TSP board to limit interfund transfers

[Braveheart]

CONGRESSIONAL UPDATE: I just spoke with a staff member in my Congresswoman's office. Here's what he shared with me:

- Senator Collins is currently (3:00 EST) being briefed by the TSP reps. Her staff will have some indication of the Senator's view of this after the briefing is over.

- He spoke with the Oversight Committee (Subcommittee on Federal Workforce, Postal Service, and the District of Columbia).
* The Majority members (Dems) are quite satisfied with the actions the TSP Board is taking. They aren't interested in the facts.
* The Minority group (Rep) are in a "wait and see" mode.
BLUF: No one is doing anything to slow down or interfere.

- I raised the issue of the potential violation of Federal Code due to the TSP Board already limiting interfund transfers for those "frequent offenders". He will attempt to get a ruling from counsel on this matter.
**I'M PUSHING FOR A TEMPORARY INJUNCTION. IT'S NOT EASY**

His advice was for us to contact the sub-committe members directly.:notrust:
Danny K. Davis, Chairman
Kenny Marchant, Ranking Member

Anyone in MAINE should contact Senator Collins office IMMEDIATELY!! by phone, e-mail, fax, any and all means possible. This appears to be our best possible foot-in-the-door on this issue.

I'll keep you posted as I get more info.

OK TSPinWV what's the deal ? Did you get any information in the past 24 hours ? - Braveheart !!!

 

[TSPinWV]

Nothing yet. I hope to have an update - with more specific facts - later today.

 

[2EASY]

From www.fedweek.com:

TSP Proposes Rules on Interfund Transfers

The TSP has formally proposed a rule change it has been indicating for some time that it intends to pursue, limiting the number of interfund transfers that investors may make to two a month, with a third allowed only for transfers into the government securities (G) fund. The proposed rules in the March 10 Federal Register repeat the TSP’s often stated concerns that a small number of investors are making especially frequent transactions under the current system, where transfers can be made as often as every business day, driving up costs for all investors. The notice said it is not practical for the TSP to charge investors a fee for making transfers and said that many mutual funds impose even greater restrictions on transactions than the TSP is proposing, in some cases limiting investors to only four a year. The TSP indicated that it intends to finalize the policy quickly, setting April 8 as the deadline for comments.

 

[hessian]

From www.fedweek.com:

TSP Proposes Rules on Interfund Transfers

The TSP has formally proposed a rule change it has been indicating for some time that it intends to pursue, limiting the number of interfund transfers that investors may make to two a month, with a third allowed only for transfers into the government securities (G) fund. The proposed rules in the March 10 Federal Register repeat the TSP’s often stated concerns that a small number of investors are making especially frequent transactions under the current system, where transfers can be made as often as every business day, driving up costs for all investors. The notice said it is not practical for the TSP to charge investors a fee for making transfers and said that many mutual funds impose even greater restrictions on transactions than the TSP is proposing, in some cases limiting investors to only four a year. The TSP indicated that it intends to finalize the policy quickly, setting April 8 as the deadline for comments.

Lawsuits! Need lawsuits!! -Been saying it for a LONG while now!! Lawsuits get this tied up in the courts - but its needed before it gets instituted!!!
Only need 1 person to file! - to get court-ordered injunction - they must then prove claims /not-prove-able!

 

[tsptalk]

The notice said it is not practical for the TSP to charge investors a fee for making transfers and said that many mutual funds impose even greater restrictions on transactions than the TSP is proposing, in some cases limiting investors to only four a year.

The problem with their justification is that we have our money in there and they are changing the rules midstream. If I was in a mutual fund that changed its rules, I'd move my money elsewhere. We are stuck in the TSP. If they want to change the rules we need to get access to our money (our contributions and their earnings) to move it to an IRA without a penalty. I can understand keeping the first 5% plus matching amount in there, but the rest I want back to put in an IRA.

Those in CSRS and military who don't get matching funds should be able to transfer it all to an IRA. The benefit of the TSP loses its advantage with this change.

 

[Elgallo]

• THE RULE PROPOSES THAT TRANSFERS TO G FUND ARE UNLIMITED TO REDUCE RISK TO SHAREHOLDERS ACCOUNTS.
  ]
  
  This ensures there is plenty of money in their slush fund AKA the G fund. Remember they borrow this money at times when things get tight.

 

[hessian]

Why won't someone just file a lawsuit? Just file it? Simple, cheap. Just do it -tie up the final decision in the courts?
What is the difficulty??
I do not understand the reluctance??

IMO, "comments" will do NOTHING.

 

[RPM]

I did not get the "nasty letter" (yet!!) since my previous IFTs were fairly limited (I think), but in this month (March), I did quite a few IFT's (if I push the button on my computer, and it works, then I keep doing it!).

Do you know whether or not TSP will keep sending these letters out to anyone who exceeds 3 IFTs a month for any month? and therefore I should expect one limiting my IFTs to snail mail? Is there any rule for start date of these penalties? i.e. if letter sent in March, then effective in April etc...

TIA

 

[Aggie76]

Nothing really new in this article.

Some participants protest new Thrift Savings Plan policy
By Richard W. Walker
Published on March 20, 2008


http://www.fcw.com/online/news/151984-1.html

"An effort by Thrift Savings Plan officials to quell frequent online trading has drawn fire from some TSP participants, who have started an online petition protesting proposed limits on share trading. "

 

[FUTURESTRADER]

I did not get the "nasty letter" (yet!!) since my previous IFTs were fairly limited (I think), but in this month (March), I did quite a few IFT's (if I push the button on my computer, and it works, then I keep doing it!).

Do you know whether or not TSP will keep sending these letters out to anyone who exceeds 3 IFTs a month for any month? and therefore I should expect one limiting my IFTs to snail mail? Is there any rule for start date of these penalties? i.e. if letter sent in March, then effective in April etc...

TIA

My GUESS is that it was a one time shot. Looks like you had to get a warning letter first.

 

[hessian]

...-tie up the final decision in the courts?
Why don't you take that on? Just a suggestion. I'm sure you will get plenty of support from other MB members....

Currently, I don't have standing to file a lawsuit.
- so far I've held to their "requested" 3/mo limit (hurts bigtime).
My point is, as yet I haven't gotten the certified letter/electronic block. Somebody that has, MUST go for a legal challenge, per thread & post above!!

IMO, I think to have affirmative grounds to sue, whomever will actually have to have been blocked/electronically.
-Without this the court/judge could say refusal to IFT has been voluntary/merely complied via their request.
VR

 

[JTH]

I'm curious to see if they will actually block electronic EFTs or is it's a threat? If they deny me access, then I'll stop all contributions, close up shop and focus my money where I can have more control.

I'm not going to play the mail game here, I'll just treat them like I do all other bussiness'e that **** me off. I stop giving them my money. That's easy for me to say since I'm 34 and start over somewhere else.

 

[whitemingo]

If you are in FERS and you stop contributing 100% then you give up the matching funds. You could move all to the G Fund, continue with enough to get the matching amount and still come out with more money than you contributed with relatively no risk. Think twice before you stop contributing to your TSP account.

 

[whitemingo]

That is not true. There is no minimum or maximum contribution requirement in order to get matching funds. TSP matches only the first 5% of your contributions, and you don't have to be "maxed" to get that matching contribution. If you put in 1%,2%,3%,4%,5%, they match 1%,2%,3%,4%,5%. If you put in nothing, they still put in 1%. And if you are vested, you never lose the matching funds OR the 1% if you never contribute anything.

Anything you put in over the 5%, up to the maximum allowed by IRS law (the 100% you refer to?), is NOT matched, so you don't lose any matching by not contributing "100%."

If you are 50 years old or over, you must elect to contribute the maximum amount allowed by the IRS in order to make catchup contributions. This is the only time "100%" comes into play.

I agree that contributing up to the 5% in order to get matching is the way to go - that's 100% guaranteed return on your investment plus interest and you won't get that anyplace else. Anything beyond that though, no way. Not unless I can control it.

NOTE:
I just re-read your comment. I think I see now what you meant..if you stop ALL (100%) contributions the matching contributions stop also.

Your note is correct. You should always contribute the 5% to get all the free matching allowed.

 

[JTH]

I'm in the military. If I was recieving matching funds, then I would have a different outlook. With my 1 income family of 5, I'm lucky if I can set aside 10% right now. I've been looking for a good excuse to start investing elsewhere. My wife is already worked/ing on letters, but I think we are too much of a minority and none of this is going to make a difference.

Sorry for the pessimism I guess I’ve been in the military too long….

 

[James48843]

Why won't someone just file a lawsuit? Just file it? Simple, cheap. Just do it -tie up the final decision in the courts?
What is the difficulty??
I do not understand the reluctance??

IMO, "comments" will do NOTHING.

Why don't you?

I haven't been locked out yet- therefore I have no damages that I can show.

If you have been locked out, then you can show damages. Have your lawyer PM me and I'll be happy to provide data in support of your case.

 

[ou81200]

James---

I have not received a letter but from what I'm interpreting from other letters posted here the lock-out does'nt take effect untill april. Is this correct?

 

[$$lake]

How about reporting this problem to the Fraud Waste Abuse Hot Line?

I underlined the below items that may apply to the board.

• Under what authority were they authorized to modify the Barclay contract in August?
• Do they have the authority to issue interim rules?
• Reporting fraudulent numbers (TSP Costs Increased) to the Press and TSP members.

If this has already been discussed, sorry for the duplication.



WHAT SHOULD BE REPORTED?
The below listed violations should be reported to the Defense Hotline. Please refer to the Glossary of Terms if you have questions about any of the terminology that follows:

• Threats to Homeland Security
• Unauthorized Disclosures (Leaks)
• Human Trafficking
• Contract and procurement irregularities:
  • Cost/labor mischarging
  • Defective pricing
  • Defective parts
  • Bid rigging
  • Product substitution
  • Spare parts overpricing
• Bribery and acceptance of gratuities
• Significant cases of mismanagement
• Conflicts of interest
• Travel (TDY/TAD) fraud
• Abuse of authority
• Theft and abuse of Government property
• Military Reprisal (Violations of the Whistleblower Protection Act involving service members)
• Violations of the Whistleblower Protection Act involving Defense contractor employees and non-appropriated fund employees
• Improper referrals of military personnel for mental health evaluations
• Gross waste of funds

http://www.dodig.mil/hotline/whatrept.htm


I'm waiting for my letter to arrive

Have a Great Easter

$$lake

 

[Guest2]

I was told that each Thrift Board Member is insured to protect them from
Liability and potential Law Suites. When explaining our battle with them
over the Limits of IFT's, it was suggested that we contact their Insurance
Companies and present them with the facts. Further, informing them that
any potiential for Limiting Lose or Extending Gains were being tracked.
Should ITF limits be found to hurt the participants, the threat of Legal
Action against those insurers could persuade them to interject and give
participants a little added support. In conclusion, it was stated that the
Board may have comited Fraud and are now presenting Discriminatory
practices that the Insurer's would like to know about.

I am "not" familiar with Laws and the potential Illegalities mentioned and
would like anyone who is, to respond to the following questions;

Does the above statements have any merit ?
If so, has anyone taken this complaint to the Insurers ?
If similar action was taken, what was the outcome ?
Is there a way of finding out who Insure's the Board ?
Can individuals help with notifications to their Insurer's ?

Hey, this was just a thought. Maybe it has no merit at all. I just wanted
to pass on this info should it be helpful. I'll be watching and listening for
any and all ideas to help make this thing go away. Thanks.
:worried:

 

[James48843]

James---

I have not received a letter but from what I'm interpreting from other letters posted here the lock-out does'nt take effect untill april. Is this correct?

Sorry- but don't ask me. I do not work for the thrift board, nor do I have any idea.

Call Greg Long and ask him.

While you are at it, fax in an objection.

Load up the TSP Board's fax machine with comments.