Senate Panel Raps TSP Computer Project

The Senate Governmental Affairs Committee, in a letter summarizing its investigation into the Thrift Savings Plan’s computer upgrade project, has concluded that “much of the time and money” spent on the project for three years was “wasted.” The system, originally set for launch in May 2000 was not activated until June 2003, the committee noted, adding that after various legal maneuvering, $36 million was written off as an overhead expense and deducted from participants’ accounts. “In return for the increased administrative expenses, participants and beneficiaries primarily received delays and excuses,” the committee’s letter to the TSP says. Many TSP participants have voiced the same complaint and were doubly upset when, after the system became active, operational glitches and backlogs, especially involving loan processing, arose. The new system changed the TSP from monthly to daily valuation of accounts, started valuing the investment funds according to share prices and made several operational changes.