Thread: What YOU can do to fight back - IFT limit

Originally Posted by anidoc

Another thought. It's been noted that "settlement of funds" is part of the problem for Barclay - it takes 3 days. That being the case, limiting transfers isn't going to help, because we could still make 3 (or more) back-to-back transfers over a 3-4 day period, for example:
Monday=I fund>C/S fund; Tuesday=C/S>F fund; Wednesday F fund>G fund. Also could do it this way: I fund>C/S fund>50%C/50%G>25%C>G. Just 2 examples.

That's part of the issue. You won't get away from the three day settlement issue no matter what you do- that is simply Barclays following generally accepted SEC rules for settlement- that those whom barclays trades with have to deal with the three day rule because they are bound by it.

that is why Barclays had to ask for an overall increase in the Float, as reported in the previous minutes (i think it was december's minutes, but I could be wrong, when Barclays asked to increase the float from 750 million to 950 million, or something along those lines).

Reducing the amount of float is what the TSP Board wants to do, because sitting in "float" status does nothing but earn T bill rate interest, rather than use the power of the markets.

That gets us back to the first choices again.

1. Change I fund's calcualtion time to 7a.m. the next morning, thereby reducing approximately 70% of the IFT costs associated with I.

Originally Posted by James48843

1. Change I fund's calcualtion time to 7a.m. the next morning, thereby reducing approximately 70% of the IFT costs associated with I.

I initially thought this was a great idea. And then I started thinking ...

If you change the calculation time of the FV to 7am the next morning, when would you update member balances? Ideally, you want to do this around midnight, so you'd have to have the FV in hand by then.

Originally Posted by Dr Faustus

I initially thought this was a great idea. And then I started thinking ...

If you change the calculation time of the FV to 7am the next morning, when would you update member balances? Ideally, you want to do this around midnight, so you'd have to have the FV in hand by then.

You mean in the real TSP accounts?

You could move the update balance on the accounts to between between 7 a.m. and 8 a.m. each day. You'd know your balance shortly after 8 a.m.

It now takes less than 30 minutes to actually perform the 3.8 million
acocunt updates. TSP doesn't do it now at 7 pm., they don't run the update until about midnight to 1 a.m., and then they don't release the server for public use until around 2 a.m., many days it's not until later. Sometimes they forget to bump it back on line until the morning shift comes in around 7 a.m. There are multiple servers, that tie to one another. There is a command prompt that must be done manually to tell all of them to sync and come back up on-line in the morning.

When accounts were valued once per month, it took about a full day to do. (late 80's, early 90's.)

Back when they first did daily valuation, it took a little over four hours to run the computers and make all the calculations.


Now it takes less than 30 minutes to run 3.8 million accounts, do a verification program, and then release the info into "production" mode.

When they do the next computer upgrade in 2009 or 2010, I expect we'll be down to minutes.


With the technology they have right now, if they do the I fund value calculation at 7.a.m. the next morning, you'll be able to see your account balance by 8 or 8:30 at the latest, there will be no longer a need for "Fair Value" calculations, and the cists associated with I fund transactions would be reduced by around 70%.


I don't mind not seeing what my account balance is, if I have hours before the noon cutoff to determine whether or not to place an order. Besides, personally, I usually know at least a couple of days beforehand when we are approaching a point that I would want to make a shift. I always would still have enough time to either get to a computer, or, in worst case, call in on the thriftline and make a move before the noon cutoff. Even with a 7 a.m. valuation, you still would get at least four hours to look at your position, and decide if you need to move.

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

I have no other information at this time.

New TSPSHAREHOLDER.ORG newsletter tonight.

Posted now on-line for anyone who is not a subscriber- here is the link:

http://tspshareholder.org/newsletters/Vol2_No7.html

Please FAX your comments in NOW.

Thank you.

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!

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:

Originally Posted by Paladin

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!!

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.