TSP Sees Across-the-Board Gains for First Time in Five Months

All the funds in the federal employee Thrift Savings Plan were up in November, marking the second consecutive month of positive growth.

Last month was the first since June the retirement investment accounts for federal employees saw across-the-board growth. The C Fund, invested in common stocks, rose 2.7 percent in November, the most of any TSP offering. It also has easily been the strongest performer in 2014, jumping more than 14 percent for the year.

International stocks in the I Fund were up for the first time since July, increasing 0.51 percent in November. The fund is the only TSP offering down in 2014, dropping 1.19 percent on the year. TSP participants have divested from the I Fund in recent months, according to officials at TSP’s governing board. Participants are shifting funds to the S and lifecycle funds due to volatility in European markets, including that caused by the ongoing Ukraine-Russia conflict.

The S Fund, invested in small and midsize companies, grew 1.33 percent for the month, and is up the second most in 2014, at 6.74 percent. The fixed income bonds (F) and government securities (G) funds saw modest gains last month, growing 0.74 percent and 0.17 percent, respectively. The F Fund has risen 6.52 percent in 2014, while the G Fund is up 2.12 percent for the year.

The plan’s lifecycle offerings -- which move participants to a more conservative mix of investments as they near retirement -- all boasted positive returns last month, albeit lower increases than October. L Income, for those who have already started withdrawing money, was up 0.55 percent for the month; L 2020 increased 1.04 percent; L 2030, 1.27 percent; L 2040, 1.42 percent; and L 2050, 1.55 percent.

The lifecycle funds are well into the black for the year-to-date as well. L Income is up 3.81 percent, L 2020 has gained 5.59 percent, L 2030 has increased 6.46 percent, L 2040 has grown 7.03 percent, and L 2050 is up 7.38 percent.

Both the House and Senate have passed measures to default new federal employees into the age-appropriate lifecycle fund rather than the more conservative G Fund, but one chamber must pass the other’s version for the bill to be sent to President Obama. The Federal Retirement Thrift Investment Board has expressed confidence the change will clear the procedural hurdle before the current legislative session ends later this month. 

(Image via Pavel Ignatov / Shutterstock.com)