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Coordinating Committee

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

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

  2. Agenda • Lunch 12:15 to 1 pm • Welcome and Introductions • TSP Briefing • Planning for Evaluation • Around the Room • Next Meeting: 18 Sep 08, FINRA

  3. Partners Report • First Quarterly Message: Debt Reduction • Active Grassroots Effort • Feedback • Recruitment & Referrals

  4. Federal Retirement Thrift Investment Board (TSP)

  5. Thrift Savings Plan • Demographics • Legislative Initiatives • FRTIB Initiatives • TSP Education & Training

  6. 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

  7. 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

  8. 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%

  9. Thrift Savings FundExpense Ratio1988 - 2007

  10. 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

  11. 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%

  12. 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

  13. 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

  14. 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

  15. 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

  16. TSP Web Enhancements in 2008 • May • Unmasking account numbers • 4-4-5 display • June • Customizable User IDs • Later • Profiles

  17. 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

  18. 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

  19. 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

  20. Exclusive Savings for Military Servicemembers & Veterans… From Chase June 2008 Richard V. Trosko VP, Corporate Affinity 856-396-2834 Richard.v.trosko@chase.com

  21. 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

  22. 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

  23. 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.

  24. Overall Campaign Goals • Brand recognition • Command engagement (campaign) • Non-profit engagement (campaign) • Family involvement (automatic savings) • Leadership engagement (command identification)

  25. #1 Brand Recognition • Campaign name recognition • Website utilization • Resource for promoting • Asset development • “Positive Savings Culture”

  26. #2 Command Engagement • Intentional campaign involvement • Personnel assigned (project officers and supporting “voluntolds”) • America Saves Week activities • Year-round promotional activities • Policy statements

  27. #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

  28. #4 Family Involvement • Saver enrollment • Savings behavior • Financial literacy • Campaign involvement (carrying the message)

  29. #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

  30. Measuring Behavior Change • PFM/FE/CFS utilization • SDP participation • TSP participation • Relief Society utilization • Small group comparative study (by military unit)

  31. Military Saves Campaign 2009 Office of Personal Finance and Transition OUSD (Military Community and Family Policy)

  32. New Directorate • Military Saves 2009 • Lessons Learned/The Way Ahead

  33. 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

  34. Office of Personal Finance and Transition Points of Contacts • Dr. Bruce Brunson, Director • Bruce.brunson@osd.mil, 703-602-4949, x114 • CDR Dave Julian, Deputy Director • David.julian@osd.mil, 703-602-4949, x111 • Dr. Randy Eltringham, Program Manager • Randy.eltringham@osd.mil, 703-602-4949, x160 • Mr. Ron Horne, Program Manager • Ronald.horne.ctr@osd.mil, 703-908-1238 • Ms. Brenda McDaniel, Program Manager • Brenda.mcdaniel@osd.mil, 703-602-4949, x106 • Mary Bell, Curriculum Developer

  35. 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

  36. 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

  37. 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

  38. Fort Carson ACS/Chaplain Partnership

  39. 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

  40. Dave Ramsey FBNMilitary Families Special Aired on 22 & 27 May, Will air again on 3 July

  41. 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

  42. 18 Dave Ramsey Video Vignettes on Financial Readiness

  43. Dave Ramsey Military Saves Site

  44. Dave Ramsey Military Saves Site 47

  45. 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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