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Retirements, hardship withdrawls cut TSP contributions

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Here are highlights from Monday’s Federal Retirement Thrift Investment Board meeting:

-The number of participants with no contributions to their TSP accounts increased by about 3,000 last month, compared with a 25,000 increase on October. The number of active FERS employees contributing to the Thrift Savings Plan decreased by about 5,000 in November.

-Renee Wilder, the board’s director of research and strategic planning said an increase in separations, financial hardship withdrawals and the fact that employees are hitting their contribution limits have contributed to a decrease in participation. Employees who take out a hardship withdrawal cannot contribute to their TSP accounts for 6 months. The board also expects to see more retirements in the face of hiring freezes and budget cuts.

-The C, S and I funds decreased 1.1 percent, 5.9 percent and 14.5 percent respectively as of Dec. 16.

-The TSP’s overall fund balance is nearly $292 billion, up from more than $289 billion in  October.

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Comments

  1. Neil D. Graves Says:
    December 20th, 2011 at 3:45 pm

    When do you anticpate, the roth/401k for TSP, to begin. I would like to begin making contributions to this plan asap.

    Thanks,

    Neil D. Graves

  2. Nicole Johnson Says:
    December 20th, 2011 at 4:23 pm

    Neil,

    The board didn’t discuss the Roth option this week, but from what I’ve heard the rollout is expected to come early next year in either the first or second quarter. Our pay and benefits reporter would be a good resource for you slosey@federaltimes.com.

  3. joe g Says:
    December 22nd, 2011 at 6:22 pm

    Is this a surprise??? With no COLA for any FED and increases in health insurance costs, the money to pay for the health coverage has to come from someplace. I stopped contributing last year as a result of no COLA and an increase in health insurance equal to my TSP contribution.