Re: Congress

You're absolutely right.
The TSP funds are not PUBLIC dollars.
If the government uses TSP funds for this Bill it would be considered stealing to me.
I'm trying really hard to save for retirement and don't want the government stealing from my account.

Re: Congress

I completely agree with you. I bet if the government tried to do something like this with non-government employee 401k their be a national uproar. Once again we're getting penalized for being a government employee and for doing the right thing - working and saving to pay for our own retirement. We're not asking them to give us anything. We just want what we've worked for ourselves.

I wonder what's going to happen when a lot of TSP investors quit investing in or transfer their money out of TSP? I disagree with FedSmith that we will see a benefit in the long term. I imagine TSP having financial difficulties just like social security. Like a number of us keep saying if it isn't broken, don't try to fix it.

Re: Let's Inform Congress Hands OFF the TSP

This legislation is not yet law. The Senate has not yet voted on its version of the tobacco legislation (S 625), which does not currently include TSP provisions. The Senate may not vote on the legislation before the end of the congressional term. If the legislation does pass in the Senate, differences between the House and Senate versions would have to be negotiated in committee. The President could also veto the legislation if the Senate does not pass it with a veto proof majority.

I support automatic enrollment of new employees and a Roth option for the TSP. I am going to lobby my representatives to remove the provisions allowing new investment options without proper oversight.

Re: pay now or pay later

All this seems to me to be is a plan where additional ( earlier ) tax revenue would be generated by Federal employees if they 1) converted their TSP account to a Roth IRA ( owing tax now versus later ) or 2) Federal employees choosing to put their retirement money in a Roth TSP plan - where they would pay the tax on their contributions when they contributed rather than when they took their money out. No one is taking any money from anyone ! Federal employees would have a choice on whether to choose a Roth TSP or whether to convert their existing TSP account.
Relax everyone ...
This is an issue of how money Congress receives is spent - and that is an altogether different issue.

Re: Funding Tobacco Legislation with Changes to TSP

Wait, I think the TSP is getting too much attention and that usually does not bode well for the Fed investors. First, the number of times we could make changes in our contributions from fund to fund was changed and charges applied if we went over those numbers of changes. Now, offer us a Roth IRA so we can pay taxes now (higher than when we would be retired in most cases) so more taxes are generated now. How about the future when all these boomers are in a Roth and getting their tax-free annuities - who's going to pay taxes then? I think our Congress is often short-sighted.

My vote is to keep their hands off OUR retirement plans. Union officials go to jail for that!