FEDERAL RETIREMENT THRIFT INVESTMENT BOARD 

77 K Street, NE Washington, DC 20002 

MINUTES OF THE MEETING OF THE BOARD MEMBERS 

January 24, 2023 

Michael F. Gerber, Chair of the Federal Retirement Thrift Investment Board, 

convened a meeting of the Board members on January 24, 2023, at 10:00 a.m., Eastern 

Daylight Time. The meeting was open to the public. In attendance were Dana K. Bilyeu 

of Oregon, member; Leona M. Bridges of California, member; Stacie Olivares of 

California, member; Ravindra Deo, Executive Director; Dharmesh Vashee, General 

Counsel and Secretary; Suzanne Tosini, Chief Operating Officer and Deputy Executive 

Director; Kimberly A. Weaver, Director, Office of External Affairs; Susan Crowder, Chief 

Financial Officer; Gisile Goethe, Director, Office of Resource Management; James 

Courtney, Director, Office of Participant Experience; Sean McCaffrey, Chief Investment 

Officer; Vijay Desai, Chief Information Officer; and Thomas Brandt, Chief Risk Officer. 

Welcome and Introductions. 

Chair Gerber called to order the monthly meeting of the Federal 

Retirement Thrift Investment Board (FRTIB or Agency) at 10:00 a.m. and welcomed 

everyone present to the meeting. 

1. Approval of the Minutes of the December 20, 2022, Board Meeting.

Chair Gerber entertained a motion for approval of the minutes of the

December 20, 2022, Board meeting. The following motion was made, seconded, and 

adopted without objection: 

MOTION: That the minutes of the Board meeting held on December 20, 

2022, be approved. 

2. Monthly Reports.

Mr. Deo gave opening remarks, including a brief summary of the agenda

of the meeting. 

a. Participant Activity Report

Mr. Courtney presented the monthly Participant Activity Report. See “Thrift 

Savings Fund Statistics December 22” (attached). He reported that the Thrift Savings 

Plan (TSP) ended 2022 with 6.75 million participants, a net increase of 250,000 from 

last year. The FERS and active-duty uniformed service participation rates ended at 94.4 

percent and 83.2 percent respectively. 

Mr. Courtney reported that after several months of decline, the calls to the 

ThriftLine increased by six and a half percent in December. The call volume was up in 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January, and he expects the traditional busy season for the contact center to last 

through April. 

Mr. Courtney advised the Board of an unexpected shutdown of a key 

Treasury system on January 14, 2023. This shutdown does not impact the TSP’s ability 

to issue disbursements to participants, but it does impact the ability to check the status 

of payments, make a request to stop payments, and issue replacement payments. 

There is not a workaround for this outage, which Treasury estimates will last up to three 

weeks. Mr. Courtney anticipates some additional lag time to get things working after the 

Treasury system comes back online. 

Mr. Courtney then discussed the SECURE 2.0 Act, which was signed into 

law on December 29, 2022. The Act contains provisions for retirement plans beyond the 

original SECURE Act of 2019. Of the 90 new provisions, 42 are relevant to the TSP. 

The effective dates for the new provisions pertinent to TSP range from January 1, 2023 

through 2033. 

FRTIB immediately implemented a mandatory provision of the Act that 

increased the Required Minimum Distribution (RMD) age to 73. This provision impacted 

approximately 37,000 people turning 72 years of age in 2023, and the TSP is sending 

them notices of the change. For participants and spousal beneficiaries turning age 73 

and older in 2023, the TSP mailed RMD calculation notices in January as usual. Mr. 

Courtney referred the Board members to his presentation (attached) for a summary of 

the provisions that the TSP is currently working to implement and those it will be 

required to implement in the years to come. He reported that the Agency is reviewing 

the optional provisions to determine which provisions will most benefit the participants 

and beneficiaries. 

Member Bilyeu asked about the reason for the increase in post-separation 

withdrawals in 2022. Mr. Courtney said that while he would work to provide a more 

specific answer, these withdrawals will generally trend upward as the population of TSP 

participants ages. Mr. Brandt added that the Office of Planning and Risk is studying this 

data, and it appears that one of the factors contributing to the larger increase in 2022 is 

that a tranche of Blended Retirement System participants have reached four years in 

the military, and as they are leaving duty, some are withdrawing their TSP contributions. 

b. Legislative Report 

Ms. Weaver reported that there have been several changes to the House 

Oversight Committee. The name has changed to the House Oversight and 

Accountability Committee and the chairman is Congressman James Comer from 

Kentucky. The ranking member is Congressman Jamie Raskin from Maryland. The 

subcommittees, chairs, and rankings are currently still being discussed. Senator Gary 

Peters remains the Senate oversight chairman and the new ranking member is Senator 

Rand Paul of Kentucky. Again, the subcommittees, chairs, and rankings are under 

discussion. The House has re-introduced several bills that would allow members to opt 

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out of the FERS defined benefit but continue to participate in the TSP. Currently, if 

someone opts out of the FERS defined benefit, they must stop participation in the TSP. 

In response to a question from Chair Gerber about the debt ceiling 

extraordinary measures, Ms. Weaver explained that Treasury will soon provide a letter 

to the TSP indicating that they will suspend investing in the G Fund securities, but this 

will not have an impact on TSP participants. 

3. Quarterly Reports.

a. Budget Review

Ms. Crowder provided the quarterly budget update. See “FY 2023 1st 

Quarter Budget Review” (attached). The Agency budget for FY 2023 is 481.4 million 

dollars. First quarter spending analysis shows the Agency is behind its budget 

projections by allocating 73 percent of the budget, or 256.6 million dollars, relative to the 

first quarter spend plan of 353.7 million dollars. The Agency executed 53 percent of the 

total FY 2023 budget in the first quarter, 81 percent of which was spent to support both 

recordkeeping operations and communications. The burn rate is slightly ahead of last 

year because the Agency funded the vast majority of its large contracts at the beginning 

of the year. Ms. Crowder expects the budget allocation to be back in alignment by midyear. 

b. Audit Status

Ms. Crowder reviewed the quarterly external audit and remediation status. 

See “Quarterly External Audit – Remediation Status January 2023” (attached). Ms. 

Crowder reported that at the end of the first quarter, nine of the 13 planned external 

audits are in progress. Three of the remaining four audits will begin by the end of 

January. 

Ms. Crowder explained that there are four broad categories in FY 2023 

covering 13 planned external audits: nine align with EBSA, one aligns to GAO, one 

aligns to FISMA covering fiscal year 2023, and two align to CLA financial audits and 

review that will cover the calendar year 2022 audit and the midyear 2023 review. 

Regarding remediation efforts, Ms. Crowder reported that the target for FY 

2023 is to close 29 open recommendations. During the first quarter, the Agency closed 

six audit recommendations from various audits. During the first quarter, the external 

auditors have closed three recommendations from the FY 2022 FISMA audit. The 

external auditors roughly reflect 234 audit recommendations remaining open. At the end 

of the first quarter, the Agency reflects 69 recommendations remaining open. The delta 

between the two viewpoints is the timing of each entity’s review of the closure 

packages, as the external auditors do not review the recommendations until the next 

time they perform the same audit. 

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In response to a question from Member Bilyeu, Ms. Crowder noted that 

EBSA is currently performing an audit to review the status of recommendations in light 

of the recent changes the Agency has undergone, and this will give the Board and 

Agency a new baseline of open recommendations. 

c. Investment Performance and Policy 

Mr. McCaffrey reviewed the monthly investment performance report. See 

"December 2022 Investment Program Review” (attached). For the month of December, 

BlackRock’s performance for the F Fund lagged the Fixed Income Index by 18 points 

primarily due to a difference in the timing of pricing by the index provider and BlackRock 

on the month’s last trading day. Performance for the C and S Funds was in line with the 

Funds’ indices. Finally, BlackRock’s performance for the I Fund underperformed the 

International Index by 188 basis points primarily due to fair value pricing. 

For State Street in December, the F Fund underperformed the Fixed 

Income Index by 20 basis points primarily due to the difference on the timing of pricing 

by the index provider and by the manager on the final trading day of the month. The C 

and S Funds performed in line with their respective indices. 

Mr. McCaffrey provided a performance update on the transfer of assets 

mentioned in the December Board meeting. The transfer occurred after the market 

closed on December 9 when BlackRock transferred 20 percent of the I Fund assets to 

State Street. From that point to market close on the final trading day of the month, the 

International Index fell 1.72 percent. The I Fund assets managed by BlackRock fell 1.1 

percent over that period, and the I Fund assets managed by State Street fell 1.3 

percent. The differences between the managers’ returns and the Index’s returns were 

primarily driven by fair value pricing. Similarly, the difference in the performance of 

BlackRock and State Street resulted primarily from differences in the two managers’ 

methodologies for fair value pricing. 

Mr. McCaffrey noted that December’s market focus continued to be 

inflation, Federal Reserve policy, and possibilities for an economic slowdown. The 

Federal Reserve and other central banks raised their interest rate targets, a 

continuation of their efforts to restore price stability. The C, S, and I Funds posted 

losses, though the I Fund was supported some by declines in the dollar. The F Fund 

also declined largely due to rising interest rates. All L Funds finished lower. 

Mr. McCaffrey next reviewed BlackRock’s full year performance for 2022. 

Primarily due to securities lending, Blackrock’s performance for the F Fund was ahead 

of the Fixed Income Index’s return by 31 basis points, its performance for the C Fund 

outperformed the Large Cap Index by three basis points, and its performance for the S 

Fund exceeded the Small Mid Cap Index’s return by 34 basis points. BlackRock’s 

performance for the I Fund was ahead of the International Index by 59 basis points, 

primarily due to tax advantage. 

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State Street’s full year performance for the F Fund lagged the Fixed 

Income Index’s return by eight basis points, primarily due to a difference in the timing of 

the pricing by the index provider and by State Street on the final trading day of the 

month. Its performance for the C Fund matched the Large Cap Index. Its performance 

for the S Fund outperformed the Small Mid Cap Index by 29 basis points, primarily due 

to securities lending. 

Mr. McCaffrey noted the stock markets are holding gains in January. 

Through Monday, January 23, 2023, the C Fund is ahead 4.78 percent, the S Fund is 

ahead 8.25 percent, and the I fund is better by 7.92 percent. Fixed Income is also 

having a better month, as the F Fund is up by 2.84 percent and the G Fund has earned 

0.25 percent. 

During December, participation in the L Fund continued to see growth of 

over 20,000 participants, largely due to the L Funds being the default investment for 

new TSP enrollees. Mr. McCaffrey also noted that net interfund transfers remained very 

low for December despite losses in the US equity markets. 

Regarding the quarterly updates, Mr. McCaffrey began with proxy voting. 

An audit of BlackRock’s proxy voting conducted by ISS found no exceptions to its 

established guidelines during the third quarter of 2022. Likewise, an audit of State 

Street’s proxy voting found no exceptions to the firm’s established guidelines for that 

same period. 

Mr. McCaffrey next discussed class action settlements for the third quarter 

of 2022. For BlackRock, the quarter began with 94 open claims. During the quarter, 16 

new claims were opened. Fourteen claims were settled for a total of 2,871,242 dollars. 

Of these, four claims in the C Fund were settled for a total of 2,115,439 dollars and 10 

claims in the S Fund were settled for a total of 755,803 dollars. Three claims in the S 

Fund were closed due to administrator action. The total claims closed during the third 

quarter was 17. Additionally, residual payments from two previously closed claims in the 

C Fund and eight previously closed claims in the S Fund yielded a total of almost 

33,000 dollars. The total settlement proceeds for the quarter were 2,904,136 dollars, 

and 93 claims remained open at the end of the quarter. 

For State Street, four claims were open at the start of the quarter. Three 

additional claims were opened, and three claims were closed due to administrator 

action. Thus, four claims remained open at the end of the quarter. 

Chair Gerber entertained a motion to continue the current policies for the 

G, F, C, S, and I Funds. The following motion was made, seconded, and adopted 

without objection: 

MOTION: That the current investment policies for the G, F, C, S, and I Funds are 

affirmed without change. 

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Member Bilyeu asked whether increased participation in the L Funds had 

an impact on the low rate of inter-fund transfers during bad markets. Mr. McCaffrey 

said he was tempted to say yes but would like to double check the data on that. Mr. 

McCaffrey agreed that anecdotally that was likely the case, as participants in L Funds 

have set their long-term asset allocation. Mr. Deo also noted some increase in interfund 

transfers, though still low overall, during periods of market volatility last year, which 

could mean that those who wanted to move their money did so earlier. 

4. Annual Expense Ratio Review. 

Ms. Crowder presented the annual review of TSP administrative expenses 

for 2022. See “2022 TSP Annual Review of Administrative Expenses for 2022” 

(attached). Ms. Crowder began by noting that administrative expenses are spread over 

the entire calendar year. In calendar year 2022, the average net assets totaled 742 

billion dollars, a 21 billion dollar decrease from 2021. The gross administrative 

expenses for calendar year 2022 were 502 million dollars, an increase of 101 million 

dollars. Total forfeitures and loan fees collected in 2022 offset the Agency’s gross 

administrative expenses by 73 million dollars, resulting in a net administrative expense 

of 429 million dollars. Ms. Crowder noted that as of June 1st, the loan fees no longer 

offset the administrative fees due to the new recordkeeping contract. The 2022 gross 

and net administrative expense ratios were 6.8 and 5.8 basis, respectively. TSP ended 

2022 with a positive net cash flow of 7.5 billion dollars. 

5. Federal Employee Viewpoint Survey (FEVS) Update. 

Ms. Goethe presented the results of the FEVS for 2022. See “2022 FRTIB 

FEVS Results” (attached). The Office of Personnel Management (OPM) conducts the 

FEVS annually with the intent to gauge government-wide perceptions of employees on 

their organization, workplace, work unit and leadership. In 2022, 64 percent of FRTIB 

employees responded and completed the survey. Ms. Goethe noted positive responses 

that are 65 percent or higher are considered strengths and in 2022, FRTIB had 71 

strengths. Questions with negative responses at 35 percent or higher are considered 

challenges, and for the past three years, FRTIB has had no challenges. The FEVS 

indicators for the core questions were performance confidence, employee engagement, 

and global satisfaction. In 2022, OPM also added 12 questions to gauge diversity, 

equity, inclusion, and accessibility (DEIA). OPM continued to ask COVID-19 questions. 

Ms. Goethe reported that the Agency’s overall positive response rate for 

the four categories related to performance confidence was 89 percent. This number has 

remained high over the last three years. Next, the overall confidence rating for the newly 

introduced DEIA index was 76 percent. In response to comments from Chair Gerber, 

Ms. Goethe noted it may be too simplistic to assume a quarter of FRTIB employees 

believe FRTIB does not have an equitable work environment and offered to provide a 

breakdown of the questions asked. 

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Ms. Goethe reported that the overall employee engagement index was 76 

percent positive. This category has remained constant with 77 percent in 2021 and 

2020. The overall global satisfaction index had a 70 percent positive response rate. The 

questions on the global satisfaction category addressed employees’ satisfaction with 

their job, the pay they receive, the Agency and whether the employee would 

recommend the Agency as a good place to work. 

Ms. Goethe next reported on a more in-depth view of the employee 

engagement Index. This index is important because it is used to determine the Agency’s 

rank as a great place to work, based upon the Agency’s size. There are three 

categories surveyed: leaders lead, supervisors, and intrinsic work experience. The 

positive responses for all three categories have largely remained consistent for the past 

three years. Ms. Goethe noted that FRTIB’s positive response rate for the supervisor 

category is higher than the government-wide positive response rate. 

Ms. Goethe reported the results of the COVID-19 questions, which 

focused on Agency leadership’s response to the pandemic. Ms. Goethe noted the 

question that addressed how well supervisors supported efforts to stay safe and healthy 

while working had a high positive response rate of 90 percent. This rating was 

consistent for three years and was much higher than the government-wide response. 

The positive response rate regarding the Agency’s senior leaders supporting policies 

and procedures to protect employees has been consistently at 63 percent. The other 

questions regarding COVID-19 have consistently had positive response rates that are 

higher than the government-wide rate. 

Ms. Goethe next turned to the Agency-specific questions regarding 

FRTIB’s core values, for which positive response rates were high. She concluded by 

explaining the ways that the Agency communicates the FEVS results to FRTIB 

employees and uses the results to improve the Agency. She highlighted that in FY 

2023, the Agency began conducting pulse surveys to continually gain feedback from 

employees. 

6. Internal Audit Update.

Ms. Barbara Holmes, Chief Audit Executive, provided an internal audit

update. See “Internal Audit Update” (attached). Ms. Holmes reported the audits in the 

2022 Internal Audit Plan were complete. Since the last Board meeting, her team 

completed the Treasury Reconciliation Oversight Audit and the OEA file review. They 

are finalizing the report for the Decommissioning of Legacy Assets Audit. 

Ms. Holmes next presented a draft 2023 Internal Audit Plan, which 

includes audits that were slated for 2022 and moved to 2023. The dates of the 

scheduled audits may change subject to office availability or may be adjusted if areas of 

higher risk emerge. 

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Chair Gerber entertained a motion to approve the 2023 Internal Audit 

Plan. The following motion was made, seconded, and adopted without objection: 

MOTION: That the proposed 2023 Internal Audit Plan as presented to the 

Board on January 24, 2023 be approved. 

Ms. Holmes next reported on the Treasury Reconciliation Oversight Audit, 

which she added at the request of the Chief Financial Officer (CFO). The scope period 

was June 1 through November 30, 2022. The Internal Audit team issued two notices of 

findings and recommendations (NFRs). The applicable program offices agreed to the 

NFRs and will create a corrective action plan to remediate the findings. 

Internal Audit completed its review of the Office of External Affairs file plan 

and will move on to the Office of Technology Services next. 

Ms. Holmes shared the status of internal audit findings. Six are open, of 

which two are from the Treasury Reconciliation Oversight Audit. She noted that other 

activities include completing the Decommissioning of Legacy Assets Audit report, 

developing the 2023 Audit Plan and issuing a call order for work under it, awarding a 

call order for 2023 FISMA audit, and updating the Internal Audit charter, which included 

minor changes shared with the Board. 

Chair Gerber entertained a motion to adopt the revisions to the Internal 

Audit charter. The following motion was made, seconded, and adopted without 

objection: 

MOTION: That the Board adopt the revised Internal Audit Charter 

containing amendments to provisions regarding Responsibility & Accountability 

and Scope, which was presented to the Board on January 24, 2023. 

In response to a question from Member Bilyeu, Ms. Holmes explained that 

she develops the Internal Audit Plan by consulting EBSA’s audit plan, examining the 

Agency’s enterprise risk and internal controls work, considering what areas are of 

highest risk for the Agency, and discussing with Agency leadership, including the CFO, 

Director of External Affairs, and Chief Risk Officer. 

7. Adjourn.

On a vote taken by the Chair, the members closed the meeting at 11:14

a.m. to enter into executive session.

At 1:33 p.m., upon completion of the executive session, the members 

reconvened the open portion of the meeting. 

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Whereupon there being no further business, the following motion was 

made, seconded, and adopted without objection and Chair Gerber adjourned the 

meeting at 1:33 p.m. 

MOTION: That this meeting be adjourned. 

Dharmesh Vashee 

General Counsel and Secretary 

Attachments 

1. Thrift Savings Fund Statistics December 2022

2. FY 2023 1st Quarter Budget Review

3. Quarterly External Audit – Remediation Status January 2023

4. December 2022 Investment Program Review

5. 2022 TSP Annual Review of Administrative Expenses

6. 2022 FRTIB Federal Employee Viewpoint Survey Results

7. Internal Audit Update

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