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Coordinating Committee. June 19, 2008 State Department Federal Credit Union Alexandria VA. Agenda. 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.

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Coordinating Committee

June 19, 2008

State Department Federal Credit Union

Alexandria VA


Agenda

  • 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

  • Demographics

  • Legislative Initiatives

  • FRTIB Initiatives

  • TSP Education & Training


TSP Demographics

  • 3.9 million participants

  • Participation rates and average account balances:

    • FERS: 86% $71,901

    • CSRS: 70% $65,262

    • U.S: 26% $ 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

    • 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 FundExpense Ratio1988 - 2007


    Transfers and Rollovers into the TSPDollars and number of checks received

    20,694

    20,006

    20,048

    Dollars (Millions)

    13,891

    14,553

    2,791

    *The figures for 2001 are from July 1–December 31, 2001


    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 Average: $ 8,038

      • 2008: 22,999 Average: $ 9,373

    • Age-Based

      • 2007: 9,772 Average: $54,008

      • 2008: 2,758 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 post-service withdrawal options

      • Balance considered a taxable event when transferred

        • TSP transfers proportionate tax-deferred and tax-exempt balance if plan willing to accept tax-exempt contributions

      • Participant must qualify for Roth IRA

    • Inherited IRA death benefit payment for non-spouse 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:

      • 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

    [email protected]


    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 e-mail 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

    • Brand recognition

    • Command engagement (campaign)

    • Non-profit engagement (campaign)

    • Family involvement (automatic savings)

    • Leadership engagement (command identification)


    #1 Brand Recognition

    • Campaign name recognition

    • Website utilization

    • Resource for promoting

      • Asset development

      • “Positive Savings Culture”


    #2 Command Engagement

    • Intentional campaign involvement

    • Personnel assigned (project officers and supporting “voluntolds”)

    • America Saves Week activities

    • Year-round promotional activities

    • Policy statements


    #3 Non-Profit Engagement

    • National (HQ) Level

    • Policy statement

    • Web links/other regular publicity

    • Direct campaign promotion

      • Print

      • Virtual

      • Face to face

    • Product/program offerings


    #4 Family Involvement

    • 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

    • 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

    • Dr. Bruce Brunson, Director

      • [email protected], 703-602-4949, x114

    • CDR Dave Julian, Deputy Director

      • [email protected], 703-602-4949, x111

    • Dr. Randy Eltringham, Program Manager

      • [email protected], 703-602-4949, x160

    • Mr. Ron Horne, Program Manager

      • [email protected], 703-908-1238

    • Ms. Brenda McDaniel, Program Manager

      • [email protected], 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

    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

    • Support by Navy leadership

    • Focus on education vs. sign up

    • Military Millionaires in the Making

    2008 Highlights

    • 45,000 participate in week-long 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 CarsonACS/Chaplain Partnership

    1,700 Soldiers

    Total Money Makeover LIVE Presentation

    150 Families in Financial PeaceFinancial Readiness Training

    704 turned in Saver Pledge

    41


    Dave Ramsey FBNMilitary 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

    47


    Added more FREE content

    TSP link - 344 “click through” rate

    Military Saves link – 372 “click through”

    Dave Ramsey Military Saves Site

    48


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