Retirement plan board approves 9 percent budget increase

The board overseeing the Thrift Savings Plan on Friday approved an $11.3 million increase to the federal retirement program's budget for fiscal 2012 after requiring the agency to keep spending flat the previous year.

During its monthly meeting, the Federal Retirement Thrift Investment Board voted 2-1 in favor of a $143.1 million budget for next year, a 9 percent increase over fiscal 2011. Members in May considered an initial estimate of $147.2 million, later dropping the figure to $145.6 million. TSP Executive Director Greg Long called the final budget "prudent," noting that agency officials were responsive to the board's request to minimize proposed increases.

Significant costs for 2012 include the introduction of a Roth 401(k) plan, scheduled to launch early next year; a $3.5 million boost to update data and call centers; a $2.1 million jump in personnel costs with a planned staff restructuring; and a $3.4 million one-time expense associated with the agency's move to a new office. TSP also plans to hire seven additional employees, including acquisition, information technology and strategic planning staff.

Board members in recent months have expressed concern that TSP is not keeping costs under control. Former Board Chairman Andrew Saul, who abstained from the vote Friday, in past meetings has called such increases "unfair" to participants given the current fiscal climate.

"We're getting bigger and more complex in what we're doing," Long said, adding that despite the budget hike, participant costs will remain flat.

"That's the goal -- to provide more services to more people and keep the price per person the same," said board member Dana Bilyeu. "Quite frankly, it's ridiculously inexpensive compared to private sector-defined contribution plans."

Michael Kennedy, who last month was appointed board chairman, said that more strategic thinking will help the agency rein in spending and better plan for upcoming expenses. In addition to reviewing participation and performance statistics, future meetings will incorporate five-year strategic planning around communications, human capital needs and risk management, he said.

Long also presented a fiscal 2013 budget estimate of $145.8 million, which includes a slight increase in record-keeping and staffing costs. Board members won't consider the proposal until next year.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by Brocade

    Best of 2016 Federal Forum eBook

    Earlier this summer, Federal and tech industry leaders convened to talk security, machine learning, network modernization, DevOps, and much more at the 2016 Federal Forum. This eBook includes a useful summary highlighting the best content shared at the 2016 Federal Forum to help agencies modernize their network infrastructure.

    Download
  • Sponsored by CDW-G

    GBC Flash Poll Series: Merger & Acquisitions

    Download this GBC Flash Poll to learn more about federal perspectives on the impact of industry consolidation.

    Download
  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

    Download
  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

    Download
  • Sponsored by Aquilent

    A DevOps Roadmap for the Federal Government

    This GBC Report discusses how DevOps is steadily gaining traction among some of government's leading IT developers and agencies.

    Download
  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

    Download
  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

    Download
  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.

    Download
  • Sponsored by CDW-G

    Joint Enterprise Licensing Agreements

    Read this eBook to learn how defense agencies can achieve savings and efficiencies with an Enterprise Software Agreement.

    Download
  • Sponsored by Cloudera

    Government Forum Content Library

    Get all the essential resources needed for effective technology strategies in the federal landscape.

    Download

When you download a report, your information may be shared with the underwriters of that document.