Federal employees are investing their money in the Thrift Savings Plan in record numbers, bringing the funds under the 401(k)-style-investment program to $61.7 billion.
Eighty-five percent of workers under the Federal Employees Retirement System contribute money from each paycheck to their TSP accounts. FERS enrollees are permitted to contribute as much as 10 percent of their salaries, up to the IRS limit of $10,000, to the TSP. Federal agencies match FERS employees' contributions up to five percent of salary, including an automatic one percent agency contribution all FERS employees receive.
Sixty percent of workers under the Civil Service Retirement System contribute money to the TSP. CSRS employees are allowed to contribute up to five percent of their salaries to the TSP, but they receive no agency matching contributions.
The TSP's C Fund, which invests in stocks, had $33.1 billion in investments as of the end of February, according to the Federal Retirement Thrift Investment Board, the TSP's managing agency. The G Fund, which is a government securities fund, had $25.5 billion. Federal employees transferred $141 million out of the G Fund into the C Fund in February. Finally, the F Fund, a bond fund, had $3.1 billion invested in it as of February.
More than 2 million people--1.4 million FERS enrollees and 662,000 CSRS employees--have active TSP accounts.
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