Thrift Savings Plan expects budget to grow as more feds retire

The Federal Retirement Thrift Investment Board anticipates managing an additional 4.4 percent in Thrift Savings Plan assets by fiscal 2017 and growing the size of its budget by 25 percent.

The board also expects more federal retirees, more options -- such as the new Roth offering -- and more participants withdrawing partial amounts from their accounts in the next five years, said Kim Weaver, TSP’s director of external affairs.

The size of the TSP’s total current budget estimate for fiscal 2013 is $191.1 million. Under current projections, that number could grow to $253.4 million by fiscal 2017. The projections, however, change month to month, according to Weaver.

As of last month, the FRTIB had committed more than 84 percent of its $143.2 million budget for fiscal 2012. It anticipates fully committing that budget and not requesting additional funds for the remainder of this fiscal year.

The strategic plan for fiscal 2013 through fiscal 2017 presented at the board’s monthly meeting Monday includes budget growth across its five major areas of spending: record-keeping; communications; salaries; benefits; and strategic initiatives, including managing the new Roth option and additional risk management funding. FRTIB anticipates hiring additional staff to help implement the initiatives, beginning in fiscal 2013. This is why the fiscal 2013 projection is nearly $50 million higher than the current fiscal year’s budget.

There are currently 4.5 million TSP account holders, including participants in the Federal Employees Retirement System, Civil Service Retirement System and uniformed services. FERS and CSRS membership have remained steady over recent months; the number of uniformed service members participating is climbing slowly.

The board also provided a brief update on its management of the July 2011 cyber breach of the computer of one of its contractors, Serco Inc., first reported in May. Executive director Gregory Long said the board will be making some “adjustments to our security,” but could not provide details. The board has received no additional reports on the impact of the breach to its members. The nature of the cyberattack remains unclear, Long said.

The board also is planning a request for proposals to renew its contract for information technology and record-keeping services currently performed by Serco. According to Federal Business Opportunities, the board will issue the official RFP in December and plans to award the new contract sometime in 2013.

FRTIB’s contract with Serco began in 2006 after the Office of Personnel Management’s National Finance Center discontinued providing record-keeping service for the TSP. The board renews the contract for such services annually.

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

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

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

  • 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.

  • 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.

  • 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.

  • 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

  • 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.


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