TSP funds posted strong gains in June 2025, reflecting a robust market recovery. Here’s a breakdown of how the core and lifecycle funds performed.
- G Fund (Government Securities): gained 0.37%, with a year-to-date (YTD) return of 2.22% and a 12-month return of 4.42%, maintaining its stable, low-risk return consistent with its statutorily mandated rate tied to government securities.
- F Fund (Fixed Income): returned 1.54%, with a YTD return of 4.02% and a 12-month return of 6.07%, rebounding from May’s 0.71% loss, signaling improved bond market conditions.
- C Fund (Common Stocks): achieved a 5.08% gain, with a YTD return of 6.18% and a 12-month return of 15.11%, driven by the S&P 500’s strong performance, contributing to its 25% Q2 increase.
- S Fund (Small- and Mid-Size Businesses): led with a 5.40% return, with a YTD return of 2.11% and a 12-month return of 15.61%, reflecting robust small- and mid-cap stock performance, aligning with its 28.4% Q2 gain.
- I Fund (International Stocks): posted a 3.73% gain, with a YTD return of 18.69% and a 12-month return of 16.91%, supported by international market strength and a weaker U.S. dollar, following May’s 4.97% return..
- Lifecycle Funds:
- L Income: 1.57%, benefiting from its conservative allocation (30.4% equities, 63.9% G Fund).
- L 2025: 1.45%, with assets transferred to L Income on June 27 due to its retirement.
- L 2030 to L 2070: Ranged from 3.00% (L 2030) to 4.62% (L 2065), reflecting their equity-heavy allocations, with higher returns for longer-dated funds (e.g., L 2055, L 2060, L 2065, L 2070 at ~4.61–4.62%).
- A new lifecycle fund, L 2075, launched on June 30 and is recommended for those planning to retire in 2073 or later.
One Big Beautiful Bill Passed
The “One Big Beautiful Bill” Act passed the House of Representatives on July 3, 2025, with a 218–214 vote, after Senate approval on July 1, 2025, by a 51–50 vote, with Vice President JD Vance casting the tie-breaking vote. House Minority Leader Hakeem Jeffries delivered a record-breaking speech lasting over eight hours and 44 minutes, using the “magic minute” to delay the bill’s passage and criticize its impact on Medicaid and SNAP benefits. The bill initially included provisions targeting federal employees’ benefits, such as increased retirement contributions and at-will employment options. However, the Senate parliamentarian ruled that these provisions violated the Byrd Rule, leading to their removal from the final legislation.
While targeted federal benefits have managed to survive, for now, the future for federal employees remains uncertain. Get prepared by speaking with a Federal Retirement Consultant (FRC®) who understands your unique benefits.
