Federal government resumes payments into G Fund
By Hazel Bradford | February 6, 2013 1:54 pm
U.S. government payments into the Federal Thrift Savings Plan's largest fund resumed after being put on hold when the federal government hit its debt ceiling.
When the debt ceiling was reached on Jan. 15, the government had to stop issuing new securities to the $158.5 billion Government Securities Investment Fund, known as the G Fund, which makes up 43% of the $329.95 billion TSP, Washington.
But legislation signed Monday by President Barack Obama suspended the $16.4 trillion debt limit until May 19, which allowed G Fund investments to resume.
At the time of the suspension, TSP Executive Director Greg Long wrote to investors that they were “completely unaffected” by the suspension, thanks to a “make-whole” provision that protects balances.
Treasury will restore uninvested principal and interest losses to the G Fund.