Federal Retirement Thrift Invesment Board

[FundSurfer]

Board minutes for September are mainly about the budget for next year and the need to increase the cost basis in order to pay for modernization of the computer/software system being used. I'm all in favor of that.

The only other item of interest is that the fund prices will be taken out an extra two decimals. This is being done primarily for g-fund purposes. G-fund currently only pays every 5-6 days. This way the G-fund will increase daily, which will eliminate the g-penny game. You had to know this would happen eventually.

Find the September minutes on the page below if interested.

http://www.frtib.gov/FOIA/index.html

 

[nnuut]

I like the "G" paying every day!! Sometimes I chase the Penny and it takes me 2 or 3 days to get out, at least I would make something every day. .08 \ 7 = .011428%

 

[James48843]

Another good pickup from the meeting minutes-

The head guy mentions that L-funders actually moved from higher risk L funds to lower risk L funds in August, and the response was something to the effect of: "Good, that means they are making their own decisions- our job isn't to prevent them from making their own decisions- our job is to educate and let them manage their own risk".

That statement is night and day different from the previous month's board minutes, when they were talking about instituting trading fees to prevent people from moving around, and I consider that change in attitude to be a postive development.

 

[James48843]

One thing I see in the minutes, though, is they still don't get it.

They still don't get what a powerful tool they already have at their fingertips. they are talking about expending another million bucks on a new DVD to mail out to new employees.

They could, instead, simply put the video on their own website, and offer training that way. Save a million bucks, and make the video available on the site for whenever someone wants to watch.

Further, they break down National Guard/Reservists with a paultry 8% participation rate. They don't understand how to reach these folks.

Simple. Create a Guard/Reserve specific training video and upload it to their website. In fact, ask the Armed Forces Video specialists to make it for them. Offer a on thousand dollar prize for the best five minute or less TSP for Guard/Reserves video to be produced. And then select from all the entries that come in, and upload the best one.

And then also ask the Armed Forces Network types to help publicize it, and then ask recruiting command to help work it into the enlistment packages. Get one hour of TSP training inserted into IET training, and OBC training, and in one year you'll have participation rates skyrocketing. All it takes is a phone call and an "ask".

But then again, what do I know? I only retired from the National Guard as a public affairs officer (and began contributing the very first pay period I could in the Guard, as I already had a federal employee account).

 

[James48843]

Note:

October's board meeting minutes should be out soon.

If anyone notices them being posted, please post here.

thanks

 

[FordMan]

One thing I see in the minutes, though, is they still don't get it.

They still don't get what a powerful tool they already have at their fingertips. they are talking about expending another million bucks on a new DVD to mail out to new employees.

They could, instead, simply put the video on their own website, and offer training that way. Save a million bucks, and make the video available on the site for whenever someone wants to watch.

Further, they break down National Guard/Reservists with a paultry 8% participation rate. They don't understand how to reach these folks.

Simple. Create a Guard/Reserve specific training video and upload it to their website. In fact, ask the Armed Forces Video specialists to make it for them. Offer a on thousand dollar prize for the best five minute or less TSP for Guard/Reserves video to be produced. And then select from all the entries that come in, and upload the best one.

And then also ask the Armed Forces Network types to help publicize it, and then ask recruiting command to help work it into the enlistment packages. Get one hour of TSP training inserted into IET training, and OBC training, and in one year you'll have participation rates skyrocketing. All it takes is a phone call and an "ask".

But then again, what do I know? I only retired from the National Guard as a public affairs officer (and began contributing the very first pay period I could in the Guard, as I already had a federal employee account).

MORE DVD's from TSP? They must have money to burn. These marketing costs, along with the NFC relocation costs, probably dwarf any trading cost issues. That's why I don't think it is a trading cost issue. I think trading costs are a red herring. If so, what's the real issue? Why do they want to lock my money into a Virtual "TSP lockbox?" (Al Gore call your office). Who's money is it?

 

[Talltimber]

"LockBox", LOL

 

[oreo]

I don't know if anyone has seen this audit but I found it very interesting.

http://www.gao.gov/new.items/d07541.pdf

United States Government Accountability Office
GAO Report to the Ranking Member, Committee on Oversight and Government Reform, House of Representatives
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
Due Diligence Over Administrative Expenses Should Continue and Be Broadened
May 2007
GAO-07-541

 

[FogSailing]

Just a note. I just wrote my Congressman asking for her help in (1) either keeping the existing rule in it's current form or (b) coming up with a rule that provides federal employess with adequate flexibility to make IFT's in a way that allows us to adapt to changing market conditions..

It's really easy to email your representative. Just takes a few minutes..

I highly recommend it..

I used to fight with GAO all the time. Most of the time, we had to teach them what the subject matter was so they could write their report, then we argue with "stupid" recommendations (i.e. draconian nonsense when we spotted it). If the TSP Board doesn't have the management expertise to fight for what's right, they need new management.

FS

 

[Talltimber]

Good idea.

 

[Guest2]

I don't know if anyone has seen this audit but I found it very interesting.

http://www.gao.gov/new.items/d07541.pdf

United States Government Accountability Office
GAO Report to the Ranking Member, Committee on Oversight and Government Reform, House of Representatives
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
Due Diligence Over Administrative Expenses Should Continue and Be Broadened
May 2007
GAO-07-541

Oreo,
Just read the Audit, Thanks for the info.
It appears that due diligence over admin
costs, places a little more pressure on the
Exec. With that said, this audit (I believe)
does not include costs and fees associated
with IFT's nor the TSP Funds per se. I did
appreciate your giving to the MB some new
information,,,,,,,Thanks Again

 

[James48843]

NEWS FLASH:

TSP Thrift Board just posted it's October meeting minutes.


http://www.frtib.gov/FOIA/minutes-board-member-meetings_2007Oct.pdf

One thing I noted-

In September, it says that $1.6 Billion was added to the funds overall from employee contributions.

Yet $6 BILLION overall was added to the fund balance.

Where did that extra $4.4 BILLION DOLLARS come from?

The TSP Board says it came from the general overall market increase, AND- Profits from traders.

Read it yourself.

Did you get your share of the $4.4 BILLION in increased shareholder value?

 

[RAE]

NEWS FLASH:

TSP Thrift Board just posted it's October meeting minutes.


http://www.frtib.gov/FOIA/minutes-board-member-meetings_2007Oct.pdf

One thing I noted-

In September, it says that $1.6 Billion was added to the funds overall from employee contributions.

Yet $6 BILLION overall was added to the fund balance.

Where did that extra $4.4 BILLION DOLLARS come from?

The TSP Board says it came from the general overall market increase, AND- Profits from traders.

Read it yourself.

Did you get your share of the $4.4 BILLION in increased shareholder value?

Thanks, James. These notes are indeed interesting. Greg Long said in the Sept. meeting minutes that assets in TSP were increasing at about $2 billion per month, and that this increase would "ikely lead to lower expenses in the future, as assets continue to increase". So, now we are increasing at $6 billion per month......guess what, folks, that means even LOWER expenses for TSP are likely in the future. The expense ratio is at ONE BASIS POINT currently, as of these Oct. minutes. They say they expect that to rise to TWO basis points, but I'm not sure that will even happen, considering the rapid increase in assets that they are seeing.

All of this reinforces what we have been saying - expenses are flat or decreasing, there is NO EVIDENCE that frequent trading has resulted or will result in a significant increase in expenses. If anything, expenses are trending downward!

Use this information in your contacts with your congressmen, ETAC, etc..

 

[James48843]

Thanks, James. These notes are indeed interesting. Greg Long said in the Sept. meeting minutes that assets in TSP were increasing at about $2 billion per month, and that this increase would "ikely lead to lower expenses in the future, as assets continue to increase"..

You know what? Assets are increasing by $2 BILLION dollars a month. And you know how much of that is contributions by employees? Only 600 million. You want to know where the rest is coming from?

1. The market growing in general, and......

2. THE PROFITS MADE BY TRADING.


Think about them apples for a minute. When the slam the door on trading activity, what do you think that is going to do to the speed of growth of the funds overall?

 

[pogo]

lets take the profits of trading from the i-fund and make an account so when they blow the fv estimate take it out of the account to pay for there mistake. That's to easy--so they will put it in the g-fund so bush and congress can borrow it

 

[Show-me]

From the October, 15 2007 minutes.

".......plan assets had increased by over $6 billion in one month. Mr. Long agreed and noted that $1.6 billion came from new cash flow and the rest was attributable to investment decisions and the capital markets."


$4.4 billion made from investment decisions in one month. :nuts:

 

[nnuut]

I don't know about you people but I've HAD ENOUGH of this SMOKE and MIRRORS crap from the TSP. Why can't they be honest and tell us the REAL REASON they are trying to limit our trades??
Is the Government planning to put the whole SOCIAL SECURITY SYSTEM into a TSP like system and don't want Government Employees to have more flexibility than the rest of the US? Something is UP and I can't put my finger on it, YET!!:nuts: Typical-----CONSPIRACY THEORYS ramble through my mind!!:notrust:

 

[James48843]

Hey, TSPGO-

Can you add this to the news list?

From Federal News Radio-
TSP Board taking heat over new limits:
http://www.federalnewsradio.com/?sid=1308389&nid=250

Everybody should hear this one- an interview by Tracy Ray last week. We've had a lot of success in gathering signatures, and Tracy is fighting back. We need to keep up the pressure.

Listen, and then comment here.

Thanks

 

[Show-me]

She claims that they can not determine a fee because trading cost differ from trade to trade. Guess they never heard of averaging.

I wonder how much the trading cost differ from trade to trade and if they are not telling us something.

I will note that she said she talk to several participant that are very upset. I was one of them.

She said the L Funds are "set up to to trade that way" meaning daily and that all trades including the L Fund are "rolled up into one order and handed to Barclay".

Now, what happens when L Fund participation exceeds frequent trader participation? Do they decrease the daily to a weekly rebalance?

 

[sugarandspice]

Really the bottom line in all of this is that the TSP does not, and I will repeat it, DOES NOT want members moving their money around. A "once every 2 weeks" trade restriction is one more than the old system. The only difference is that you can pick the day it transfers instead of waiting till the 1st of the month. TSP should adopt Ron Popeil's Showtime Rotisserie Cooker slogan of "Just set it and forget it!" That's really what TSP wants.