The TSP has published an interim rule, effective January 7, under which its executive
director the authority to contact participant deemed to be driving up overall plan costs through excessive trading and request that they cease their practices. Otherwise, those participants will be required to request interfund transfers by mail. The TSP says that about 3,000 participants in the program fit the category of excessively active traders and that it intends to publish formal rules that would generally allow only two interfund transfers per month, starting as early as the spring. The TSP earlier announced an intent to take that action, on grounds that the costs from those frequent trades are driving down returns for all participants.
