Fedweek

The TSP said primary beneficiary information was not carried over to the new system for 157,000 participants, but that they still have it. Image: Erce/Shutterstock.com

The TSP has said that although beneficiary designations made by some account holders did not carry over into its new operating system, those designations are still valid.

One major complaint from many TSP investors since the June 1 switchover is that the designations they had made are no longer shown in their “My Account” online accounts. (Getting into those accounts in the first place has been another point of complaint, since the new system required investors to set them up anew and many have experienced problems doing that.)

Investors are not required to make beneficiary designations; if they don’t, a “standard order of precedence” applies. Some have asked if that now applies to them unless they file a new designation. In response to an inquiry from FEDweek, TSP spokeswoman Kim Weaver said this:

“For a small number of participants, we made a decision not to transfer a set beneficiary designation into the new My Account. The new system was designed with strong data integrity and quality as a top priority. Some of the data could not be transferred into our system because it did not meet updated criteria. Primary beneficiary information was not carried over for 157,000 participants, which represents [about] 2.5% of all TSP account holders.

“We have the previous beneficiary designations and would disburse the account per those directions, should it be necessary. In addition, there are several reminders through the My Account experience and messaging on tsp.gov as well as provided on ThriftLine asking that participants confirm their beneficiary information. We are also in the process of sending a message via email and US Mail to all impacted participants asking that they resubmit their beneficiary information.

“The easiest way to submit beneficiary designation is through My Account. Participants can submit their beneficiary designation entirely online or in the new official TSP Mobile App. While paper forms are no longer necessary, there is a process for beneficiaries to submit by paper if they choose.

“Since the transition on June 1, more than 80,000 participants have added beneficiary information. While we are aware of some challenges that participants are having with the new process – like the inability to change beneficiary information online if a participant’s beneficiary is also an active TSP participant – we are not aware of widespread issues with the online beneficiary designation process.”

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