THRIFT SAVINGS FUND 

Washington, DC 

FINANCIAL STATEMENTS 

December 31, 2022 and 2021 
TABLE OF CONTENTS 

PAGE 

INDEPENDENT AUDITORS’ REPORT ...................................................................................1 

FINANCIAL STATEMENTS.......................................................................................................3

Statements of Net Assets Available for Benefits .......................................................................4 

Statements of Changes in Net Assets Available for Benefits ....................................................5 

Notes to Financial Statements ....................................................................................................6 

Appendix 1 .........................................................................................................................15 

Appendix 2 .........................................................................................................................16 
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INDEPENDENT AUDITORS' REPORT 

Management of the Board, Executive Directors and Participants 

Federal Retirement Thrift Investment Board 

Washington, DC 

Report on the Audit of the Financial Statements 

Opinion 

We have audited the accompanying financial statements of Thrift Savings Fund (the Fund), which 

comprise the statements of net assets available for benefits as of December 31, 2022 and 2021, and the 

related statements of changes in net assets available for benefits for the years then ended, and the 

related notes to the financial statements. 

In our opinion, the financial statements referred to above present fairly, in all material respects, the net 

assets available for benefits of the Fund as of December 31, 2022 and 2021, and the changes in its net 

assets available for benefits for the years then ended in accordance with accounting principles generally 

accepted in the United States of America. 

Basis for Opinion 

We conducted our audits in accordance with auditing standards generally accepted in the United States 

of America (GAAS). Our responsibilities under those standards are further described in the Auditors’ 

Responsibilities for the Audit of the Financial Statements section of our report. We are required to be 

independent of the Fund and to meet our other ethical responsibilities in accordance with the relevant 

ethical requirements relating to our audits. We believe that the audit evidence we have obtained is 

sufficient and appropriate to provide a basis for our audit opinion. 

Responsibilities of Management for the Financial Statements 

Management is responsible for the preparation and fair presentation of the financial statements in 

accordance with accounting principles generally accepted in the United States of America, and for the 

design, implementation, and maintenance of internal control relevant to the preparation and fair 

presentation of financial statements that are free from material misstatement, whether due to fraud or 

error. 

In preparing the financial statements, management is required to evaluate whether there are conditions 

or events, considered in the aggregate, that raise substantial doubt about the Fund's ability to continue 

as a going concern for one year after the date that the financial statements are available to be issued. 

Auditors’ Responsibilities for the Audit of the Financial Statements 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole 

are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that 

includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance 

and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a 

material misstatement when it exists. The risk of not detecting a material misstatement resulting from 

fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional 
Members of the Board, Executive Directors and Participants 

Federal Retirement Thrift Investment Board 

omissions, misrepresentations, or the override of internal control. Misstatements are considered material 

if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment 

made by a reasonable user based on the financial statements. 

In performing an audit in accordance with GAAS, we: 

 Exercise professional judgment and maintain professional skepticism throughout the audit. 

 Identify and assess the risks of material misstatement of the financial statements, whether due to 

fraud or error, and design and perform audit procedures responsive to those risks. Such 

procedures include examining, on a test basis, evidence regarding the amounts and disclosures 

in the financial statements. 

 Obtain an understanding of internal control relevant to the audit in order to design audit 

procedures that are appropriate in the circumstances, but not for the purpose of expressing an 

opinion on the effectiveness of the Fund's internal control. Accordingly, no such opinion is 

expressed. 

 Evaluate the appropriateness of accounting policies used and the reasonableness of significant 

accounting estimates made by management, as well as evaluate the overall presentation of the 

financial statements. 

 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, 

that raise substantial doubt about the Fund's ability to continue as a going concern for a 

reasonable period of time. 

We are required to communicate with those charged with governance regarding, among other matters, 

the planned scope and timing of the audit, significant audit findings, and certain internal control related 

matters that we identified during the audit. 

CliftonLarsonAllen LLP 

Baltimore, Maryland 

August 2, 2023 
3 

FINANCIAL STATEMENTS 
4 

2022 2021

ASSETS:

 Investments, at fair value: $725,861,539 $827,281,188

 Receivables:

 Employer contributions 515,088 524,266 

 Participant contributions 1,057,330 1,284,909 

 Notes receivable from participants (loans) 8,828,022 8,575,643 

 Accrued interest 31,495 - 

 Due for securities sold 700,776 379,711 

 Total receivables 11,132,711 10,764,529 

 Furniture, equipment, and leasehold improvements,

 net of accumulated depreciation and amortization

 of $8,123 in 2022 and $6,692 in 2021 5,292 5,306 

 Other assets 566 1,910 

 Total assets 737,000,108 838,052,933 

LIABILITIES:

 Accounts payable 28,560 53,959 

 Accrued payroll and benefits 5,449 5,757 

 Benefits and participant loans payable 124,388 182,971 

 Deferred rent and lease credits 5,302 6,396 

 Due for securities purchased 430,324 12,043 

 Cash collateral payable - 15,535,349 

 Total liabilities 234,325 16,156,173 

FUNDS RESTRICTED FOR THE PURCHASE OF FIDUCIARY 

INSURANCE (3,141) (3,231) 

NET ASSETS AVAILABLE FOR BENEFITS $736,762,642 $821,893,529

See notes to financial statements and Independent Auditors' Report.

THRIFT SAVINGS FUND

Statements of Net Assets Available for Benefits

 As of December 31, 2022 and 2021

(In thousands)
5 

2022 2021

ADDITIONS: 

 Investment income (loss):

 Interest $9,321,969 $4,051,618

 Net appreciation (depreciation) of investments (101,807,165) 90,070,475 

 Net investment income (loss) (92,485,196) 94,122,093 

 Contributions:

 Participant 27,937,098 27,512,762 

 Employer 12,346,893 11,759,476 

 Total contributions 40,283,991 39,272,238 

 Participant processing fees 17,352 11,539 

 Interest income on notes receivable from participants (loans) 147,058 149,116 

 Total additions, net of investment loss (52,036,795) 133,554,986 

DEDUCTIONS:

 Benefits paid to participants 32,328,229 31,421,939 

 Administrative expenses 512,326 413,689 

 Notes receivable from participants declared taxable distributions 253,626 338,476 

 Total deductions 33,094,181 32,174,104 

CHANGE IN FUNDS RESTRICTED FOR THE

 PURCHASE OF FIDUCIARY INSURANCE 89 132 

 Net increase (decrease) (85,130,887) 101,381,014 

NET ASSETS AVAILABLE FOR BENEFITS:

 Beginning of period 821,893,529 720,512,515 

 End of period $736,762,642 $821,893,529

See notes to financial statements and Independent Auditors' Report.

THRIFT SAVINGS FUND

Statements of Changes in Net Assets Available for Benefits

 Years Ended December 31, 2022 and 2021

(In thousands)
6 

THRIFT SAVINGS FUND 

NOTES TO FINANCIAL STATEMENTS 

FOR YEARS ENDED DECEMBER 31, 2022 AND 2021 

1. PLAN DESCRIPTION 

The following description is provided for general information purposes. Participants should refer to the 

Summary of the Thrift Savings Plan, www.tsp.gov, and applicable legislation and regulations for more 

complete information. 

General— The Thrift Savings Plan (the Plan or the TSP) is a retirement savings and investment plan for 

Federal employees and members of the uniformed services. It was authorized by the United States Congress 

in the Federal Employees’ Retirement System Act of 1986 (FERSA). The Plan provides Federal employees 

and members of the uniformed services with a savings and tax benefit similar to what many private sector 

employers offer their employees under 401(k) plans. The Plan was primarily designed to be a key part of the 

retirement package (along with a basic annuity benefit and Social Security) for employees who are covered by 

the Federal Employees’ Retirement System (FERS). 

The Plan is administered by an independent Government agency, the Federal Retirement Thrift Investment 

Board (the Agency), which is charged with operating the Plan prudently and solely in the interest of the 

participants and their beneficiaries. Assets of the Plan are maintained in the Thrift Savings Fund (the Fund). 

Federal employees, who are covered under FERS, the Civil Service Retirement System (CSRS), or equivalent 

retirement systems (as provided by statute) and members of the uniformed services, who are covered under the 

Blended Retirement System (BRS), or the legacy uniformed services retirement system, are eligible to join the 

Plan immediately upon hire. Generally, FERS employees are those employees hired on or after January 1, 

1984, while CSRS employees are employees hired before January 1, 1984, who have not elected to convert to 

FERS. BRS participants are members of the uniformed services who first entered the uniformed services on 

or after January 1, 2018. Members covered under the legacy uniformed services retirement system were hired 

before January 1, 2018, with an opportunity for certain members, based on years of service, to elect coverage 

under BRS. Each group has different rules that govern contributions. As of December 31, 2022, there were 

approximately 6.8 million participants in the Plan, with approximately 4.0 million contributing through payroll 

deductions. As of December 31, 2021, there were approximately 6.5 million participants in the Plan, with 

approximately 3.9 million contributing through payroll deductions. 

Contributions— The Plan is a defined contribution plan and, as such, the law specifies how much an 

employee may contribute and how much the employing agency must contribute to each FERS employee’s or 

BRS member’s account. No participant under age 50 may contribute more than the Internal Revenue Service 

(IRS) elective deferral limit of $20,500 in 2022 and $19,500 in 2021.1 Participants age 50 and older who are 

already contributing the maximum amount of contributions for which they are eligible may make 

supplemental tax-deferred catch-up contributions (up to $6,500 in 2022 and 2021) from their basic pay. FERS 

and eligible BRS participants are entitled to receive agency matching contributions on the first 5 percent of 

basic pay that they contribute each pay period, according to a formula prescribed by FERSA (5 United States 

Code (U.S.C.) § 8432(c)).2 For FERS and eligible BRS participants, their employing agencies also contribute 

an agency automatic contribution equal to 1 percent of the employee’s or member’s basic pay each pay period, 

1 Members of the uniformed services who are serving in a combat zone earn tax-exempt pay. Contributions from tax-exempt pay do not count 

towards this elective deferral limit. 

2 BRS participants who first entered service on or after January 1, 2018, are eligible to receive matching contributions after 2 years of service. 

BRS participants who first entered service on December 31, 2017, or earlier and opted into the BRS are immediately eligible to receive 

matching contributions. 
7 

as prescribed by FERSA (5 U.S.C. § 8432(c)).3 Uniformed services members may also contribute up to 100% 

of designated special pay, incentive pay, and bonuses. These contributions are not eligible for matching 

contributions. The Federal Government or uniformed services do not match amounts contributed by CSRS 

employees or uniformed services members in the legacy retirement system. Civilian Federal Agencies and the 

uniformed services are required to automatically enroll newly hired (and rehired) eligible employees or 

members unless the employee or member makes an affirmative election not to participate in the Plan or to 

participate at other than the default rate of five percent.4

Participants may also transfer funds from traditional individual retirement accounts (IRAs) or other eligible 

employer plans into the Plan. The Plan also allows qualified Roth contributions and transfers from qualified 

Roth plans. 

Investments— Pursuant to FERSA (5 U.S.C. § 8438), Plan participants are offered five investment funds: the 

Government Securities Investment Fund (G Fund), the Fixed Income Index Investment Fund (F Fund), the 

Common Stock Index Investment Fund (C Fund), the Small Capitalization Stock Index Investment Fund (S 

Fund), and the International Stock Index Investment Fund (I Fund). The Agency has contracted with 

BlackRock and Street State Global Advisors (SSGA) to act as investment manager, custodian and securities 

lending agent for the F, C, S, and I Fund accounts. The contract with SSGA was signed on October 21, 2020. 

SSGA began managing Plan assets on April 19, 2021. Prior to April 19, 2021 BlackRock and its predecessor 

companies managed all the assets of the F, C, S and I Funds. 

The TSP Lifecycle Funds are asset allocation portfolios that use the Plan’s existing investment funds. As 

described in the L Funds Information Sheet on the TSP website (www.tsp.gov), the L Income Fund is 

designed to produce current income for participants who are already withdrawing money from their 

accounts. The L 2065 Fund is designed for participants who will begin withdrawing in 2063 or later. The 

remaining eight L Funds are designed for participants who will begin withdrawing in certain five-year time 

periods. For example, the L 2040 Fund is designed for participants who will begin withdrawing between 2038 

and 2042. The asset allocations of these funds adjust quarterly, moving to a more conservative mix over time. 

These asset allocations are based on economic assumptions regarding future investment returns, inflation, 

economic growth, and interest rates. The asset allocations of each fund are maintained through daily 

rebalancing to that fund’s target allocation. With the help of an investment consultant, the Agency reviews the 

assumptions underlying the asset allocations regularly, typically on an annual basis. 

Accenture Federal Services (AFS), as part of its recordkeeping services contract, provides a Mutual Fund 

Window (MFW) that offers participants who meet certain eligibility criteria access to mutual funds. 

Participants have the option to transfer money from the five individual investment funds to the MFW. AFS 

implemented and began managing the MFW June 1, 2022. 

FERSA (5 U.S.C. § 8438(b)(5)(B)) states that the FRTIB ensure that any expenses charged for use of the 

mutual fund window are borne solely by the participants who use the mutual fund window. Participants that 

opt to participate in the mutual fund window incur a $150 fee annually. FRTIB collected annual mutual fund 

window fees of $401,250 and $0, for the twelve months ending December 31, 2022 and 2021, respectively. 

Accenture Federal Services was paid $254,125 and $0, for the twelve months ending December 31, 2022 and 

December 31, 2021, respectively, of the Plan collected annual mutual fund window fees. The Plan retained 

$147,125 and $0, respectively, of the Plan collected annual mutual fund window fees to offset administrative 

expenses and to ensure that participants using the mutual fund window pay their share of the administrative 

fees charged through the TSP G, F, C, S, and I Funds. There are also mutual fund window transaction fees 

charged per trade that are paid directly to AFS. 

3 BRS participants who first entered service on or after January 1, 2018, are eligible to receive government automatic contributions after 60 days 

of service. BRS participants who first entered service on December 31, 2017, or earlier and opted into the BRS are immediately eligible to 

receive government automatic contributions.

4 Certain members of the uniformed services are also subject to annual automatic re-enrollment every January 1 if they have stopped making 

contributions in the previous calendar year. 
8 

Participants may allocate any portion of their contributions among the five individual investment funds and the 

ten TSP Lifecycle Funds. If certain eligibility requirements and necessary fees are paid, participants may also 

allocate a portion of their contributions to the Mutual Fund Window. Also, participants may reallocate their 

account balances among the individual investment funds, the TSP Lifecycle Funds, and the Mutual Fund 

Window through the interfund transfer process. In order to curb frequent trading and its associated costs to all 

TSP participants, the Agency restricts the number of interfund transfers a participant can make per month. 

The first two fund transfers per calendar month are unrestricted. After that, participants may only move 

money out of the F, C, S, and I Funds, the TSP Lifecycle Funds, or the Mutual Fund Window into the G Fund. 

Vesting— Plan participants are immediately vested in all of their own contributions and attributable earnings. 

Participants are also immediately vested in any agency matching contributions and attributable earnings. In 

order to be vested in the agency automatic (1%) contributions, a FERS employee must have either 2 or 3 years 

of service and a BRS participant must have 2 years of service as described in section 8432(g) of FERSA. 

FERS and BRS employees who are not vested and who separate from the Federal Government forfeit all 

agency automatic contributions and attributable earnings. 5 

Forfeitures— Forfeited funds, consisting primarily of statutory forfeitures (pursuant to 5 U.S.C. § 8432(g)) 

and agency contributions forfeited due to retirement coverage corrections, the majority of which are made 

under the Federal Erroneous Retirement Coverage Correction Act (FERCCA), totaled $61,768,309 and 

$62,574,857 for the year ending December 31, 2022 and 2021, respectively. Under FERCCA, when a 

participant’s retirement coverage is corrected from FERS to CSRS, any excess agency contributions are 

forfeited to the Plan. All forfeitures are used by the Plan to offset accrued administrative expenses. If the 

forfeited funds (along with participant processing fees) are not sufficient to meet all administrative expenses, 

earnings on investments are then charged. 

Individual Accounts— An individual account is maintained for each Plan participant. As applicable, each 

participant’s account is credited with the participant’s contributions, agency automatic and matching 

contributions, and loan repayments and charged with loans and withdrawals. The value of the participant’s 

account reflects the number of shares and the daily share prices of the funds in which the participant is 

invested. Administrative expenses are a component of the share price calculation. The benefit to which a 

participant is entitled is the amount of the participant’s vested account balance. 

Court Order Fees—Participants are charged a $600 processing fee for court orders received. The court order 

fee is deducted from the participant’s account upon receipt for processing. FRTIB collected court order fees of 

$2,122,650 and $0 for the year ending December 31, 2022 and 2021, respectively. The court order fees are 

collected by the Plan and paid to AFS. 

Notes Receivable From Participants (loans) —Participants may apply for loans from their accounts. There 

are two types of Plan loans: general purpose and residential. General purpose loans can be obtained for any 

purpose, with a repayment period from 1 to 5 years. Residential loans can be obtained for the purpose of 

purchasing a primary residence, with a repayment period from 5 to 15 years. Participant loans may only be 

taken from participant contributions and attributable earnings. The minimum loan amount is $1,000 and the 

maximum loan amount is $50,000. A $50 fee is deducted from the proceeds of a general purpose loan. As of 

June 1, 2022, a $100 fee is deducted from a residential loan. Prior to June 1, 2022, the residential loan fee was 

$50. Loan fees of $4,596,500 and $11,539,850 for the year ending December 31, 2022 and 2021, respectively, 

were used to offset administrative expenses. Beginning June 1, 2022, loan fees were collected by the Plan and 

paid to AFS. Beginning June 1, 2022, loan fees no longer offset administrative expenses. Loan fees of 

$12,755,100 and $0 for the year ending December 31, 2022 and 2021, respectively, were collected by the Plan 

and paid to AFS. 

Prior to June 1, 2022, the interest rate for loans was the G Fund rate at the time the loan agreement was issued. 

Beginning June 1, 2022, the interest rate for loans is the G Fund rate from the prior month from when the loan 

was requested. The rate is fixed at this level for the life of each loan. Participant loans are valued at their 

5 Civilian and military service cannot be combined to meet the vesting requirements. 
9 

unpaid balances. Interest earned on loans is allocated to the participant’s account as loan payments are made 

to that account. 

By IRS regulation, each calendar quarter the Agency must identify any participant loan that is in default. The 

participant then has until the end of the following calendar quarter to pay the overdue amount. If not paid, a 

taxable distribution of the unpaid loan balance, plus accrued interest, is reported to the IRS and the loan is 

closed. Taxable loan distributions also occur when a participant separates from service and does not repay the 

loan in full or make payments to pay an outstanding loan balance. Participants should refer to the booklet, 

Loans, for more information. 

Payment of Benefits— After leaving service, participants may leave their money in the TSP. If they choose to 

withdraw their money, they may elect payment in the form of a partial withdrawal or total withdrawal. They 

may choose payment as a single withdrawal, a series of installment payments, or a life annuity. Participants 

may choose to combine any two or all three of the available withdrawal options. Participants should refer to 

the booklet, Distributions, for more complete information. 

Participants should refer to the booklet, In-Service Withdrawals, for information on withdrawal options while 

employed in Federal service. 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

Basis of Accounting— The accompanying financial statements have been prepared in accordance with 

accounting principles generally accepted in the United States of America. Revenue is recognized when earned 

and expenses are recognized when incurred. 

The Fund’s expenses are paid by the Fund, as provided by the Plan document. Expenses incurred in 

connection with the general administration of the Fund that are paid by the Fund are recorded as deductions in 

the accompanying statements of the changes in net assets available for benefits. In addition, certain investment 

related expenses are included in net appreciation (depreciation) of fair value of investment presented in the 

accompanying statements of changes in net assets available for benefits. 

In February 2016, the FASB approved ASU 2016-02, Leases (Topic 842). The ASU is designed to increase 

transparency and comparability among organizations by recognizing lease assets and lease liabilities on the 

statement of financial condition and disclosing key information about leasing arrangements. In June 2020, the 

FASB approved ASU 2020-5, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842). 

The main objective of this ASU was to delay the effective date for the referenced standards. Based upon the 

new effective dates instituted by ASU 2020-05, ASU 2016-02 is effective for the Fund for the fiscal year 

beginning after December 15, 2021 and all interim period within fiscal years beginning after December 15, 

2022. Early adoption is permitted. The Fund is currently evaluating the impact of ASU 2016-02 on the 

financial statements. 

Notes Receivable from Participants—Notes receivable from participants are measured at their unpaid 

principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. 

Related fees are recorded as administrative expenses and are expensed when they are incurred. No allowance 

for credit losses have been recorded as of December 31, 2022 or 2021. Delinquent notes receivable are 

recorded as distributions on the basis of the terms of the Plan document. 

Benefit Payments—Benefits are recorded when withdrawn from participants’ accounts. 

Investments— All investments are stated at fair value, based upon the quoted market values of the underlying 

securities at the end of each period. The Agency invests in (or redeems from) the Thrift Savings Fund 

investment funds each business day. Purchases and sales of securities are recorded on a trade-date basis. 

Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. 

The Plan offers its participants various investment funds that are exposed to different types and amounts of 

risk, including interest rate, credit, and market risk. Except for the G Fund, which is invested in a way to 
10 

avoid losses, depending upon each fund’s individual risk profile, the funds can be expected to experience 

volatility over time, thus affecting the fund balances from one period to the next. 

During the twelve-month periods ended December 31, 2022 and December 31, 2021, the Plan’s investment 

funds consisted of the following (objectives of the investment funds are described in the various TSP Fund 

Information Sheets, available on www.tsp.gov): 

The G Fund invests in short-term nonmarketable U.S. Treasury securities specially issued to the Government 

Securities Investment Fund (GSIF). By law, investments in the GSIF earn interest at a rate that is equal to the 

weighted average yield on outstanding U.S. Treasury marketable securities with 4 or more years to maturity. 

The interest rate is set every month based on the data as of the last business day of the previous month. As of 

December 31, 2022, and December 30, 2021, the total investment in the GSIF was $292.6 billion and $285.7 

billion, respectively. 

The F Fund invests in separate accounts that are passively managed to track the Bloomberg U.S. Aggregate 

Bond Index. Both managers of the F Fund use sampling to replicate the characteristics of the index. As of 

December 31, 2022, and December 31, 2021, the separate accounts held $30.2 billion and $37.4 billion of 

securities, respectively. 

The C Fund invests in separate accounts that are passively managed to track the S&P 500 Index. Both 

managers of the C Fund hold stocks of all the companies represented in the S&P 500 Index in virtually the 

same weights as the index. As of December 31, 2022 and December 31, 2021, the separate accounts held 

$262.9 billion and $326.8 billion of securities, respectively. 

The S Fund invests in separate accounts that are passively managed to track the Dow Jones U.S. Completion 

Total Stock Market Index. Both managers of the S Fund hold most of the stocks with larger capitalizations in 

virtually the same weights as the index, using sampling to hold a representative subset of the remaining stocks 

in the index. As of December 31, 2022, and December 31, 2021, the separate accounts held $78.5 billion and 

$106.9 billion of securities, respectively. 

The I Fund invests in separate accounts that are passively managed to track the MSCI EAFE Index. Both 

managers of the I Fund hold stocks of all the companies represented in the MSCI EAFE Index in virtually the 

same weights as the index. As of December 31, 2022 and December 31, 2021, the I Fund held $61.6 billion 

and $70.5 billion of securities, respectively. For the period ended December 31, 2021, BlackRock was the 

sole manager of the I Fund. SSGA began managing I Fund assets on December 12, 2022. 

The Mutual Fund Window (MFW) is an investment option that offers approximately 5,000 mutual funds. As 

of December 31, 2022 and December 31, 2021, the MFW held $149.3 million and $0 million of securities, 

respectively. 

Fair Market Valuations— The Plan’s agents, BlackRock and State Street Global Advisors (SSGA), follow 

the FASB’s ASC 820-10, which provides a comprehensive framework for measuring fair value and expands 

disclosures which are required about fair value measurements. Specifically, FASB ASC 820-10 sets forth a 

definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques. 

Under FASB ASC 820-10, the fair value hierarchy prioritizes inputs to valuation techniques used to measure 

fair value into three broad levels: Level I, Level II, and Level III. Inputs may be based on independent market 

data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives 

the highest priority to quoted prices in active markets for identical assets (Level I) and the lowest priority to 

unobservable inputs (Level III). 

An “independent market quotation” for a security or other asset is defined as a quoted price in an active 

market for an identical security or asset (a “Level I Price”). 

As a general principle, the current “fair market value” of a security or other asset is the amount that a Fund 

might reasonably expect to: (i) receive upon the sale of the security or asset; or (ii) pay to transfer the liability 

associated with the security or asset in an orderly transaction between market participants on the date on which 
11 

the security or asset is being valued. In the event that a Level I Price is not based on a quoted market price for 

a given type of security or asset, the fair value of the security or other asset is determined by using pricing 

inputs that are either directly or indirectly observable on the valuation date for the security or asset, which may 

include the use of models or other valuation methodologies (a “Level II Price”). 

For BlackRock, Level I Prices and Level II Prices are provided by broker dealers or by pricing providers, 

services, and vendors (together, “pricing sources”) approved by the BlackRock Global Valuation Committee 

or its delegates. The pricing sources approved by the BlackRock Global Valuation Committee vary according 

to security or asset type and include, but are not limited to, Thomson Reuters, FTSE TMX (formerly PCBond/DEX), Bloomberg, ICE Data Services (formerly Interactive Data/Standard and Poor’s Securities 

Evaluation Service) and IHS Markit. 

For SSGA, Level I Prices and Level II Prices are provided by broker dealers or by pricing providers, services, 

and vendors (together, “pricing sources”) approved by the SSGA North America Valuation Committee or its 

delegates. The pricing sources approved by the SSGA North America Valuation Committee vary according to 

security or asset type and include, but are not limited to, Bloomberg, ICE Data Services (formerly Interactive 

Data/Standard and Poor’s Securities Evaluation Service) IHS Markit, JP Morgan Pricing Direct and Refinitiv. 

The separate accounts have a readily determinable fair value as these securities transact on a daily basis 

without restrictions. The readily determinable fair value is used to determine net asset value per share. The net 

asset value is based upon the fair value of the underlying investments. 

Mutual funds are valued at the daily closing price as reported by the fund. Mutual funds held by the Plan are 

open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are 

required to publish their daily net asset value and to transact at that price. The mutual funds held in the mutual 

fund window are deemed to be actively traded. 

The table at Appendix 1 sets forth by level, within the fair value hierarchy and at net asset value, the Plan’s 

assets at fair value as of December 31, 2022 and December 31, 2021. 

The F Fund, C Fund, S Fund, and I Fund include temporary investments in the same U.S. Treasury securities 

held by the G Fund pending daily purchase of shares in their respective index funds and to cover liquidity 

needs, such as loans and withdrawals from the Thrift Savings Fund.

The separate accounts incurred investment fees payable for the separate account program management for the 

prior twelve months as follows: the F Fund ($6.6 million and $5.8 million as of December 31, 2022 and 2021, 

respectively), the C Fund ($3.6 million and $3.3 million as of December 31, 2022 and 2021, respectively), the 

S Fund ($27.4 million and $17.2 million as of December 31, 2022 and 2021, respectively) and I Fund ($3.6 

million and $6.3 million as of December 31, 2022 and 2021, respectively). The separate accounts in which the 

C, S, and I Funds are invested may invest in futures contracts and other derivatives to the extent contemplated 

by the fund guidelines. As part of the investment strategies, derivative instruments may be used to provide 

liquidity for daily investments or to manage currency, interest, and other exposures. 

The F, C, S, and I Funds also participate in securities lending activities, under agreements between the Plan’s 

lending agents and their third parties to lend debt and equity securities in exchange for collateral. The 

collateral received, which is required to equal 102% of the value of the domestic securities lent and 105% of 

the value of international securities, is marked to market each day, and may be invested in cash collateral 

funds managed by BlackRock and SSGA, which in turn invest in money market securities and instruments. A 

portion of the cash collateral for securities lending by the F, C, S, and I Funds ($0.0 billion and $15.5 billion 

as of December 31, 2022 and 2021, respectively), is invested in the G Fund, and is shown on the Statements of 

Net Assets as “Investments” and the corresponding cash collateral payable. 

A major source of risk in any securities lending program is that the securities and instruments in which the 

cash collateral received (against security loans) is invested may decline in value. BlackRock’s and SSGA’s 

responsibilities include performing appropriate borrower and collateral investment credit analysis, demanding 

adequate types and levels of collateral and complying with applicable Department of Labor and Federal 

Financial Institutions Examiner Council standards regarding securities lending. The tables at Appendix 2 show 
12 

how the participants’ account balances in the various investment options are allocated among the core TSP 

Funds as of December 31, 2022 and December 31, 2021. 

Securities Lending Income— Securities lending income represents the income earned from the investment of 

the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the securities 

lending agent. During the term of the loan, the Fund earns dividend or interest income on the securities loaned 

but does not receive interest income on any securities received as collateral. Loans of securities are terminable 

at any time and the borrower, after notice, is required to return borrowed securities within the standard time 

period for settlement of securities transactions. In the event that the borrower defaults on its obligation to 

return borrowed securities because of insolvency or for any other reason, the Fund could experience delays 

and costs in gaining access to the collateral. The Fund also could suffer a loss if the value of an investment 

purchased with cash collateral falls below the market value of loaned securities or if the value of an 

investment purchased with cash collateral falls below the value of the original cash collateral received. 

Fixed Assets—All fixed assets were recorded at cost and are depreciated on a straight-line basis over their 

estimated useful lives, which range as follows: 

 Furniture and Equipment 3 to 7 years 

 Leasehold Improvements 15 years 

 Data Processing Software 3 years 

During the twelve-month period ended December 31, 2022 and 2021, depreciation and amortization expense 

was approximately $1.4 million and $2.3 million for the years ended December 31, 2022 and 2021, respectively. 

Earnings Allocation— Net earnings are used to calculate the daily share price of each investment fund as 

defined in regulations issued by the Agency (5 Code of Federal Regulations (CFR) Part 1645). 

Contributions Receivable— Contributions receivable are estimated as the amount of contributions recorded 

through the first 2 weeks of the month following the date of the financial statements and represent both 

participant and employer portions of contributions. 

Estimates— The preparation of financial statements in conformity with accounting principles generally 

accepted in the United States of America requires management to make estimates and assumptions that affect 

the reported amounts of net assets available for benefits and changes therein. Actual results could differ from 

those estimates. 

Thrift Savings Plan Enhancement Act of 2009—On June 22, 2009, the Thrift Savings Plan Enhancement Act 

(the Act or P.L. 111-31) was signed into law. The Act provides for immediate agency automatic (1%) and 

matching contributions for FERS employees (implemented in August 2009). The Act also requires civilian 

Federal agencies to automatically enroll newly hired (and rehired) eligible employees unless the employee 

makes an affirmative election not to participate in the Fund or elect a deferral rate other than the deferral rate 

of 3 percent (implemented in August 2010). The default deferral rate was changed to 5 percent in October 

2020. The Act also allows the Agency to establish accounts for the surviving spouses of TSP participants 

(implemented December 2010). In addition, the Act also gives the Federal Retirement Thrift Investment 

Board the authority to establish a qualified Roth contribution program (implemented in May 2012) and the 

authority to establish a mutual fund window. The mutual fund window was implemented on June 1, 2022. 

3. INCOME TAX STATUS 

FERSA (5 U.S.C. § 8440(a)(1)) states that the Thrift Savings Fund shall be treated as a trust described in 

section 401(a) of the Internal Revenue Code (I.R.C. or Code), which is exempt from taxation under section 

501(a) of the Code. This status was reaffirmed in the Tax Reform Act of 1986, Section 1147 (codified at 

I.R.C. § 7701(j)). It is not necessary for the Plan to apply for a tax status determination letter as it is qualified 

by statute. 
13 

4. COMMITMENTS AND CONTINGENCIES 

The Agency has contracted with Accenture Federal Services (AFS) to provide Thrift Savings Plan (TSP) 

recordkeeping services and defined contribution managed services that will operate and manage the associated 

people, processes, and systems to deliver TSP retirement services. AFS’s recordkeeping services contract 

(named “Converge”) replaces the legacy contracts for operations support, contact center, print/mail, and IT 

recordkeeping services. The transition of the legacy services to Converge was successfully completed in June 

2022. During the twelve-month period ended December 31, 2022 and 2021, the total cost of the Converge 

contract for recordkeeping systems and operations support was approximately $245.2 million and $85.4 

million, respectively. 

As a part of the legacy recordkeeping support services, the Agency has contracted with Science Applications 

International Corporation (SAIC) to provide a broad range of IT and IT-related recordkeeping support 

services, including program management and cross functional services, infrastructure and operations (data 

center, data network, service desk, voice network, end user services), application services, and 

recordkeeping. The cost of the SAIC contract was approximately $113.0 million and $281.0 million, as of 

December 31, 2022 and 2021, respectively. 

As a part of the legacy recordkeeping support services, the Agency contracted with Serco to provide 

operations support and a contact center in Alabama and Virginia, as well as with RA Outdoors, LLC to 

provide a contact center in Maryland and Texas. The cost of the Serco contact center contract is approximately 

$26.2 million and $42.9 million as of December 31, 2022 and 2021, respectively. The cost of the RA 

Outdoors, LLC contact center contract is approximately $13.6 million and $29.4 million, as of December 31, 

2022 and 2021, respectively. The Agency no longer contracts with Serco or RA Outdoors, LLC. 

5. FIDUCIARY INSURANCE 

FERSA (5 U.S.C. § 8479(b)(1)) provides that the Executive Director may assess Federal agencies for the 

purpose of buying fiduciary insurance. The Agency’s Executive Director exercised this authority in 1987 and 

required agencies to submit an amount equal to 1 percent of their agency automatic contributions. Such sums 

were collected during 1987 and 1988 and are invested to the extent not currently required to purchase fiduciary 

insurance. In February 1988, the Executive Director instructed agencies to discontinue the 1 percent fiduciary 

insurance contributions. The balance of funds available for the purchase of fiduciary insurance as of 

December 31, 2022 and 2021 was $3,140,934 and $3,230,537, respectively. These funds are invested in the 

same securities held by the G Fund and are included in total investments on the accompanying statements of 

net assets available for benefits, with a corresponding reduction in the net assets available for benefits. By 

statute, such amounts cannot be allocated to participants’ accounts. The Agency has determined that the 

current insurance reserve is adequate to fund coverage needs for the foreseeable future. 

6. SUBSEQUENT EVENTS 

The Fund is subject to various claims and legal proceedings covering matters that arise in the ordinary course 

of its administrative activities. Management believes that the final resolution of these matters will not have a 

materially adverse effect on the net assets available for benefits or changes in net assets available for benefits 

of the Fund. 

Agency management evaluated subsequent events through August 2, 2023, the date the financial statements 

were available to be issued. Events or transactions occurring after December 31, 2022 but prior to August 2, 

2023, that provided additional evidence about conditions that existed at December 31, 2022, have been 

recognized in the financial statements for the twelve-month period ending December 31, 2022. Events or 

transactions that provided evidence about conditions that did not exist at December 31, 2022, but arose before 

the financial statements were available to be issued, have not been recognized in the financial statements for 

the twelve-month period ended December 31, 2022.
14 

 
15 

****** 

Appendix 1 

Quoted Prices in 

Active Markets for 

Identical Assets

Significant Other 

Observable Inputs 

Significant 

Unobservable 

Inputs 

Description (Level 1) (Level 2) (Level 3) Total

U.S. Government Securities 

Investment Account $292,599,140 $ - $ - $292,599,140

TSP F Fund – U.S. Debt 

Index Account - 30,209,671 - 30,209,671

TSP C Fund - Equity Index 

Account - 262,870,880 - 262,870,880

TSP S Fund- Extended 

Equity Index Account - 78,468,123 - 78,468,123

TSP I Fund- EAFE Equity 

Index Account - 61,564,379 - 61,564,379

Mutual Fund Window 149,346 - - 149,346

Total assets at fair value $292,748,486 $433,113,053 $ - $725,861,539

Fair Value Measurements as of December 31, 2022

(in thousands)

Quoted Prices in 

Active Markets for 

Identical Assets

Significant Other 

Observable Inputs 

Significant 

Unobservable 

Inputs 

Description (Level 1) (Level 2) (Level 3) Total

U.S. Government Securities 

Investment Account $285,688,790 $ - $ - $285,688,790

TSP F Fund – U.S. Debt 

Index Account - 37,363,105 - 37,363,105 

TSP C Fund - Equity Index 

Account - 326,776,180 - 326,776,180 

TSP S Fund- Extended 

Equity Index Account - 106,932,031 - 106,932,031 

TSP I Fund- EAFE Equity 

Index Account - 70,521,082 - 70,521,082 

Mutual Fund Window - - - -

Total assets at fair value $285,688,790 $541,592,398 $ - $827,281,188

Fair Value Measurements as of December 31, 2021

(in thousands)
16 

Appendix 2

Investment 

Options

G Fund 

Investment

F Fund 

Investment

C Fund 

Investment

S Fund 

Investment

I Fund 

Investment

Mutual Fund 

Window (MFW) Total 

G Fund $240,410,499 - - - - - $240,410,499

F Fund - $19,477,287 - - - - 19,477,287

C Fund - - $209,990,529 - - - 209,990,529

S Fund - - - $64,422,654 - - 64,422,654

I Fund - - - - $25,746,933 - 25,746,933

L Income 18,520,040 1,494,463 3,387,758 822,860 2,259,611 - 26,484,732

L 2025 5,210,720 568,795 1,871,986 470,562 1,255,637 - 9,377,700

L 2030 15,470,017 2,840,985 14,250,564 3,658,235 9,600,433 - 45,820,234

L 2035 1,330,266 345,115 1,668,411 436,203 1,128,475 - 4,908,470

L 2040 8,509,990 2,963,551 14,938,480 3,975,637 10,139,353 - 40,527,011

L 2045 462,781 231,744 1,168,608 319,964 797,995 - 2,981,092

L 2050 3,155,346 2,247,169 12,300,557 3,417,494 8,426,218 - 29,546,784

L 2055 11,529 10,805 1,134,261 316,901 777,940 - 2,251,436

L 2060 7,451 8,903 830,832 232,126 569,832 - 1,649,144

L 2065 9,163 15,290 1,242,588 347,167 852,239 - 2,466,447

MFW - - - - - 149,346 149,346

Differences (*) (498,662) 5,564 86,306 48,319 9,714 - (348,759)

Statement of 

Net Assets $292,599,140 $30,209,671 $262,870,880 $78,468,122 $61,564,380 $149,346 $725,861,539

Investment Summary by Fund as of December 31, 2022

(in thousands)

(*) Differences are a result of timing differences, including investment transactions not settled as of December 31, 2022. These differences may not be 

allocated down to the L Funds until the following business day. 

Investment 

Options

G Fund 

Investment

F Fund 

Investment

C Fund 

Investment

S Fund 

Investment

I Fund 

Investment

Mutual Fund 

Window (MFW) Total 

G Fund $210,575,058 - - - - - $210,575,058

F Fund - $24,928,829 - - - - 24,928,829

C Fund - - $268,694,066 - - - 268,694,066

S Fund - - - $91,182,323 - - 91,182,323

I Fund - - - - $30,737,717 - 30,737,717

L Income 21,698,529 1,761,351 3,768,140 901,086 2,525,090 - 30,654,196

L 2025 5,247,683 639,457 2,305,880 579,790 1,560,189 - 10,332,999

L 2030 17,955,147 3,498,728 16,647,423 4,312,945 11,323,637 - 53,737,880

L 2035 1,228,181 334,100 1,548,822 411,117 1,059,071 - 4,581,291

L 2040 9,561,772 3,458,394 16,844,484 4,585,181 11,577,228 - 46,027,059

L 2045 377,995 199,563 963,081 272,348 667,444 - 2,480,431

L 2050 3,342,733 2,513,552 13,188,920 3,808,718 9,183,090 - 32,037,013

L 2055 9,476 9,293 942,146 274,099 657,074 - 1,892,088

L 2060 5,481 6,856 619,240 180,157 431,865 - 1,243,599

L 2065 8,395 14,530 1,127,616 327,899 786,570 - 2,265,010

MFW - - - - - - -

Differences (*) 15,678,340 (1,548) 126,362 96,368 12,107 - 15,911,629

Statement of 

Net Assets $285,688,790 $37,363,105 $326,776,180 $106,932,031 $70,521,082 - $827,281,188

Investment Summary by Fund as of December 31, 2021

(in thousands)

(*) Differences are a result of timing differences, including investment transactions not settled as of December 31, 2021. These differences may not be 

allocated down to the L Funds until the following business day. The differences in the G Fund is largely due to the securities lending program for the 

F, C, S and I Funds.

This information is an integral part of the accompanying financial statements.