Who pays administrative costs of operating the TSP?
The plan’s major expenses include development and operating costs of the record keeper’s computer system and printing and mailing publications and participant statements. There are two sources: forfeiture of noninvested agency automatic contributions and earnings on participant and agency contributions. FERS employees who leave federal service before they are vested in the TSP forfeit the 1 percent automatic agency contributions and earnings on those contributions. Accrued administrative expenses, after forfeitures, are deducted from the earnings of the investment funds. Participants bear all investment management fees of the C stock fund and F bond fund. The thrift investment board provides annual financial statements detailing expense deductions with May participant statements. The effect of net administrative expenses (after forfeitures) on the rates of return of the three funds is measured by the expense ratio of each fund. The monthly expense ratio is the total monthly administrat
