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your beneficiary participant account number (or customized<br />
user ID) and your Web password for the website or<br />
Personal Identification Number (PIN) for the ThriftLine.<br />
Interfund transfers made on the TSP website or the<br />
ThriftLine before 12 noon Eastern time are generally<br />
processed that business day. You will receive a confirmation<br />
of your transaction.<br />
Administrative<br />
Expenses<br />
TSP expenses (i.e., the cost of administering the Plan)<br />
include the costs of operating the TSP’s recordkeeping<br />
system, providing participant services, and the printing<br />
and mailing of notices, statements, and publications.<br />
These expenses are paid from the forfeitures of Agency<br />
Automatic (1%) Contributions of certain Federal employees<br />
who leave Federal service before they are vested (entitled<br />
to keep them), other forfeitures, loan fees, and — because<br />
those forfeitures are not sufficient to cover all of the TSP’s<br />
expenses — earnings on participants’ accounts.<br />
The effect of administrative expenses (after forfeitures)<br />
on earnings of the G, F, C, S, and I Funds is expressed<br />
below as a net expense ratio for each fund. The expense<br />
ratio for a fund is comprised of the total administrative<br />
expenses charged to that fund during a specific period,<br />
divided by that fund’s average balance for that period.<br />
Since the L Funds do not have any unique administrative<br />
expenses, they do not have any additional charges.<br />
Therefore, the L Fund administrative expense ratios are<br />
weighted averages of the expense ratios of the G, F, C, S,<br />
and I Funds.<br />
Your share of TSP net administrative expenses is based<br />
on the size of your account balance. For example, the G<br />
Fund’s net expense ratio for 2014 was .029%.* Therefore,<br />
if you invested in the G Fund in 2014, earnings were<br />
reduced by 29¢ per $1,000 of your G Fund balance.<br />
The charts below show the net administrative expense<br />
ratios for each TSP fund for 2014.<br />
Net Administrative Expense Ratios:* Core Funds<br />
Year G Fund F Fund C Fund S Fund I Fund<br />
2014 .029% .029% .028% .029% .029%<br />
Net Administrative Expense Ratios:* L Funds<br />
Year L Income L 2020 L 2030 L 2040 L 2050<br />
2014 .029% .029% .029% .029% .029%<br />
* Average net expenses charged to TSP participants in 2014 were $0.29 per $1,000 invested. Fees associated with securities lending are not<br />
included in 2014 administrative expenses. Consistent with standard practice in the industry, they are charged in addition to administrative<br />
expenses. Other expenses are disclosed in the financial statements and will be available in the April 2015 Highlights.<br />
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