Your TSP funds have probably taken a dramatic hit. Put the situation in perspective before hitting the panic button and making decisions you may regret later.
A temporary government spending bill will fund the federal government into March of next year. It also contains an average pay raise for federal employees of 3.9% that will be effective in January.
It seems no one is happy with the federal pay system. Many employees and federal unions argue that federal employees are significantly underpaid. But not everyone agrees. The average federal employee in 2007 received a pay and benefits package of $116,450–more than twice as much as the average private sector employee.
New legislation passed the House this week to protect public health by providing the Food and Drug Administration with authority to regulate tobacco products. The bill will cost about $300 million. An influential Congressman says not to worry–the money to fund this legislation will come from changing the federal Thrift Savings Plan. No doubt, these changes reassure TSP investors that Congress is looking out for their financial future.
A pending bill would quietly change the TSP’s investment philosophy. The result would be opening the door to more investment options, confusing many investors, applying more political pressure on the TSP and profiting financial interests with Congressional patrons. The likely losers: TSP investors who are benefiting from a simple, inexpensive retirement plan that is currently a model for private sector retirement plans.
What will your paycheck look like in 2009? It looks like the 3.9% average pay raise for federal GS employees may eventually be approved.
When a politician says he wants to improve your TSP returns by changing the system, hang on to your wallet. Someone may benefit, but it may not be the TSP investors.
TSP stock funds across the board went down significantly in June. Here are the results and a perspective that long term investors should keep in mind before deciding to bail out of the market based on the latest TSP returns.
The Internal Revenue Service is raising the mileage reimbursement rate because of the increasing cost of filling up a car with gas. How will this decision impact federal employees?
The 2009 federal pay raise will be influenced by a number of factors. Here are some of the events that will influence the amount of next year’s average federal pay raise.