The TSP board’s announcement marked the fifth time in two years that the computer modernization schedule has slipped, according to a report in the govnews.com. The board had previously announced that the new system would be ready to go in September.
TSP officials said testing has fallen behind because it took longer than expected to convert TSP participants’ records to the new system. Contractors are testing the records to make sure they were completely and accurately converted, TSP officials said.
TSP Hires Second Computer Company
After a failed relationship with a computer services company that ended up in court, TSP officials gave their computer modernization contract to Alexandria, Va.-based Materials, Communication & Computers, Inc. The company has led a team of subcontractors to develop the system for about $22 million.
When the new system is completed, TSP officials say it will allow for daily valuation of accounts and daily processing of transactions, much like private-sector 401k programs do. Currently, the value of TSP accounts is updated monthly rather than daily, and some transactions take several weeks to process.
The new system would also show account balances in shares as well as dollars, offer more ways for participants to withdraw money and provide online service for loans and withdrawals.