Federal Times Blogs
The Federal Retirement Thrift Investment Board plans to ask Thrift Savings Plan participants whether the sequester and–in many cases, employee furloughs–has prompted them to change their investment choices.
The question will be added to the biannual survey going out to a sample of about 50,000 TSP account holders this fall, Renee Wilder, the board’s director of enterprise planning, said in a brief interview today. At the board’s monthly meeting, Wilder said that TSP participation among active Federal Employees Retirement System members dipped slightly in June to a 12-month low of 2.39 million, but it is unclear whether that decline stemmed from soft market conditions or the impact of sequester-related budget cuts. The overall FERS participation rate remained relatively stable last month at 86.8 percent.
Lowell Dearman Says:
July 23rd, 2013 at 3:41 pm
Dear TSP Board,
Yes, the sequester and subsequent furloughs has caused me to stop all investing in TSP. Food in my table is more important.
July 24th, 2013 at 7:56 am
The sequester hasn’t caused me to stop contributing to the TSP. Congressional inaction on debt ceiling legislation compelled the treasury secretary to take the cowardly and unethical act of using these funds instead of forcing congress into action.
Given this, what assurances exist any more that the treasury department won’t simply seize these accounts?
July 24th, 2013 at 9:20 am
Since our bills, mortgage, healthcare, gas prices, etc. didn’t go down 20% like my income, the 20% comes out of money off the top. So included in reducing lifestyle, putting off some home improvements, etc. I’ve reduced my TSP contribution to take some of the sting out and to see how we do. I’m making sure I’m getting my matching, but given the G fund grab by the treasury, any money I’m putting towards retirement in the future will be used to max out my private accounts first.
July 24th, 2013 at 10:27 am
I am lucky I haven’t had to make any changes. However, I do wish congress will take action on the Federal budget and pass one that makes sense and is on-time for next year.
David Chambers Says:
July 24th, 2013 at 4:42 pm
The 20% came off of the top but the other dedutions from our pay checks do not. The money out of my pocket for the first pay period was 45%, ouch.
July 27th, 2013 at 9:15 am
Yep, stopped all contributions. I have a family to feed.
July 28th, 2013 at 5:52 pm
No, I did not change my habits a bit. This is my 26th year & I did not contribute as much in the beginning. I just turned 50 & added the full extra as well as “maxing out”.
July 29th, 2013 at 2:45 pm
My wife and I are both federal employees…so it is a double sting for us. The govt says it’s a 20% pay cut, but it works out to be much more than that when you have deductions still being taken for TSP (Which yes, I reduced to the minimum for matching, and so did my wife), Health insurance and Life insurance. The pay cuts come from Gross pay, when you are still only making Net pay. So I’m at a 38% cut, and my wife is at 30%. And no…civilian world…we still haven’t had pay raises since 2009 and we don’t get bonuses to make up for this!