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.