A class action lawsuit filed last week alleges that the federal government’s 401(k)-style retirement savings program repeatedly failed to pay out participants’ withdrawal and loan requests for months following the transition to a new recordkeeping vendor.
Agroup of seven participants in the federal government’s 401(k)-style retirement savings plan last week filed a class action lawsuit against the Thrift Savings Plan and two federal contractors over the agency’s troubled transition to a new recordkeeping vendor last year.
Last June, the TSP transitioned to a new recordkeeping system run by Accenture Financial Services, upgrading many of the back-end functions and promising new public-facing features, including a mobile app, a virtual assistant, the ability to sign documents and submit rollover checks electronically, and access to around 5,000 new investment options via a mutual fund window. Accenture partnered with another contractor, Alight, to support the new recordkeeping system.