Federal Daily News
Treasury looks to G Fund as debt ceiling looms
The Treasury Department has temporarily ceased issuing new securities to the Thrift Savings Plan’s Government Securities Investment Fund—also known as the G Fund—as the government once again approaches the federal debt ceiling.
Federal Retirement Thrift Investment Board Executive Director Greg Long released a message to plan participants on the TSP website notifying them of the Treasury Department’s move, and reminding them that G Fund investors are protected by a 1987 statute that safeguards them against any reduction of assets or loss of interest income. Federal law requires the Treasury Department to restore the securities and lost interest when the suspension period is over.
The government used the same tactic last year, temporarily withholding G Fund contributions while Congress and the administration wrestled over raising the debt ceiling. President Obama this week asked Congress to raise the ceiling once again.
In the statement, Long also assured G Fund investors that “G Fund account balances will continue to accrue earnings and be updated each business day, and loans and withdrawals will be unaffected.” Long told Fed Daily that the suspension began on Jan. 17.