Coordinating CommitteeJune 19, 2008

State Department Federal Credit UnionAlexandria 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

.34%

.21%

.11%.13%.13%.12%

.10%.09%.08%.07%.06%.05%.05%.06%.06%.10%

.06%.05%.03%.02%

Transfers and Rollovers into the TSPDollars and number of checks received

050

100150200250300350400450

*2001 2002 2003 2004 2005 2006 2007*The figures for 2001 are from July 1–December 31, 2001

2,791

13,891

14,553

20,048

20,00620,694

Dol

lars

(M

illio

ns)

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 2008Richard V. TroskoVP, Corporate Affinity856-396-2834Richard.v.trosko@chase.com

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 Goals1. Brand recognition2. Command engagement (campaign)3. Non-profit engagement (campaign)4. Family involvement (automatic

savings)5. Leadership engagement (command

identification)

#1 Brand Recognition1. Campaign name recognition2. Website utilization3. Resource for promoting

1. Asset development2. “Positive Savings Culture”

#2 Command Engagement1. Intentional campaign involvement2. Personnel assigned (project officers

and supporting “voluntolds”)3. America Saves Week activities4. Year-round promotional activities5. Policy statements

#3 Non-Profit Engagement1. National (HQ) Level2. Policy statement3. Web links/other regular publicity4. Direct campaign promotion

1. Print2. Virtual3. Face to face

5. Product/program offerings

#4 Family Involvement1. Saver enrollment2. Savings behavior3. Financial literacy4. Campaign involvement (carrying the

message)

#5 Leadership EngagementCommands 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 TransitionOUSD (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 TransitionPoints of Contacts

• Dr. Bruce Brunson, DirectorBruce.brunson@osd.mil, 703-602-4949, x114

• CDR Dave Julian, Deputy DirectorDavid.julian@osd.mil, 703-602-4949, x111

• Dr. Randy Eltringham, Program ManagerRandy.eltringham@osd.mil, 703-602-4949, x160

• Mr. Ron Horne, Program ManagerRonald.horne.ctr@osd.mil, 703-908-1238

• Ms. Brenda McDaniel, Program ManagerBrenda.mcdaniel@osd.mil, 703-602-4949, x106

• Mary Bell, Curriculum Developer

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

Navy-Marine Corps Relief Society

Military Saves – Navy Effort

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

•Command-administered initiative

•Financial partner involvement

•Strong media campaign

•Support by Navy leadership

•Focus on education vs. sign up

•Military Millionaires in the Making

Fort Carson ACS/Chaplain Partnership

41

Fort CarsonACS/Chaplain Partnership• 1,700 Soldiers• Total Money Makeover LIVE Presentation• 150 Families in Financial Peace

Financial Readiness Training• 704 turned in Saver Pledge

Dave Ramsey FBNMilitary Families Special

Aired on 22 & 27 May, Will air again on 3 July

“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

• Story on Major Hudson

• 18 Dave Ramsey Video Vignettes on

Financial Readiness

Dave Ramsey Military Saves Site

47

Dave Ramsey Military Saves Site

48

• Added more FREE content• TSP link - 344 “click through” rate• Military Saves link – 372 “click through”

Dave Ramsey Military Saves Site