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Thrift Savings Plan participants sue over access to funds – By Molly Weisner (Federal Times) / June 2, 2023
Editor’s note: This story was updated at 12:26 p.m. EST on Friday, June 2 to include updated comments.
Military and civilian users of the the federal government’s Thrift Savings Plan, the popular tax-deferred retirement savings program for millions of government employees, filed a lawsuit alleging that they lost access to their funds following a modernization of its system.
Attorneys representing current and former service members and federal employees who filed the complaint on June 1 say their clients have experienced financial hardships due to complications that arose after Federal Retirement Thrift Investment Board, which oversees the program, hired contractors to revamp the customer interface.
The TSP, which has some $800 billion in assets, announced a year ago that it was standing up a new online portal to improve cybersecurity and usability. The rollout was fraught with glitches and complaints from users who said they couldn’t access their funds, look up historical records or reach a customer service representative.
