Reverse the Decision to Limit TSP Interfund Transfers
PETITION AGAINST TSP SHARE TRADING LIMITS
Under the leadership of the current Thrift Savings Board, a decision has been made, without prior warning, and without the input of those most affected, to put an artificial limit on the on-line share trades of 3.8 MILLION Thrift Savings Plan shareholders. We believe this is wrong.
In an on-line poll at http://federaltimes.com/, over 90% of respondents said the Board's decision to limit trades to two per month was the wrong decision.
The Thrift Board claims that trades cost too much. Yet the Thrift Board figures state that costs have dropped each year, and now amount to just a fraction of the cost of private plans. According to the Thrift Board figures, this year adminstrative and market costs INCLUDING all trading will account for 25 milion dollars. That works out to just about $4 per year, per person in the TSP.
We do not believe the TSP's current administrative and market impact expenses are excessive, and we reject that claim. We don't think the TSP Board should limit trading based on these levels of expenses.
We believe there is a better way. There are alternatives to reduce the cost of market impact and Fair Valuation and executing our interfund transfer efficiently through the market .
IF IMPOSED: THESE LIMITS WOULD:
1. Suspend the ability of individuals to control their own assets, thereby eliminating one key benefit inherent in the TSP plan- that is the Share holder controlling his own money, and where and when it is invested. This fundamental principle of TSP Shareholders must not be infringed- the right to control one's own money is vitally important to the success of the TSP.
2. Harm Dollar Cost Averagers: Many shareholders use trades to Dollar Cost Average their purchase of shares, and this limit of only two trades per month will adversely affect anyone who is dollar cost averaging, a proven desirable investment technique supported by many financial advisors.
3. Lock investors out of opportunities to reinvest in shares in a climbing market. The proposal permits a third trade into the G fund, but if the market bounces back, share holders lose the opportunity to recoup their losses.
There MUST be alternatives to this draconian decision to place artificially low limits on the opportunity to rebalance. This is OUR money, and you cannot change the rules in the middle of the game without Shareholder approval.
We, the shareholders of the TSP's funds, hereby reject the decision of the Thrift Boards artificial limits, and call for the Employee Thrift Advisory Council to reject the Thrift Board plan to impose needless trading restrictions.
We hereby petition and ask the ETAC to tell the Thrift Board to :
1. Rescind their decision to limit trades of TSP shareholders, and
2. Hold public hearings on the matter, so that TSP Shareholders may provide input into decisions affecting us, and
3. Communicate with and listen to its shareholders, to discuss and come up with alternatives to artificial TSP trading limits.
Signed:
We, the Shareholders of TSP Funds
PETITION AGAINST TSP SHARE TRADING LIMITS
Under the leadership of the current Thrift Savings Board, a decision has been made, without prior warning, and without the input of those most affected, to put an artificial limit on the on-line share trades of 3.8 MILLION Thrift Savings Plan shareholders. We believe this is wrong.
In an on-line poll at http://federaltimes.com/, over 90% of respondents said the Board's decision to limit trades to two per month was the wrong decision.
The Thrift Board claims that trades cost too much. Yet the Thrift Board figures state that costs have dropped each year, and now amount to just a fraction of the cost of private plans. According to the Thrift Board figures, this year adminstrative and market costs INCLUDING all trading will account for 25 milion dollars. That works out to just about $4 per year, per person in the TSP.
We do not believe the TSP's current administrative and market impact expenses are excessive, and we reject that claim. We don't think the TSP Board should limit trading based on these levels of expenses.
We believe there is a better way. There are alternatives to reduce the cost of market impact and Fair Valuation and executing our interfund transfer efficiently through the market .
IF IMPOSED: THESE LIMITS WOULD:
1. Suspend the ability of individuals to control their own assets, thereby eliminating one key benefit inherent in the TSP plan- that is the Share holder controlling his own money, and where and when it is invested. This fundamental principle of TSP Shareholders must not be infringed- the right to control one's own money is vitally important to the success of the TSP.
2. Harm Dollar Cost Averagers: Many shareholders use trades to Dollar Cost Average their purchase of shares, and this limit of only two trades per month will adversely affect anyone who is dollar cost averaging, a proven desirable investment technique supported by many financial advisors.
3. Lock investors out of opportunities to reinvest in shares in a climbing market. The proposal permits a third trade into the G fund, but if the market bounces back, share holders lose the opportunity to recoup their losses.
There MUST be alternatives to this draconian decision to place artificially low limits on the opportunity to rebalance. This is OUR money, and you cannot change the rules in the middle of the game without Shareholder approval.
We, the shareholders of the TSP's funds, hereby reject the decision of the Thrift Boards artificial limits, and call for the Employee Thrift Advisory Council to reject the Thrift Board plan to impose needless trading restrictions.
We hereby petition and ask the ETAC to tell the Thrift Board to :
1. Rescind their decision to limit trades of TSP shareholders, and
2. Hold public hearings on the matter, so that TSP Shareholders may provide input into decisions affecting us, and
3. Communicate with and listen to its shareholders, to discuss and come up with alternatives to artificial TSP trading limits.
Signed:
We, the Shareholders of TSP Funds
The TSP is OUR money. Where it should be allocated is a matter best left to the individual shareholder, and not to the Board, without any input from the shareholder's affected.
In a recent poll conducted by the Federal Times, more than 90% of TSP Shareholders said the decision to limit Interfund Transfers to two per month was wrong.
http://www.tspshareholder.org/ is an organization being formed to fight back, and become a voice for the rights of the 3.8 million TSP Shareholders world wide.
Our On-line Petition is now active, and we ask you to join us in bringing this message to the Thrift Board.
If enough people support and sign, TSPSHAREHOLDER.ORG will be sending a representative to Washington to hand-carry and deliver this petition directly to the Thrift Board, and other policy makers. We need your help to make it there.
Thank you for taking the time to take part, to stand up for your rights, and to sign the petition to reverse the TSP Board's decision, and look instead for other alternatives.
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The decision to restrict our ability to control our TSP accounts has been done arbitrarily and without a concientious review of the facts of the expenses involved with TSP tranfers and without allowing members to consider other options for addressing the perceived increase in expenses. The TSP board decision making process in this instance lacked transparency on one hand and smelled of patronization on the other. The TSP board does not have my support for the way they are handling this decision. Please reverse the decision.
Please allow the flexibility to keep this an appealing benefit-- better benefits means attracting and maintaining a better workforce. Thanks
People need the freedom to make transfers in their accounts any day they wish, depending on how the markets have been moving recently, and certainly with all this volatility. I vote for no restrictions in the TSP
The principles that this country were founded on are begin subvert through thoughtless regulations. Prosperity in a community is achieved when markets are allowed to be open and free. The American way is to charge a fee for a service, not just deny an opportunity based on an idividual or group's assumption that I or we are more intelligent and we must protect the little man from himself. I am a Free Market Capitalist!!!
Don't mess with my RETIREMENT.......It's my choice, not YOURS......
Reverse the decision.
The decision to restrict our ability to control our TSP accounts has been done arbitrarily and without a concientious review of the facts of the expenses involved with TSP tranfers and without allowing members to consider other options for addressing the perceived increase in expenses. The TSP board decision making process in this instance lacked transparency on one hand and smelled of patronization on the other. The TSP board does not have my support for the way they are handling this decision.
The voice of the individual TSP shareholder should be represented in making this decision to limit TSP trades to two per month. First of all, if indeed the cost to shareholders for trades has actually decreased in 2007, as compared to 2006, then the decision to limit is wrong. At $4 per year per participant, the price is not too large to pay for the individual TSP investor to have the flexibility to control their own risks and maximize the benefits of investment.
THIS IS HOW I GET REPAID FOR UTILIZING THE TSP FOR MY MAXIMUM BENEFIT AS GUARANTEED BY CURRENT LAW? YOU ARE ESSENTIALLY TAKING AWAY MY ABILITY TO PROVIDE FOR ME AND MY FAMILY FOR THE REST OF MY LIFE. THIS JUST PROVES ONCE AGAIN THAT FERS IS ANOTHER WAY TO SCREW OVER THE GOVERNMENT EMPLOYEE AS MANY STATES HAVE ALREADY DROPPED THE 401K AS AN INFERIOR FORM OF RETIREMENT. THIS APPEARS TO BE A CLOAKED ENDEVOR TO FORCE ALL GOVERNMENT EMPLOYEES TO PUT OUR FINANCIAL TRUST IN THE HANDS OF THE TSP BOARD AND PUT EVERYTHING IN THE "L" FUNDS WITH NO EARTHLY IDEA HOW IT WILL BE INVESTED. ???TRUST US TO DO THE RIGHT THING???? NO THANKS! REMEMBER I'M A GOVERNMENT EMPLOYEE, I KNOW HOW THINGS WORK. I'LL WAKE UP ONE MORNING AND REALIZE I'M TOO POOR AND UNABLE TO RETIRE; UNFORTUNATELY I HAVE MANDATORY RETIREMENT AT AGE 56 AND THE CLOCK IS TICKING.
I don't agree with your decission to limit my ability to move my money to the different funds to only three moves per month. This is my retirement and the only way to ensure I can increase my funds is by having the ability to move my funds when I deem it is right for me!
As news report says the cost last year was lower then what is the fuss about. The rules should be to protect the asset of the TSP holders. If TSP holders cannot transfer their apprciation of assets to gain betetr gain and transfer to cash position to lock doen gain in their account, then what benefits or protection they have? More assets in TSP is better for the entire TSP Fund management. IF they continue like this Myself has decided to rollover all my TSP to my existing brokerage account, where I can buy and sell ETF's, Bond, CD, Stocks all and can buy and sell as much as I can as long as I am not doing day tarding. Commission and fee are much lower when you have all account at one brokearge and trading frequently. I advise many (large number) of future retiree to do so. There are FREE training seminar online, brokerage firm conduct teaching also and learn and learn how to manage your account, schwab, Fidelity, Vanguard, Etarde all of them have plenty of free analysis and database available. TSP managers are or will be looking for large $ outflow from TSP system when these baby boomers start retiree. Do not under estimate these baby boomers who are revolutionary and inventive and they will learn or already know how to mange money and use outside insttution - as TSP system is like getting tie down legs and one arm chopped off and telling you to play Basket ball or any other game.
the problem is that this organisation that move owr money, they have other customers and they lose money when we pull owr money out. (it dosn't mater if we lose owr money) they do not care. what they want is for us to keep the money inside the market, that way they can make money and if there is a problem they pull the money out make a profit and we are the ones who lose money for the last 3 month I have lost 38k dollars, I am restricted from moving my own money, thats very stupid
The TSP Boards decision must be reversed. If this decisionis not reversed it will severely limit my retirement income by breaking the contract in effect at time of my retirement TSP allowed unlimited trading by TSP shareholders. In my opinion the current TSP board has no right to unilateraly break a bilateral contract without negotiations with both parties to the contract ,and ultimately a vote by TSP shareholders.
I am one of the individuals who received a letter and have been penalized for being pro-active in the management of my plan. If you go to any retirement seminar sponsored by the federal government you will hear over and over almost like a chant from the financial specialists the mantra that it is up to you the individual to manage your own plan in a diligent manner and to understand and "build" your own nest egg. Yet, by doing that and being aware of the turbulence in the markets and adjusting your account for optimim returns you run the risk of having your account locked to on-line adjustments giving you a horrendous handicap in the mangement of both the plan and any future retirement. In my own situation I am stymied by having no protection on the downside if I attempt to try "growing" my account. Obviously I feel frustrated but I also feel I have been treated unfairly. I broke no rules or regulations; I followed the instructions given to me by the TSP board when on-line transfers were introduced and now my account has basically been frozen. Anyone wishing to take action or knowing of anything contemplated I would be more than glad to listen and hear from.
I would like to continue making interfund changes in my TSP retirement account whenever I feel necessary. I do not (I say that again) I do not and will not accept TSP Board members, to decide where my money shoud be allocated. It is my hope that the Board members will listen and understand our request. If the Board memebers decision can not be stop. I will withdraw all my TSP retirement money. Thanks
1. Change the time of day the I fund is calculated, to 7 a.m. the next morning. Doing so will reduce trading costs by an estimated 70%. If you do that, you've reduced the costs so low, there will never be a need to restrict moves. 2. If you must limit, limit ONLY the I fund. TSP data shows the other funds are much less expensive to transfers. 3. If you must create any limit, do it by the use of a fee, not a bar to moving. Research shows that a simple $10 per IFT move would generate $25 to $28 MILLION dollars per year, far above the reported cost of $13 million per year that trading currently costs. Those who never move won't pay a thing. Those who move more often will pay more. If there is money left over at the end of the year after paying all associated transfer costs, credit the balance back to ALL participants equally as a reward.
Dont mess with my retirement!!!!
how can you penalize people for doing what they had a right to do . you are making people mail request in without a system in place . totally bogus
if they are going to change the rules in mid-stream , then we should have an option to opt out of tsp totally .
THE MAIN REASON I JOINED THE THRIFT SAVINGS PLAN IS BECAUSE I CAN TRADE ANY TIME I WANT, UNLIKE ALL OTHER PLANS. IF THIS PRIVILAGE IS TAKEN AWAY FROM ME, I WILL HAVE TO CONSIDER DROPPING OUT OF THE PLAN SO THAT I CAN MANAGE MY MONEY IN SOME OTHER FASHION.
A pay per transfer situation just makes sense. With what is happening with the L funds the two transfer situation is ridiculous. It definitely seems that the TSP people are not being straight with us.
Please reconsider the rules change. 2 times a month is not reasonable. Make it a pay per transfer if it increases costs.
The FTRIB is the problem, not the number of IFTs which members may request per month. After loosing more than $30M from our TSP accounts by the FTRIB's missmanagement of computer contracts, now the FTRIB wants to establish arbitrary IFT limits due to their inability to set up fair account valuations in the I fund. I think it's time for a congressional investigation of the FTRIB missmanagement.
This is just nonsense. Having the choice to do what one wants is just that, their choice. The limitians being forced upon the partipants restricts that choice for those who are proactive with protecting their the capital which they have, in a sense, earned. Those folks should be commended. The rest of us should takes notes from their success. Now, however, The Board has ceased to allow a "Level Playing Field" for the little person. What is the thing they will impose upon us? Perhaps a users fee for online access to "OUR ACCOUNTS"! I certainly hope not.
How in the world can you restrict us from online IFT'S? We are following the rules of your own guidelines,unlimited transfers.We should be allowed to do so until you implement a rules change.We are in America aren't we? As a former U.S. Marine and Gulf War Vet i had no problem defending your freedom,thanks for taking mine away.
4 ift a month should be standard one per wk reposition weekly 2 free/ 2 we pay for (dah) 4 dollars a month cost buy and holders are getting screwed wait till they get their quarterly statement minus 10 percent g penny now 3 times a mon. terrible
This is my money and I think I have the right to move it when I want, any time I want. This is still a free world isn't it? Todays market world has changed and I don't want someone else resricting my decicions. I am close to retirement and you are really cramping my investment lifestyle.
I am one of the individual's restricted to transfers via mail now. I never received any notification that I was over any trade limits. I was aware through work that a estriction on trades would be imposed possibly sometime in May. Next thing I know, my wife hands me a registered letter effectively shutting me off from trading. NOW, I HAVE TO HOPE AND PRAY THAT WHEN I MAIL IN MY TRANSFER REQUEST TO GET OUT OF THE STOCK MARKET, THAT I DON'T LOSE MY SHORTS IN THE PROCESS. AS EXPLAINED, THE PROCESS OF MAILING A TRANSFER COULD TAKE UP TO FIVE, YES FIVE, YES FIVE,....BUSINESS DAYS TO PROCESS AFTER, I REPEAT AFTER, RECEIPT OF THE REQUEST. THE PEOPLE THAT DREAMED UP THIS SOLUTION TO A PERCEIVED PROBLEM OUGHT TO BE PROSECUTED. WHY IN GOD'S NAME DIDN'T THEY THINK OF SOMETHING INTELLIGENT LIKE, MAYBE, TRANSACTION FEES????? I WILL DOCUMENT WHAT HAS TRANSPIRED AND HANG ON FOR A CLASS ACTION,...WHAT A CROCK!!!!! I'VE EARNED WHAT I HAVE INVESTED,....LET ME MANAGE IT!
How can you let people in the L Funds change their allocations every day but restrict interfund transfers on everyone else? What if someone wants to change their allocation in the C Fund by just one percent...what is wrong with that and why is that going to cost everyone else millions of dollars? Isn't that pretty much what the L Funds are already doing (rebalancing by about one percent), so why can they do it but no one else is allowed to do that? Your rules make no sense.
If you are going to change the rules and start limiting interfund transfers, then you need to let everyone transfer their accounts to a Roth IRA. It's the only fair thing to do.
People need the freedom to make transfers in their accounts any day they wish, depending on how the markets have been moving recently, and certainly with all this volatility. I vote for no restrictions in the TSP.
Keep your hands off my account. Its my money not yours and I want to manage it the way I say and not the way you say. Don't give me investment advice because I don't need your opinion. I'm a grownup.
