is it time to close out my TSP account? And How to I go about closing out my account? I'm retired and over 60.
https://www.fedsmith.com/2021/10/26/targeting-795-billion-in-tsp/
The TSP has about $795 billion in assets. Politicians are using a variety of ways to be able to change the TSP to use the money in pursuit of political objectives.
Her latest effort is seeking “to coordinate an effort to go after one of the biggest pots of money in the country: the federal Thrift Savings Plan, or T.S.P., which is where millions of federal employees sock away their retirement accounts.” As the article urges President Biden “to use the executive powers he has to divest the T.S.P.” of fossil fuels, the efforts of interest groups were successful as the president issued his Executive Order shortly after the article appeared.
President Biden’s
Executive Order on climate change assumes climate change will harm TSP investments. The Executive Order concerns “the global shift away from carbon-intensive energy sources and industrial processes present(ing) transition risk…. ”
(Also see Saving the Planet with the TSP)
In addition to the Executive Order, the
Government Accountability Office (GAO) was brought in to seek changes at the TSP. The
GAO recommended:
The Executive Director of the Federal Retirement Thrift Investment Board, to better inform the Board’s ongoing oversight activities, should evaluate TSP’s investment offerings in light of risks related to climate change.
The GAO essentially concluded the TSP Board is not paying sufficient interest in climate and is out of step with what needs to be done. According to GAO, “Given the systemic and unprecedented risk that climate change is expected to have on global financial markets, GAO continues to believe that it is important for FRTIB to evaluate TSP’s investment offerings for these risks.”