TSP Officials Get an Earful

Leaders of the Thrift Savings Plan heard sharp criticism from House members of both parties regarding the TSP’s newly launched computer system and the level of customer service the TSP is providing investors. Members of the House Government Reform Committee at a hearing recounted troubles their constituents have had accessing the TSP’s Web site, its customer service phone line and in getting transactions processed, especially those involving loans. Many problems were related to delayed loan payouts from the TSP, including a lost opportunity to purchase a home, having a home foreclosed on, having to borrow from family and other sources, a loss of a favorable mortgage rate and a single mother who is living without hot water. Others were forced to reapply numerous times, got contradictory answers from different customer service representatives, and were repeatedly promised that money would arrive by a certain date but it didn’t, they said. “They’re going through horrible situations and unbelievable difficulties. People are losing faith in the system,” said Rep. James Moran, D-Va., in a comment typical of those made by other members. TSP officials at the hearing were apologetic for the problems investors have experienced but said it is unclear whether the TSP has the authority to provide any help to them.