Coordinating Committee
June 19, 2008
State Department Federal Credit Union
Alexandria VA
Agenda
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Lunch 12:15 to 1 pm
Welcome and Introductions
TSP Briefing
Planning for Evaluation
Around the Room
Next Meeting: 18 Sep 08, FINRA
Partners Report
• First Quarterly Message: Debt
Reduction
• Active Grassroots Effort
• Feedback
• Recruitment & Referrals
Federal Retirement Thrift Investment
Board (TSP)
Thrift Savings Plan
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Demographics
Legislative Initiatives
FRTIB Initiatives
TSP Education & Training
TSP Demographics
• 3.9 million participants
• Participation rates and average account balances:
• FERS:
• CSRS:
• U.S:
86%
70%
26%
$71,901
$65,262
$ 9,491
• $231 billion in assets as of the end of April
• Largest defined contribution plan in the world
TSP Investment Funds
• Total: $230.5 billion
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G Fund: $95.9 billion
F Fund: $15.9 billion
C Fund: $75.2 billion
S Fund: $17.2 billion
I Fund: $26.4 billion
Participation in the L Funds
• 586,284 participants are investing in the L Funds
– Number of participants has increased every month, even
during the down market period
• Breakdown:
– Uniformed Services – 17%
– FERS – 15%
– CSRS – 11%
Thrift Savings Fund
Expense Ratio
1988 - 2007
.34%
.21%
20
06
20
04
20
02
20
00
19
98
19
96
19
94
19
92
19
90
19
88
.13%.13%.12%
.11%
.10%.09%
.10%
.08%.07%
.06%.05%.05%.06%.06% .06%.05%
.03%
.02%
Transfers and Rollovers into
the TSP
Dollars and number of checks received
20,694
450
20,006
Dollars
(Millions)
400
20,048
350
300
13,891
250
14,553
200
150
100
2,791
50
0
*2001
2002
2003
2004
*The figures for 2001 are from July 1–December 31, 2001
2005
2006
2007
2007 TSP Loan Activity
• Total loans
– Disbursed: 260,908
– Dollars: $3,267,728
– Average loan: $12,524
• Total Outstanding Loans: 696,267
• Usage: about 20%
In-Service Withdrawals
• Usage continues to climb –
• Financial Hardships
– 2007: 104,352
– 2008: 22,999
Average: $ 8,038
Average: $ 9,373
• Age-Based
– 2007:
– 2008:
9,772
2,758
Average: $54,008
Average: $57,894
Legislative Initiatives
• Automatic Enrollment
– 26% of 401(k) plans currently auto-enroll
– Auto-enrollment typically sets default contribution
rate at 2-4% of pay; TSP proposal is 3%
– Auto-enrollment would apply to civilians under both
retirement systems and members of the uniformed
services
• Default Fund
– Currently G Fund for TSP;L Funds proposed
What’s Hot
• IFT limits implemented 1 May
– Participants may make two IFT’s each month any
allocation of the balance among the TSP funds
– After first two IFT’s, participant may continue to request
subsequent IFTs which result in an increase in the G
Fund balance and decrease or no change in other funds
• TSP share price reflected four decimal places
1 July
– Will increase the account balance of participants
• 2,000 shares x $10.51 = $2,1020.00
• 2,000 shares x $10.5125 = $2,1025.00
– Daily increase in G Fund share price
What’s Hot
• Transfer of withdrawal to a Roth IRA
– Started February 2008 for TSP age-based and postservice withdrawal options
– Balance considered a taxable event when transferred
• TSP transfers proportionate tax-deferred and taxexempt balance if plan willing to accept tax-exempt
contributions
– Participant must qualify for Roth IRA
• Inherited IRA death benefit payment for nonspouse beneficiaries
– Started January 2007; popular option for death benefit
payment
TSP Web Enhancements in 2008
• May
– Unmasking account numbers
– 4-4-5 display
• June
– Customizable User IDs
• Later
– Profiles
TSP Web Redesign Project
• Total redesign and modernization
• Agency/service representative input
• Participant Web survey posted for two weeks; results used
to provide preliminary redesign proposal this week
• Decisions on changes; then timeframe for development
TSP Video Updates
• On the drawing board –
– CD/DVD for new participants
• which will replace the video
– Update of the L Funds DVD
• still “selling like hot cakes”
– Develop to allow for viewing on the TSP Web site
TSP Education and Training
Activities
• Continuing to conduct “free” TSP briefings at DoD,
PHS, NOAA and USCG sites
• Free TSP training for agency/service representatives
– Classes scheduled at FRTIB
– Classes can be scheduled on-site
• Exhibit/information booths at:
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AUSA
Navy League (San Diego & DC)
Modern Day Marine (Quantico)
Air Force Association
Uniformed services Health Professionals/Assoc of
Military Surgeons
– AFCPE
Exclusive Savings for Military
Servicemembers & Veterans…
From Chase
June 2008
Richard V. Trosko
VP, Corporate Affinity
856-396-2834
Richard.v.trosko@chase.com
Mortgage and Real Estate
• Up to $2,500 cash back – when buying or
selling a home with Home Connect from
Chase
• Up to $500 off Closing Costs – plus, full
access to Chase fixed-rate and adjustable
rate mortgage options
• National Guard and Reserve Members –
defer part or all the mortgage payments
during State or Federal mobilization lasting
at least 30 days, with no late payment fees
and no negative impact to credit
Banking
• Free Chase ATM access – including no Chase
fee for two non-Chase ATM transactions per
statement cycle
• Unlimited check writing – plus, get first order
of 50 checks for free
• Free 24/7 phone and on-line banking – with
a free on-line bill payment option and free email and voice account alerts
• Free built-in security features – such as Zero
Liability protection
• Chase Visa@ Check Card – accepted at
millions of Visa locations worldwide
Credit Card
• Low interest rates
• Blue Star Benefit – rebates all interest on
purchases charged during deployment in a
military campaign
• Military Free Cash Rewards – earn 2 points
for every $1 spent on eligible on-base
purchases and 1 point for every $1 spent
elsewhere
• Receive up to 1% off your origination fee
and save up to $400 on a Chase Private
Student Loan.
Overall Campaign Goals
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Brand recognition
Command engagement (campaign)
Non-profit engagement (campaign)
Family involvement (automatic
savings)
5. Leadership engagement (command
identification)
#1 Brand Recognition
1. Campaign name recognition
2. Website utilization
3. Resource for promoting
1. Asset development
2. “Positive Savings Culture”
#2 Command Engagement
1. Intentional campaign involvement
2. Personnel assigned (project officers
and supporting “voluntolds”)
3. America Saves Week activities
4. Year-round promotional activities
5. Policy statements
#3 Non-Profit Engagement
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3.
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National (HQ) Level
Policy statement
Web links/other regular publicity
Direct campaign promotion
1. Print
2. Virtual
3. Face to face
5. Product/program offerings
#4 Family Involvement
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2.
3.
4.
Saver enrollment
Savings behavior
Financial literacy
Campaign involvement (carrying the
message)
#5 Leadership Engagement
Commands and other organizations
self-identify as intentionally
developing savings culture
Develop simple protocol for
organizations to sign on to the
campaign
Measuring Behavior Change
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PFM/FE/CFS utilization
SDP participation
TSP participation
Relief Society utilization
Small group comparative study (by
military unit)
Military Saves Campaign
2009
Office of Personal Finance and Transition
OUSD (Military Community and Family Policy)
• New Directorate
• Military Saves 2009
• Lessons Learned/The Way Ahead
Military Saves Campaign 2009
Letter from Dr. Chu Sep 2008
• Financial Council Meeting with Service
Personal Financial Managers (PFM)
• Military Youth Saves
• Coordination meetings/ DoD Partners
• Service Communication Plans
• Coordination with OSD public affairs
Office of Personal Finance and Transition
Points of Contacts
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Dr. Bruce Brunson, Director
Bruce.brunson@osd.mil, 703-602-4949, x114
CDR Dave Julian, Deputy Director
David.julian@osd.mil, 703-602-4949, x111
Dr. Randy Eltringham, Program Manager
Randy.eltringham@osd.mil, 703-602-4949, x160
Mr. Ron Horne, Program Manager
Ronald.horne.ctr@osd.mil, 703-908-1238
Ms. Brenda McDaniel, Program Manager
Brenda.mcdaniel@osd.mil, 703-602-4949, x106
Mary Bell, Curriculum Developer
Navy-Marine Corps Relief Society
NMCRS Policy
• Require budget (Spending Plan) on
all cases (except Emergency Leave)
• Encourage short term emergency
and periodic liquid savings
• Look toward long term savings and
planning goals
Navy-Marine Corps Relief Society
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Quick Assist Loans (QAL)
Huge success – over $2M in 5 months
QAL clients are predominately first time
visitors to NMCRS
Distribute materials to encourage saving
Encourage clients to return to develop
spending (savings) plan
QAL clients are returning for spending
plans
Military Saves – Navy Effort
•Command-administered initiative
•Financial partner involvement
•Strong media campaign
2008 Highlights
•Support by Navy leadership
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•Focus on education vs. sign up
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•Military Millionaires in the Making
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45,000 participate in weeklong event
Over 4,231 Navy Youth
involved
Spouse participation soars by
50%
Installation partner efforts
up 74%
13,946 more participate
than previous year
Fort Carson
ACS/Chaplain Partnership
Fort Carson
ACS/Chaplain Partnership
• 1,700 Soldiers
• Total Money Makeover LIVE Presentation
• 150 Families in Financial Peace
Financial Readiness Training
• 704 turned in Saver Pledge
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Dave Ramsey FBN
Military Families Special
Aired on 22 & 27 May,
Will air again on 3 July
• Story on Major Hudson
“It has been a miracle. We have paid almost
$20,000 in debt which is 12% of our total debt
within the last 4 months. God is awesome! This
program works and I thank you for sharing this
with us.”
- Leviticus Legget, US Army
• 18 Dave Ramsey
Video Vignettes on
Financial Readiness
Dave Ramsey Military Saves Site
Dave Ramsey Military Saves Site
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Dave Ramsey Military Saves Site
• Added more FREE content
• TSP link - 344 “click through” rate
• Military Saves link – 372 “click through”
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