My retirement money is completly protected ... The G Fund and the Debt Limit The total amount of debt that the U.S. Treasury can issue to the public and to Federal agencies is limited by law. In recent years this limit—and what to do when it has been reached—has been discussed in the news with increasing frequency. What does it have to do with the G Fund? The G Fund is invested in short-term U.S. Treasury securities specially issued to the TSP. As a result, the G Fund can be affected when the statutory debt limit is reached. However, the principal and interest payments on these securities are guaranteed by the U.S. Government. When it reaches the debt limit, the Treasury has to find ways to manage its cash and borrowing so that it can continue funding government activities. One of the many ways it can do this is by suspending investments of the G Fund. As a G Fund investor, you should know that if the Treasury takes this action, your investment is always protected, and your G Fund earnings are fully guaranteed by law under the Thrift Savings Plan Investment Act of 1987. Your G Fund account balance would be exactly the same from day- to-day as if it were invested in Treasury securities. It will continue to accrue earnings and be updated each business day, and loans and withdrawals will be unaffected. tsp.gov/
Posted on: Tue, 22 Oct 2013 14:36:03 +0000