Congressional Reps. Ask GAO to Examine New TSP Online System

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TopNotch
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Congressional Reps. Ask GAO to Examine New TSP Online System

Post by TopNotch »

"U.S. Reps. Eleanor Holmes Norton (D-DC) and Abigail Spanberger (D-VA) are asking the Government Accountability Office to examine the new Thrift Savings Plan (TSP) online system after hearing complaints from constituents about it.

There have been widespread complaints about various aspects of the plan, including account access, account balances, missing or incomplete information in their accounts, and hours-long wait times to reach customer service.

“I am deeply concerned about the widespread problems with the new TSP online system,” Norton said. “I continue to hear daily from constituents about the many problems with the new system. I will continue to demand immediate fixes to the problems, but we need to understand how this debacle occurred, which is why I am requesting a comprehensive examination of the new system itself, its planning, and its implementation,” Norton said.

The Thrift Savings Plan (TSP) is a tax-deferred retirement savings and investment plan that offers Federal employees the same type of benefits as 401(k) plans. Through the TSP, federal employees have the opportunity to save part of their income for retirement, receive matching agency contributions, and reduce their current taxes.

“Over the last month, many of Virginia’s dedicated federal employees and retirees have reached out to my office about challenges they are experiencing with the TSP system. We need to know more about what’s going wrong, why it’s happening, and how TSP’s Board intends to fix these problems,” Spanberger said. “That’s why we are calling for a full investigation into these outstanding issues. I’d like to thank Congresswoman Norton for her partnership as we focus on greater accountability and transparency in this system — because Americans who have devoted their careers to public service do not deserve to be locked out of their retirement accounts.”

The TSP had approximately 6.5 million participants and $838 billion in assets, making it the world’s largest defined contribution plan.

“We request that the Government Accountability Office conduct a comprehensive examination of the new Thrift Savings Plan (TSP) online system, including the planning, contract award, and implementation, as well as oversight by the Federal Retirement Thrift Investment Board (FRTIB),” the lawmakers wrote to the GAO. “On June 1, 2022, FRTIB launched a new system with the goal of modernizing TSP’s recordkeeping, improving customer service, and bolstering cybersecurity. Our offices have heard from constituents about widespread problems, including account access, account balances, missing or incomplete information in their accounts, and hours-long wait times to reach customer service.”"

https://financialregnews.com/reps-norto ... ne-system/
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paul
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Re: Congressional Reps. Ask GAO to Examine New TSP Online System

Post by paul »

If you are one of the many who wanted more flexibility in your TSP investments - Are you at lest happy with the selection of mutual funds?

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Scarfinger
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Re: Congressional Reps. Ask GAO to Examine New TSP Online System

Post by Scarfinger »

I have been on this site for 10+ years and I don't recall much talk at all about a need for different fund choices. The main complaint that comes up every now and then is about the limited number of inter-fund transfers.

So basically they fixed a problem that didn't really exist?
I am just an average Joe. I have no clue to what the market will do.
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Aitrus
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Re: Congressional Reps. Ask GAO to Examine New TSP Online System

Post by Aitrus »

Scarfinger wrote: Wed Aug 03, 2022 11:27 am I have been on this site for 10+ years and I don't recall much talk at all about a need for different fund choices. The main complaint that comes up every now and then is about the limited number of inter-fund transfers.

So basically they fixed a problem that didn't really exist?
I think they caved to a small but vocal group of determined (and possibly affected by conflicts of interest) individuals otherwise known as lobbyists.
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Midway
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Re: Congressional Reps. Ask GAO to Examine New TSP Online System

Post by Midway »

I think they caved to a small but vocal group of determined (and possibly affected by conflicts of interest) individuals otherwise known as lobbyists.

That would NEVER happen!

Bubba
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Joined: Thu Mar 05, 2020 3:40 am

Re: Congressional Reps. Ask GAO to Examine New TSP Online System

Post by Bubba »

paul wrote: Wed Aug 03, 2022 10:24 am If you are one of the many who wanted more flexibility in your TSP investments - Are you at lest happy with the selection of mutual funds?
I was vocal that I wanted more index choices and more moves. I'm really not happy with the mutual fund window at all. The offerings are quite a few, but too little index choices AND the price of investing is just too high. For that reason, I'm staying put in the regular index system. Note that I'm only commenting on your question, not on how the changeover went. That's already a situation of when the "crap hit the fan" (I'm still smearing it off...).

Best,

Bubba

40years
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Joined: Fri Aug 12, 2022 11:19 am

Re: Congressional Reps. Ask GAO to Examine New TSP Online System

Post by 40years »

TSP member since CSRS employees were eligible. Never had a single problem with the previous online system.
So many problems with new system.

One of the many problems: beneficiaries. My beneficiaries were wiped out by the new system. The website stated: "Some beneficiary information did not meet our standards." I don't think so. My beneficiaries, all immediate family members, have never changed since Day One. No way to input my beneficiary information online. Must call and wait, wait, wait for representative. Representative was very courteous and helpful. However, she could only process primary beneficiary. She said a secure document would be sent within the website for a witness to sign. Received the document promptly, witness signed it, I uploaded it, and primary beneficiary was registered.

Made second call for contingent beneficiaries. Representative was very courteous and helpful. She took the information and said I would receive a document for witness to sign via email (not secure document on the website). Received email. Contingent beneficiaries not listed correctly. It showed the correct number of contingent beneficiaries and the correct percentages. But only one beneficiary's name was listed in every single line. All other beneficiaries names were omitted.

Made another call, wait time much shorter. Representative was very courteous and helpful. She said this was "weird" and would resend the witness document by Postal Mail. Could not give a timeframe as to when it would be sent.

These are just the problems encountered with beneficiary listings. I advise everyone to check their beneficiaries as listed on their account.

Will definitely email my Congressman about my dissatisfaction with the new system.

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