FEDERAL RETIREMENT THRIFT INVESTMENT BOARD 

77 K Street, NE Washington, DC 20002 

MINUTES OF THE MEETING OF THE BOARD MEMBERS

AND THE EMPLOYEE THRIFT ADVISORY COUNCIL

May 23, 2023

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

convened a meeting of the Board members on May 23, 2023, at 10:00 a.m., Eastern

Daylight Time. The meeting was held at the Board’s offices at 77 K Street, NE and was 

open to the public via teleconference. 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.

In attendance for the Employee Thrift Advisory Council (ETAC) were Chair 

Jacqueline Simon, American Federation of Government Employees; Vice Chair Althea

Sprosta, Federally Employed Women, Inc; Neil Doherty, Senior Executives Association

(by telephone); Daniel Heins, United Postmaster and Managers of the United States (by 

telephone); Kathryn Hensley, National Active and Retired Federal Employees 

Association; Kori Blalock Keller, National Association of Letter Carriers’ Association (by 

telephone); Bob Levi, National Association of Postal Supervisors; Matt Sowards,

National Treasury Employees Union (by telephone); and Dave Stamey, National

Federation of Federal Employees (by telephone). 

Welcome and Introductions.

Chair Gerber called to order the monthly meeting of the Federal

Retirement Thrift Investment Board (FRTIB or Agency) at 10:07 a.m.

Chair Gerber welcomed the members of the Employee Thrift Advisory 

Council (ETAC) and thanked former ETAC Chair Clifford Dailing and Vice Chair James 

Sauber for their years of service. 

1. Election of the Chair and Vice Chair of ETAC.

Chair Gerber opened the floor for nominations from ETAC members to 

elect a Chair of ETAC. Jacqueline Simon was nominated. The following ETAC motion

was made, seconded, and adopted without objection:

MOTION: That Jacqueline Simon be elected as Chair of ETAC.
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Chair Gerber opened the floor for nominations from ETAC members to 

elect a Vice Chair of ETAC. Althea Sprosta was nominated. The following ETAC motion

was made, seconded, and adopted without objection:

MOTION: That Althea Sprosta be elected as Vice Chair of ETAC.

The Board members, Agency leadership, and ETAC members introduced

themselves.

2. Approval of the Minutes of the April 25, 2023, Board Meeting.

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

25, 2023, Board meeting. The following motion was made, seconded, and adopted

without objection:

MOTION: That the minutes of the Board meeting held on April 25, 2023, 

be approved.

3. Approval of the Minutes of the October 27, 2022 ETAC Meeting.

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

October 27, 2022 ETAC meeting. The following motion was made, seconded, and

adopted without objection:

MOTION: That the minutes of the ETAC meeting held on October 27,

2022 be approved.

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

and thanked Ms. Crowder for her almost 30 years of service to the Agency. The 

Members echoed their thanks and congratulated Ms. Crowder on her retirement.

4. Monthly Reports.

a. Participant Activity Report

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

Savings Fund Statistics April 2023” (attached). He reported that one-third -- or 2.3

million participants -- have a Roth balance. The total Roth Plan balance as of April 2023

was 44.1 billion dollars, which represents a 31 percent increase since April 2022 and is 

a Plan record.

Mr. Courtney highlighted that participants contact the Plan using the live

chat function available within My Account. This feature allows participants to connect

online with ThriftLine representatives during business hours. Live chat usage increased

by two percent in April and by 35 percent since January 2023. In response to questions

from Member Bilyeu, Mr. Courtney explained that live chat satisfaction is 60 percent and
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is measured through participant survey results, whereas telephone calls have a 90 

percent satisfaction rate. Mr. Courtney suspects the lower level of satisfaction is tied to 

participant frustration when they must follow up after a live chat with a telephone call to 

the ThriftLine. The Agency and the recordkeeper track call handling time and participant

satisfaction and uses these metrics to identify strengths and areas for improvement. In 

response to a question from Chair Gerber, Mr. Courtney confirmed that the 

recordkeeper also tracks common keywords in participant communication across all

channels to identify areas for improvement. The recordkeeper identified withdrawals as 

a focus area and is working to determine why withdrawals generate more questions 

than loans.

b. Legislative Report

Ms. Weaver reported that on May 17, Representative Ken Buck 

introduced H.R. 3406, which prohibits qualified professional asset managers from 

exercising voting rights over securities held in the TSP. She remarked that this is a new

bill that has not been introduced in previous Congresses. On the same day, Senator 

Marco Rubio introduced S. 1650, which would prohibit TSP investment in a country or 

security of concern as defined by the Director of National Intelligence in the Annual

Threat Assessment. This bill is similar to legislation proposed by Senator Rubio in the

past. If S. 1650 becomes law, there may be impacts to the I Fund and the mutual fund

window will likely be eliminated. This is because the Agency cannot monitor all stocks 

that comprise the 5,000 mutual funds in the window. 

Ms. Weaver discussed that Secretary of the Treasury, Janet Yellen stated

that the debt ceiling could be reached as early as June 1. The President and Speaker of

the House are negotiating terms for proposed legislation to raise the debt ceiling. The 

House of Representatives is in session this week and the Senate returns next week. 

Senator Charles Schumer stated that the Senate will be recalled if a vote can occur

prior to next week on the debt ceiling. 

In response to a question from Member Bilyeu, Ms. Weaver confirmed that

there is a proposed bill prohibiting Senators and Representatives from holding individual

stocks. However, this bill would not impact investment in the TSP by members of

Congress.

In response to a question from Ms. Simon, Ms. Weaver explained that 

under extraordinary circumstances if the debt ceiling is reached, the Treasury would

suspend reinvestment of specially issued Treasury securities held by the TSP. This 

would not impact a participant’s ability to earn interest, to make interfund transfers, or to

take a loan or withdrawal. However, since the money is not being reinvested, it gives 

the Treasury the ability to use the funds in a different manner. In response to a follow-up 

question from Ms. Simon regarding the impact of a potential default if the debt ceiling is 

not raised, Ms. Weaver indicated that she did not have specific answers, since this

circumstance is unprecedented. 
4

c. Investment Report

Mr. McCaffrey reviewed the monthly investment performance report. See

“April 2023 Performance Review – G, F, C, S, I, and L Funds” (attached). Mr. McCaffrey 

began by noting that BlackRock’s performance in April for the F, C, and S Funds

matched their respective indices. BlackRock’s performance for the I Fund was ahead of

the International Index by four basis points, primarily due to tax advantage.

Mr. McCaffrey reported that State Street’s performance for the F, C, and S 

Funds was also in line with the same benchmarks for the month. Performance for the I

Fund exceeded the International Index by five basis points, primarily due to tax 

advantage.

Mr. McCaffrey provided that the overall TSP Fund’s April performance for 

the F, C, and S Funds also matched the respective benchmarks’ performance while the

TSP I Fund was ahead of the International Index by four basis points.

Mr. McCaffrey noted that in April, investors wrestled with mixed economic 

signals. Inflation showed signs of easing but remained elevated. Employment and

overall economic activity showed gains, but the pace of that growth slowed, fueling

fears of recession. Lingering turmoil among some banks added to uncertainty 

surrounding the Federal Reserve’s next moves on interest rates. As a result,

domestically, the C Fund rose, and the S Fund fell. In international markets, the I Fund

posted a gain, helped in part by a weaker U.S. dollar. The F Fund finished higher as 

longer-term interest rates remained relatively little changed by the end of the month. All

L Funds posted gains.

Mr. McCaffrey reported that, year-to-date, BlackRock’s performance for 

the F Fund was ahead of the Fixed Income Index’s returns by 20 basis points, primarily 

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

the last trading day of December 2022. Its performance for the C Fund was in line with

the Large Cap Index. Performance for the S Fund exceeded the Small Mid Cap Index’s 

returns by eight basis points, primarily due to securities lending. Its performance for the

I Fund was ahead of the International Index by 17 basis points, primarily due to tax 

advantage.

Mr. McCaffrey further reported that, year-to-date, State Street’s 

performance for the F Fund exceeded the Fixed Income Index’s returns by 21 basis 

points, due to a similar year end pricing difference between the benchmark and the

investment manager. Performance for the C Fund was in line with the Large Cap index.

Performance for the S Fund was ahead of the Small Mid Cap Index’s returns by three

basis points, primarily due to securities lending. Performance for the I Fund was ahead

of the International Index by 49 basis points, primarily due to tax advantage and fair 

value pricing.
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Mr. McCaffrey noted that investment performance for stocks is positive so

far in May. Through Monday, May 22, the C Fund gained 0.70 percent, the S Fund

gained 1.93 percent, and the I Fund gained 0.09 percent. The bond market is negative

so far this month, with the F Fund down 1.70 percent. The G Fund earned 0.22 percent.

Mr. McCaffrey further noted that the L Funds saw continued growth of

about 28,000 in participant ownership of at least one L Fund in April. Much of this is 

attributable to automatic enrollment of new civilian and uniformed services participants.

Mr. McCaffrey stated that interfund transfers on a dollar volume basis 

remain at a relatively low level. On a percentage of participants basis, in April, 1.8

percent of participants conducted transfers, which is slightly below the long-run median

of two percent for interfund transfers. Year-to-date through April, 4.3 percent of 

participants have conducted transfers. In other words, 98.2 percent of participants did

not conduct a transfer in April and 95.7 percent have not moved any assets in 2023.

In response to a question from Member Olivares, Mr. McCaffrey explained

that the Plan does not ask participants why they elect to make interfund transfers.

Interfund transfers occur at relatively low levels and participants are maintaining their 

long-term investment plans. Interfund transfer decisions can be prompted by external

services, participant needs, or in response to news. Sometimes people change their 

investments when the market is volatile and return to equity funds when the market

rebounds.

5. Quarterly Metrics Report.

Mr. Dennis McNulty from the Office of Planning and Risk provided a report

on key performance indicator results for the second quarter. See “FY23 Q2 Metrics 

Report” (attached). Under Strategic Goal B, there is a new metric measuring participant

satisfaction with interactive communication across channels. While the Agency missed

the target of 90 percent participant satisfaction, the satisfaction rate steadily increased

during the quarter from 81.7 percent in January to 86.2 percent in March.

Mr. Courtney stated that an 80 percent satisfaction rating is considered the standard by 

some within the customer service industry, but the Agency is holding itself and its 

recordkeeper to a higher standard of 90 percent satisfaction. Customer satisfaction with 

calls to the ThriftLine is currently meeting this standard, but the vendor is still working to

improve the other channels. All channels are trending upward, and some have

satisfaction ratings in the 80 percent range already. 

Mr. McNulty went on to highlight a new metric for Fiscal Year 2023 under 

Strategic Goal C. The metric tracks the results from the Federal Employee Viewpoint

Survey (FEVS) to gauge employee satisfaction. The 2022 FEVS results will be used as 

a baseline and the 2023 FEVS results will help to develop a target and threshold for the

future. 
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6. OPE Annual Presentation.

Mr. Courtney presented the Office of Participant Experience (OPE) annual 

report. See “Office of Participant Experience Annual Report” (attached). Mr. Courtney 

began by introducing OPE, which was formed in January 2023. He explained that the

office merges the former Office of Participant Services and Office of Communication

and Education. The participant experience encompasses touch points such as the 

ThriftLine, website, publications, statements, webinars, money-in processes as well as 

money-out processes. OPE strives to create an excellent participant experience through

effective program operations, outreach, and external partnerships. Mr. Courtney 

expressed thanks to ETAC for their partnership.

Mr. Courtney explained that OPE is organized into a front office that 

provides administrative, budget, and contract support to three divisions. The first

division is Relationship Building, which liaises with payroll agencies and the

recordkeeper. This division also oversees participant correspondence and includes a 

training team, which teaches TSP related classes. The second division is Quality 

Management, which works to ensure the participant experience is in line with Agency 

regulations, policies, and the high standards we set for our recordkeeper. The third

division is Content and Creation, which crafts TSP messaging across channels 

including the website, email, print, and social media. 

Mr. Courtney stated that, with the switch to the new recordkeeper in 2022,

the Agency provides a participant experience more in line with other 401(K) providers,

as well as one participants are used to having with their banks, and credit card

companies. Participants can use online tools including the electronic signature feature

in My Account to complete transactions online when requesting withdrawals, applying

for loans, and designating beneficiaries. Furthermore, participants can add an alternate

address or address preference to their account. They can also provide or update

financial institution information. The ThriftLine introduced a rollover concierge service. In 

the past 11 months, more than 26,000 participants have rolled-in more than a billion 

dollars to the Plan with two-thirds of those completed using the concierge service. The

TSP mobile application provides a new convenient way to interact with the Plan and 

800,000 participants have downloaded it. 

Mr. Courtney indicated that participants are taking advantage of new Plan

communication channels. One of these communication channels is AVA, a virtual

assistant that works like a dynamic FAQ. Participants can chat live with a ThriftLine

agent during business hours by logging into My Account and selecting the AVA icon.

Mr. Courtney stated the ability to live chat is tied to agent availability and wait times.

Participants continue to call the ThriftLine; between January and April, ThriftLine agents 

answered almost a million calls. While wait times were elevated in January, by 

February, wait times were the same or better than last year, even with increased

volumes. In response to a question from Ms. Simon, Mr. Courtney stated that the 

Agency contracts with Accenture Federal Services (AFS), and ThriftLine agents work for 

a subcontractor to AFS.
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Mr. Courtney stated that the My Account homepage was recently 

redesigned in response to participant feedback. The redesign provides expanded

navigation and makes it easier to locate account balance information, a personal rate of

return, contributions, and investment allocation information. Over the past 11 months,

almost nine out of every 10 participant interactions took place using the website and

mobile application. During that same time, almost five million people called the

ThriftLine, and AVA received more than a million questions on the public side of the

website. Participants are also interacting by email and live chat, but at lower volumes. 

Mr. Courtney explained that the Agency uses its communication channels 

strategically to communicate with participants. The Agency emails a newsletter to the

four million participant email addresses on file with the Plan. Of those who receive

emails, 54 percent of recipients open the correspondence. This is nearly double the 

government email open rate and exactly double the financial services open rate

average for both the public and private sectors. About a third of participants who 

opened an email from us this year spent at least eight seconds reading it. For the

February email, one in four participants spent more than 18 seconds reading the

correspondence. 

Email content has included articles focused on directing participants to set

up their new login for My Account to take advantage of new Plan features; informing

participants about the new account lock feature; and information on how to designate

beneficiaries. The Agency recently collaborated with the American Forces Network

(AFN), which is a television service for members of the uniformed services stationed

overseas, on a public service announcement regarding beneficiary designations. AFN

has a viewing audience of a half million people including participants and their families.

Mr. Courtney concluded his presentation with a discussion on the passage

of the Secure Act 2.0 in December 2022. The legislation is intended to improve

retirement outcomes for participants. While some of the provisions went into effect

immediately, others become effective as late as 2033. In response to a Secure Act 2.0

provision, TSP immediately suppressed required minimum distributions (RMDs) for 

participants turning 72 in 2023 and notified participants of this change. The Agency also

informed participants that beginning in 2024, Roth funds will only be subject to RMDs 

after a participant’s death. The Agency is still reviewing requirements for upcoming

provisions and is seeking guidance from other agencies like the Internal Revenue

Service (IRS), to ensure correct implementation. 

In response to a question from Member Bilyeu regarding IRS guidance

timelines, Mr. Vashee indicated that he could not speak to specific IRS dates, but that 

the conversations are ongoing. Mr. Courtney and Ms. Weaver stated that the Agency 

sent a letter to Congress and the Secretary of the Treasury regarding the 

implementation of Section 603. This provision requires that catch-up contributions for 

participants earning 145,000 dollars or more in the prior year be made as Roth

contributions. This provision requires programming work by the roughly 110 federal
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payroll offices to provide the recordkeeper with salary data that is not currently tracked

by the TSP. 

In response to a question from Member Bridges, Mr. Courtney confirmed

that the AFN is shown on military bases around the world and has a tremendous reach.

7. Adjourn. 

Whereupon, there being no further business, the following motion was 

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

meeting for ETAC at 10:55 a.m.

MOTION: That this meeting be adjourned.

Whereupon, there being no further business, the following motion was 

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

meeting at 10:55am.

MOTION: That this meeting be adjourned.

Dharmesh Vashee

General Counsel and Secretary

Attachments

1. Thrift Savings Fund Statistics April 2023

2. April 2023 Performance Review – G, F, C, S, I, and L Funds

3. FY23 Q2 Metrics Report

4. Office of Participant Experience Annual Report