US taps G fund to avoid passing debt limit

[RealMoneyIssues]

Does anyone know if the G fund return rate rises when the government 'borrows' from it? I would think it would.

 

[wvango]

Was just sent these links and thought I would share it with you all.

Petition Filed Asking to Leave G Fund Out of Debt Limit Fight
Petition Filed Asking to Leave G Fund Out of Debt Limit Fight - FedSmith.com

Stop Withholding Payments to the TSP's G Fund
https://petitions.whitehouse.gov/petition/stop-withholding-payments-tsps-g-fund/jPL8H7VQ

 

[ChiTown]

"As we await legislation on raising the federal debt limit, I would like to address your concerns about the possible suspension of issued securities to the Government Securities Investment (G) Fund. In the event that the U.S. Government reaches the statutory federal debt limit, the federal government may temporarily be unable to issue new securities to the G Fund because to do so would exceed the present debt limit. However, G Fund investors are always fully protected and G Fund earnings are fully guaranteed by the Federal Government due to statutory protections in the Thrift Savings Plan Investment Act of 1987. This protection, known as the "make-whole" provision, will work to ensure that G Fund investors are completely unaffected by the limitation on securities issued by the U.S. Treasury. G Fund account balances will continue to accrue earnings and be updated each business day, and loans and withdrawals will be unaffected."

So far the numerous times they've done this before they've followed the law and made whole the GFund... Lets hope that trend continues.

 

[k0nkuzh0n]

"As we await legislation on raising the federal debt limit, I would like to address your concerns about the possible suspension of issued securities to the Government Securities Investment (G) Fund. In the event that the U.S. Government reaches the statutory federal debt limit, the federal government may temporarily be unable to issue new securities to the G Fund because to do so would exceed the present debt limit. However, G Fund investors are always fully protected and G Fund earnings are fully guaranteed by the Federal Government due to statutory protections in the Thrift Savings Plan Investment Act of 1987. This protection, known as the "make-whole" provision, will work to ensure that G Fund investors are completely unaffected by the limitation on securities issued by the U.S. Treasury. G Fund account balances will continue to accrue earnings and be updated each business day, and loans and withdrawals will be unaffected."

So far the numerous times they've done this before they've followed the law and made whole the GFund... Lets hope that trend continues.

Hmm so maybe I had it backwards, and the Gov tapping into the G Fund would actually make the fund's return rate go down because its not being invested into securities...

 

[Kaufmanrider]

Was just sent these links and thought I would share it with you all.

Petition Filed Asking to Leave G Fund Out of Debt Limit Fight
Petition Filed Asking to Leave G Fund Out of Debt Limit Fight - FedSmith.com

Stop Withholding Payments to the TSP's G Fund
https://petitions.whitehouse.gov/petition/stop-withholding-payments-tsps-g-fund/jPL8H7VQ

I signed it this afternoon. But instead of only needing 25,000 signatures, Obama has upped the number to 100,000. Guess the Prez doesn't want answer petitions from the people.

 

[blueroadster]

I signed it this afternoon. But instead of only needing 25,000 signatures, Obama has upped the number to 100,000. Guess the Prez doesn't want answer petitions from the people.

I also signed the petition. Do most petitions only require 25k signatures? If so, who else would be responsible for upping the requirement to 100k signatures?

 

[Kaufmanrider]

I also signed the petition. Do most petitions only require 25k signatures? If so, who else would be responsible for upping the requirement to 100k signatures?

All petitions used to only require 25,000. I guess that number was to easy so they recently upped it. It now takes 100,000 before the White House will respond. But that shouldn't be too hard for this one. I've got 5 in my family who are going
to sign it. And with the number of Feds, Military, and Retirees with TSP accounts, we should hit the number quickly once the word gets out.

 

[wvango]

I signed it as well.

 

[czapor1967]

I signed it!

 

[k0nkuzh0n]

I signed it this afternoon. But instead of only needing 25,000 signatures, Obama has upped the number to 100,000. Guess the Prez doesn't want answer petitions from the people.

Or the white house doesn't think they should be wasting their time responding to requests for a death star. Sure it was funny but come on..

 

[jkenjohnson]

The fact that they would raid our retirement fund is disgusting.

 

[k0nkuzh0n]

The fact that they would raid our retirement fund is disgusting.

Just imagine what your banks are doing with your money. Its not all sitting in vaults, ill tell ya that for free.

 

[tsptalk]

Just imagine what your banks are doing with your money. Its not all sitting in vaults, ill tell ya that for free.

That's a great point. One man's savings account is another man's car loan.

 

[Fran1775]

I realize that it's probably not a reality but everyone stopped contributing to their tsp in a few short days to weeks they would have nothing left to borrow from us!

I think they're just using the G fund as hostage in order to get what is really on the table and that is the higher debt ceiling.

 

[craigerv]

It's all a hoax. The G Fund never existed! this goes way beyond Te'o

 

[Boghie]

No fund other than the 'G Fund' and the parts of the various 'L Funds' invested in the 'G Fund' are in reach of the hidden hand.

I am not taking part in this scheme because I own no 'G Fund' in any way. Excepting, of course, my crappy investment in Social Security and the FERS pension. Yuk and double yuk. But, I have done my best.

 

[James48843]

Here we go again.

Treasury Suspends Investments Into G Fund

By Eric Katz
12:24 PM ET

The Treasury Department has suspended investments into the government securities G Fund, using the most stable of the federal employee pension funds to delay hitting the government’s debt ceiling.

Suspending investments into the Thrift Savings Plan’s G fund -- which collects on interest-bearing Treasury bonds that make up the public debt -- has become a common tactic in recent years, serving as a component of “extraordinary measures” the federal government takes to stave off default.

Treasury Secretary Jack Lew said in a letter sent to Congress on Friday that by law, “the G Fund will be made whole once the debt limit is increased.”
The move was an expected part of a plan Lew laid out several weeks ago.

“Federal retirees and employees will be unaffected by this action,” Lew wrote in the Friday letter.
In February, Treasury reinvested $28 billion back into the G fund to reimburse the account from the previous temporary suspension. At a recent Federal Retirement Thrift Investment Board meeting, officials emphasized the fund will once again be made whole.
...

More:

Treasury Suspends Investments Into G Fund - Pay & Benefits - GovExec.com