At the TSP inception only one monthly IFT was allowed. Later on, Mr. John M. Nolan (former New York City Postmaster)introduced daily IFT which lasted until Ms. Tracey Ray and Mr. Gregory Long replaced it, in 2008, with the present two monthly IFTs. No law needed, the interfund transfer rule was established through a formal rule-making process by the FRTIB (the Agency), actually by the Chief Investment Officer and the Executive Director.
Things changed since 2008 - the TSP participants are more than ever at a disadvantage in managing their investments in today markets
( https://www.businessinsider.com.au/automated-trading-volatility-macquarie-bank-machine-learning-2018-11 )
using the diabolical IFT rule.
My self, I no longer can take it, as a retired being one more reason not to. So, on 11/05/2018, in an email, I asked FRTIB Executive Director Mr. Deo Ravindra to consider changing the IFT rule at the same time with the implementation of the TSP Modernization Act of 2017, specifically:
“The sentence of the present rule "For each calendar month, the participant's first TWO IFTs can redistribute money in his or her account among any or all of the TSP funds"
must be changed to at least
"For each calendar month, the participant's first THREE IFTs can redistribute money in his or her account among any or all of the TSP funds".
Please let me know your position regarding my request.”
The answer I received from “tspadmin” rather than from Mr. Ravindra directs me to two links
https://www.ecfr.gov/cgi-bin/retrie...ue&n=pt5.3.1601&r=PART&ty=HTML#se5.3.1601_132
https://www.federalregister.gov/documents/2008/04/24/E8-8957/participants-choices-of-tsp-funds
and also is pointing out:
“The Agency has adopted the interfund transfer limit policy because the costs associated with frequent transfers have harmed TSP participants. By law, the Agency must adopt investment policies that provide for low administrative costs. (5 U.S.C. 8475) The Agency’s interfund transfer limit policy decision is completely consistent with this duty. Therefore, the Agency has no intent to change the interfund transfer limit at this time.”
There are many disturbing arguments made by the Agency in the content of the above second link, for example:
“Some participants also challenged the experience and motivations of the Agency's Chief Investment Officer, Tracey Ray. Ms. Ray graduated summa cum laude from Washington College. She was immediately hired by Merrill Lynch and worked there as an account executive for six years, providing investment advice about stocks, bonds, options and mutual funds to clients. After her tenure at Merrill Lynch, she spent 16 years in the investment department of USF&G Corporation, a Baltimore-based Fortune 500 insurance company, which was purchased by St. Paul Companies in 1998. While there, she served as a Vice President, portfolio manager and trader for stock, bond, option and short-term cash portfolios, and was responsible for the derivatives program. She also completed the program to earn the designation of Chartered Financial Analyst. She left St. Paul Companies in 2001 to take the position of Deputy Chief Investment Officer for the State of Maryland Pension Fund, where she spent four years evaluating, hiring and firing active money managers until she was hired by the Thrift Savings Plan in 2005. She also serves on the Advisory Committee for the Virginia Retirement System's Defined Contribution Plans.”
It suffices at this time to say that the Agency did not found even a scintilla of validity in any of the large number of issues being raised by the opponents.
On 11/25/2018 , also by email, I asked a board member of the FRITB, in the next monthly meeting, to raise and side with changing the present rule governing the Interfund Transfers from two to a least three monthly IFTs. The next day answer received it looked like that my message was forwarded to Mr. Ravindra.
A new month started, no answer yet from Mr. Ravindra!
Things changed since 2008 - the TSP participants are more than ever at a disadvantage in managing their investments in today markets
( https://www.businessinsider.com.au/automated-trading-volatility-macquarie-bank-machine-learning-2018-11 )
using the diabolical IFT rule.
My self, I no longer can take it, as a retired being one more reason not to. So, on 11/05/2018, in an email, I asked FRTIB Executive Director Mr. Deo Ravindra to consider changing the IFT rule at the same time with the implementation of the TSP Modernization Act of 2017, specifically:
“The sentence of the present rule "For each calendar month, the participant's first TWO IFTs can redistribute money in his or her account among any or all of the TSP funds"
must be changed to at least
"For each calendar month, the participant's first THREE IFTs can redistribute money in his or her account among any or all of the TSP funds".
Please let me know your position regarding my request.”
The answer I received from “tspadmin” rather than from Mr. Ravindra directs me to two links
https://www.ecfr.gov/cgi-bin/retrie...ue&n=pt5.3.1601&r=PART&ty=HTML#se5.3.1601_132
https://www.federalregister.gov/documents/2008/04/24/E8-8957/participants-choices-of-tsp-funds
and also is pointing out:
“The Agency has adopted the interfund transfer limit policy because the costs associated with frequent transfers have harmed TSP participants. By law, the Agency must adopt investment policies that provide for low administrative costs. (5 U.S.C. 8475) The Agency’s interfund transfer limit policy decision is completely consistent with this duty. Therefore, the Agency has no intent to change the interfund transfer limit at this time.”
There are many disturbing arguments made by the Agency in the content of the above second link, for example:
“Some participants also challenged the experience and motivations of the Agency's Chief Investment Officer, Tracey Ray. Ms. Ray graduated summa cum laude from Washington College. She was immediately hired by Merrill Lynch and worked there as an account executive for six years, providing investment advice about stocks, bonds, options and mutual funds to clients. After her tenure at Merrill Lynch, she spent 16 years in the investment department of USF&G Corporation, a Baltimore-based Fortune 500 insurance company, which was purchased by St. Paul Companies in 1998. While there, she served as a Vice President, portfolio manager and trader for stock, bond, option and short-term cash portfolios, and was responsible for the derivatives program. She also completed the program to earn the designation of Chartered Financial Analyst. She left St. Paul Companies in 2001 to take the position of Deputy Chief Investment Officer for the State of Maryland Pension Fund, where she spent four years evaluating, hiring and firing active money managers until she was hired by the Thrift Savings Plan in 2005. She also serves on the Advisory Committee for the Virginia Retirement System's Defined Contribution Plans.”
It suffices at this time to say that the Agency did not found even a scintilla of validity in any of the large number of issues being raised by the opponents.
On 11/25/2018 , also by email, I asked a board member of the FRITB, in the next monthly meeting, to raise and side with changing the present rule governing the Interfund Transfers from two to a least three monthly IFTs. The next day answer received it looked like that my message was forwarded to Mr. Ravindra.
A new month started, no answer yet from Mr. Ravindra!
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