Return to Article: Closing Open Seasons

By David McGlinchey dmcglinchey@govexec.com May 20, 2004
  • 4741

    If she really feels that way she should make our income tax free and we wouldn't need the tSP at all!

    The removal of open season is a good idea but it will increase the administrative cost of the fund and many individuals will switch funds frequently. Because those of us that use the fund as a tax dodge and long-term investment vehicle would be injured by this move I recommend that the fund do two things.

      1. Charge for each shift in allocation of existing funds - not allocation of contributions. This will remove the short-term profitability potential of trading funds frequently.

      2. Offer an index fund or two so we do not have to allocate between the various funds to achieve diversification.

    It is highly unlikely this will happen based on the fact that the fund does not charge enough for loans to stop high administrative costs from taking my money for those that borrow. There should be not borrowing from the fund for any purpose. However, if borrowing is allowed the cost should be $300 plus one percent of the outstanding balance each month.

    tax payer Posted May 20, 2004 7:03 AM
  • 4738

    It's way past time for this change. The article doesn't mention when the bill would come to the floor for a vote. The House is done for the year (did they start by the way?), and the Senate's dysfunctional. Employees may see this in 2008 if the current crop of non-legislators and executive non workers stay in power.

    I find it interesting that the current advertizing campaign calls the federal government "the employer of choice." Their destructive policies, lack of respect towards their workforce, and general disdain for thoughtful governance continually manifests itself through their deeds and not their words. This campaign is but another example of why the people need to retire these clowns.

    Retirement Manager Posted May 20, 2004 3:57 AM

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Closing Open Seasons
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