Federal Retirement Thrift Invesment Board

[CountryBoy]

There are 2 of us in our section that actively manage our TSP fund, thru TSP Talk. The remainder either aren't even in the TSP, Buy and Hold or just put it in G. But to a person, when they were made aware of the Board reducing our transfers back to 2 per month, they were upset. Whether they were upset enough to go to the sites we recommended and write their federal political hacks, who knows, but I have a feeling that Barclays and the Board have no idea of the backlash this is going to cause when everyone becomes aware of it, if our office is any indication.

And as someone else mentioned, wait for another 20 to 30 years, when the vast najority will be in the Lfunds. Transfer costs will go up then and they just take away more options. Something underhanded is going on and of course we're the last to know and the first to be screwed.

Merry Christmas All,
CB

[James48843]

Here are some extracts out of the December Board meeting for you to digest:


Mr. Long then provided the Board members with a sample
complaint from a participant regarding the proposed interfund
transfer restrictions as well as a sample response. He reminded
the Board members that, when they asked him if there was any
downside to the proposed restrictions, he had stated that we
would have complaints from the small number of TSP participants
who are engaged in frequent trading. Mr. Sanchez commented on a
newspaper article he had read regarding the proposed restrictions.
He noted that the article's author seemed to understand
why we are proposing the restrictions. That is, the TSP was intended
to be a long-term retirement savings plan and the actions
of a few participants are adversely affecting all participants.

Mr. Fink asked how many letters had the Agency received and how
many were from members of Congress. Mr. Trabucco responded that
we have received twelve letters and none were from a member of
Congress. Mr. Sanchez asked whether all the letters were complaints
and was told that ten of the writers were opposed to the
proposed restrictions and two were in favor of the proposed restrictions.
Chairman Saul remarked that Agency staff had his
total support on this matter. The TSP was meant to be a long term
retirement plan. The Board has a fiduciary duty to keep it
as such and to act solely in the interest of all participants
and beneficiaries. The proposed restrictions are consistent
with these objectives.


Looks like they told the board there were only 12 people who sent in letters before the December meeting. What do you think?

[James48843]

Net Expense (2007 is YTD through December)
Ratios· Total G F C S I L Inc. L2010 L2020 L2030 L2040
2000 .05% .05% .07% .06% - - · - - · -
2001 .06% .06% .06% .06% .05% .05% · - . - -
2002 .06% .06% .06% .07% .07% .07% · - - · ·
2003 .10% .10% .10% .10% .10% .10% - . - · ·
2004 .06% .06% .05% .06% .06% .06% · - . - ·
2005 .05% .04% .04% .05% .05% .05% .01% .02% .02% .02% .02%
2006 .03% .03% .03% .03% .03% .03% .03% .03% .03% .03% .03%
2007 .02% .02% .02% .02% .02% .01% .02% .02% .02% .02% .02%
·

The net expense ratios are the administrative expenses charged to TSP participants per dollar invested in the respective funds after offsettng gross administrative expenses with account forfeitures and loan fees.

[qibovin]

Net Expense (2007 is YTD through December)
Ratios· Total G F C S I L Inc. L2010 L2020 L2030 L2040
2000 .05% .05% .07% .06% - - · - - · -
2001 .06% .06% .06% .06% .05% .05% · - . - -
2002 .06% .06% .06% .07% .07% .07% · - - · ·
2003 .10% .10% .10% .10% .10% .10% - . - · ·
2004 .06% .06% .05% .06% .06% .06% · - . - ·
2005 .05% .04% .04% .05% .05% .05% .01% .02% .02% .02% .02%
2006 .03% .03% .03% .03% .03% .03% .03% .03% .03% .03% .03%
2007 .02% .02% .02% .02% .02% .01% .02% .02% .02% .02% .02%
·

The net expense ratios are the administrative expenses charged to TSP participants per dollar invested in the respective funds after offsettng gross administrative expenses with account forfeitures and loan fees.

So this chart tells me that all the fund expenses, percentage-wise, were cheaper in 2007 than they have ever been in all previous years, and of these, the I funds was the very cheapest of all, percentage-wise; and it is about this fund, in particular, that the FRTIB is in an uproar over. Am I missing something?

[Elgallo]

I was plannng to "activly manage" my TSP in retirment. This change does NOT help that one iota!

When I retire it sure looks as if I will be transferring my entire TSP to Fidelity. BTW Fidelity does not charge a fee for retirement accounts. Interesting huh?