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Coordinating Committee - Military Saves

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					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

        • 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 Fund
Expense Ratio
1988 - 2007
    .34%




        .21%


                    .13%
                .13% .12%
            .11%         .10%                          .10%
                             .09%.08%.07%.06% .05% .06% .06%
                                             .05% .06%      .05%
                                                                .03%
                                                                    .02%
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19

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                                                                        20
             Transfers and Rollovers into
             the TSP
             Dollars and number of checks received
                                                                                                     20,694
             450                                                                            20,006
             400
                                                                         20,048
             350
(Millions)




             300
                               13,891
             250
                                                 14,553
             200
Dollars




             150
             100   2,791
             50
               0
                   *2001           2002             2003            2004             2005     2006    2007
                           *The figures for 2001 are from July 1–December 31, 2001
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 2008
                             Richard V. Trosko
                             VP, Corporate Affinity
                             856-396-2834
                             Richard.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 Goals

       1. Brand recognition
       2. Command engagement (campaign)
       3. Non-profit engagement (campaign)
       4. Family involvement (automatic
          savings)
       5. Leadership engagement (command
          identification)
#1 Brand Recognition

       1. Campaign name recognition
       2. Website utilization
       3. Resource for promoting
         1. Asset development
         2. “Positive Savings Culture”
#2 Command Engagement

      1. Intentional campaign involvement
      2. Personnel assigned (project officers
         and supporting “voluntolds”)
      3. America Saves Week activities
      4. Year-round promotional activities
      5. Policy statements
#3 Non-Profit Engagement

       1.   National (HQ) Level
       2.   Policy statement
       3.   Web links/other regular publicity
       4.   Direct campaign promotion
            1. Print
            2. Virtual
            3. Face to face
       5. Product/program offerings
#4 Family Involvement

       1.   Saver enrollment
       2.   Savings behavior
       3.   Financial literacy
       4.   Campaign involvement (carrying the
            message)
#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
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 Transition
OUSD (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 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
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
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
  Military Saves – Navy Effort
•Command-administered initiative
•Financial partner involvement
•Strong media campaign                          2008 Highlights

                                           45,000 participate in week-
•Support by Navy leadership            •
                                           long event
                                       •   Over 4,231 Navy Youth
•Focus on education vs. sign up            involved
                                       •   Spouse participation soars by
•Military Millionaires in the Making       50%
                                       •   Installation partner efforts
                                           up 74%
                                       •   13,946 more participate
                                           than previous year
Fort Carson   ACS/Chaplain Partnership
Fort Carson
ACS/Chaplain Partnership
 • 1,700 Soldiers
 • Total Money Makeover LIVE Presentation
 • 150 Families in Financial Peace
     Financial Readiness Training
 • 704 turned in Saver Pledge




                                            41
Dave Ramsey FBN
Military Families Special




Aired on 22 & 27 May,
Will air again on 3 July
   • 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
• 18 Dave Ramsey
   Video Vignettes on
    Financial Readiness
Dave Ramsey Military Saves Site
Dave Ramsey Military Saves Site




                                  47
Dave Ramsey Military Saves Site

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




                                                48

				
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