Thousands of Feds Withdrew Retirement Investments During Shutdown

Thousands of Feds Withdrew Retirement Investments During Shutdown

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Federal employees turned to their retirement investments for cash during the government shutdown, with thousands of workers taking hardship withdrawals to support themselves through the unpaid period.

Nearly 3,000 more feds withdrew from their Thrift Saving Plans during the shutdown than did in October of 2012, officials said at a Federal Retirement Thrift Investment Board meeting Monday. When the shutdown began, roughly 900,000 federal employees were unsure if they would get paid for the time they missed, though Congress has since agreed to issue retroactive pay to the furloughed workers. Employees required to work during the shutdown also did not receive pay until the government reopened, though they were guaranteed back pay from the outset.

Furloughed federal employees were prohibited from contributing to their TSPs during the shutdown, but those contributions will be paid retroactively as a result of the back pay. The workers were allowed to make withdrawals of at least $1,000 due to “financial hardship.” Continue reading “Thousands of Feds Withdrew Retirement Investments During Shutdown”