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Benefits August 16, 2011
Federal Thrift Savings Plan Participants Flee to Safety
August 16, 2011 (PLANSPONSOR.com) – According to FedSmith, in the month of July, the Federal Thrift Savings Plan G fund, the most conservative investment offered by the plan, hit a new monthly record: almost $5.6 billion was transferred into the fund.
Reported by PLANSPONSOR staff
Also during July, more than $2 billion was transferred from the C fund and almost $1.6 billion left the S fund (mostly equity funds); $180 million was transferred from the F fund and over $1 billion was transferred from the lifecycle funds.
FedSmith also reports the G fund is in an unusual situation. The Treasury Department was using funds from the G fund to help pay government operating expenses, while the debt ceiling limit was being debated. As of June 30, the amount in the G fund was down to $27 billion from approximately $129 billion in April. By the end of July, the amount in the G fund was down to about $9.8 billion, according to Treasury Department reports.
Since the debt ceiling was raised in early August, the money has reportedly been put back into the G fund, along with any interest that was due, the news report said.
– Tara Cantore
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