Government borrowed against matched contributions?

[2GodBtheGLORY]

I overheard a disturbing conversation yesterday by trusted people much smarter than I and I'm trying to find out more. If this is discussed elsewhere, please point me to that thread.

I heard the government borrowed money from China and other investors, using matched funds given to Federal employees for their TSP contributions as collateral, and in the event of default, they will take that money back, including any profits earned from those matched contributions.

First, does anyone know if this is true?

Second, if it is true, is it legal for them to take that money back when matched contributions were promised as a benefit to Federal employment?

Also, (again if this is indeed true) what would happen if I cashed out my TSP now, paying the tax penalties? Would I then owe the government the money they originally matched in the event they actually do something like this?

Thanks.

 

[nasa1974]

Great question. I don't have an answer for you but I'm sure someone will.

This question belongs more in the TSP Talk, News, Etc. than the Members Account Talk section. So I have moved this thread to TSP Talk section. It will stay here for a few days as a read only just so it gets a little more exposure. Thanks for posting.