Legal Definitions - Federal Retirement Thrift Investment Board

The Federal Retirement Thrift Investment Board (FRTIB) is an independent agency of the United States government. Its primary role is to administer and manage the Thrift Savings Plan (TSP), which is a retirement savings and investment program for federal employees and members of the uniformed services. Similar to a 401(k) in the private sector, the TSP allows these individuals to save for retirement through various investment options. The FRTIB is responsible for overseeing the plan's operations, setting investment policies, ensuring the security of participants' funds, and providing information and services to those enrolled in the TSP.

• Example 1: A new federal employee is reviewing their retirement benefits and wants to understand the different investment funds available within the Thrift Savings Plan, such as the G Fund (government securities) or the C Fund (common stock index). The FRTIB is the entity that defines these investment options, establishes their rules, and provides performance data to help the employee make informed decisions about where to allocate their retirement savings.

  Explanation: This illustrates the FRTIB's responsibility for designing and managing the investment choices offered within the TSP, which is a core part of its administrative function.

• Example 2: A federal retiree needs to begin withdrawing funds from their TSP account to supplement their pension. They consult the official TSP website for information on withdrawal options, tax implications, and the necessary forms. The policies, procedures, and forms for these withdrawals are all established and overseen by the FRTIB, ensuring that participants can access their savings according to federal regulations.

  Explanation: This demonstrates the FRTIB's role in setting the rules and managing the processes for participant transactions, such as withdrawals, throughout the lifecycle of their retirement savings.

• Example 3: Following a major cybersecurity incident affecting other financial institutions, the FRTIB announces enhanced security measures for the TSP's online portal and updates its data protection protocols. This action is taken to safeguard the personal and financial information of millions of federal employees and retirees participating in the plan.

  Explanation: This example highlights the FRTIB's critical responsibility for the security, integrity, and overall governance of the Thrift Savings Plan, including protecting participant data and ensuring the plan's operational soundness.