PostalReporter News Blog

Former Alaska Senator Ted Stevens was a longtime advocate for federal employees. Stevens played a key role in the creation of the Thrift Savings Plan, a 401(k)-type retirement savings program. He also was one of the original sponsors of the 1993 Family Medical Leave Act, which provides 12 weeks of unpaid leave. A moderate Republican, he served longer than any other Republican in history.

When Republicans controlled both houses of Congress, Senator Ted Stevens used his position as Chairman of the Senate Governmental Affairs Committee to block any cuts to CSRS, FERS and TSP. Without his help, federal employees’ benefits would be a lot worse today.

http://www.washingtonpost.com/wp-dyn/content/article/2007/01/10/AR2007011002372.html

Thrift Savings Plan – The Model for all 401(k) Plans!

http://moneywatch.bnet.com/investing/blog/irrational-investor/thrift-savings-plan-the-model-for-all-401k-plans/1476/

Ted Stevens – Father of FERS

http://www.federalnewsradio.com/?nid=319&sid=1576147

House Also Passes Thrift Saving Plan Reforms

From The National Association of Postmasters of the United States (NAPUS)

On Wednesday evening, the House of Representatives passed legislation that would enable Federal Employees Retirement System (FERS) employees to credit their unused sick leave towards retirement. Civil Service Retirement System (CSRS) employees already have this option. House Oversight and Government Reform Committee Chairman Henry Waxman (D-CA) added the FERS provision to H.R. 1108, the Family Smoking Prevention and Tobacco Control Act – Waxman is the author of H.R. 1108.Chairman Waxman also inserted in bill a number of provisions to modify the Thrift Savings Plan (TSP). H.R. 1108 passed by an overwhelming 326-102 majority.

The Waxman FERS provision differs from H.R. 5573, FERS sick leave introduced earlier this year by Rep. Moran. H.R. 5573 would have provided a lump-sum payment of 15% of the amount of accumulated sick leave exceeding 500 hours, not to top $10,000. Instead of providing a lump-sum payout, the Waxman provision would credit unused sick leave towards the FERS annuity. Specifically, FERS employees who retiree within three years after enactment would be credited for 75% of unused sick leave, and employees retiring after the three years would get full credit, similar to CSRS employees. The credit, however, would not be able to be used to determine retirement eligibility.

H.R. 1108 also includes the text of H.R. 6500, the Thrift Savings Plan Enhancement Act. Chairman Waxman introduced the bill, and Committee Ranking Republican Tom Davis (R-VA) and Federal Workforce and Postal Service Subcommittee Chair Danny Davis (D-IL) cosponsored it. H.R. 1108 would provide for automatic TSP enrollment for new employees, permit the TSP Board to designate a fund other than the G Fund as the default investment fund, create a Roth IRA option, and give the TSP Board the authority to a add additional, self-directed investment options. A number of employee organizations have raised concern about this enhanced Board authority.

The FERS and TSP provisions are linked for budget reasons. The Congressional Budget Office estimates that H.R. 6500, which includes the Roth IRA TSP option, would increase federal revenue by about $1.3 billion over the next decade. This revenue would offset the increase costs associated with the FERS sick leave provision.

H.R. 1108 faces an uncertain future in the Senate, primarily due to the tobacco provisions, which are controversial. Also, there is a narrow legislative window. This weekend, Congress plans to recess for the summer, returning in September for only three weeks, before hitting the campaign trail. In addition, the White House has threatened to veto the measure. NAPUS will be monitoring the bill and pushing for consideration of the measure.

Source: NAPUS

From the Federal Register

The Federal Retirement Thrift Investment Board (Agency) amends its interfund transfer (IFT) regulations to limit the number of interfund transfer requests to two per calendar month. After a participant has made two interfund transfers in a calendar month, the participant may make additional interfund transfers only into the Government Securities Investment (G) Fund until the first day of the next calendar month.

This rule is effective on May 1, 2008.

The Thrift Savings Plan on Monday began requiring enrollees to identify themselves using new account numbers rather than Social Security numbers, prompting concern from some participants who say they have not received or have lost the new numbers.

TSP officials announced the switch from Social Security numbers in August, noting that participants would have to use new account numbers in conjunction with Web passwords for online transactions. Plan officials alerted participants they would receive the new numbers by mail in September.

Trabucco said people who call the ThriftLine service will now receive a message that directs them to the Web site to request that their number be reissued. Participants also can ask for their account number or a new password directly through the Account Access portion of the Web site, he said

http://www.govexec.com/story_page_pf.cfm?articleid=38266&printerfriendlyvers=1

According to TSP: For security reasons, the TSP does not give out account numbers by telephone or e-mail.  So be sure your TSP address of record is correct before you make your request.

From the Postal Bulletin dated September 13, 2007

In August 2007, Thrift Savings Plan (TSP) management sent a letter to all participants announcing the implementa­tion of new security enhancements.

Starting in October 2007, the TSP will no longer use your Social Security number as your primary identifier on its Web site, www.tsp.gov, or ThriftLine, 877-968-3778. Instead, TPS will assign an account number for you to use in conjunction with your Web site TSP password or ThriftLine personal identification number (PIN). You will also use your new account number when you fill out TSP forms.

During September 2007, TSP will send the account number to you in a bright blue mailer. If your address on file with the Postal Service™ has changed, make sure to update it using one of the following options:

1. On a Postal Service computer, go to http://blue.usps.gov; under “Employee Resources” in the right-hand column, click on Employee Self-Service, then click on Employee Change of Address.

2. On a Postal Service kiosk, click on Employee Change of Address.

3. By mail, send PS Form 1216, Employee’s Current Mailing Address, to:

HRSSC COMPENSATION AND BENEFITS
PO BOX 970400
GREENSBORO NC 27497-0400

4. By telephone, call HRSSC at 877-477-0323, option 5; validate your identity with your employee identifi­cation number (EIN) or Postal Service PIN.

Related:  Account Numbers Are Coming in October (TSP website)