All TSP Funds Gained Again in September

Brian Anderson

2 months ago

September was another good month for the federal government’s Thrift Savings Plan, as for the second straight month, all 16 TSP investment funds increased in value.

The stock rally was the main engine pulling TSP returns higher in September, but bond performance, coupled with diversified allocation in lifecycle funds, allowed all TSP funds to post gains—even those less exposed to equities.

The common stock C Fund led the way among the five primary TSP investment funds with a 3.65% increase in September, and year-to-date it’s up an impressive 14.8%. The I Fund featuring international investments has been the biggest winner so far this year, up 25.34% after logging a 3.16% gain in September.

The S Fund featuring small- and mid-sized businesses gained 2.04% in September and is up 11.2% year-to-date. The fixed income (F) fund grew 1.09% last month and has increased 6.14% since January.

The G Fund, made up of government securities, increased by its statutorily mandated rate of 0.35% last month. So far in 2025, the G Fund has grown 3.34%.

Each of the TSP’s lifecycle (L) funds, which shift toward more conservative investments as participants get closer to retirement, similarly gained ground in September.

Each of the TSP’s 11 lifecycle (L) funds, which shift toward more conservative investments as participants get closer to retirement, similarly gained ground in September.

The L Income Fund increased 1.18% (+7.50% YTD) (also, the L 2025 Fund, having reached its target date, has been rolled into the L Income Fund); L 2030 increased 2.14% (+12.39% YTD); L 2035, 2.32% (+13.29% YTD); L 2040, 2.50% (+14.15% YTD); L 2045, 2.64% (+14.89% YTD); L 2050, 2.79% (+15.61% YTD); L 2055, 3.24% (+17.90% YTD); L 2060, 3.25% (+17.90% YTD); L 2065, 3.25% (+17.90% YTD); L 2070, 3.25% (+17.91% YTD); and L 2075, 3.25% (the L 2075 Fund launched in July).

On a FedGovToday podcast earlier this year, Jim Kaplan, Director of External Affairs at the Federal Retirement Thrift Investment Board (FRTIB), said auto-enrollment and automatic contribution settings are helping more federal employees take full advantage of their retirement benefits. Most new employees are enrolled at a 5% contribution rate, which qualifies them for full matching contributions from their agencies. Kaplan said participation in these full match levels reached all-time highs: 88.5% for employees under the Federal Employees Retirement System (FERS), and nearly 90% for those under the Blended Retirement System.

Shutdown not impacting TSP

Notably, the TSP has emphasized on its website that it will continue its normal daily operations during the current government shutdown. This is because the FRTIB is a non-appropriated agency. TSP’s more than 7.2 million participants and beneficiaries can still make investments, withdrawals, apply for loans and take any other standard actions.

FRTIB has also clarified that if TSP participants miss a loan payment during the shutdown, they will not be placed in a default status on their loan. Automatic paycheck deductions for loans are also paused during the shutdown, but participants can still send in direct loan payments if they choose.

TSP crosses $1 trillion threshold

Earlier this year, it was reported that the TSP closed out the month of June with just over $1 trillion in total assets across its 7.2 million participants and beneficiaries.

FRTIB officials said that high number shows a strong level of trust among participants in the TSP, and board officials also reported high levels of satisfaction among TSP participants. For the last 12 months (ending in June 2025), more than 93% of TSP users have consistently said they’re satisfied with the TSP’s offerings. Satisfaction among callers to the TSP’s customer service phone line also remains high. The FedGovToday podcast reported in April that the ThriftLine boasts an average wait time of just 54 seconds, with nearly 85% of callers reaching a live representative within 20 seconds.

The Thrift Savings Plan is widely recognized as the largest defined contribution (DC) retirement plan in the world, both by assets under management and by number of participants.

TSP millionaires at record high

The number of TSP millionaires—those with seven-figure account balances—stood at 171,023 as of the most recent report on June 30, 2025, which was a new record high. This represents a significant increase from March 2025, when there were approximately 147,000 millionaires, and continues a trend of growth since March 2020, when there were just 27,212.