What's New

Press Release

BOARD EXTENDS DELAY OF NEW RECORD KEEPING SYSTEM IMPLEMENTATION 

Washington, D.C. (June 13, 2000) — The Federal Retirement Thrift Investment Board announced today that the scheduled implementation of the new Thrift Savings Plan (TSP) record keeping system has been postponed because the contractor has not made sufficient progress in testing the system and in fixing numerous software defects disclosed to date.  Roger W. Mehle, Executive Director of the Board, announced that a new implementation date will not be set at this time.  “Although the Board’s contractor has suggested a spring 2001 implementation, it would be premature, given previous missed commitments, to set a new date until the contractor completes testing of the system and reports that all significant software defects have been fixed,” said Mehle.  

The new system is being developed under a contract between the Board and American Management Systems, Inc. (AMS), of Fairfax, Virginia.  When it was awarded in May 1997, the contract anticipated a May 2000 implementation. Because of earlier delays in testing, implementation was rescheduled to October 1, based on assurances from AMS that that date could be achieved with relative certainty.  At a meeting with senior Board officials last week, however, AMS advised that, in light of the current and anticipated software defects, an October 1 implementation date would involve significant risks for the successful operation of the new system.

The TSP is a retirement savings plan for Federal employees that is similar to the 401(k) plans offered by many private employers.  It was created by the Federal Employees’ Retirement System Act of 1986.  As of May 31, 2000, TSP assets totaled approximately $96 billion, and retirement savings accounts have been established for more than 2.4 million TSP participants.

The new record keeping system will support investment options and benefits in addition to those now available to TSP participants.  Because these enhancements, including the Small Capitalization Stock Index Investment (S) Fund, the International Stock Index Investment (I) Fund, and daily valuation of TSP accounts, are dependent upon the new system, they will also be delayed.

According to Mehle, “The new system is necessary for the TSP to provide additional benefits, but it is not required in order to carry out core TSP functions.  In that regard, our current system has proven its processing accuracy, and, although it lacks the ability to support the new benefits, it can remain operational indefinitely.”

All TSP participants will be sent a special mailing advising them of these developments.  In addition, monthly updates on progress toward completion of the new system will be posted on the Board’s Web site, www.tsp.gov.