GSA Proposes Rules on Sustainable Procurement

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The rules would reorganize the FAR to consolidate certain requirements for federal facilities.

The GSA has proposed rules to carry out a requirement for agencies to procure sustainable products and services “to the maximum extent practicable” as required by a late-2021 executive order.

Proposed rules in the August 3 Federal Register for a 60-day comment period note that the order “directs agencies to reduce emissions, promote environmental stewardship, support resilient supply chains, drive innovation, incentivize markets for sustainable products and services, purchase sustainable products and services in accordance with relevant statutory requirements, and, to the maximum extent practicable, purchase sustainable products and services identified or recommended by the Environmental Protection Agency.”

Follow-up guidance from OMB and the Council on Environmental Quality addressed issues including the types of products and services that meet those standards, circumstances in which it would be considered not practical to procure them, and requirements for federal facilities such as pollution reduction goals, it notes.

The proposed changes to the Federal Acquisition Regulation primarily: address policy and procedures for purchasing and prioritizing sustainable products and services, including requirements for agency programs and exceptions; and update requirements related to acquisition planning, special requirements for paper, waste reduction, construction and architect-engineer contracts and IT contracts.

They also would reorganize the FAR to consolidate requirements for federal facilities, purchasing programs and hazardous materials.

Source: FEDweek Published: August 7, 2023

 

Trio of TSP Funds Up Over 15% in 2023 

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Stock market’s continued momentum in July helps the federal government Thrift Savings Plan’s C Fund rise 20.62% through the first seven months of the year 

Three of the five main funds in the federal government’s 401(k)-like Thrift Savings Plan have gained more than 15% so far in 2023, with a strong stock market so far this year leading the TSP’s C Fund (common stocks) to a gain of 20.62% after increasing by 3.21% during the month of July. 

The C Fund is once again the largest TSP fund, replacing the conservative G Fund, which saw big increases in participant allocations during January-October 2022’s bear market. 

As reported by Government Executive, the small- and mid-size businesses of the S Fund saw the best TSP performance in July, finishing the month 5.91% in the black. Since January, the S Fund has grown 19.30%. 

Rounding out the trio of top performing funds in the world’s largest defined contribution plan, the I Fund (composed of international stocks) increased 2.82% last month, bringing its increase for the year to 15.32%. 

July was of course another strong month for the stock market, with the S&P 500 up 3.1% for the month and the Dow Jones Industrial Average up 3.3%. Through the first seven months of the year, the S&P 500 has risen more than 19% while the Dow added more than 7%. Meanwhile, the tech-heavy Nasdaq Composite has risen an amazing 44% from the start of the year through July. 

The G Fund, made up of government securities, grew by its statutorily mandated rate of 0.34% last month and has increased by 2.26% since January. 

The only TSP fund to lose value in July was the F Fund (fixed income), which declined 0.07% and slightly dinged its year-to-date return to 2.18%. 

Each of the TSP’s L (lifecycle) funds, which resemble target-date funds, posted gains in July. The L Income Fund, designed for those already making withdrawals, increased 1.09% (6.19% YTD); L 2025, 1.44% (8.28% YTD); L 2030, 2.18% (11.98% YTD); L 2035, 2.36% (12.95% YTD); L 2040, 2.54% (13.92% YTD); L 2045, 2.70% (14.75% YTD); L 2050, 2.86% (15.59% YTD); L 2055, 3.42% (18.52% YTD); L 2060, 3.42% (18.52% YTD); and L 2065, 3.42% (18.52% YTD). 

At the end of June 2023, total assets in the TSP were $796 billion, compared to just under $726 billion at the end of December 2022. 

Citation: 401K Specialist 

Brian Anderson, Editor-in-Chief 

August 3, 2023 

 

 

SENATE BLOCKS RUBIO AMENDMENT BANNING CHINESE INVESTMENTS FROM FEDERAL RETIREMENT PLAN 

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The Federal Retirement Thrift Investment Board (FRTIB) is steering retirement savings of military servicemembers and federal workers to funds that invest in Chinese companies, including companies that support the People’s Liberation Army.  

U.S. Senator Marco Rubio (R-FL) first raised the issue in 2019, leading a successful bipartisan effort to block the FRTIB from investing retirement savings in Chinese companies. In 2022, the FRTIB again opened the door to allow these funds to be invested in blacklisted Chinese companies.  

Despite bipartisan, majority support, including from Senators Jeanne Shaheen (D-NH), Joni Ernst (R-IA), and Dan Sullivan (R-AK), the Senate failed to adopt Rubio’s amendment to the annual defense bill that would have banned those investments. Click HERE to read more. 

OPM Releases New Videos to Help Federal Employees Prepare for Retirement

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The Office of Personnel Management (OPM) released three videos last week to help federal employees and retirees better navigate their online retirement services accounts.

“OPM remains committed to helping federal employees transition from serving the American public to enjoying their hard-earned retirement,” said Kiran Ahuja, OPM Director.

“The purpose of these videos is to reduce login errors for federal retirees managing their retirement accounts online, and to improve responsiveness by reducing wait times at our call centers. Our goal is to make this transition for federal employees as easy as possible.”

The new step-by-step videos are designed to improve customer experience by:

— Consolidating information about the Services Online login process into three easily accessible videos.

— Reducing the number of calls into OPM from retirees unable to access Services Online to complete routine tasks that would not otherwise require call center assistance.

— Improving customer experience by highlighting convenient, self-service support that expands the options for customer service beyond Retirement Services’ call center. Click HERE to read more and to access OPM’s videos.

Three Takeaways From Fed Chair Powell Following July Hike Decision

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Roughly every six weeks Federal Reserve Chair Jerome Powell delivers a report card that rates the economy’s future performance. This comes along with each decision the central bank makes on interest rates.

The latest move — to raise interest rates by a quarter point — came on Wednesday. That followed the Fed’s decision to hold rates steady at its June meeting for the first time since it began its rate-hiking campaign to tame inflation in March 2022.

Wednesday’s report card likely won’t sway the economic outlook’s “grade point average” for the whole year. That is to say, it wasn’t vastly different from the prior report cards Powell delivered after the other meetings this year. But there were some notable takeaways.

A recession isn’t in the cards for now

Powell still believes the Fed can achieve what’s known as a “soft landing.” He said on Wednesday, “given the resilience of the economy recently [Fed staffers] are no longer forecasting a recession.”

That would mean that the central bank could get inflation down to its 2% target causing minimal damage to the economy. That’s generally been difficult because the higher interest rates go, the higher the unemployment rate goes, which increases the likelihood of a recession.

That’s why many economists, including some at the Fed, were predicting we’d be in a recession around this time last year. Powell doesn’t agree, however – although he said Fed staff are predicting “a noticeable slowdown in growth starting later this year.” Click HERE to read more.

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