Legal Definitions - FRTIB

The FRTIB, which stands for the Federal Retirement Thrift Investment Board, is an independent agency of the United States government. Its primary responsibility is to administer the Thrift Savings Plan (TSP), which is a retirement savings and investment program for federal employees and members of the uniformed services. Essentially, the FRTIB acts as the fiduciary and manager for this large-scale retirement plan, ensuring its proper operation, investment options, and the security of the funds for millions of federal workers.

Here are a few examples to illustrate the role of the FRTIB:

• Example 1: Policy Implementation

  The FRTIB recently announced a new regulation that allows federal employees participating in the TSP to make more frequent changes to their investment allocations. This change was implemented to provide participants with greater flexibility in managing their retirement portfolios in response to market fluctuations.

  This example demonstrates the FRTIB's role in setting and modifying the operational rules and policies for the Thrift Savings Plan, directly impacting how federal employees can manage their retirement savings.

• Example 2: Participant Support and Education

  A new federal employee attends an online webinar hosted by the TSP, which is managed by the FRTIB, to learn about the different investment funds available and how to enroll in the plan. The webinar explains the benefits of contributing to the TSP and how to set up their account.

  This illustrates how the FRTIB, through its administration of the TSP, provides educational resources and support to help federal workers understand and utilize their retirement benefits effectively.

• Example 3: Fiduciary Oversight

  The FRTIB conducts an annual review of the external fund managers responsible for some of the TSP's investment options. This review ensures that the managers are adhering to performance benchmarks, maintaining low fees, and complying with all relevant investment guidelines to protect the interests of federal retirees.

  This highlights the FRTIB's critical function as a fiduciary, actively monitoring and managing the investment choices available to federal employees to safeguard their retirement savings and ensure sound financial stewardship.