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Show '" Hilltop Times June 10. 1988 ? i- - The ongoing Thrift Savings Plan open season for civilian employees, which lasts through July 31, still has some people scratching their heads. Many are wondering about who manages the program and where the money goes, according to Kim Peterson, of the civilian personnel office's entitlements and benefits unit. She said the most frequently asked question is "Who manages the money?" "All money in the TSP is invested and managed by the Federal Retirement Thrift Investment Board, a special, independent government agency," Ms. Peterson said. "The sole purpose of this board is to invest and manage funds in the TSP to benefit participants." She said the board has five members, appointed by the president and confirmed by the Senate for four year terms. "By law, these board members must have 'substantial experience, training and exinvestments and penpertise in managing financial " sion benefit plans.' Board members select an executive director who has responsibility for investment decisions and authority over daily operations. Actual management of the TSP money is handled differently for each fund, according to Ms. Peterson. "The board staff (government employees experienced as investment managers) will manage the The F and C funds are handled by one or more privajte firms. These private investment managers will be chosen by the board using competitive procurement methods," she said. are Government Securities Investment are Fixed Income Investment Funds;. are Common Stock Investment Funds; and Funds. Other questions asked include: Q. Do I have any say with the board on how my TSP funds are invested? G-Fun- d. G-Fun- ds ds ds A. No. The board decides how TSP monies are invested, depending on the type of fund ("G," "F" or "C") you contribute to. There is an employees thrift advisory council appointed by the board which represents employees' interests and concerns and from groups representing retired employees, managers, women and senior executives, according to Ms. Peterson. "This council advises the board on matters relating to administering the TSP and on investment policies," she said. Q. Who pays the board? A. The board's start-u- p administrative and operating expenses were paid from appropriated funds. Now, board expenses are covered by forfeited 1 percent government contributions that employees belonging to the Federal Employees Retirement System, or FERS, lose when they leave federal employment before vesting (owning) those funds. (They must have three years of government service before they are entitled to the 1 percent automatic government contributions to their TSP account.) "If forfeited contributions are not enough to cover board expenses, money will be taken from earnings from the TSP before they are distributed to employee accounts," said Ms. Peterson. Board posiMembers meet at least monthly tions are part-timand receive a daily rate of pay for each day they are engaged in board business, as well as per diem and e. travel expenses. Employees' costs are low because of TSP's size, the fact that government personnel and payroll office staffs are handling most of the paperwork and the minimal expenses claimed by board members. Q. Can other government agencies such as Social Security take money from TSP funds to supr port their own programs? A. No. The law is very specific. TSP money can only be used for TSP purposes and those funds are in a separate U.S. Treasury Trust Fund, according to Ms. Peterson. "They are not part of the federal government's general fund. Each person, as a participating employee, owns part of the TSP monies and no government agency, including Congress, can tamper with the funds," she said. Q. How will I know what is going on with my hi- - u account? A. Ms. Peterson said that prior to each open season each participant in the TSP will receive a statement showing activity on their account for the inprevious six months. "This statement includes formation on the contributions, the government's contributions (for employees under FERS) and earnings on both. TSP literature will explain how the money is being invested," she said. Q. Do the TSP funds have protections against investment loss and fraud? is backed by the A. Money invested in a U.S. full faith and credit of the government, said Ms. Peterson. ' is not federally "Money invested in the the insured is organizations by guaranteed, but it which take on the investments. Investments made are not guaranteed against loss in any into i' G-Fu- F-Fu- ds way. "Board member employees and organizations handling TSP assets are subject to strict financial laws and breaking such laws may make them personally liable for damages," she said. Editor's note: Questions on individual TSP account participant statements, or on each leave and earnings statement, should be directed to the civilian payroll Unit, Ext. 76246. Unusual problems or questions about the plan should be directed to. Ms. Peterson, Ext. 76142. 'i k I ' V Japanese and Volkswagen Auto Parts 1 392-02- 0 Hours: 8:30 or 393-0- 3 . 9:00 to '1:00 1 Monday thru on Saturdays fTrA 2 Friday.-;- ; ilk THE PERFECT I rg) PRESENT! 'te ureDfl far (Esiiffla Ck)vemment Employees GEICO-t- he Insurance good-drivin- 1KB 9 , 4 Father's Day W Sunday June 19th "a - , Personalized coverage to fit your needs Low down payment and money saving deductibles V Q MerlJ. Riding : and s i A ., u I CLGARF12L0 025-075- 2 k policyholder service no-obligat- ion Jeweler 16 SO. 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