Will government back TSP funds?


Q: If I purchase an annuity from MetLife with my Thrift Savings Plan funds and the company goes bankrupt, will the government back my money somehow? With the way financial institutions and large corporations are getting into financial dire straits, it just doesn’t seem safe to turn it over to anyone without some kind of government backing or guarantee.

A: There are state-run solvency pools which back up the guarantees of insurance companies, but their terms vary by state, so you should check with your state’s insurance regulators for details. It’s also possible that, if MetLife went bankrupt, your annuity would still be paid, either by MetLife or its successor. In the end, though, your only guarantee comes from MetLife.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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