TSP

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I bet your agency has what they call a “strategic plan” which outlines goals for a specified future period of time; often five years. Well, the Thrift Savings Plan has a strategic plan too, and, yes, it’s for five years, covering FYs 22, 23, 24, 25 and 26.

Like many strategic plans, the TSP’s plan discusses mission and vision, as well as values and outcomes. This article will not be a deep dive into the plan and won’t discuss their goals for agency operations and transition.

The mission section points out the role of the Thrift Board in one concise sentence. “We administer the TSP solely in the interest of participants and beneficiaries.” In fact, one of the values they cite later in the plan is that they are “participant focused.”

The Thrift Board has identified five visions that describe their goals:
• We achieve flawless operations;
• We help participants make smart choices;
• We spend participant money wisely;
• We make the FRTIB a great place to work; and a place where great work gets done; and
• We create excellent relationships with TSP stakeholders.

When it comes to outcomes that affect plan participants, the Thrift Board has identified three objectives:
• Enable improved participant decision-making by providing customized information;
• Explore and implement plan design and benefit policy enhancements; and
• FRTIB outreach increases the percentage of participants taking a targeted action.

More time is spent on participants in another goal regarding the provision of services. The four objectives in the participant services goal are:
• Enhance awareness of how TSP services compare against those offered by other defined contribution plans, providers, and financial institutions;
• Understand and respond to participant service needs and expectations;
• Collaborate with employing agencies and payroll offices to deliver more seamless service to participants; and
• Launch mutual fund window. This was accomplished a few months ago.

They also had a goal about the TSP’s transition to a managed services strategy. That transition took place in May and June and didn’t quite live up to the Thrift Board’s goal of maintaining program performance and participant satisfaction. In a couple of recent retirement classes I taught, there was considerable grousing about problems in the transition. Having said that, the TSP of late has been more proactive and user friendly than it was in the early days. Hopefully their strategic plan will allow them to improve their services for the benefit of employed and retired participants.

Did you know?
For life expectancy based distributions, the TSP uses the IRS Single Life Table for participants who have not yet reached the required minimum distribution (RMD) age when payments begin. When these participants reach the age for RMDs (currently 72) they are allowed to switch to the Uniform Lifetime Table. If they choose to switch, they will not be allowed to switch back.1

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