instruments to complement it.

We’ll guide you through the nuances of the TSP and recommend other approaches to managing your TSP money so that you receive everything you deserve from your investment in this important government benefit.

And we may recommend positioning you away from the TSP at some point because of severe restrictions with the plan that come into effect when you decide to retire.

Depending on your goals and financial situation, we may recommend other financial products that could optimize the investment you have made into your TSP.

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