The government is using two federal employee retirement accounts to avoid hitting the debt ceiling as the country’s debt continues its steady growth.
As we quickly near the latest debt ceiling limit for the federal government, the G fund will again by eyed as a temporary way to continue government spending.
The TSP issued a statement saying that balances in the G fund will be unaffected by the recent steps the Treasury has taken to avoid hitting the debt ceiling.
The debt ceiling limit will again be reached on February 7th so the government will take “extraordinary measures” to fund the government. This means that retirement assets of federal employees, including the TSP G fund, will again be used to help fund government expenses.
TSP Executive Director Greg Long said in a recent letter to TSP participants that in the event of hitting the debt ceiling, it is possible that the government can use money from the G fund to help pay the federal debt.