GAO is reviewing the commercial services contract for the new TSP system. Image: Tyler Olson/Shutterstock.com
By: FEDweek StaffThe GAO has previewed an upcoming report on the TSP’s transition last summer to a new operating system and the complaints that followed — and still continue, although to a lesser extent—about poor customer service.
That transition “caused a range of access issues and set off a wave of complaints. People who couldn’t access their money reported facing hours-long wait times to reach customer service,” the GAO said in a blog posting. GAO said that some users continue to contact it with problems—even though it has no direct control over TSP operations and “cannot respond to individual complaints”—including that (in its words):
“Their paychecks were garnished to pay back approved loans that were never disbursed; they were unable to withdraw the required minimum amount per year, which could have tax implications; and the customer service call center had long wait times and still couldn’t resolve many issues (in one case, a participant’s issue remained unaddressed for 7 months).”
Also that: “they received notifications of successful fund transfers but found that funds hadn’t been transferred; they had to obtain consent from a third-party to add beneficiaries to their own tsp account; and they were unable to access historical account transaction information from the prior system.”
Because of those issues, members of Congress requested a GAO review, which the posting said is ongoing and is focusing on the “underlying causes” of the dissatisfaction.
“We plan to review the federal government’s actions to purchase, launch, and oversee the commercial services contract for the new modernized TSP system. Among other things, contract oversight involves clearly communicating government needs, matching resources to those needs, and monitoring the performance of the purchased service or product. Having contract oversight ensures that services and products are working as intended and any identified issues are mitigated,” the GAO said.
However, that report is not expected until early in 2024.
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