TSP After the Shutdown: What Feds Need to Know Right Now

On this edition of Fed Gov Today with Francis Rose, Jim Kaplan, Director of External Affairs at the Thrift Savings Plan, joins the show to break down what’s happening inside TSP accounts since the shutdown. Loan activity spiked during October as federal workers sought financial “padding,” and now many borrowers want to repay quickly. Jim explains how TSP loans work, how repayment schedules are automatically re-amortized, and why there’s never a prepayment penalty—because participants are essentially paying themselves back with G Fund interest. He also details how agencies are sending catch-up contributions and matching funds in large batches, the automated processes that ensure participants are made whole, and when employees should check with their payroll offices if contributions don’t appear as expected.

Jim walks through what callers are asking the ThriftLine—processing times, repayment rules, loan limits, and what happens if a loan term bumps up against IRS time limits. He also highlights year-end issues like required minimum distributions for retirees, which TSP manages automatically to ensure compliance. As agencies work rapidly to restore pay and stabilize household budgets after the shutdown, Jim emphasizes that TSP systems and staff are fully engaged in supporting participants and beneficiaries through the transition.

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