Fedweek

Account balances of TSP investors have largely recovered from the steep drop of February and March, mostly due to the recovery in the stock markets since then, figures presented Monday at the monthly meeting of the TSP board show.

As of the end of July the average account balance for a those under the FERS system—both current employees and former employees who have kept their accounts open—was $150,627, only about $1,000 below the figure at year-end 2019; for those under CSRS, it is $161,703, about $600 higher. Through March the averages had fallen to $133,183 and $145,028, respectively.

ADVERTISEMENT

Total account balances for all investors including military personnel stood at $640.1 billion, above the $632.6 billion as of the end of calendar year 2019; that had fallen to $557.3 billion as of the end of March.

Since the start of the year there has been some growth in the number of participants and a net $6 billion of new investments above withdrawals and loans. However, most of the gain has been due to the rebound in the stock markets, mainly reflected in the large company stock C and small company stock S funds. Stock markets further are generally up through this point in August although the figures do not reflect those gains.

Transfers among the investment funds—which on a net basis had been out of the stock funds in February and March and then back into those funds in the following months—showed a net transfer out of $3.7 billion from the stock funds, with almost $1.7 billion going into the bond F fund, $1.1 billion into the government securities G fund and almost $1 billion into the lifecycle L funds.

Some of that activity reflected migration of money into the new L funds launched at the start of July, with funds now available in five-year increments from 2025-2065.

TSP Survey Shows Demand for More Investment, Withdrawal Choices

Survey Examines Why Some Employees Forgo Agency Contributions

TSP International Fund Continues to Lag (Aug 25)

TSP C Fund Back to All-Time Highs (Aug 19)

FERS Retirement Guide 2020