TSP Funds Dropping in April

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TSP Funds Dropping in April

New records are being set by the TSP. Here is an update on TSP fund performance and some of the records cited by the TSP in its latest release.

New Records for the TSP There were several new highs for the Thrift Savings Plan (TSP) in March. The FERS participation rate is now 95.7%; the full matching rate for FERS and BRS Active Duty reached 87.6% and 86.7% respectively; and participants rolled more than six thousand checks totaling more than $282 million from other qualified plans into the TSP. Follow link to read more. https://bit.ly/4aLWMYZ

Military Families’ Financial Challenges Are Unique; These Tips Can Help

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Military Families’ Financial Challenges Are Unique; These Tips Can Help

Any family can experience financial hurdles, but military families may face unique challenges that set them apart from their civilian counterparts. From being remotely stationed with limited access to good paying jobs and childcare, to frequent moves that can make establishing consistent savings habits hard, military families’ everyday realities can make financial security difficult in both the near and long-term. Follow link to learn more. https://bit.ly/49DxCur

 

C, S, and I Funds in Thrift Savings Plan Grow Over 3% in March

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C, S, and I Funds in Thrift Savings Plan Grow Over 3% in March

Stocks continued to show signs of strength during the month despite indications from the Federal Reserve that they will not be cutting interest rates soon. Many Thrift Savings Plan participants have been moving funds from the G fund to the C fund of late. The S&P 500 has reached 22 all time highs so far in the first three months of the year. Quite a remarkable run for the index. Follow link to read more.  https://bit.ly/3Ua1nyo

2025 COLA Estimate for Social Security, FERS, and CSRS 

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2025 COLA Estimate for Social Security, FERS, and CSRS 

After an 8.7% COLA in 2023 and a 3.2% adjustment in 2024, the downward trend is expected to continue for Social Security’s 2025 COLA. Current estimates predict 2.4%.

Retired federal employees receiving a CSRS pension receive the same cost-of-living adjustment (COLA) as recipients of Social Security retirement benefits. It is calculated by looking at inflation numbers for the months of July, August, and September as indicated by the CPI-W index. The average of those three numbers results in the COLA. For FERS retirees, the COLA might be slightly less. Follow link to read more. https://bit.ly/3VLVdpr

TSP Issues Guidance on Upcoming Rise in Catch-Up Limits for Some 

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TSP Issues Guidance on Upcoming Rise in Catch-Up Limits for Some 

As before, investments will automatically “spill over” into catch-up status once the standard limit is reached. 

The TSP has said it will issue notices later this year to account holders who will be eligible to make additional investments beyond the normal limits starting in 2025 under the Secure 2.0 Act.

If the adjustment is more than 3%, FERS pensions are adjusted by the CSRS COLA minus 1. So in 2024, when the Social Security COLA was 3.2%, the COLA for FERS was 2.2%. Follow link to read more. https://bit.ly/3VRhTEZ