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THRIFT INVESTMENT BOARD ANNOUNCES NEW RECORD KEEPING SYSTEM TO BE IMPLEMENTED IN SEPTEMBER 2002; TRANSITION SCHEDULE ESTABLISHED

        Washington, D.C. (May 17, 2002) — The Federal Retirement Thrift Investment Board today announced that the long-awaited new record keeping system for the Thrift Savings Plan (TSP) will be implemented in September 2002.  The contracting team, led by Materials, Communication & Computers, Inc. (MATCOM), of Alexandria, Virginia, is on schedule and within budget for the project.  The team includes The Centech Group, Inc., Computer Sciences Corporation, Keane Federal Systems, Savantage Financial Services, and SunGard Data Systems Inc.

        The transition to the new record keeping system will be completed on Monday, September 16, 2002.  A detailed explanation of the transition schedule and its effect on transactions in progress is contained in the May 2002 edition of the newsletter Thrift Savings Plan Highlights, which is currently being mailed to each TSP participant.  It is also available on the TSP Web site, www.tsp.gov.

       In general, the new system will allow for daily valuation of accounts and daily processing of transactions.  It will also report account balances in terms of shares as well as dollars; offer a greater number of withdrawal options; and provide on-line service via the Web site for loans and withdrawals.  A summary of these and other operational improvements is provided in a leaflet entitled "How the TSP Is Changing," now available on the TSP Web site.  (A copy of the leaflet will be mailed to each TSP participant in September.)

       The record keeping system that MATCOM is developing for September implementation was supposed to have been completed two years ago by American Management Systems, Inc. (AMS).  On July 17, 2001, the Board announced the termination for default of its contract with AMS and filed suit seeking $350 million in actual and punitive damages from the contractor. A lower court ruling dismissing the suit on the ground of standing — not on the merits of the Board’s claim — is currently on appeal to the U.S. Court of Appeals for the District of Columbia Circuit.

       The TSP is a retirement savings plan for Federal employees, including members of the uniformed services, that is similar to the 401(k) plans offered by many private sector employers. It was created by the Federal Employees’ Retirement System Act of 1986.  As of April 30, 2002, TSP fund balances totaled approximately $102 billion, and retirement savings accounts had been established for nearly 2.9 million Federal civilian employees and uniformed services members.

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