Cost of TSP going up

[James48843]

From Govexec.com:


Cost of administering the TSP to increase in 2010

By Alex M. Parker
aparker@govexec.com (aparker@govexec.com)
September 24, 2009

The board overseeing the Thrift Savings Plan on Thursday voted to increase the federal retirement program's budget about 14 percent next year,
partly to pay for implementation of automatic enrollment and other changes mandated by a law enacted in June.

During a meeting, the Federal Retirement Thrift Investment Board agreed to raise the TSP's administrative budget to $130.3 million for fiscal 2010,
a 14 percent increase over the $114.5 million approved for the fiscal year ending Sept. 30. The increase would be even greater -- nearly 19
percent -- if compared with the $109.7 million the TSP anticipates spending in fiscal 2009.


More: http://www.govexec.com/story_page.cfm?articleid=43666&dcn=todaysnews

[burrocrat]

Anybody got information on how many total TSP participants? Average number of TSP trades per day? Number of trades in excess of two per month? Cost to TSP per trade? Fee per trade it would take to balance out so that 'savers' weren't being inconvenienced by 'traders'?

Is it a coincidence that just a few months before it all went to hell that trades were limited? But that's ok because you can alway run to G on the way down. What a smokescreen, the real penalty comes when you can't move in on the way up.

Profiting in this volatile market requires the ability to be nimble, but we only get two bullets. And have to fire them by noon, before the real showdown happens. Do you feel lucky punk?

I'm thinking all the charts and analyisis don't mean squat. Only need to figure out two things to make money: 1) what the criminals are going to do next, and 2) when they're going to do it. Anybody got a good handle on that?

What would Warren Buffet do? Oh yeah, he just buys the crooks.

Now they're going to charge us more for crappy service?

Call me a rigtard, but this thing has got to be fixed.

[mayday]

It was nice when we could trade everyday. I miss that we could have made a lot more in 2008

[nnuut]

It was nice when we could trade everyday. I miss that we could have made a lot more in 2008
Sorry but that was driving up the Administrative COST of the TSP, they fixed that last year!! REMEMBER!! WRONG!! 6844

[alevin]

Well crap, shoulda seen that one coming when they started talking autoenrollment. Somehow it didn't cross my mind.

[James48843]

Autoenrollment should lower costs, not raise them.

Autoenrollment means that people would get contributions right off the bat, and matching funds as well. That also means that those to leave government service in the first month or two, their matching money goes back to TSP as abandoned funds- and since we all know a certain percentage of people leave government service in the first 6 months (didn't like the work, had problems with the new job, couldn't pass the security clearance, etc), then this should be an inflow of new income here. All the money from matching funds that are not vested when the employee leaves the service, is forfeited to TSP to cover administrative costs. That is a plus, not a minus to the overall cost of TSP.

The problem is that with the trading limits in place, Barclay's could not run the slush fund the size it was before. So they had less money to work with. And when Barclays sold out to the new guys, the new guys (Blackrock) don't know how to "slush fund" as good as Barclays guys did.

So costs are higher- they are missing the mark with "trading error" big time, and they decided to make up their poorer performance with a jack up in costs.

I miss free trading, and the benefits to ALL members that we used to have.

BY the way- something smells fishy here. At the July meeting, they said autoenrollment would not be fully in place until next year. Here is the quote from the July meeting minutes:

"Ms. Moran noted that auto enrollment of employees will likely not be in place until approximately the spring of 2010. Auto enrollment will mean
that new and rehired employees who make no TSP election will automatically have three percent of their pay contributed to the TSP. These employees will also receive the agency one percent and matching contributions. It is anticipated that employees will not miss the money in their paycheck and that they will have an incentive to continue contributing. These employees do have the option to change their contribution amount or to opt out. Mr. Long noted that the Plan's participation rate has stayed within a narrow band of between 83 and 87 percent for over a decade, and he anticipates that these changes will enable the Plan to move beyond these levels and increase participation "

[James48843]

Note:

TSP is late in posting account balances this morning. Funny, but everyone is saying volume was extremely light yesterday on the run up. So why the delay in posting account balances this morning? Usually they are only late if there is a very large number of trades the day before. They almost always have updated accounts before 6 a.m. Now it is almost 7a.m., and they are not yet updated.

Things that make you go Hmmmmmmm......

[Show-me]

James,

No doubt they are hosing us again. Kudos to you on keeping us updated on the TSP Nazi's.

[James48843]

Alert-

TSP account balances are not yet updated- as of 10:00 eastern time. This is very, very unusual to be this late.

[Frixxxx]

Alert-

TSP account balances are not yet updated- as of 10:00 eastern time. This is very, very unusual to be this late.
Maybe they want more money?????:suspicious:

[Gumby]

Alert-

TSP account balances are not yet updated- as of 10:00 eastern time. This is very, very unusual to be this late.


Maybe they are making the FDIC a loan?:nuts:

[James48843]

This just posted on the TSP website:

----------------------------
The account balance information is current as of close of business, Friday, September 25, 2009 .


Special Notice: Due to processing delays, account access site has not be updated, but will be completed shortly.


---------------------------------------


Things that make you go Hmmmmmmm.........

[CountryBoy]

This just posted on the TSP website:

----------------------------
The account balance information is current as of close of business, Friday, September 25, 2009 .


Special Notice: Due to processing delays, account access site has not be updated, but will be completed shortly.


---------------------------------------


Things that make you go Hmmmmmmm.........

Yep James,

Based on your earlier comments, I agree something sure sounds hinky. I also wonder what may be going on or what they are trying to hide.

[FUTURESTRADER]

Still down at 11:33 a.m. est. Pretty pathetic and transparent ploy to get more administrative costs. They tout being competitive with industry. In 25 years of dealing with brokers, private industry, etc. I've never seen this level of incompetence. Just goes to show, 'ya get what ya pay for'. UFB, once again, I can only shake my head ruefully.

[James48843]

It's updated now.

They posted yesterday's numbers now.

And, based on my math, they gave me an extra 2 cents on the balance of my "I" fund. I'll take it.