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 before TSP was introduced in 1987?

  • ben franklin

    Gotten kind of crotchety with old age, haven’t you? Why didn’t you contribute to TSP? You don’t have to be in FERS to have a TSP account.

    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.

  • IIlIIl111

    That’s OK. Your prostate is probably about the size of a cantaloupe

  • Sr

    A return OF your capital is always better than a return on your capital.
    However, this is a plan to keep the Ponzi scheme of Wall St going a little longer. This is the largest untapped source of money left. They want the public to be their BAGHOLDERS, so they can sell near the top and leave you, Mr/Mrs America, holding the bag!!!!

    This is what GOLDMAN SUCKS does when they issue a buy recomendation, only to have the stock blip up enough to have their larger clients get out from an underwater position.

  • Wondering

    In spite of what you and most people may believe, the average person draws more from Social Security than they paid in, including the employer match. This is why the fund is going broke. People are taking out more than they paid in, even when factoring in interest / inflation.

  • FDR

    The fund isn’t going broke- it will last through 2033 as is, and with some additional revenue, (like increasing the maximum amount of income subject to the payroll tax), it will last as long as we want to have it. Republicans like to claim it’s broke so they can force people into Wall Street sponsored pension scams.

  • Col. Handleknocker

    The worst Supreme Court decision since Dred- Scott

  • ben franklin

    Oh well, don’t yell at the old guy too much- sounds to me like he never knew he could have been putting away money in TSP all those years! Big mistake!

  • FedUp

    People we have to wake up here. They don’t want to raise taxes because the public will be up in arms. So let’s screw them government employees. Not only are they looking to take away from Postal Employees they are looking to cut the military pensions by 20%. Come election time we need to stick together and vote out the crooked congress and house members.

  • Beachgrammy53

    You weren’t taxed on the money you put into SS. And, if you look at how much you actually contributed, it’s a tremendous boon!

  • retired too

    Huh? You were taxed 6.2% of your wages to be deposited in the Social Security trust fund. You were most assuredly taxed. Also consider that is in today’s dollars you must consider growth of that money over 30 + years.

  • retired too

    I am just wondering, why are you even bothering to comment?

  • retired too

    Fine and good for you. Why are you bothering to comment?

  • freecountry

    And there are idiots roaming the floors of closing processing plants bragging they voted for the GOP.

  • freecountry

    And wait until they cut your CSRS too

  • freecountry

    NEVER happen. Too much cash given to the Supreme Court crooks to get a fair law passed…..

  • CC

    Put this article next to the PRC findings on Market Dominant
    Non-compensatory Products (those mail products where revenue still does not
    meet the cost to deliver): “With respect to Standard Mail Flats, the
    Commission finds that progress is being made toward addressing the cost
    coverage shortfall despite the increase in negative contribution. As a result,
    no further remedial action is required at this time.”

    So, although Standard Mail flat mailers continue
    to “Increase” the “negative contribution,” to the detriment
    of the Postal Service, its employees, and the nation as a whole, “no
    further remedial action is required at this time.”

    The nickels and dimes saved on each individual
    mail piece, and it is more often a matter of a few cents, is instead proposed
    to be remitted from the backsides of craft and management labor force
    that delivers the product from antiquated vehicles which explode into
    flames from offices often unclean and OSHA-verified unsafe, solely for the
    financial benefit of the CEO’s and CFO’s of the mailing industry.

  • BearStar1 .

    Because when I hired on in 1983 in the FES-DOD at Fort Hood , it was way before FERS had even come along and there was NO TSP then ! That’s why I didn’t have it ! I was in the OLD system of CSRS that had no bells and whistles ! And No , they will not cut into My CSRS Pension Annuity, that is what I paid into all those years that I worked in the Federal Fire Service – DOD and it’s what I live on !

  • ben franklin

    You’re not paying attention. It has nothing to do with when you were hired, or what retirement plan you were in. TSP started in 1987 and was OPEN TO ALL CAREER FEDERAL EMPLOYEES.

    I started in 1978, so as I told you already, I was in CSRS all my career and I get a CSRS pension.

    But I ALSO HAVE A TSP ACCOUNT!!

    Sorry you missed the boat on TSP, but you might want to pay more attention to the world around you before you start telling other people to “Learn how to READ !!!”

    Now if you’ll excuse me I’m going to go spend some of my TSP money!

  • Glad u quit

    You are so correct . The big mailers with their Washington lobbyist are bankrupting the postal service with their artificially unfair illegal rates subsidized by other classes of mail such as 1st class and priority. How about the millions they contribute to political campagnes to get their ” privatize friendly” politician friends elected!!!!

  • Glad u quit

    Maybe stop giving benefits to illegals and borrowing from SS and not paying it back would help it last longer

  • ben franklin

    Yup- if the GOP gets control of the White House and Congress next year (they already own the Supreme Court too), I wouldn’t put it past them to start slamming people who have been retired for years.

  • ben franklin

    That’s not true- Social Security contributions are not deductible on your federal income tax return, so you ARE paying federal income tax on “the money you put into SS”.

  • BearStar1 .

    And YOU Sir, are not listening to What I’m trying to tell you ! Our CPO never informed us ” older ” Firefighters under the old CSRS about it ! I never heard of it till ‘ 87 when the newer Firefighters being hired came under the new FERS system. So It’s not my fault , but the fault of our CPO ! Now I wish to drop the matter and you are the primary reason why Postal Workers go ” Postal ” ! Now go take your TSP Money before the Gov takes it away from you and go play in the street . END OF DISCUSSION ! PERIOD !!!!!!!!!!!!!!!!!!!!!!!!!!!

  • ben franklin

    Uh oh! Someone needs to take their meds! You’re still not listening to what I’m saying. NO ONE “heard of” TSP until 1987 because it didn’t exist until 1987.

    But now that you admit you knew about TSP in 1987, I’m just curious why you decided not to take advantage of it?

  • BearStar1 .

    Yes, I became aware of it when the Gov changed over to the New FERS in ’87 but they failed to tell us that the TSP was available for Everyone, just not the NEW HIRES on the FERS! They gave us the option of changing over to the FERS from the CSRS but I chose to Stay with what I had. I was NOT aware that the TSP was also available to those staying with the CSRS! CPO never told Us that ! Now WHAT part don’t you understand ? Or are You just a Hard Headed Redneck from Alabama? I am through with this discussion ! End of Subject . Period !

  • ben franklin

    OH OK- now I know why you’re so pissed off! I guess I would be too, but I’m still amazed you never knew you could sign up for TSP! I don’t know what “CPO” is, but TSP was a pretty big deal at the time- everyone knew about it- we didn’t have to wait for anyone’s permission to sign up.

    Oh well!

  • BearStar1 .

    CPO : ” Civilian Personnel Office ”. By them, CPO never informing us ” old timers ” that had been hired before 1987 and were on the old CSRS , we had all just assumned that it was only available for all New employees hired after 1987 that was on the new FERS. I knew that it exsisted , but was under the impression that it was only for the Civilian employees hire after ‘ 87

  • Stellar Steve, LSSA

    Strange…you are smart enough to know how to comment on this site, but were not smart enough to know about being able to contribute to the TSP? You must have ignored all that information they mailed to you over the decades? I was civil service, too, and knew about the TSP when it started. Because we did not get matching funds, I ignored it for a few years, but started contributing in 1993, and now have over $250,000 in the fund, on top of my CSRS annuity. Life is good!

  • BearStar1 .

    CPO never informed us ” old timers ” that had been hired before 1987 and were on the old CSRS , I just assumned that it was only available for New employees hired after 1987 that was on the new FERS program. I knew that it exsisted , but was under the impression that it was only for the Civilian employees hired after ‘ 87

  • freecountry

    Agreed. Got hired in 78 and didn’t know. There is also info out there that not all carriers(oldtimers) were told about buying your military time back and are just finding out as they get ready to retire.

  • Colorado Springs ET

    According to the Post Offices annual report, the price charged for each piece of standard mail was 20 cents. If you go to the public website for the P.O. you will find that small mailers pay between 30 and 40 cents per letter, depending on how many letters they send. That means the largest mailers are bringing the average down and may be paying 10 per letter or less! Since the rate for bulk mail was 9 cents per letter in 1978, the largest mailers have not seen a rate increase in 40 years!