Details on the TSP lawsuit

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James48843

James48843

Well-known member
Good article over on FEDSMITH about the TSP lawsuit, and a link to the form to let the attorneys know you are adversely affected.

https://www.fedsmith.com/2023/06/03/lawsuit-filed-over-tsp-website-problems/

Too much to list here- but go read the story.

Here is a small snippet:

“Class Action Lawsuit Seeking Financial Restitution

The lawsuit filing states, “Plaintiffs believe that the Class consists of hundreds, if not thousands, of persons and entities that were harmed by Defendants’ conduct.” The lawsuit cites defendants as Accenture Federal Services, Alight Solutions, LLC, Federal Retirement Thrift Investment Board (FRTIB) members, and the executive director of the FRTIB.”

Click above to read the whole story.


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Interesting. Didn't know there was a lawsuit.
Not sure how you would put a dollar amount on frustration and anxiety.
 
A nice settlement would be to make the website easier along the lines of Fidelity, TD Ameritrade, Vanguard, or T Rowe Price, but you know it will be something like $25 to anyone adversely affected without any real changes.
 
More details on that federal TSP lawsuit now over on Governmentexec.com.

They seem to have a very good case.

Check this out:


(SNIP)
“Despite defendants’ public assurances, since [Accenture] and Alight became the TSP recordkeepers in 2022, TSP participants who have applied for and were approved for TSP loans have not received their funds within three days, or even three months in some cases,” the lawsuit states. “Indeed, TSP participants, including plaintiffs [Alvaro] Rodriguez and [Thelma] Watson, have reported that funds were deducted from their accounts, but they never received the proceeds.”

In the case of Rodriguez, a retired Army specialist, he requested a loan in June 2022, shortly after the transition. That loan was approved in July, at which point the TSP deducted the roughly $4,000 loan amount from his account. But he did not receive his money, despite more than a dozen calls to TSP’s ThriftLine, until Dec. 29.

“Even though plaintiff Rodriguez did not receive the TSP loan proceeds for 166 days, during that time, on Oct. 3, 2022, TSP sent a message to plaintiff Rodriguez informing him that he missed ‘two or more payments’ on the TSP loan he had not yet received. TSP stated that if plaintiff Rodriguez failed to make payments on the TSP loan, he would be placed in default.”

As a result of the six month delay in disbursing his loan, the lawsuit alleges that Rodriguez had to take out a hardship withdrawal as well as a personal loan from Navy Federal Credit Union—at a much higher interest rate—instead.
]
Click to expand...

A whole lot more here:

https://www.govexec.com/pay-benefit...-over-botched-recordkeeper-transition/387138/
 
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