Thread: News Articles about TSP

Originally Posted by squalebear

You give him too much credit. Even Paulson and Ben don't know that.
No, Long is simply spewing out the right information to the wrong people.
Think of yourself as a rookie, just coming into this mess. This may be the
greatest time to start investing for the next 20-25 years. But for you, me
and any other short timer, his words are absolutely worthless.

I agree. You missed my sarcasm (). Anyway, Long must have the IQ of a pea. He's trying to calm the storm, after the Hurricane has past (and its his policies that got the 99% of TSP participants in the situation they are in, by sticking to this insane investing ideas! I wonder how he sleeps at night!
BTW, we never really connected before - I got 4 years to MRA (and also alot of ground to make up, as I started investing late). Keep up the great posts!! And Thanks

Originally Posted by hessian

I agree. You missed my sarcasm (). Anyway, Long must have the IQ of a pea. He's trying to calm the storm, after the Hurricane has past (and its his policies that got the 99% of TSP participants in the situation they are in, by sticking to this insane investing ideas! I wonder how he sleeps at night!
BTW, we never really connected before - I got 4 years to MRA (and also alot of ground to make up, as I started investing late). Keep up the great posts!! And Thanks

I did miss the sarcasm, Too much in a hurry sometimes. The connection is
my pleasure and we have tons in common concerning the time we have
left. Thanks for the kind words !

Today, on Govexec.com:

TSP holds steady amid economic downturn

By Alyssa Rosenberg
arosenberg@govexec.com
November 24, 2008

After a tumultuous October, the board and staff of the Thrift Savings Plan said on Monday that the program is fundamentally strong, and they are monitoring allocations and the investment practices of the major contractors who handle TSP funds.


"I think everyone knows that October was a difficult month in the capital markets," said TSP Executive Director Greg Long on Nov. 24 at the organization's monthly meeting. "Volumes have been high, activity's been high, we've had significant funds move to the G Fund, but we have weathered those storms and are helping participants as best we can."


In particular, Long was referring to a sharp spike in queries to the TSP's call centers on Oct. 10. Pamela-Jeanne Moran, TSP's director of participant services, said the call volumes have returned to normal, and most callers were asking about withdrawals from their TSP investments and loans.


TSP participation was constant between September and October, hovering at 85 percent, down from a high of 86 percent in May. Participation among members of the uniformed services actually rose slightly from September to October, from 27.1 percent to 27.5 percent, driven mostly by a 1.1 percent increase in enrollment among members of the Ready Reserves.


Those members, however, were moving their money. The balance of the G (government securities) Fund increased by $5.5 billion from September to October as investors sought a safe haven in the TSP's most stable offering. Fifty-one percent of all TSP funds are now in the G Fund. In contrast, investors transferred $2.3 billion out of the C Fund, which tracks Standard & Poor's 500 Index, and the fund's value dropped 16.83 percent in October. Its overall value is down 36.08 percent since October 2007.


While Tracey Ray, TSP's chief investment officer, acknowledged during Monday's meeting that losses have been substantial in some funds, she said it could have been worse, and TSP investors are protected by more conservative allocations in certain funds.


"Our [Life-cycle Income Fund, for federal employees about to retire] is 85 percent income and 15 percent equities," she said. "But that's not a rule. That's determined by the individual [investment firms]. Other organizations, maybe for marketing purposes, make their allocations more aggressive."


That caution extends into other areas of TSP oversight. Barclays Global Investors, a British firm that oversees funds that four TSP funds buy into, engages in some securities lending, a practice where large lenders take collateral and fees in exchange for some of their securities, which borrowers then use in other transactions. This is a common approach, and



Long wrote in a memo to the Federal Retirement Thrift Investment Board that Barclays is conservative in its securities lending, and the practice should not be a cause for concern.


"We were very clear that we understood the risk controls and properties," Long said during the meeting. "We are comfortable that BGI has the appropriate processes set up around securities lending. It doesn't mean we have to stop looking at this."


While the board and staff are confident they are safeguarding participants' investments to the best of their ability, they are still bracing themselves for negative reviews on a survey given to 35,000 federal employees and military members on Nov. 14. Survey responses are due by Nov. 16.


"Even if our services are better in every conceivable way, there's the reality that if your account is down 10 percent or 15 percent, than you're likely to be dissatisfied," Long said. "I don't know how we're going to correct for that."


Source: http://govexec.com/story_page.cfm?ar...dcn=todaysnews

(Hint- Hey Mr. Long- How about letting us have unlimited moves back. That would compensate...)

Meanwhile, those holding 401(k)s in private industry are also looking at how they are holding their money:

From Yahoo tonight:
http://news.yahoo.com/s/nm/20081124/...poIXuyYe2s0NUE

Workers cautious about 401(k) investment: study

Mon Nov 24, 2:29 pm ET

NEW YORK (Reuters) – Workers are increasingly cautious about investing in corporate retirement funds, having shifted money out of stocks, reduced how much they contribute and, in some cases, stopped contributions altogether or withdrawn money, according to a study released on Monday.


The study by Hewitt Associates, which administers 401(k) plans for corporations, found the average U.S. 401(k) plan balance was down 14 percent through October to $68,000 from $79,000 in 2007.


401(k) refers to a section of the U.S. Tax Code that allows retirement plan investors to defer paying taxes.


Hewitt, a human resources consulting and outsourcing firm, found 4 percent of workers had stopped contributing to their plans in response to the declines on Wall Street, and fewer are investing in stocks.


Many people moved money into safer assets after particularly bad days in the stock market, said Pamela Hess, Hewitt's director of retirement research.


"I see people that are very unsophisticated moving to cash, but I also see people who believe themselves to be sophisticated trying to time the market," she said. "If you get out just after it goes down, those people are guaranteeing they don't get the upside."


Stock holdings now account for 53.8 percent of assets, down more than 14 percentage points from a year ago. The decline reflects both the changes in allocation and the lower value of stock holdings.


Hewitt's analysis included 2.7 million U.S. employees and data collected through October.

INCREASED TRADING


"We're certainly seeing higher trading activity as people got their statements in the mail. The bad news is kind of sinking in," Hess said.


So far in November, balance transfers from equities are up further, with the money transferred to bond and stable value funds, as well as balanced funds, which mix equities, bonds and other assets with an eye toward preserving capital.


About 71 to 72 percent of eligible U.S. workers contribute to 401(k) plans, down about 2 points since the start of the year, according to Hewitt. On average, they set aside 7.8 percent of their pretax earnings for retirement investments, down slightly from 8 percent in 2007.


"I was surprised that number didn't go down more," Hess said.


More employers have put in incentives to invest, such as increasing their match, and some workers -- tempted by lower prices -- have increased contributions, she said. However, the proportion of new money dedicated to stocks is at an all-time low, at 58 percent.


Some employees, especially in economically sensitive sectors like retail, have stopped contributing altogether. Also, since the credit crunch has made borrowing more difficult, more employees are also tapping 401(k)s for cash.


Overall, 6 percent of employees pulled money out, up from 5.4 percent a year ago. So-called hardship withdrawals, in which workers have to meet certain criteria but are still liable for penalties and additional taxes, are up 16 percent. Loans, which often come with low interest rates, are a better option, Hess said.


One factor to watch in coming months, according to Hewitt: More employers may need to reduce their 401(k) matches to conserve cash. In 2002, about 5 percent of companies cut back their matching contributions.


Whether current trends continue depends on the stock market's performance, Hess said.


"Some of the opt-outs could accelerate, the trading activity could accelerate, if markets keep going down. It's starting to scare people that it could be more than just the little dip that we saw back when the tech bubble burst."


(Reporting by Nick Zieminski; Editing by Lisa Von Ahn, Brian Moss, Dave Zimmerman)
Copyright © 2008 Reuters

Today's Govexec.com:


TSP officials face leadership challenges
By Brittany R. Ballenstedt
bballenstedt@govexec.com
December 15, 2008


Officials overseeing the Thrift Savings Plan have met with a member of President-elect Barack Obama's transition team to discuss leadership issues as well as future changes to the plan, the TSP's legislative director said on Monday.

At a monthly meeting on Dec. 15, TSP Legislative Director Thomas Trabucco said he talked with an Obama representative last week and advised him that all the terms of the Federal Retirement Thrift Investment Board's five members have expired. They are serving as holdovers, but can be replaced at any time.

"Our enabling legislation set up staggered terms to support policy continuity and ongoing institutional knowledge through overlapping service at the board level," he said. "These goals are being frustrated at this time."

On a nonpartisan basis, the White House nominates three board members, while the House and Senate each nominate one person. Of the current board, two members' terms have been expired since 2006; the remaining three terms expired in 2007 and earlier this year.

Three of the board's officials -- Alejandro Sanchez, Andrew Saul and Gordon Whiting -- received bipartisan approval from the Senate Homeland Security and Governmental Affairs Committee in May, but the Senate leadership pulled the nominations just before the Memorial Day recess, Trabucco said.

The fact that all five board members are currently in holdover status stymies the appointment overlap designed to provide continuity and maintain institutional knowledge of TSP oversight, especially through presidential transitions. With all members in holdover status, the board could experience complete turnover if the nominations are not confirmed by the end of this congressional session.

Trabucco noted that during the last presidential transition from Clinton to Bush, when only two members were serving terms, Clinton made two additional recess appointments on Jan. 3, 2001. "That brought the number of members serving in staggered terms to four during that transition," he said.
TSP officials have apprised Senate leadership and the Bush administration of their concern, according to Trabucco. Members of the Employee Thrift Advisory Council, which consists of labor unions and other federal employee groups, also have written the Senate leadership and the Obama transition teams of their support for the pending board nominees, he said.

"Although the hour is late," he said, "it is my hope that this situation can be addressed in the next few weeks."

Trabucco said TSP officials also advised the Obama representative of legislation that passed the House in July that would have allowed automatic employee enrollment and changed the default fund for indecisive investors. Officials expressed support for those provisions, and he said they were still examining the possibility of adding a Roth option to the TSP.

TSP officials also will be meeting with the new leadership of the House Oversight and Government Reform Committee early next year "to get a sense of what their interests are going to be ... and what we've got on our plates for the 111th Congress," Trabucco said. Last week, House Democrats elected Rep. Edolphus Towns of New York to replace Rep. Henry Waxman of California as chairman of the committee, while Republicans voted to confirm Rep. Darrell Issa of California to replace retiring Rep. Tom Davis of Virginia as ranking member.

Meanwhile, officials noted that investments in the TSP fell to $198 billion in November, down from a high of $234 billion in May. "This is not the way we'd like to see things go," said Renee Wilder, director of the TSP's Office of Research and Strategic Planning.

Wilder also said TSP participation dipped in November to 84.4 percent, down from 85 percent in October and a high of 86 percent in May. The participation rate is at its lowest since September 1997, she added.

The number of loans and withdrawals were lower in November than TSP officials anticipated, Wilder said, but still were running slightly higher than in 2007.

"It's a tough time for anybody to be an investor," said Gregory Long, executive director of the plan. "But we are doing our best to communicate with our participants and get through this challenge."

Long added that the board will provide a demonstration of its new Web site redesign at a board meeting in May 2009. Officials said they also plan to examine the financial health of its annuity provider -- Metropolitan Life Insurance Co. -- to determine whether it is licensed in all 50 states. Such licenses would ensure financial protection by state insurance funds, officials said.

http://govexec.com/story_page.cfm?ar...dcn=todaysnews

For what it is worth-

Andrew Saul, the head of the Thrift Board, is the controlling agent on the Saul Trust, and the beneficial voter over a little more than 1.7 million shares of stock in the Cache company, while other family members have addtional millions of shares.

Was that why he was placed in charge of the TSP?

Or could it have to do with his campaign contributions to G.W.'s 2000 campaign, and history of campaign donations? (Can you say pay to play?)

I find it very interesting that Cache's stock hasn't done very well lately.

cache_j.jpg

I guess that means his net worth took quite a tumble.

Would you say-

Evidence that God exists?



From the SEC:

As of the close of business on February 8, 2008:

Andrew M. Saul may be deemed to own beneficially 1,713,259 shares, representing 425,630 shares directly held by Andrew Saul, 702,460 shares directly held by the Estate of Joseph E. Saul, Andrew Saul's father, 331,600 shares directly held by Norma Saul, Andrew Saul's mother, 128,569 shares directly held by Jane Saul Berkey, Andrew Saul's sister and 125,000 shares directly held by Saul Partners, LP, of which Andrew M. Saul is the Managing Partner. All of the foregoing shares are subject to an oral agreement to vote and dispose of the shares jointly. Each of these holders disclaims beneficial ownership of all shares other than those held in his or her name.

The Estate of Joseph E. Saul may be deemed to beneficially own 1,713,259 shares representing 702,460 shares directly held by the Estate of Joseph E. Saul, 425,630 shares directly held by Andrew Saul, Joseph E. Saul's son, 331,600 shares directly held by Norma Saul, Joseph E. Saul's wife, and 128,569 shares directly held by Jane Saul Berkey, Joseph E. Saul's daughter, and 125,000 shares directly held by Saul Partners, LP, of which the Estate is a partner. All of the foregoing shares are subject to an oral agreement to vote and dispose of the shares jointly. Each of these holders disclaims beneficial ownership of all shares other than those held in his or her name.


Norma Saul may be deemed to beneficially own 1,713,259 shares, representing 331,600 shares directly held by Norma Saul, 425,630 shares directly held by Andrew Saul, Norma Saul's son, 702,460 shares directly held by the Estate of Joseph E. Saul, Norma Saul's husband, 128,569 shares directly held by Jane Saul Berkey, Norma Saul's daughter and 125,000 shares directly held by Saul Partners, LP of which Norma Saul is a Partner. All of the foregoing shares are subject to an oral agreement to vote and dispose of the shares jointly. Each of these holders disclaims beneficial ownership of all shares other than those held in his or her name.

Jane Saul Berkey may be deemed to beneficially own 1,713,259 shares representing 128,569 shares directly held by Jane Saul Berkey, 331,600 shares directly held by Norma Saul, Jane Saul Berkey's mother, 702,460 shares controlled by the Estate of Joseph E. Saul, Jane Saul Berkey's father, 425,630 shares directly held by Andrew Saul, Jane Saul Berkey's brother and 125,000 shares directly held by Saul Partners, LP of which Jane Saul Berkey is a Partner. All of the foregoing shares are subject to an oral agreement to vote and dispose of the shares jointly. Each of these holders disclaims beneficial ownership of all shares other than those held in his or her name.

Saul Partners, LP may be deemed to beneficially own 1,713,259 shares representing 125,000 shares directly held by Saul Partners, LP, 425,630 shares directly held by Andrew Saul, Managing Partner of Saul Partners, LP, 702,460 shares directly held by the Estate of Joseph E. Saul, Limited Partner of Saul Partners, LP, 331,600 shares directly held by Norma Saul, Limited Partner of Saul Partners, LP, and 128,569 shares directly held by Jane Saul Berkey, Limited Partner of Saul Partners, LP. All of the foregoing shares are subject to an oral agreement to vote and dispose of the shares jointly. Each of these holders disclaims beneficial ownership of all shares other than those held in his or her name.

The Group Members as a whole may be deemed to own beneficially 1,713,259 shares of Common Stock, constituting approximately 12.86% of the shares outstanding.

Originally Posted by James48843

Today's Govexec.com:

"It's a tough time for anybody to be an investor," said Gregory Long, executive director of the plan. "But we are doing our best to communicate with our participants and get through this challenge."

Greg,

You might start listening to people that actually invest in the TSP......like give back the unlimited IFT's and stop holding people's money hostage. You might get better participation. Have much $$$$ have you lost for participants through your new rules. You have forced most people to be buy-n-holders at the worst possible time.