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What does the debt ceiling have to do with your retirement savings?
Reaching the debt ceiling on March 16 has meant that the Treasury Secretary will take “extraordinary measures” to avoid having the country default.
One of these measures is for the Treasury Department to suspend contributions and reinvestments to the Civil Service Retirement and Disability Fund and the Thrift Savings Plan (TSP) G fund.
It’s important to note that federal employees and retirees were unaffected by these actions in the past and you are protected by federal law. The government is required to make the G fund whole for all contributions and interest lost during the period of the diversion.
Treasury Secretary Steven Mnuchin has asked Congress to raise the debt limit “at the first opportunity.”