Republican budget would take $32 billion from your TSP retirement savings

The Republicans slipped a little surprise for postal and federal workers into their recent budget proposal- essentially making the TSPs’ G Fund worthless, according to the Washington Post’s Joe Davidson:

Among the policy retreads, there was a surprise in the House package.

Republicans want to make the most popular employee investment fund in the Thrift Savings Plan (TSP) worthless. To save $32 billion over 10 years, House Republicans propose changing the fund’s interest-rate calculation, because, the resolution says, “those who participate in the G Fund are rewarded with a long-term rate on what is essentially a short-term security.”

Going after the TSP “is a new one,” said Kim Weaver, a TSP spokeswoman who has seen “nothing like this before.”

The savings for Uncle Sam would come at a great cost to his staff.

The fund’s current annualized interest rate is 1.88 percent. Adopting the House plan would result in a precipitous interest-rate drop to an annualized 0.01 percent, according to the TSP.

Read more: GOP budget plan has a surprise among list of cuts for federal employees – The Washington Post.

  • Glad u quit

    How bout taxes for the Washington politicians who one and all are millionaires! The laws they pass ensure they and their families will remain rich for generations to come.

  • John

    Stay out of peoples retirements,,,, greedy clowns !

  • Postal Workers !

    Lets break down the word politics, poli meaning many, tics meaning blood sucking insects, you do the math.

  • Scrooge McDuck

    Why would they care? They’re all millionaires!

  • Mr. Rogers

    Interesting theory, but you’re overthinking it. The amount of money invested in the TSP G-fund would be a drop in the bucket on Wall Street. And more investment in the stock market wouldn’t benefit the “rich buddies”- it would actually dilute their returns slightly.

    The reality is much simpler. You take $32 billion away from retirees, and you can use it to reduce the deficit, or more likely, buy more defense toys, prop up more dictatorships, bail out Wall Street tycoons, whatever. And the only people who get hurt are the people the Republicans despise more than Al Qaeda or ISIS- postal and federal workers and retirees.

  • Lcd

    To Mr Rogers,
    No I think I am dead on with my point of view. Wall Street benefits from everyone being in the stock market. The masses matter in the stock market. If you don’t think so, then why does the market go down when people get scared and pull their money out? Duh……!

  • Glad u quit

    Good points you make. Reminds me of when Bush wanted to privatize Social Security so all the billions would go into the stock market making it appear the economy had recovered. Whether federal employees or SS recipients when all the money is lost to the greedy rich 1% no one can retire. Yes most will have to keep working and contributing taxes to the wealthy , illegals and charity cases!

  • Mr Rogers

    Ummm… which is exactly what happened to the C-Fund when the stock market crashed under Bush, remember? So why does “Wall Street” want more jittery TSP investors in the market?

    A fractional decrease in the G-Fund interest rate isn’t going to convince people to leave the fund permanently, if at all. After all, the G Fund already has the lowest interest rate of any of the regular funds, but the highest total invested! If people are already satisfied with a return that is eleven percent lower than the C-Fund, why are they suddenly going to bail when it drops by another couple of points? It hasn’t happened in the past- why would it happen now?

    You also seem to be ignorant of the fact that “Wall Street” doesn’t really like the C-Fund, because it is a very low overhead operation, The Wall Street parasites make their real money by taking a cut from every investment transaction- that’s why they love “managed” mutual funds, which constantly buy and sell shares. Funds that track indices are much less lucrative for them, but consistently perform better for their investors.

    So I guess I should admit that I was wrong in my first comment- you haven’t “overthought” the issue. You apparently haven’t given it any thought at all!

  • Marcus1956

    Unreal. Complete Idiots for trying to attack people attempting to save for retirement. What is wrong with Republicans?

  • FrugalFreak

    repeal Citizen United is the number 1 thing to combat this.

  • BearStar1 .

    Doesn’t affect me one bit ! I Retired as a Federal FireFighter Tech II with 30 years service FES-DOD in August 2003 under the old Civil Service Retirement System .

  • glblank

    So you are all that matters?

  • glblank

    Tommy Smothers.

  • ben franklin

    You don’t have any money left in your TSP?

  • William De Vore

    They don’t care about you or me. They only care about their millionaire, billionaire, and corporate sponsors.

  • BearStar1 .

    @ Ben Franklin and glblank ; You TWO need to Learn how to READ !!! I never had a TSP ! I paid directly into the old ” Civil Service Retirement System Program with monthly deductions from my Federal Wages as a FireFighter Tech II with 30 years of Service in the FES-DOD and I recieve a Federal monthly pension annuity for the rest of my Life and it has NOTHING to do with TSP !

  • Robtechno

    It is all in your vote next year. When you read, if you rad what the GOP is doing for the blue collar and that is about 99% they do nothing to improve our lives and wages. All they do is picking what we have and only supporting the lobbyists in DC. Got nothing to do who is President, got every thing to do with the House and Senate and YOUR votes next year. Don’t believe the lies they are telling you, turn off FOX and start thinking. Read online better posts than these loud mouth’s from FOX.

    Have a great evening.

  • Robtechno

    I doesn’t matter if you have any thing to do with TSP or not, It can happen to you as well. And don’t think that it wont, because it will One by One all the pensions are limited in the next couple of years as long as the GOP is in the House.
    Vote the right party and stop listening to FOX.

  • Robtechno

    You will be surprised what they, GOP can do to your pension when they can get some money from it and give it to their sponsors, Monsanto and Koch brothers.

  • Robtechno

    Or he doesn’t know how the money market works.

  • ben franklin

    Gotten kind of crotchety with old age, haven’t you? I retired from the USPS five years ago after 31 years. I was covered by CSRS just like you,and I receive “a Federal monthly pension annuity for the rest of my Life” just like you. And I have a nice fat Thrift Savings Plan account. Did you retire