What YOU can do to fight back - IFT limit

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Note:

My sources say that Monday of this week, a meeting was held between a number of Unions and Federal Organizations. I do NOT have a complete list of who attended, but it included many major Unions and Organizations, including a number of Postal unions as well.

Jim Sauber presented the TSP's case to these groups, and gave them the party line why it was necessary to invoke limits, including the song and dance that TSP was "never intended to allow people to move money around like this", and that "costs were higher than they would be otherwise".

My sources tell me NTEU spoke out against the limits, and the Federal Manager's Association also spoke out against the limits. However, most of the Union's present said they were not even aware of it, and that none of their members had called their Washington D.C. HQ's to complain, so it must not be a big deal.

That's all the info I have at the moment, still trying to get more data.

NTEU and Federal Managers Association on record in this meeting opposing limits. All other unions and associations present either in favor of, or think it's no big deal.

Oh, one more thing-

It was stated at this meeting that as of Monday this week, not a single Congressional person had made any contact whatsoever with anyone over at TSP.

Not one.

TSP is very concerned that some congressman or senator would inquire.

But so far, not a single one has done so much as send a letter or have a staffer come over and ask any questions.

Not a single one.
 
Hi James,
Finally some fair news!
Any word on whether any Retirement Orgs/Unions were at this meeting, or as yet even aware what the TSP/Board pushing? These groups lobby/power is awesome>2nd to none!
VR
 
Thanks for all your hard work on this issue! For all who haven't contacted their unions and Congressmen, this is no time to slack off. Please contact them and express your views!:worried:
 
I have faxed my letter today. In addition I have e-mailed lots of people here where I work to fax their letter as well.

Keep up the good work!

Steve
 
A couple points jump, no SCREAM, out to me:

Paladin said:
The February FRTIB minutes are now posted on the TSP Website. Highlights are as follows:
  • January saw huge liquidations in the S and I Funds when the markets fell. "It's a shame that TSP participants often sell low and buy high," one Board member commented.
HUGE LIQUIDATIONS IN S AND I -HHMMMM
-WAS IT AS TSP SUGGESTS - OR WAS IT DONE IN ADVANCE OF THE MARKET COLLAPSE IN JAN. !!
  • The Department of Defense requested more time to review the proposed rule to reduce "frequent trading" and believed it could come up with a better solution if it had more time. (Another agency on our side?)
AGREE - AS A ".mil" EMPLOYEE - I'VE 2 THOUGHTS:
1. DOD HAS ALWAYS BEEN STONG IN SUPPORTING COMMITTMENTS TO EMPLOYEES -RETIRED AND RETIRING, ACTIVE AND CIVILIAN!!

2. DOD, OFFENDED BY THIS CHANGE, COULD DECIDE TO IMPLEMENT THEIR OWN RETIREMENT PLAN -WHY NOT -THEY MADE THEIR OWN PERSONNEL SYSTEM??!! ;)
  • Of the 3,750 participants notified to stop frequent IFT activity, only 50-60 of them called in. Some called in to apologize for their activity, while others called in to complain about the Interim Rule.
REALLY?? -ANYONE ACTUALLY BELIEVE THIS?? - I SERIOUSLY DOUBT ANY APOLOGIES!! - ALL IFT ACTIVITY DONE WAS LEGAL, JUSTIFIED & COMPLETELY WITHIN EXISTING RULES!!
ALSO, CALLED IN??- WHERE DID ALL OUR LETTERS, FAXES, ETC., END UP?
  • As funding permits, the Department of Labor also wants to review TSP operations for FERSA compliance (Are the fiduciaries using TSP resources economically, efficiently, and solely in the interest of TSP participants and beneficiaries? Do Agency policies and procedures comply with FERSA for effective management control over daily TSP operations? Are TSP transactions being processed accurately and timely by BGI, and is BGI complying with the Agency contract? Do the BGI operations comply with FERSA?)
HURRAY!! - GO GIT 'EM!!! - DOL!! :laugh::nuts:
Click to expand...
 
I've given the AFGE (American Federation of Gov't Employee) something
to think about concerning the restriction. Anyone paying their yearly dues
should make a concerted effort to contact their National and Regional
Offices with this burning question. Why does NTEU, DOD and PASS feel
they need to stop the stripping of employee rights with "no" mention
of the AFGE, concerning IFT Limits. Put them to shame and get them
involved. It would surely help.
 
Well, here is my letter to the FRTIB. Anyone is welcome to use all or part of it. Let's just get our concerns and complaints to them.

March 25, 2008
TO: Gregory T. Long
Executive Director, Federal Retirement Thrift Investment Board
RE: Account Number: XXXXXXXXXXX

I respectfully request that you reconsider prohibiting me from making interfund transfers electronically effective March 31, 2008.

Per your letter to me dated February 2008, which I didn’t receive until February 20, 2008, you indicated that “The Board has approved a policy that would limit participants to two interfund transfers per month, with unlimited subsequent transfers to the G fund.” You further stated that you were “ concluding the normal public rulemaking process …, which includes publishing the proposed regulations in the Federal Register (and on www.tsp.gov) and evaluating the comments received. Once the final decision is made regarding the approach to be taken, we will announce it to all participants.” This tells me that you would formally announce the limited interfund transfers after the final decision is made.

I am not happy with your approach to limiting our ability to protect my retirement funds, however I decided to abide by your request even though it had not become final. I, therefore, made no more interfund transfers from the time I received your letter until March. I kept track of my interfund transfers on the autotracker portion of a web site www.tsptalk.com. So I know when each interfund transfer was made.

Those records indicate that I was in the G fund on February 1, 2008. I made an interfund transfer effective February 13, and another one effective February 14. The last interfund transfer I made for February was into the G fund effective February 15, 2008. I did request an interfund transfer on February 29…effective March 1st, 2008. But that transfer did NOT take place and was NOT effective UNTIL March 1st.

I received a subsequent letter from you dated March 13, 2008 erroneously indicating that I exceeded the three IFT limit in February, and that I would be prohibited from making IFTs electronically after March 31, 2008. As you can see, I only made two IFTs in February, and a last one going to the G fund as permitted. I followed your instructions even though I was opposed to them and, in my interpretation of your letter, they were not in effect until a final decision was made and it was announced to all participants.

I am retired, with no ability to increase my TSP funds. The only way I have to ensure my retirement savings are working for me is by having control of that resource…to direct and redirect those valued funds. This restriction will result in a tremendous burden on me, and keep me from effectively managing my retirement resources. So, please consider the facts as stated and reinstate my ability to electronically transfer my Thrift Saving account to give me the ability to preserve my retirement funds.
Sincerely,
Craig R. Huss
 
Paladin said:
See my embedded comments. :)
Click to expand...

Paladin,
Agree with all! And also should have said thanks for posting their FRTIB minutes, in the first place (was just so floored, and overcome by the moment!) :)
It is all spin like you said - I also think it seems like some groups are starting to notice its all spin too!!

The last bullett even seems to suggest DOL may now do something like an audit on the TSP Board now! Now that might jus be the best thing imaginable that we could hope for! Lets just hope its fair, and actually in stakeholder's interest - like they, themselves said!
VR;)
 
More information- Tom Tribuco in an interview with Federal News Radio two days ago-

News that there is now an on-line petition is mentioned for the first time. It's contained in this interview:

http://www.federalnewsradio.com/emedia/112572.wma

Listen up- this is a good interview. We need to keep hammering all the news media to sit up-

Traboco says the whole purpose is for the funds to track the indexes, and accuses the 3,775 (the 3,000 is growing, eh?) (note note: The online petition is now at 3, 763 as of today) of keeping TSP from being able to match the indexes.


When the radio interviewer asks Trabuco : "Can you provide some more reassurance those folks who are having a hard time holding steady...I just checked my own 401K and I've lost two thousand dollars in like two months..."


Tom Trabuco answer is "Rule number one is "Don't check".

Radio host: "Then why do they send me those things in the mail?"

Traboco: "You know, we recommend that people look periodically, a couple, three times a year is all that I look, really, because what I am looking for is the long term growth. If you look every day and it worries you it will drive you nuts. Remeber, you are in it for the long haul, even past your retirement, in the case of many feds, who have a defined benefit as well. This really is long term savings and investment. "
 
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Yeh, I used to look at my TSP only a couple of times a year....in 2000, 2001, and 2002. I watched it go down...thinking that someone else was going to look out for me. The stock market has to go up, right??!!! I lost over over 60% of my hard earned retirement resource. Sure it evenually came back....but if I would have paid more attention and gotten out sooner, and got back in toward the bottom and caught the rise, I would have a lot more money to work with today. Nobody cares about your retire resources but you!!! And if you don't pay attention, someone is going to come along and take it away from you. End of story!!!
 
Data tidbit to digest- from the notes of the January TSP Board meeting, posted yesterday:

NOTE FROM JANUARY'S CHART:

$5,737,000,000 was moved into the protection
of the G and F fund in the month of January.

$5,338,000,000 came OUT of C, S and I funds to do it. $399,000,000 came OUT of
the L funds as active transfers to the safety of F and G as well.


ACTIVE INVESTORS---meaning THOSE TSP SHAREHOLDERS WHO MONITORED THE
MARKETS, AND DECIDED TO MOVE TO SAFETY--

(THEY TRADED THEIR STOCKS IN FOR BONDS AND GOVERNMENT SECURITIES)--

DID NOT FOLLOW THE TSP BOARD's ADVICE TO "JUST PEEK AT YOUR PORTFOLIO TWO OR THREE TIMES A YEAR".

INSTEAD, THESE PEOPLE ACTIVELY MONITOR THEIR RETIREMENT INVESTMENT, AND,

AFTER CAREFUL CONSIDERATION, THESE PEOPLE MADE A WELL THOUGHT OUT MOVE

--A CONCIOUS DECISION--

TO MOVE OUT OF STOCKS AND INTO BONDS (F) AND G FUND.



THESE GOVERNMENT EMPLOYEES, WHO CONTROL THEIR OWN TSP ACCOUNTS, SAVED MILLIONS IN LOSSES SINCE JANUARY- BY MOVING TO SAFETY THEIR COMBINED WORTH OF OVER $5 BILLION DOLLARS----

BY BEING ACTIVE TSP SHAREHOLDERS.


THE DATA THAT PROVES IT--
View attachment 3617

$ 5 BILLION DOLLARS MOVED TO SAFETY --
BY FOURTY THOUSAND INDIVIDUALS.

FOURTY THOUSAND PEOPLE SMART ENOUGH
TO CHECK THEIR INVESTMENTS
AND MOVE TO SAFETY, INSTEAD
OF SIMPLY "LETTING IT RIDE".​

At a cost of just $133,000 total dollars in interfund transfer costs to the TSP.​

THINK ABOUT THAT.​
 
In listening to the radio broadcast (links you provided), Mr. Causey keeps asking for emails from listeners and I think I heard also that they wanted to hear from a TSPer that has beat the indexes by frequent trading. Are you sending them some of your posts? Like the one above? If so, why don't they mention them?

Keep up the fight and thank you for everything you do.
 
Just thought I'd post some of my research that went into my Federal Register comment letter. Below is a graph of the 2007 monthly dollars traded in the I-fund on one axis and the cost basis points for the I-fund on another axis. Do you see any trends? I'll tell you the arguement that I make is that the cost for the I-fund is NOT driven by the amount of trading activity that goes on for the I-fund. Cost variability is caused by the "fair valuations" having poor guesses.
View attachment 3620
*SOURCE: Monthly Federal Retirement Thrift Investment Board meeting minutes for January 2007 through February 2008.
 
Folks:

I am VERY disturbed that TSP representatives have been on the radio and in the press giving investment advice. This is clearly inappropriate.

Here is what I sent tot he Chairman:


Mr. Sauls:


I am very concerned about actions of the Thrifts Savings Plan management and staff.

I note in the February Board minutes you have clearly stated that it is not appropriate for the TSP to give investment advice.

Although I am overseas, I regularly read and listen to radio programs. I note with concern that TSP staff is giving investment advice or making statements that would imply investment advice during their media interviews. While I realize they are trying to push their IFT limit agenda. I do not believe investment advice is appropriate.

Further, I want to let you know that this IFT mess is of TSP’s own making. I thought part of the staff’s charter was to educate participants about the fund. Instead of slamming people with extreme limits, the staff should have educated participants about the issues and costs and sought voluntary compliance. Isn’t that part of a the staff’s fiduciary duty as well? Those of us in government for a time know that it is always better to try and get cooperation and consensus first.

In the past I was one of your frequent traders. I was not aware of any of these issues. Why is that? Why didn’t the staff use that web site to educate us and ask for compliance? Why was their nothing blazed across the web site to explain the issues?

Unfortunately, the staff’s failure to communicate and educate has now caused a major flap and that diverts attention away from other aspects of this excellent retirement program.

Sincerely,
 
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It's not much but it is something..

Came home from work and had a letter from Congressman Dean Heller, NV. The letter stated that he thought it was wrong to impose restrictions until a final decision had been made and to call his office. I'll call Monday and spend the weekend making copies of all of the great letters and facts that everyone has compiled.

Anyone else out there from Nevada?

Still haven't heard from my Senators....

John
 
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