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

Transfers and Rollovers into the TSP Dollars and number of checks received *The figures for 2001 are from July 1–December 31, ,791 13,891 14,553 20,048 20,006 20,694 Dollars (Millions)

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, ,000 shares x $ = $2, –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

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 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 , x114 CDR Dave Julian, Deputy Director , x111 Dr. Randy Eltringham, Program Manager , x160 Mr. Ron Horne, Program Manager Ms. Brenda McDaniel, Program Manager , 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 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

Dave Ramsey FBN Military 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 “click through” rate Military Saves link – 372 “click through” Dave Ramsey Military Saves Site