TSP Board quashes idea of extra loan during furloughs

[James48843]

From:

TSP board quashes extra loan option for furloughed feds - FederalNewsRadio.com-

(More at the link above)

TSP board quashes extra loan option for furloughed feds
Tuesday - 4/23/2013, 6:04pm EDT
By Jack Moore

The Federal Retirement Thrift Investment Board says offering federal employees an extra loan option through their Thrift Savings Plans to cushion the impact of furloughs would require too much effort to implement and may not help the employees all that much.

Currently, the board offers TSP participants a general loan option that can be used for any reason. However, regulations bar employees from taking out more than one such general loan at a time and also blocks them from taking out new loans within a 60-day window after paying off the previous loan.

Several federal-employee unions have lobbied the board to add a second general purpose loan option to help federal employees deal with reduced paychecks due to sequestration-related furloughs.

But at an Employee Thrift Advisory Council meeting April 22, the board quashed the idea, citing the complexity surrounding the changes.

"It's not as easy as just saying 'OK, sure, we'll change our [regulations] and allow a second loan to be taken out,'" said Kim Weaver, the board's director of external affairs, in an interview on In Depth with Francis Rose.

Read more at:
TSP board quashes extra loan option for furloughed feds - FederalNewsRadio.com-

 

[RealMoneyIssues]

Well, we already know they have our best interests at heart...

 

[WorkFE]

This comes as no surprise but thanks for the info James.

 

[coastalite]

This is new... May 20th, 2013 article. I wasn't aware they could do this.

Treasury Taps Federal Retirement Coffers Again (G Fund?)

The Treasury Department once again is tapping federal retirement programs to buy the government more time to increase the nation’s debt ceiling.

Treasury Secretary Jack Lew on Friday (May 17th, 2013) announced the extraordinary measures the government will use to avoid a default through the summer, including tapping into and suspending investments into the Civil Service Retirement and Disability Fund and halting the daily reinvestment of the government securities (G) fund, the most stable offering in the Thrift Savings Plan's portfolio.

Should this be of concern to those in the G Fund?

What if they borrow from the G Fund and then the SHTF and can't pay it back?


Oh and then there's this headline:

[h=2]The Government Theft of Retirement Accounts Has Begun - by Dave Hodges - May 22, 2013 [/h]