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Billions Flow Out of TSP Due to COVID, and More

Government Executive email A weekly roundup of pay and benefits news. Officials at the federal government’s 401(k)-style retirement savings program said this week that nearly $3 billion exited the Thrift Savings Plan this year as a result of the COVID-19 pandemic. The CARES Act authorized TSP participants to take loans from their accounts of up to double the normal amount, and it waived requirements that participants be 59 1/2 years old, cite a specific financial hardship or take a 10% tax penalty. At the January meeting of the Federal Retirement Thrift Investment Board, which administers the TSP, Participant Services Director Tee Ramos outlined how federal employees and retirees made use of these flexibilities.

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