The TSP’s Strategy

Your agency probably has a “strategic plan” that specifies goals for a set period of time, usually five years. The Thrift Savings Plan (TSP) also has a five-year strategic plan that covers fiscal years 22, 23, 24, 25, and 26.

Like many others, the TSP’s strategic plan discusses purpose and vision, as well as values and results. This article won’t go into detail on the proposal, nor will it explain their aims for agency operations and transition.

The one sentence that clearly points out the role of the Thrift Board states that they operate the TSP solely in the interest of its participants and beneficiaries. In fact, “participant-focused” is one of the values they mention later in the plan.

The Thrift Board has defined five visions to describe its objectives:

• We accomplish flawless operations;
• We assist participants in making good decisions;
• We spend participant funds wisely;
• We make the FRTIB an excellent place to work; and
• We cultivate outstanding relationships with TSP stakeholders.

The Thrift Board has also identified three objectives regarding outcomes that affect plan participants: 

• Enable better participant decision-making by delivering personalized information;

• Explore and execute plan design and benefit policy enhancements; and

• FRTIB outreach improves the percentage of participants who take targeted action.

More time is spent on participants in another aim related to service provision. The participant services goal has four objectives:

• Increase awareness of how TSP services compare to those provided by other defined contribution plans, providers, and financial institutions;
• Recognizing and responding to participant service needs and expectations;
• Collaborating with employment agencies and payroll offices to provide more seamless service to participants; and
• Launching a mutual fund window. That was completed many months ago.

They also aimed to transition the TSP to a managed services strategy. That transition occurred in May and June and didn’t meet the Thrift Board’s goal of sustaining program performance and participant satisfaction. There was a lot of complaining about transition issues. Having said that, the TSP has recently been more proactive and user-friendly than it was in the beginning.

Hopefully, their strategic approach will help them strengthen their services for the benefit of both employed and retired individuals.

Did you know?

When payments start, the TSP employs the IRS Single Life Table for life expectancy-based distributions for participants who haven’t yet reached the required minimum distribution (RMD) age. When these participants reach the RMD age (now 72), they can move to the Uniform Lifetime Table. If they choose to switch, they won’t be allowed to switch back.

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After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely withhelping them pursue the most comfortable financial life possible.Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.Aaron can help you and your family to create, preserve and protect your legacy.That’s making a difference.

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