Mike Causey

Your 401(k) Plan: Who’s In Charge?

Federal and postal unions have urged the Obama administration to reappoint three members of the board that runs your $200 billion dollar 401(k) plan. Senior Cor...

Federal News Network Staff

January 23, 2009 4:00 am

2 min read

Most unions/groups representing active and retired feds have asked the Obama administration to reappoint three members of the board that runs the massive federal-military 401(k) plan.

The Thrift Savings Plan now has 4 million participants. That includes a million people, either retirees or former feds, who no longer work for the government but left their money in the low-fee TSP.

Even after the hit that all 401(k) balances have taken, the TSP is currently worth $202 billion.

Long-time feds who have survived a number of presidential transitions say the appeal is unusual, in part because the three were first appointed by the Bush administration. The TSP was created by Congress which instructed the board to ignore politics and make decisions based on the best interests of federal-military investors. Most members of Congress, and most political appointees participate in the TSP.

The three board members, Andrew Saul, Gordon Whiting and Alejandro Sanchez, were renominated two years ago. The Senate’s Democratic leadership wants the new president to decide whether they stay or are replaced.

The unusual don’t-rock-the-boat letter says the TSP keeps getting better even as administrative fees (already the lowest in the business) continue to drop. Low fees mean more money in the accounts of the TSPs three million active and retired federal and military investors.

Most of the unions that signed the letter endorsed then-Sen. Obama for the presidency. And they’ve had virtually nothing good to say about the Bush administration’s policies up to and including this week. But the letter, a plea for continuity, notes that all five board members are serving past their staggered appointment dates, and that two are not seeking renomination.

With five out of five potential vacancies, the letter to the White House said, is that if Sanchez, Whiting and Saul are not reappointed, “five newcomers would mean a completely new board” and risk a “highly disruptive and potentially damaging interruption” of the TSP.

The letter was signed by Jacqueline Simon, American Federation of Government Employees; Myke Reid, American Postal Workers Union; Dick Ostergren, National Active and Retired Federal Employees; James Sauber, National Association of Letter Carriers; Louis Atkins, National Association of Postal Supervisors; Dale Goff Jr., National Association of Postmasters; Rick Brown, National Federation of Federal Employees; Charles Mapa, National League of Postmasters; Clifford Dailing, National Rural Letter Carriers Association and Dick Strombotne, Senior Executives Association.

White House Pay Freeze

Many federal workers are wondering if the White House pay freeze (on appointees making $100,000 or more) is a sign of things to come for high-paid civil servants. Because this is headquarters for most federal agencies, the metro Washington area has the highest-concentration of civil servants making $100,000 or more. With the brand new 4.78 percent pay raise for this area, anyone in Grade 13 step 6 ($101,416) is in the 6-figure ranks.

Nearly Useless Factoid

Autoblog reports that HUMMER drivers are four times more likely to get a ticket than the average driver.

To reach me: mcausey@federalnewsradio.com