Petition Filed Asking to Leave G Fund Out of Debt Limit Fight

By on January 16, 2013 in News

Perhaps the petition filed seeking an extra holiday on Christmas Eve has emboldened the federal workforce. As some will recall, a petition was filed asking for the extra holiday and the petition received more than the required 25,000 signatures requiring a response form the White House. There was a response and most federal employees received the extra holiday. It isn’t certain that the petition led to the granting of the holiday but who really knows what led to the decision?

As we have reported, payments to the G fund are being withheld to help the federal government pay its bills. A petition has now been filed asking that this practice cease and that the money continue to flow into the most popular of the offerings available to investors in the Thrift Savings Plan.

The petition contends that, “federal employees are, once again being singled out for disparate treatment as a result of this decision to stop funding our future retirement funds.” The petitioner is calling on the administration “to halt this practice of singling out the federal workforce to fund deficit the federal government’s funding deficit just because are benefits are easily accessible as a source of cash and we are an easy target for criticism.”

With the backdrop of the political battle underlying the debt limit debate, it is far from certain that this petition will have any impact on the decision for the government to start making the payments to the G fund that federal employees are entitled to receive. But, to the extent that the petition gains support from the workforce, it will generate publicity to create a new pressure point on the administration to seek the funds from some other source or, perhaps, to start furloughing employees since the ability to borrow more money will not exist until the debt limit is raised.

View the full petition

© 2016 Ralph R. Smith. All rights reserved. This article may not be reproduced without express written consent from Ralph R. Smith.

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About the Author

Ralph Smith has several decades of experience working with federal human resources issues. He has written extensively on a full range of human resources topics in books and newsletters and is a co-founder of two companies and several newsletters on federal human resources.

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  1. WA 2 FAST says:

    Are the “L” Funds effected by this, because a certain although variable amont of each Fund is invested in the G Fund? I would think that portion of the L Fund would we effected. Any thoughts? Please reply only if you actually know what you are talking about! 

  2. Carolandterry1 says:

    It’s bout time we take action for our money that we put into TSP, it would be just like the money that was taken from our pay for assurance for social security benefits,  Now what do we have Nothing because our money was borrowed over and over until the pot had nothing but a bunch of OIU’s from our government.  And look what happened we got it shoved up our butts with Obama Care and tax increase to build the pot again so they can rob us again.  All of our presidents are exempt from Obama care (they will never have to pay for health care, all their kids get free college education.  I think we should all protest our representatives for equality  

  3. Rolf Johnsen says:

    Here they go again, Tax, Spend and pillage. The next article will explain that the retirement funds are really only an entitlement!  Just like Social Security and Senior citizen’s Medicare that we have already paid for.   Do not trust this same move as we’ll end up with worthless IOUs as well here. 
    Quit giving our money away to politically correct programs and illegal immigrants.  If they want to come here, let them! Just no free handouts for 5 years.  I wonder how much of my retirement savings are being spent on a 2nd term party or vacation trips to Hawaii.  I’m waiting for the new “Gun Ownership $200.00 Tax”.

  4. Janet Jones says:

    Oh, and I’m retiring in a year.  I have $184,000 in my TSP, both G and F.  Even with all this, I will still have at least $184,000.  If I move it to C I could have over $200,000.  Or I could have $100,000.  I’d rather keep my $184,000.

  5. Janet Jones says:

    Interesting.  This petition needs 100,000 signatures.  Just last year they needed 25,000 signatures.  I guess they got tired of all the somewhat squirrelly petitions getting enough sigs.  Though most of the really weird ones only get a few hundred.

  6. Kathy Bowman, Joseph, Oregon says:

    I’m no longer a federal employee (occasional contract work, now held up by the fiscal maunderings) – but I firmly believe that employees should not be held hostage by the politics – that’s what the Civil Service Act was all about – keeping good people adequately employed so they weren’t tempting bait or forced into corruption by politicians. I signed it. Go forth and stand up for your own, GovTrippers – it’s not just about your salaries, it’s about integrity in the federal system!

  7. No G Funds says:

    Here is an idea, why just re-allocate your G funds to another fund.  Can’t borrow what is not there!

    • No Funds at All says:

      The problem is that elected officials, Democrats and Republicans, cannot recist finging ways to covert large sums of money to their own purposes.  We are seeing “crisis” now becuase social security and public pensions are “too generous”.  Actually, the politicians spent the money in for SS and pensions during the good times, no the bill is is coming due.  Businesses also got away with murder underfunding then reneging on payments.  As this pot of money grows, I fear new calls for “reform” to “modernize” pensions and “put them on an equitable basis” with private sector absconsions of retirement funds.

    • Diego F says:

      Already done

  8. Employee says:

    If they’re going to borrow from my G Fund account, I’d have no problem, as long as I can set the interest rate they have to pay for the priveledge of borrowing my money.  19.9% sounds fair to me…oh, and capitalize the interest every quarter like we do for student loans!  (Should make the G Fund ROI rather impressive!)

  9. Fpowell1 says:

    The Government borrowered from Social Security and can’t pay it back, so is that going to happen with the “G” fund. Perhaps the employees should stop contributing to the “G” fund NOW!

  10. NearingCareerEnd says:

    How do we, or can we, or should we sign the petition?

    • AppleFanboy78 says:

      Follow the link in the article to the petition site and you can sign it there if you choose to

  11. candygirl7 says:

    Do you really think a petition will do anything to stop the madness of the Federal government?  Using the G fund to bolster the losses and prop up the economy is stealing from us retirees and current federal employees. A class action law suit against the government should be initiated immediately. 

  12. Jrmort74 says:

    I retired 18 months ago under CSRS.  I chose to contribute to the TSP G fund for some extra income in retirement.  The money I put into the G fund was mine, and mine only, as I did not receive any agency match.  To see the government treat this TSP fund as if it doesn’t belong to the participants is just plain ass wrong.  Again, our government knows best, and we are all morons.  I had to adjust my lifestyle during my workng years as my income dictated.  The government has no plans to adjust anything.  Just more spending of funds they do not have.  And remember,  the funds need to be repayed, with more borrowed money.

    • Retired CSRS Employee says:

      I moved all my money to the G fund when I retired where it would be safe; ha ha!  I, like you, am a CSRS employee and got no match from the Govt so every penny I put in the G fund is mine!  What right do they have to borrow my money?  Where is the union when you need them?

  13. Fed_Peasant says:

    There is certain TSP administrative transaction costs, when they inject themselves into the G Fund that way.  The interest paid, or yield, may be protected & later made whole they claim.  What about absolute transparency pertaing to all of the costs, of these raids?  There is probably more costs than the obvious administrative expenses.   TSP shareholders & stakeholders pay these bills!!

  14. Catherine M Angotti says:

    It’s time to stop blaming and the remediating the economic downturn on the backs of civil servants.  We have had our pay frozen and now the want to rob one of our 401k options.  Up until the latest proposal the workingcivil servant saw his/her pay frozen while their elected Congressmen continued with their perks and raises.  Meanwhile the very wealthy clamor that they can’t afford to pay more taxes.  Does this make sense?

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