THE FEDERAL DIARY: Risks and Rewards
Federal workers who invested in the stock market option of their tax-deferred thrift savings plan earned 20.85 percent over the last 12 months.</br></br>Those who stuck with the safer Treasury securities option of the plan earned 9.18 percent, according to new data from the Federal Retirement Thrift Investment Board. The thrift savings plan is worth almost $4 billion and is growing at a.rate of $8 million daily.</br></br>ÐÊ The 800,000 people enrolled in the Federal Employees Retirement System may invest up to 10 percent of their salary (and get a 5 percent government match) into any, or all, of the options: the G-Fund (stocks), F-Fund (bonds) or G-Fund (treasury securities).</br></br>ÐÊ The 2.1 million workers enrolled in the old Civil Service Retirement System may invest only 5 percent, with no match from the government. Their contributions must go into the G-Fund.</br></br>Stock and bond investments offer greater risk and reward. Currently, only the employee contribution can go into the C or F funds. Government contributions go to the G-Fund. Congressional hearings begin next week on a bill that would allow all contributions of FERS employees to be invested in any of the three options.