GovernmentExecutive.com

The House Government Reform Committee will review customer service problems associated with the Thrift Savings Plan's new automated record keeping system at a July 24 hearing, a committee spokesman said Thursday.

Six years in the making, the new automated record keeping system was finally launched on June 16 only to encounter Web site problems. While TSP officials tried to fix the problems, they advised participants to access the system by telephone, but the subsequent barrage of calls to the system prevented some participants from getting through. The delays increased the frustration many participants had harbored over the years of delays and the millions of dollars spent building, then launching the system.

"People are very upset and we understand why," TSP spokesman Tom Trabucco said Thursday. "We know we have a problem with the phones and we are working on that."

Under the new system, federal workers should be able to make daily changes to their Thrift Savings Plan investments, a significant change from the monthly upgrades provided under the old system. The 3 million TSP account holders should also be able to access their account balance updates each day, transfer money from one fund to another, change the amount of their monthly payouts after they retire and make a partial withdrawal of money, rather than a full withdrawal, as soon as they retire. Another feature of the new system allows participants to submit loan applications electronically, though there is still a paper-based step for married Federal Employees Retirement System (FERS) members, according to Trabucco.

"The TSP new system may be up and running, however it is near impossible to reach anyone by phone or complete the application electronically as was promised and advertised as a special new feature," a federal employee recently wrote to GovExec.com. "It's one thing to say the system is working. It's quite another to say so when it is patently not true. In fact, saying the TSP is working is like [President] Clinton saying he didn't inhale or have an affair with [Monica] Lewinsky. It may be true, but only if words are redefined."

During the past month, many GovExec.com readers have complained that their loan applications seem to be in limbo, interfund transfers have not been completed, and attempts to contact someone for help have been futile.

According to Trabucco, 106,641 interfund transfers were processed and 12,120 loans were issued as of July 15, but a data entry backlog has created some problems.

"We do have a backlog of data entry work and that includes loan repayment checks, paper loan applications and paper withdrawal applications, but we've brought more resources to bear on this and are working through it," Trabucco said. "What we are trying to do is work through, in particular, this data entry issue and get those moving through. We think that things will be improving when that's done."

Trabucco also noted that the Web site is handling as many as 50,000 transactions an hour, with the highest volume of Web site hits occurring between 8 a.m. and 12 p.m. EST.

The board hired American Management Systems in 1997 to modernize the computer system and give federal employees more tools to manage their 401k-style retirement accounts. The $30 million project was supposed to be completed by May 2000, but when the implementation date was moved back four times and the budget tripled, the board fired AMS in July 2001. The board sued the Fairfax, Va.-based company for $350 million in damages and AMS filed a breach of contract suit against the board. Recently the two brokered a settlement in which TSP participants will pay $36 million for the failed contract, along with the more than $33 million paid to the contractor who took over the project after AMS was fired.

COMMENTS

• I separated from service back in August 2003. It is now the middle of January 2004 and I still haven't received my money. I filled out five withdrawal request forms and for some reason it was the wrong form and when I received the supposedly correct form it was the same one as before. They wasted two weeks sending me the same thing. Finally after a huge phone bill from numerous calls to the TSP thriftline which averaged 25 minutes a call at last the withdrawal request went through. I found this out by the TSP website which told me the withdrawal was processed, how much I was getting paid,etc. I was so happy for a split second until I realized the payment was by check and not by direct deposit as I had requested on the multiple requests before. I knew it would take longer to be mailed but I was just relieved to be getting my money as I was mentally exausted with dealing with the incompetence. They told me the check was mailed out on Dec. 9 and to give it a extra couple of days due to all the holiday mail. I checked the mail every day only to be let down once again as there was no check. I called on Dec. 23 and the lady on the phone told me I hadn't given it enough time yet due to the holidays. Just another one of their delay tactics but once again I gave them the benefit of the doubt. On Dec. 30 I filed a lost check report with them and was told by the lady she would take care of it and it would be EFT this time in 10 days or so. Never happened and it is now Jan.18 and once again they are telling me another two weeks. We will see I guess as I feel so helpless in what to do. This is only a portion of my complaints as I could go on for days. I'm running out of patience I feel as though I should charge them a late fee since they are charging me for their ridiculous new and inaffective record sleeping system. Wish me luck and may the force be with me. Brian Slatkin Posted January 18, 2004 11:30 AM
• I have been trying to get a loan from my TSP account since May 2003. As of today, 20 August 2003, I have still not received my money. Every time I talk to a TSP person, (after holding on line for 45 minutes) I have been told my loan was rejected because of the payroll ID number, then I was told that my loan was in the system. They said I should see the loan amount in my checking account in five to seven days. Based on that information I contracted builders to add a porch on to my house. When I did not receive my loan in my checking account I started calling the TSP Line. I was told again the system rejected my loan agreement due to an incorrect payroll ID number. I would prefer to use the automated phone sytem; however, it tells me that I do not have a loan in process. Where is my money???? How do I get it??? Does anybody know??? Can anyone help me??? GovExec.com reader Posted August 20, 2003 12:01 PM
• This saga will continue and linger as a bad taste in our souls for a long time. Consider this, since May 31, 2003 I can only account for ONE deposit from my 8 percent every two weeks. Will we all be able to check our statements soon, according to the "loco" pay representative the money should be in my account, however my account does not reflect any deposits except for the one. Will our paid representatives do any look see as to what has happened to our investment. I hope someone pays attention to this and what is being done to everyone. Makes one wonder if this may have been happening for a lot longer than just since this newest revamp of the system! Is there a rip off taking place? Go back and look closer at your records if you have not paid exclusive attention to the deposits each pay period!!! GovExec.com reader Posted August 10, 2003 8:20 PM