TOPICS
TOPICS
Power Struggle
The Federal Thrift Retirement Investment Board was thrown briefly into conflict this week when one member suggested more stringent controls on the powers of the Thrift Savings Plan's executive director.
The public portion of Monday's board meeting was about to conclude when board member Thomas Fink put forward his informal but controversial proposal to exert more control over the executive director's decisions. Fink suggested that the executive director be required to seek board approval for decisions that involve more than 10 percent of the Thrift plan's budget or for issues that a majority of board members deem important.
Gary Amelio is the executive director of the TSP. The plan operates as a 401(k)-style retirement system for federal employees. It has about 3.5 million participants and more than $150 billion in assets.
Fink said that his idea is not a slight to Amelio, and he suggested that the policy could provide legal protection for the executive director. At least one board member, however, rushed to squash the idea.
Alex Sanchez told Fink he saw no reason to implement limits on Amelio's decision making.
"I almost fell out of my chair when I heard that question," Sanchez said.
Thrift board Chairman Andrew Saul said that he wants board members to think over the proposal before the next meeting.
"I'm not saying it's a bad idea, I'm not saying it's a great idea," Saul said. "I just want to talk about this...I'm not going to pocket it; we're going to talk about it."
TSP staff members said that a discussion of the issue should take place on the record at a meeting. Sanchez noted that Amelio always has brought major decisions to the board's attention. Fink replied that he wants to formalize that process.
"He didn't have to" bring the information, Fink said. "I think he should have to do it."
COMMENTS
- Dear Wake Up:P> You make agruments that do not exist. There is no obligation to join any plan and you do not even have to join TSP. You're in left field. The other comment is we join the fund because it is our fund. How dumb is that! Put your money in any fund you want! You can take your contribution and join any public mutual fund that fits your desires. The truth is that the fund is fine and that the matching contributions increase your return above anything you can get anywhere else. You simply want to elect the managers but you do not have that power. You also would not have that power in any publicly traded mutual fund, so why is it a goal of yours here? As for such funds in the private sector you need to read up on how they work and what is happening! I suggest you talk with Enron, MCI, United Airlines, Tyco, Health South and others that have lost everything in the great private plans! Also, FYI those in ESOP plans have everything tied up in their empolyer - pensions, savings, and employment! If the dcompany goes so does all the benefits of the employees! That is not likely in the govcernment. Seems to me you are speaking out of total ignorance of how such funds work in the private sector and what a good deal you have with the government. You should be hollering for a greater matching of contributions and not the ability to elect the money managers that you would not find anywhere else! help me Posted June 28, 2005 6:48 AM
- Help me does not understand what's being forced on us. I hope this will clarify things a little for you. Surely, we can make a loan or do an in-service withdrawal. We are talking about having the right to 'zero out' our accounts and invest in Wal-Mart, Disney or whatever... The TIB 'gotta hold' on our money and WE have no say so. I suppose it's okay that your money is in this plan and it's being spent on whatever strikes Amelio's fancy? I know the trap that's set for us. Hopefully, you'll be retired in a few years and your money will still be here. What about those who will be OBLIGATED TO INVEST IN THESE NEW LIFE CYCLE FUNDS? Right now it's another option, but I've dealt with these people and surely, the younger people will have to put their money there. If you only have $9.00 in the plan it's yours and you should not be at the mercy of one person. We are shareholders. Does BEllSouth or other companies with shareholders have a director appointed by the president of the USA? That should tell you something, it's political. Politics, poly (many) ticks (blood sucking). If you truly trust our political folk I don't want to shatter your illusion. If you're within ten years of retirement your money is probably okay. This plan is sinking and you want to believe that these people care about you. Don't be no fool, it's about power and money. We have no representation at the board and they have no oversight. It's kind of like taxation without representation. If history has taught you anything, know that greed and power usually wins over conscience in modern day and politial America. You know only what they tell the media. You work for the government, so I know you see the inner workings and lies we're told. They call us peons for a reason. Think and look before you're money is spent on vacations, cars and diamond rings. If you don't want to see, you won't for now. We'll all watch it on CNN in a few years anyway. Wake up Help me GovExec.com reader Posted June 25, 2005 4:14 PM
- Dear Help Me, Here is one answer for your question as to why "we" continue to participate in the plan. Why shouldn't we? It's OUR plan. TSP is OWNED by the participants. That is in the law. Why shouldn't we fight to have it the way we are entitled to have it? So, is it your opinion that we should just take our money elsewhere? TSP is a great investment if it's being administered properly. Why should I leave the plan? They should be put out of their jobs and responsible people should replace them. What are you thinking????? GovExec.com reader Posted June 25, 2005 2:15 PM
