State:
Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
May 21, 2002
Federal Workers to Get Faster Access to Benefits Info
The
For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!
Thrift Savings Plan, the retirement savings and stock investment program for 2.9 million federal employees, says civil service and military personnel will be able to conduct stock and other transactions on a daily basis by September, thanks to a long-awaited computer ugrade.

Though participants can move their money among the TSP's five funds on a monthly basis now, it can take six weeks to complete some transactions. Many TSP employees have complained that the monthly system puts them at a disadvantage when making investment decisions, according to the Washington Post.

In addition to processing transactions each business day, the new system will show account balances in dollar amounts, shares and share prices. It also will offer a greater number of withdrawal options and provide online service via the Internet for loans and withdrawals, the Post reports.

Paul A. Yurachek, a financial planner who follows the TSP, cautioned federal employees to avoid getting caught up in day-trader mentality once the daily valuation system starts.

"What's good about it is what's bad about it," he told the Post. "The ability to move your money when you want to move it and check on your balance when you wish is great. However, a lot of people are not sophisticated investors."

The monthly system "prohibited market timing" and the temptation to jump in and out of the stock market on violate days, he said. "Showing daily balances will cause people to worry and get excited more than they should."

The transition to the new system has been delayed for about two years because of a disagreement between the board that oversees the TSP and a contractor. The Federal Retirement Thrift Investment Board fired the contractor, American Management Systems Inc. of Fairfax, last year and hired a replacement.

To read the Washington Post article, click here.


Participate in this week's HR.BLR.com poll and discussion!



Featured Free Resource:
Cost Per Hire Calculator
   
   
 
 
Twitter  Facebook  Linked In
Follow Us
CT-WEB01
Copyright © 2016 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on http://Compensation.BLR.com
Document URL: http://compensation.blr.com/Compensation-news/Benefits-Leave/Employee-Benefits/Federal-Workers-to-Get-Faster-Access-to-Benefits-I/