What Happens to Your TSP Account During a Shutdown?

View this article online at https://www.fedsmith.com/2018/01/20/happens-tsp-account-shutdown/ and visit FedSmith.com to sign up for free news updates
By on January 20, 2018 in Pay & Benefits with 0 Comments
Pink piggy bank against a coral colored background

Although the Thrift Savings Plan will continue its normal operations during the shutdown, there will be some impact to operations affecting your TSP account. The TSP has published information to let federal employees know what they can expect during the government shutdown.

This fact sheet from the TSP (below) provides information on what happens to loans, contributions and withdrawals while the shutdown remains in effect.

The TSP also said in its announcement, “The fact sheet also emphasizes that your agency should not send Form TSP-41, Notification to TSP of Nonpay Status to the TSP during a federal government shutdown. A shutdown is a rare occurrence and is typically of short duration. Form TSP-41 is intended for participants who are being placed on extended leave without pay, e.g., for illness, military furlough, maternity leave.”

Key points to note from the fact sheet are that federal employees cannot contribute to the TSP while they are in non-pay status, and they also cannot take out a loan against their TSP account while in a non-pay status.

Effect of Nonpay Status on Your TSP Account by FedSmith Inc. on Scribd

© 2020 Ian Smith. All rights reserved. This article may not be reproduced without express written consent from Ian Smith.


About the Author

Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce.