U.S. Reps. Eleanor Holmes Norton (D-DC) and Abigail Spanberger (D-VA) are asking the Government Accountability Office to examine the new Thrift Savings Plan (TSP) online system after hearing complaints from constituents about it.
There have been widespread complaints about various aspects of the plan, including account access, account balances, missing or incomplete information in their accounts, and hours-long wait times to reach customer service.
“I am deeply concerned about the widespread problems with the new TSP online system,” Norton said. “I continue to hear daily from constituents about the many problems with the new system. I will continue to demand immediate fixes to the problems, but we need to understand how this debacle occurred, which is why I am requesting a comprehensive examination of the new system itself, its planning, and its implementation,” Norton said.
The Thrift Savings Plan (TSP) is a tax-deferred retirement savings and investment plan that offers Federal employees the same type of benefits as 401(k) plans. Through the TSP, federal employees have the opportunity to save part of their income for retirement, receive matching agency contributions, and reduce their current taxes.
“Over the last month, many of Virginia’s dedicated federal employees and retirees have reached out to my office about challenges they are experiencing with the TSP system. We need to know more about what’s going wrong, why it’s happening, and how TSP’s Board intends to fix these problems,” Spanberger said. “That’s why we are calling for a full investigation into these outstanding issues. I’d like to thank Congresswoman Norton for her partnership as we focus on greater accountability and transparency in this system — because Americans who have devoted their careers to public service do not deserve to be locked out of their retirement accounts.”
The TSP had approximately 6.5 million participants and $838 billion in assets, making it the world’s largest defined contribution plan.
“We request that the Government Accountability Office conduct a comprehensive examination of the new Thrift Savings Plan (TSP) online system, including the planning, contract award, and implementation, as well as oversight by the Federal Retirement Thrift Investment Board (FRTIB),” the lawmakers wrote to the GAO. “On June 1, 2022, FRTIB launched a new system with the goal of modernizing TSP’s recordkeeping, improving customer service, and bolstering cybersecurity. Our offices have heard from constituents about widespread problems, including account access, account balances, missing or incomplete information in their accounts, and hours-long wait times to reach customer service.”