In disinvestment, the Treasury in effect takes the G fund off the government’s books as debt owed, essentially freeing up an equivalent amount of money. The Treasury invoked that maneuver last week after a temporary suspension of the debt ceiling ended, while also using similar accounting maneuvers involving the federal retirement trust fund and certain securities issued to state and local governments. Those maneuvers will put off the need to raise the ceiling until around September.
“After the debt limit impasse has ended, the G fund is made whole,” the Treasury statement said. “Therefore participants in the Thrift Savings Plan who contribute to the G fund are unaffected.”
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