Treasury Department to Freeze Reinvestments in Thrift Plan as Debt Default Looms

The Treasury Department will have to resort to “extraordinary measures” to prevent the U.S. government from defaulting on its obligations if lawmakers in Washington do not soon raise the statutory debt limit, Treasury Secretary Janet L. Yellen said Friday in a letter to congressional leaders.

The extraordinary measures include suspending reinvestment in the $748.1 billion Thrift Savings Plan’s G Fund, or Government Securities Investment Fund.

By law, the G Fund must be invested in non-marketable U.S. Treasury securities specially issued to the TSP, the retirement plan for 6.7 million federal employees and members of the uniformed services. Click HERE to read more.