Have you ever heard of the Federal Thrift Savings Plan (TSP)? It’s the 401k type plan for federal employees and there are 5 million current, retired and former employees of the government with account balances in that plan. One of the investment options is fund G.
The G Fund is invested in short-term U.S. Treasury securities specially issued to the TSP. As a result, the G Fund can be affected when the statutory debt limit is reached. However, the principal and interest payments on these securities are guaranteed by the U.S. Government.
As of 2015, nearly 40 percent of the money invested in TSP accounts is in the G Fund–almost $200 billion. The interest in this fund is calculated the same way as the interest on bonds held by the Social Security Trust fund.
So, if you think that Congress stole the Social Security Trust money simply because it is invested in special US Treasury bonds, then Congress also stole the retirement money from five million of its employees. 🤑
Of course, nobody stole any of this money, it’s invested and paying interest.