TOPICS
TOPICS
Talks begin on possible legislative enhancements to the TSP
Thrift Savings Plan officials have started discussions with Congress on proposed legislative improvements to the retirement savings program, including adding a Roth Individual Retirement Account option.
During a monthly meeting on Tuesday, Federal Retirement Thrift Investment Board officials said they have been in contact with the new leaders of the House Oversight and Government Reform Committee, which has jurisdiction over the TSP. They are hoping to meet next week with Rep. Steven Lynch, D-Mass., the new chairman of the panel's subcommittee on the federal workforce, according to Tom Trabucco, legislative director for the federal employee plan.
On the table are proposals discussed earlier this month during a meeting of the Employee Thrift Advisory Council, which is made up of federal unions and other worker organizations. The council supported automatically enrolling new federal workers into the TSP, adding a Roth feature, authorizing immediate employer matching contributions, and allowing spouses of deceased federal workers to leave their savings in the TSP.
Other potential legislative items TSP and ETAC are considering include changing the default fund for indecisive investors and creating a window for participants to access a variety of specialized mutual funds.
Trabucco said an aide to Rep. Henry Waxman, D-Calif., former chairman of the Oversight and Government Reform Committee, asked for information about TSP provisions the House passed in 2008 because Waxman remains interested in the addition of a Roth feature.
It's possible the TSP provisions would get attached to a larger bill, Trabucco said. He noted that plan officials will work with ETAC to prepare a formal legislative proposal to send to Capitol Hill.
Trabucco recently received a phone call from the White House Office of Presidential Personnel to discuss concerns over the fact that the terms of the TSP board's five members have expired. They are serving as holdovers, but could be replaced at any time. Board members are supposed to have staggered terms to ensure continuity. "This is the first time in the 22 years that there has been such outreach from presidential personnel," Trabucco said.
Pamela Jean Moran, TSP's director of participant services, said TSP expects to have a new demonstration Web site online by September, and participants should be able to "test drive" the site early in 2010. An upgraded Web site might garner more favorable ratings of the TSP from younger participants, officials said.
Meanwhile, officials commended Serco Group of Reston, Va., for ensuring a smooth transition after acquiring SI International, which managed one of TSP's two call centers and provided imaging, data entry and forms processing support. Serco will assume SI International's contract agreements with the plan. "We're very impressed," said Greg Long, executive director of the TSP. "We're working with SI and SERCO in such a way that doesn't create bumps in the road for us."
Mark Hagerty, chief information officer for the TSP, noted that a two-year plan to upgrade technology capabilities is on track. Officials struck an agreement with Switch & Data of Tampa, Fla., in December 2008 to expand operations to a new data facility in Northern Virginia. The plan involves replacing mainframe computers with newer technology offering more memory and faster processors, consolidating and replacing servers, modernizing IT networks, and improving storage capacity.
Officials began moving equipment into the new center last month, Hagerty said. The new data center is expected to be fully operational by September.
COMMENTS
- The TSP needs to have at least a few additional "safe" options, and options which typically do well in economic down times. It is extreeeemely concerning to me that our "safe" option is the G fund, which is essentially a US dollar investment. Now obviously I love our country, but if our dollar takes a beating, which is not an unpredictable event in the future, it would be nice to at least convert our accounts into something like a gold option, or have more international "safe" options. I know the people in charge would not want us to pull out of the G fund in mass, as they want it in there to fund their debt, but it is our money. I believe this should be a serious concern of ours. poorboy Posted April 3, 2009 2:37 AM
- I find dealing with the TSP Centers frustrating. I recently submitted a TSP-3, Change of Beneficiary Form. They changed my address. I did not submitted a TSP-9 Form, Change of Address. When I called them they explained that I put the wrong street number on my TSP-3 Form so instead of calling me or writing and asking is this a mistake. No, not the TSP, they just changed the address sending my personal information to my neighor. Thank God for Joyce. She walked my mail over. But, when I spoken to the TSP representative, it was like you made the mistake don't blame the TSP, we do everything right and the participants do it wrong. Participants don't understand. Considering that federal workers are left to the own efforts to decipher this arcane TSP rules. I'm not aware of the TSP is offering any form of instruction on these rules. I don't recommend calling the customer service people for explanations as you may get any sort of response. Something got to give here. Before the TSP starts making changes or paying funds out it needs to ensure that the partcipant agrees that the TSP is doing what she/he wants. They absolute have to get a handle on quality control. It is out of control if you haven't notice. J Menza Posted March 22, 2009 3:41 PM
- Just so you know, i have reduced my TSP to equalize the 5%. The rest goes into MY personal IRA. I no longer trust the individuals running the TSP to do the best for me. Buy and Hold? You gotta be retarded to believe that in this market. Up 1.6% last year trading. I can trade a 1% move monthly and make out bigtime if they would quit the Buy and hold. N.E. Melendez Posted March 7, 2009 7:28 PM
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