Reverse the Decision to Limit  TSP Interfund Transfers


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, 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 . 


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.


We, the Shareholders of TSP Funds

We. the undersigned, believe that the Thrift Board's Decision to limit TSP Shareholder's to two interfund transfers a month is wrong.

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. 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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