TSP performance largely up in May, details emerge on withdrawal changes

All but one fund in the Thrift Savings Plan continued to make positive gains between April and May, and only one finished the month in the red. The performance report came two days after the Federal Retirement Thrift Investment Board released more details on changes to plan withdrawals in 2019.

The largest increase was for the small capitalization stock index investment, or S fund, which climbed 4.57 points to 4.85 percent in May, compared to 0.28 percent in April, according to the plan’s monthly performance report.

Behind it was the common stock index investment, or C fund, which rose 2.03 points from 0.38 percent in April to 2.41 percent in May.

Coming out of the red from April, the fixed income index investment, or F fund, gained 1.46 percentage points in May to reach 0.73 percent. Meanwhile, the low-risk, Treasury-backed government securities investment, or G fund, was virtually unchanged at 0.24 percent, compared to 0.23 percent in April.

But falling by 4.14 percentage points was the international stock index investment, or I fund. It came in at -2.13 percent in May, versus 2.01 percent in April, according to the report.

Thrift Savings Plan — May 2018 Returns
Fund May Year-to-Date Last 12 Months
G fund 0.24% 1.13% 2.48%
F fund 0.73% -1.46% -0.26%
C fund 2.41% 2% 14.35%
S fund 4.85% 5.26% 18.55%
I fund -2.13% -1.25% 8.36%
L Income 0.50% 1.13% 4.46%
L 2020 0.66% 1.16% 6.26%
L 2030 0.98% 1.32% 8.94%
L 2040 1.13% 1.36% 10.14%
L 2050 1.26% 1.42% 11.27%

Each of TSP’s lifestyle funds made month-over-month gains between April and May. The smallest jump was the L Income fund, which rose 0.2 percentage points to finish at 0.5 percent. The biggest increase occurred in the L 2050 fund: 0.57 percentage points for a May performance of 1.26 percent.

Meanwhile, the L 2020, L 2030 and L 2040 funds gained 0.3, 0.43 and 0.51 percentage points, respectively. They ended May with performances of 0.66 percent, 0.98 percent and 1.13 percent, respectively.

As Federal News Radio reported this week, TSP participants will have more options when making withdrawals as of September 2019.

Following guidance from the TSP Modernization Act, Federal Retirement Thrift Investment Board (FRTIB) will allow participants to make one withdrawal every 30 days. Participants no longer in federal service will have no other limitations beyond the 30-day requirement to make partial withdrawals from the TSP.

Participants who are still in federal service at age 59-and-a-half or older will be able to take up to four partial withdrawals from the TSP during a given calendar year, versus the current limit of one partial withdrawal. The 30-day limit still applies, however.

Federal News Radio reporter Nicole Ogrysko contributed to this report.