TOPICS
TOPICS
Thrift Savings Plan executive director resigns
Gary Amelio is leaving his post as executive director of the Thrift Savings Plan for a private firm, plan officials announced Wednesday.
Amelio, who came to the TSP in 2003 and oversaw the 401(k)-style retirement savings vehicle's growth to $206 billion, will become president of retirement services for ULLICO Inc., which provides insurance and investments for union members.
The TSP has already hired executive search firm Heidrick & Struggles to find a replacement for Amelio.
Amelio's most significant accomplishment was the introduction of lifecycle funds to the TSP in August 2005. The funds automatically shift money from a mix of riskier to more conservative investments as participants age. The TSP has five standard funds.
TSP Board Chairman Andrew Saul, one of five part-time political appointees who hired Amelio in 2003, said the director fulfilled expectations.
"The board members and I knew that Gary's private sector retirement services experience was just the right recipe for leading the already successful TSP to the next level," Saul said in a statement. "We were not disappointed."
Before coming to the TSP, Amelio was senior vice president of the retirement division of PNC Bank in Pittsburgh.
Amelio reduced the TSP's budget to make the plan cheaper for participants. TSP participants pay 30 cents for every thousand dollars in the plan, by far the lowest rate of any 401(k)-style plan.
During his tenure, Amelio clashed with some members of Congress who wanted the TSP to add a Real Estate Investment Trust fund option to the plan. Amelio bristled at the idea that politics would play a role in determining which funds to add, and has so far stalled the addition of such a fund.
COMMENTS
- So, he finally leaves. And what is his legacy? That he came in, cleaned house, and lowered basis points! Wow, has everyone drunk the Kool-Aid on this one? You're missing the point on this basis points issue? It's elementary, if you bring in more than your disburse, then the cost of managing those funds (basis points) MUST go down! If the basis points had not been going down, then I would have more cause for concern that I presently have. What everyone fails to see is that the cost spending has gone up (look at the books; they're there for the public to see, especially us participants). Amelio has (on his watch), charged participants with the $40 million loss for the first debacle, then saddled us with a private sector firm that had NO experience in running a call center nor plan administration (they have sub-contracted out these services), then charged us for making loans (which led to participants making more hardship withdrawals and generated additional revenue to lower basis points), and ultimately led to the NFC finally telling the FRTIB that they no longer wished to do business with them. This was supposed to save the plan money, yet it is actually costing more. Because the plan actually takes in far more than it disburses out to participants, Amelio can and has actually spent more and still has the basis points go down.... and this is the legacy of a man with no financial experience. I say, gook luck Gary Amelio in your new job (and don't forget to bring along your little friends, wonder if you'll hook back up with Larry?). Wise Participant Posted January 29, 2007 9:22 AM
- I'm more worried about who they will hire next. Sometimes the crook you know is a lot better than the crook you don't. GovExec.com reader Posted January 26, 2007 3:16 PM
- Too back it's not the whole bunch! GovExec.com reader Posted January 26, 2007 9:30 AM
