Federal Daily - July 31, 2008

Investment Firm Yanks TSP Rollover Ads

Financial services firm TIAA-CREF has pulled an advertisement enticing federal employees to roll their Thrift Savings Plan (TSP) accounts into TIAA-CREF individual retirement accounts (IRAs). Sen. Herb Kohl, D-Wis., chairman of the Senate’s Special Committee on Aging, at a July 16 hearing chided investment firms for running “misleading” rollover advertisements that he said encouraged federal workers to remove their money from their low-cost TSP accounts and place it in higher-fee private-sector accounts. Prior to the hearing, Kohl sent letters to TIAA-CREF and Fidelity Investments complaining of the ads. On July 29, Kohl said that TIAA-CREF had agreed to pull its ad, but that Fidelity had notified him that it would continue to run the rollover ads. “I applaud TIAA-CREF’s decision to pull the ads, and am disappointed that Fidelity has not chosen to follow suit,” said Kohl. “The TSP has the lowest administrative costs of any retirement program in the country and I think these misleading ads are a disservice to hard-working public servants.” Fidelity defended its position, citing its rollover IRAs’ flexibility, the convenience of aggregating retirement assets, and the firm’s investment consultation services. To see more, go to: http://aging.senate.gov/record.cfm?id=301453.

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House Adopts Bill to Strengthen GAO

On a voice vote, the House on July 29 passed a bill that would strengthen the Government Accountability Office (GAO) and restore GAO’s authority to pursue litigation if documents are improperly withheld from the agency. A central provision would void a 2002 federal court decision in Walker v. Cheney, which found GAO didn’t have standing to sue the vice president for records on the administration’s energy policy, according to Rep. Henry Waxman, D-Calif., a bill sponsor. Other provisions of the bill, H.R. 6388, would give GAO authority to interview federal employees and administer oaths. The bill also would affirm GAO’s right to obtain records from three agencies that have sometimes thwarted GAO oversight: the Centers for Medicare and Medicaid Services, the Food and Drug Administration and the Federal Trade Commission, Waxman said. And, the bill creates a reporting mechanism so that Congress will be informed when federal agencies do not cooperate with GAO. “At a time when our budget deficits are soaring to record levels, we cannot afford to waste billions on poorly managed contracts and bloated federal programs,” said Waxman. “We need a strong GAO to root out waste and corruption.” To see more, go to: http://oversight.house.gov/story.asp?ID=2130.

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Bill Would Mandate Voter Services for Vets

Rep. Chris Murphy, D-Conn., on July 29 announced that he is introducing legislation that would force Veterans Affairs (VA) Secretary James Peake to reverse a ban that prohibits VA offices and facilities from allowing on-site voter registration services. Murphy’s bill joins a chorus of voices—including other lawmakers and a coalition of public-interest groups—seeking elimination of the ban. Recently, a bipartisan group of secretaries of state from more than 20 states issued a letter calling for VA to reconsider the directive. The legislation also would offer help to disabled veterans living in VA facilities when they request an absentee ballot or need aid in completing it. By not allowing nonpartisan organizations to assist these individuals, many of them may not be able to vote at all, Murphy said.  To see more, go to: http://chrismurphy.house.gov/index.cfm?
sectionid=16&parentid=3&sectiontree=3,16&itemid=348.

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GSA Boosts Mileage Reimbursement Rate

The General Services Administration this week set a new privately-owned vehicle mileage reimbursement rate of 58.5 cents per mile, effective Aug.1. The rate is eight cents higher than the prior rate of 50.5 cents, which went into effect March 19. The hike mirrors the IRS hike in the standard mileage rate that became effective July 1. To see more, go to: www.gsa.gov/mileage.

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