As the Senate prepares to consider a highway funding bill, we have learned that one of funding mechanisms under consideration to offset the costs of the highway bill is to lower the rate of return on the G Fund. The G Fund rate of return uses a formula identical to one used by Social Security to fund its disability program. Some Members of Congress are interested in lowering the rate of return on the G Fund and using those savings to fund other programs.
NTEU strongly opposes such a move. Lowering the rate would, even in the words of the Federal Retirement Thrift Investment Board, render the G Fund useless. It would eliminate the only safe harbor fund in the TSP. Almost 4.3 million TSP participants have some money in the G Fund. It makes no sense to so drastically change this retirement fund to pay for highway funding.
For more information, please see the attached letter. To find out what you can do, visit www.nteu.org.