October 3, 2025
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As the federal government enters Day 3 of its shutdown, uncertainty looms over many federal employees and their families. Yet, in the middle of that uncertainty, there is one area where employees can find some relief—their retirement savings. The Thrift Savings Plan (TSP) continues to operate normally, and participants do not need to take any action as a result of the shutdown.
James Kaplan, Director of External Affairs at the Federal Retirement Thrift Investment Board, joins Fed Gov Today with Francis Rose to explain how the TSP is designed to remain steady in times like these. He begins with reassurance: “The TSP continues to operate on a regular status. We are not funded with annually appropriated funds, so we can continue to operate.” That stability, Kaplan says, means participants can focus on other pressing concerns without worrying about their retirement accounts.
One of the most significant improvements in recent years involves TSP loans. In past shutdowns, participants had to log into their accounts and manually adjust their repayment status if paychecks were interrupted. Now, Kaplan explains, the system automatically moves affected accounts into standby mode. “We recognize that you’re not in default if your paycheck isn’t processed,” he says.
The TSP is also prepared for an increase in questions and inquiries. Kaplan notes that the Board updates its website, tsp.gov, as soon as a shutdown begins, posting clear instructions and guidance. The call center system is updated as well, so participants hear the latest information when they dial in. Call center representatives are prepared to handle higher volumes, especially since this year’s shutdown coincides with “the fork in the road,” a wave of expected retirements. Thanks to the Board’s managed services contract, staffing levels can scale up or down quickly without affecting participant fees. “They have the ability to surge additional personnel if it’s needed, or to drop down if it’s not,” Kaplan explains. That flexibility ensures timely responses, with call centers already meeting efficiency targets of over 90 percent.
Customer service improvements extend beyond staffing. The TSP now tracks repeat inquiries, automatically escalating unresolved issues to higher-level specialists. This approach reduces follow-up calls and helps participants get the right answers more quickly. Metrics like call response times, issue resolution, and escalation rates remain central to the Board’s oversight of the recordkeeping contract.
Beyond shutdown response, Kaplan highlights another trend within the TSP: the growing popularity of Roth accounts. More participants, especially younger employees, are choosing to pay taxes up front and take advantage of tax-free growth. “Our people continue to choose to have some or all of their funds go into a Roth account,” Kaplan says, noting that overall totals and participation rates are steadily rising. The Board’s goal, he emphasizes, is to provide participants with as many options as possible to align with their financial needs.