The FRTIB's proposal to restrict interfund transfers would result in a more than 90% limitation from the previous policy. IMHO, it is simply too sudden and drastic a restriction for many participants. Will there be some restriction from the previous policy when all is said and done? It seems clear that the answer is YES. There are too many logical reasons to either charge for excessive transfers or not permit them at all. The question is, in light of the previous policy that permitted daily transfers, what form and extent of a restriction would be deemed fair and appropriate? I've stated that, rather than moving to 2 permitted transfers per month, that the TSP should consider instead the concept of permitting 24 transfers per year. It would incorporate the same limitations, only on a yearly basis, allowing participants additional flexibility with respect to when they wish to utilize their transfers. What do YOU think?
