Daily Labor Report®

Feds in Future Shutdowns Could Take Out TSP Loans

Feb. 4, 2019, 7:00 PM

Federal employees who are furloughed or forced to work without pay during a government shutdown would continue to be eligible for Thrift Savings Plan loans, under an interim rule issued Feb. 4.

Currently, agency workers must be in pay status to qualify for the loans, because repayments are deducted from their paychecks, the Federal Retirement Thrift Investment Board said. The interim rule would eliminate that requirement.

“Federal employees recently experienced the longest partial government shutdown in United States history. Prolonged shutdowns risk damaging the overall long-term financial well-being of TSP participants and their families,” the board said. The rule is...

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