Federal Employee Groups Urge Congress Not to Touch G Fund

By on September 10, 2015 in Current Events with 10 Comments

Image of the words "G Fund"

Several groups representing federal employees who participate in the Thrift Savings Plan sent a letter to Members of Congress this week asking them to oppose any legislation that would cut the interest rate of the TSP’s G Fund.

The idea was floated in Congress to cut the G Fund interest rate to one that would be comparable to the rates of return being paid by money market funds available to the general public. For details on how exactly this would work, be sure to see Will a New Budget Cut G Fund Interest Rates?.

The letter (included below) was sent on behalf of the Employee Thrift Advisory Council (ETAC), a statutorily created Advisory Committee comprising representatives of employee organizations, unions, and the Uniformed Services.

The proposal to cut the G Fund’s interest rate failed to pass the Senate in July, but the group is clearly concerned that it could come up again, and, with the government quickly approaching the debt limit, this concern is understandable.

ETAC Letter About Cutting G Fund

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Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce. Ian also has a background in web development and does the technical work for the FedSmith.com web site and its sibling sites.

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