TSP: G Fund Balances Will Be Unaffected by Debt Ceiling

The TSP issued a statement saying that balances in the G fund will be unaffected by the recent steps the Treasury has taken to avoid hitting the debt ceiling.

The Thrift Savings Plan issued the following statement on its web site in response to the Treasury’s statement that it would suspend retirement funding:

As of yesterday, February 10, 2014, the U.S. Treasury was unable to fully invest the Government Securities Investment (G) Fund due to the statutory ceiling on the Federal debt. However, G Fund investors remain fully protected and G Fund earnings are fully guaranteed by the Federal Government. This statutory guarantee has effectively protected G Fund investors many times over the past 25 years. G Fund account balances will continue to accrue earnings and will be updated each business day, and loans and withdrawals will be unaffected.

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