fabijo
05-16-2007, 11:12 PM
I don't know where else to put this. This is a copy of the message I posted in the Military TSP thread, but I thought it might be of interest to those of us who are writing programs and what not. Not that we can actually know what expenses are being incurred on a daily basis. Anyway, I just thought some of the fine print people would like to know. It's how they calculate the share prices for the TSP on a daily basis. The interesting thing is that administrative expenses are daily (of course). I wonder if admin expenses could be some of the culprits behind the unexplainable -FVs??
Here you go:
It's laid out in the Code of Federal Regulations, Title 5, Chapter VI, Section 1645 - Calculation of Share Prices:
http://www.access.gpo.gov/nara/cfr/waisidx_07/5cfr1645_07.html
Sec. 1645.3 Calculation of total net earnings for each TSP Fund.
(a)Each business day, net earnings will be calculated separately
for each TSP Fund.
(b) Net earnings for each fund will equal:
...
(2) Minus the accrued administrative expenses of the fund,
determined in accordance with Sec. 1645.4.
(c) ... The total net earnings will be used to calculate the share price for that business day.
Sec. 1645.4 Administrative expenses attributable to each TSP Fund.
A portion of the administrative expenses accrued during each
business day will be charged to each TSP Fund.
Sec. 1645.5 Calculation of share prices.
(a) Calculation of share price. The share price for each TSP Fund
for each business day will apply to all sources of contributions for
that fund. The total net earnings (as computed under Sec. 1645.3) for
each fund will be divided by the total fund basis (as computed under
Sec. 1645.6) for that fund. The resulting number, computed to ten
decimal places, represents the incremental change in the value of that
fund from the last business day to the current business day. The share
price for that fund for the current business day is the sum of the
incremental change in the share price for the current business day
plus the share price for the prior business day, truncated to two
decimal places.
Here you go:
It's laid out in the Code of Federal Regulations, Title 5, Chapter VI, Section 1645 - Calculation of Share Prices:
http://www.access.gpo.gov/nara/cfr/waisidx_07/5cfr1645_07.html
Sec. 1645.3 Calculation of total net earnings for each TSP Fund.
(a)Each business day, net earnings will be calculated separately
for each TSP Fund.
(b) Net earnings for each fund will equal:
...
(2) Minus the accrued administrative expenses of the fund,
determined in accordance with Sec. 1645.4.
(c) ... The total net earnings will be used to calculate the share price for that business day.
Sec. 1645.4 Administrative expenses attributable to each TSP Fund.
A portion of the administrative expenses accrued during each
business day will be charged to each TSP Fund.
Sec. 1645.5 Calculation of share prices.
(a) Calculation of share price. The share price for each TSP Fund
for each business day will apply to all sources of contributions for
that fund. The total net earnings (as computed under Sec. 1645.3) for
each fund will be divided by the total fund basis (as computed under
Sec. 1645.6) for that fund. The resulting number, computed to ten
decimal places, represents the incremental change in the value of that
fund from the last business day to the current business day. The share
price for that fund for the current business day is the sum of the
incremental change in the share price for the current business day
plus the share price for the prior business day, truncated to two
decimal places.