2011 a 'mixed bag' for TSP

Tuesday - 1/3/2012, 4:20pm EST

Tom Trabucco, director of external affairs, Federal Retirement Thrift Investment Board

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By Jack Moore
Federal News Radio
@jmooreWFED

Federal employees (401)k-style retirement plans posted varied returns over the past year.

The Federal Retirement Thrift Investment Board, which oversees the Thrift Savings Plan, announced the year-end TSP numbers Tuesday.

Tom Trabucco, the director of external affairs at the board told In Depth with Francis Rose, 2011 was "a mixed bag" for TSP returns.

The G Fund, which invests in Treasury securities and has the highest rates of participation, and the C Fund, which is tied to the performance of the S&P 500, both posted modest gains for the year.

The F Fund, which tracks a broad index of government and corporate bonds, posted the largest gain for the year at nearly 8 percent.

"A stellar performer and a consistent performer I must say if you look back over the last five or six years," Trabucco said of the F Fund.

The I Fund, which tracks international stocks faced a sharp downturn at the end of 2011, which Trabucco said makes sense given the debt crisis in Europe.

The Lifecycle funds, which invest in a combination of the common index funds and are "tailored" to meet retirement target dates, also posted mixed gains. The L Income posted a 2.23 percent gain and the L 2020 (for federal employees looking to retire between 2015 and 2024), was up only slightly for 2011 — 0.41 percent.

The L 2030 and L 2040, with retirement targets surrounding those dates, ended in the red for 2011.

December TSP returns

Fund G Fund F Fund C Fund S Fund I Fund
Month 0.15 % 1.01 % 1.04 % -0.04 % -2.03 %
2011 2.45 % 7.89 % 2.11 % -3.38 % -11.81 %

L Funds L Income L 2020 L 2030 L 2040 L 2050
Month 0.20 % 0.11 % 0.09 % 0.07 % -0.01 %
2011 2.23 % 0.41 % -0.31 % -0.96 % NA

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