Thanks to a booming stock market and despite a deadly global pandemic, the number of active and retired federal public servants with savings accounts of $ 1 million and more has more than doubled – from 45,219 to 98 879 – in the past year.
The largest account balance fell from $ 9.3 million in March of this year to $ 10 million at the end of June.
When the TSP started, there were only a handful of millionaires who brought their money with them into the federal 401 (k). Almost all of them were either members of Congress or politicians who brought with them the balance of their private pension plan. Many were also well-paid private sector lawyers who had been appointed federal judges.
Over 6.1 million active and retired public servants have money in the federal version of a 401 (k) plan. Most retired federal workers fall under the Old Civil Service Pension System (CSRS). But most of today’s workers fall under the Federal Employee Retirement System (FERS), which is more like a generous private sector retirement program. The FERS includes Social Security and a reduced federal pension (compared to the CSRS). Both groups can contribute to TSP. FERS workers are eligible for 5% government compensation.
While the focus is usually on 7-digit balances, the real story, many think, is the sheer number of workers participating and how their accounts have grown.
A year ago, over 480,000 people had account balances between $ 250,000 and $ 499,000. Today that number exceeds 530,000.
Most of those with million dollar accounts have been investing on average for almost 30 years. The vast majority have invested in TSP equity index funds (C, S and I funds) during good and especially bad times. During the Great Recession, which hit in 2008, tens of thousands of people transferred their money to super-safe treasury fund G. There is never a bad day. Or a very good one. Many also switched to buying G fund stocks until the markets improved. Some have never returned, missing since the start of 2009.
The tables below, courtesy of the Federal Retirement Thrift Investment Board, tell the story of the past year.
TSP millionaires as of June 30, 2020:
TSP millionaires as of September 30, 2020:
TSP millionaires as of December 31, 2020:
TSP millionaires as of March 31, 2021:
TSP millionaires as of June 30, 2021:
Almost useless factoid
By Alazar Moges
The United States has the highest number of summer Olympic medals with over 2,500, including over 1,000 gold. The Soviet Union comes in second with more than 1,110 medals, but even when combined with the Russian Federation and the Russian Empire, they still fall short of the United States by nearly a thousand medals. .