New hires default into L Fund

[k0nkuzh0n]

New Feds Will Default Into Riskier TSP Fund Starting Next Week - Pay & Benefits - GovExec.com

New Feds Will Default Into Riskier TSP Fund Starting Next Week

New federal employees will automatically see 3 percent of their paychecks deposited into a lifecycle fund of the Thrift Savings Plan beginning next week, the plan’s governing board has announced.

The Federal Retirement Thrift Investment Board issued a final rule to note the default plan will change beginning Sept. 5. It will mark the first time since federal agencies began automatically enrolling new employees in the TSP in 2010 that the government securities (G) fund will not be the default investment. Congress approved the change last year, and the board finalized the plan after its proposed rule in July received no comments.
...
The change will only apply to new or rehired federal employees who are auto-enrolled in the TSP. It will not affect TSP participants who are currently auto-enrolled.

Kind of interesting, given people's belief that the government 'borrows' against the G-fund money.

 

[limebalz]

The G Fund looking good right now

 

[Skorcher]

The IRS is not hiring anybody this year nor probably next year. So there won't be any new hires to be affected by this.

 

[Cactus]

The IRS is not hiring anybody this year nor probably next year. So there won't be any new hires to be affected by this.

Thanks for that info, Skorcher. Where did you hear this? at work? publication? etc. Also do you know if that is national or just your region.

 

[Skorcher]

Thanks for that info, Skorcher. Where did you hear this? at work? publication? etc. Also do you know if that is national or just your region.

IRS budget was cut $500M in FY15 and is $2B less than FY11. My division has shrunk from over 7000 people nationwide to less than 5000 in that same timeframe. The House is proposing another $800M cut for FY16.

 

[Cactus]

Ouch, that's got to hurt. Thanks again for that information. My wife want's to get out of where she is now and was wondering about the IRS since she has 5 years service with the fed already. Her friends at the IRS say they aren't hiring from the outside. You explained why. I'll let her know. Thank you.

 

[Shamus13]

Considering I have 7yrs of service and there are a few that have been squatting in G-Fund before long before my 1st day. I tell them G is for safety and capital preservation not growth or success. But what do I know, they still look at me as a noob not a journeyman.