Employee Groups to Congress: Hands off TSP
As Congress works to determine if and how to fund the government past the conclusion of the fiscal year on September 30, employee groups sent a letter to Capitol Hill leaders warning them to stop discussing changes to the Thrift Savings Plan (TSP).
“The issue is simple. Just the suggestion of a change to the TSP indicates to the employees we represent that the TSP can be manipulated by Congress – that their funds could be used to pay for other programs. It indicates that the TSP is no longer a secure place to put their retirement money,” wrote Clifford Dailing, Chair of the Employee Thrift Advisory Council (ETAC).
ETAC is comprised of fifteen federal and postal employee organizations, unions, and the Uniformed Services, and provides advice to the Federal Retirement Thrift Investment Board (FRTIB) on matters relating to the investment policies and administration of the TSP.
The ETAC letter cites the two previous occasions earlier this year where Congress discussed changing the rate of return for the G Fund, the TSP’s largest fund. ETAC, as well as employee groups individually, rallied against those proposals.
“When Congress considers changes to the TSP opposed by the TSP fiduciaries, employee confidence in the fund is shaken,” wrote Dailing. “In order for people to feel the TSP is a reliable investment, Congress has to declare the TSP off-limits as a source of revenue. It is the only way we can convince our members – federal employees and retirees, as well as members of the Uniformed Services – to continue to invest in the fund and plan for their future.”
Posted in From the Hill