June 1, 2023,
Sauder Schelkopf filed a class action lawsuit on behalf of certain individuals who have investments in the Thrift Savings Plan (TSP). TSP is a retirement savings and investment plan for Federal employees and military members. All TSP participants were required to complete a one-time process to set up a new login by June 2022. TSP acknowledged that it was experiencing high volumes of participants setting up their new login and this was also affecting ThriftLine call volumes, making hold times longer than normal.
Since June 1, 2022, plan participants have alleged that the new TSP system created a slew of issues for TSP participants (e.g., denied access to accounts, denied access to historical information, denied the ability to control assets, and unbearable wait times for assistance). These issues have caught the attention of multiple federal lawmakers.
In addition to issues accessing their TSP accounts, the lawsuit alleges that the system failed to provide TSP participants the benefits and services required by the contract, industry standards, and federal law by failing to (1) disburse loan proceeds to approved participants, (2) send hardship withdrawal monies to eligible participants, (3) send out-of-services withdrawal monies to approved participants, and (4) process death benefits to beneficiary participants.
“Our clients, all of whom are current or former military members or federal employees, suffered significant financial hardship because of the Thrift Savings Plan system implementation in June 2022. In many instances, they were simply trying to withdraw their own money from the TSP. We look forward to litigating this matter on their behalf, “ said Joseph Sauder of Sauder Schelkopf.
On November 6, 2023, the Defendants in the lawsuit moved to dismiss the case. Instead of taking ownership of their failures, the Defendants have resorted to blaming each other and pointing fingers at everyone but themselves. Meanwhile, the financial futures of many United States military personnel, veterans, and federal employees remain uncertain due to the defendants’ alleged mismanagement.” Plaintiffs filed their opposition to the Defendants’ motions on January 10, 2024, and hope that the Court issues a ruling in the next several months that denies the Defendants’ motions and allows the litigation to proceed into discovery.
Sauder Schelkopf has a nationally recognized litigation practice. The firm currently serves as court-appointed lead counsel in courts across the country. The attorneys at Sauder Schelkopf have recovered over $500 million on behalf of their clients and class members. Our firm was recognized by the Legal Intelligencer’s 2022 Professional Excellence Awards. The Legal Intelligencer’s Professional Excellence Awards honor Pennsylvania law firms and attorneys who have made a significant, positive impact on the legal profession. Our firm was named in the Litigation Departments of the Year (Specialty Area category; runner-up), an award that honors the best litigation practice in a small or mid-sized firm in Pennsylvania. This recognition was based on the firm’s 2021 litigation work and its important ongoing cases. LawDragon has recognized our attorneys in its list of the “500 Leading Plaintiff Consumer Lawyers” for 2022. This list notes: “From the opioid epidemic to toxic substances and defective products, truck accidents to wildfires and sexual abuse, these are the lawyers who stand on the front line in individual lawsuits and class actions seeking justice.” Mr. Schelkopf was named to Pennsylvania’s Best Lawyers® 2022 for Class Actions/Mass Tort Litigation. The American Lawyer named Mr. Sauder to its 2021 Northeast Trailblazers. The honor recognizes 60 lawyers who are “truly agents of change.” It “recognizes professionals in the Northeast who have moved the needle in the legal industry.” The Legal Intelligencer named Mr. Sauder and Mr. Schelkopf in its 2020 Pennsylvania Trailblazers list recognizing 31 lawyers who “have taken extra measures to contribute to positive outcomes . . . and who are truly agents of change.” The Legal highlighted the firm’s innovative work on advocacy as class counsel in large institutional sex abuse cover-ups, women’s, and children’s rights. Our attorneys have also consistently been recognized by their peers being named to Pennsylvania SuperLawyer, a distinction held by the top 5% of attorneys in Pennsylvania. Our attorneys have also been selected by the National Trial Lawyers Association as the Top 100 Trial Lawyers in Pennsylvania.
We Want to Hear from You
If you have experienced excessive wait time for the Thrift Saving Plan to move your investments and suffered a loss, please contact the lawyers at Sauder Schelkopf by completing the form to the right of this page.