Fedweek

The amount on investment in the TSP has passed $800 billion for the first time, ending October at $803 billion, statistics presented to the TSP’s governing board at its November meeting show.

That was up from $774 billion at the end of September and largely reflects gains on money already on investment rather than new investments. The TSP experiences a net inflow of about $1 billion a month—about $4 billion in new investments and loan repayments and about $3 billion in withdrawals and new loan disbursements.

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The total had neared $800 billion in August, finishing that month at $795 billion, but dropped back due to investment losses in September.

Hardship withdrawals continued an upward trend that started in June, said the TSP, anticipating an overall 34% increase in these withdrawals for 2021.

The average account balance for those active or separated from government under FERS now is $180,000 and under CSRS it’s $194,000. Those are up from $164,000 and $175,000, respectively, at the end of calendar year 2020 when the total amount on investment was $710 billion.

Also in October the TSP crossed the 2 million mark in separated participants who have kept their accounts open. Increasing that figure was a goal of the TSP in expanding withdrawal options in recent years, following surveys showing that many account holders transfer their money to IRAs or similar accounts rather than leave it in the TSP to gain more flexibility in withdrawals.

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