FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

MINUTES OF THE MEETING OF THE BOARD MEMBERS 

June 27, 2023

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

convened a meeting of the Board members on June 27, 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; Stefanie George, Acting General Counsel 

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

Director, and Acting 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.

1. Approval of the Minutes of the May 23, 2023, Joint Board/ETAC Meeting. 

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

23, 2023, Joint Board/ETAC meeting. The following motion was made, seconded, and 

adopted without objection:

MOTION: That the minutes of the Joint Board/ETAC meeting held on May 

23, 2023, be approved.

Mr. Deo then gave opening remarks and provided a brief summary of the

agenda.

2. Recordkeeper Service Update – Accenture Federal Services. 

Mr. Courtney introduced Elaine Beeman and Owen Davies, the two most 

senior members of the Accenture Federal Services (AFS) team working on the 

Converge contract, to present an update. See “Recordkeeper Service Update 

(Accenture Federal Services)” (attached). Ms. Beeman noted that June 1 was the first 

anniversary of the Converge system going live and acknowledged the complexity of the 

effort.

Mr. Davies then reported that in the first year of Converge, 3.7 million 

people established their online accounts, while prior to Converge going live, there were 

roughly 3.8 to 3.9 million people with online accounts. In the past year, there have been 

almost 50 million My Account logins and over three million calls to the ThriftLine. In
2

addition, wait times for calls to the ThriftLine are down to nine seconds with the average 

call duration being ten minutes.

Mr. Davies continued by highlighting six features that were not available 

prior to Converge. The mobile app has been downloaded over 800,000 times. In 

addition, there have been more than one million chats with the virtual agent (AVA) 

where users can get access to retirement information, along with 11,000 roll-ins through 

a concierge service that accelerates processing. More than a million people have used 

e-signature, which increased processing speed and eliminated the need for paper 

processing. AFS has processed more than 3.36 million electronic payments, allowing 

faster access to funds through a more secure method. Finally, over 160,000 participants 

have utilized a second general purpose loan. With respect to money in, money out, and 

money managed, in addition to a large volume of contributions, there have been more 

than 30,000 rollovers into the plan totaling more than one billion dollars, 34 billion 

dollars in withdrawals and installment payments, and1.46 million fund transfers and 

reallocations.

Mr. Davies then turned to participant satisfaction over the first year. Noting 

that the last time his organization was before the Board, overall satisfaction was 82 

percent compared to an industry standard of around 80 percent. Overall satisfaction is 

now at 89 percent. In addition, phone satisfaction went from 89 percent in February to 

its current level of 92 percent. Website satisfaction is at 87 percent, and AFS is working 

to increase that number. Mr. Davies also described the volume of interaction on the 

various channels – the web, mobile, phone, AVA, live chat, and email – noting that the 

last two make up a small percentage of overall traffic.

Mr. Davies turned his discussion to AFS’s three areas of focus for the 

second year of the contract: participant satisfaction, operations excellence, and 

innovation.

To improve participant satisfaction, Mr. Davies described how AFS 

collects and evaluates feedback, balancing positive feedback and constructive criticism. 

He provided several examples of changes AFS has made based on participant 

feedback. First, AFS adjusted the My Account homepage to include items that were 

present prior to Converge. Second, AFS changed the interactive voice response 

authentication on the ThriftLine to make the process easier and accelerate connection 

with an agent. Third, AFS added a self-service feature to My Account to allow 

participants to start and stop installment payments. Finally, AFS provided participant 

service representatives with more information about an individual’s loans, reducing the 

need for multiple calls.

With regard to operational excellence, AFS will continue a participantcentric approach. They plan to conduct focus groups to get direct feedback from 

participants outside other channels. In addition, they are implementing a “pizza tracker” 

that will allow a participant with a pending request to monitor its status. They are also 

planning technology upgrades, including bank account verification tools to reduce the
3

seven-day hold necessary to conduct verification and allow individuals to get their 

money faster. In addition, AFS is working on improving processing time for legal and 

death claims.

AFS’s final focus is on innovation, and Mr. Davies highlighted the 

Innovation Launch Pad, their group responsible for this work. He will share more about 

what that group is doing in future presentations.

In response to a question from Member Bilyeu, Mr. Davies explained that 

AFS is taking a security-first approach and that security was not discussed as it is part 

of everything they are doing with Converge.

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

that AFS is looking for ways to speed up the processing of legal and death claims while 

maintaining compliance with statutes and regulations. An example of this is the death 

benefits claim process where AFS is trying to improve the speed of confirming the 

veracity of submitted documents.

In response to a question from Member Bilyeu about SECURE Act 2.0, 

Mr. Courtney reminded the Board that Mr. Deo sent a letter to the United States 

Congress and the Department of Treasury requesting an extension to comply with 

Section 603, regarding Roth catch up contributions. Mr. Courtney added that with other 

SECURE Act 2.0 provisions, FRTIB can leverage AFS’s work with other clients who 

must also comply.

Chair Gerber thanked Mr. Davies and expressed appreciation for the 

improvement in all the metrics. Chair Gerber reiterated the emphasis on security and 

noted that the TSP operates better than many of the private sector systems because it 

holds itself to a higher standard, which he appreciates AFS’s help in maintaining.

3. Monthly Reports. 

a. Participant Activity Report

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

Savings Fund Statistics May 2023” (attached). He began by highlighting that the

number of Thrift Savings Plan (TSP) participants reached a new high in May at more 

than 6.8 million. In addition, participants in May rolled more than 174 million dollars into 

the TSP, which is the highest single monthly amount in more than three years.

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

roll-ins increase may be the result of targeted outreach along with the availability of the 

concierge service. In response to a question from Member Olivares, Mr. Courtney 

stated that the Agency does not survey participants about the reasons for their roll-ins.
4

b. Legislative Report

Mr. Deo, providing the report in Ms. Weaver’s absence, began by noting 

that the debt ceiling was lifted, and the G Fund was fully reinvested. In addition, 

Representative Ken Buck introduced a bill that prohibits qualified professional asset 

managers from exercising voting rights associated with securities held by the TSP. On 

June 8th, Senator Ted Cruz introduced a companion bill in the Senate which would 

prohibit BlackRock and State Street from voting TSP proxies, effectively preventing TSP 

proxies from being voted at all.

In response to a question from Member Bilyeu, Mr. Deo indicated that he 

would have to gather information regarding whether either of those bills had additional 

signatories.

c. Investment Report

Mr. McCaffrey reviewed the monthly investment performance report. See

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

began by stating that BlackRock’s performance for the F, C, and S Funds was in line 

with the Fund’s respective indices for the month of May. For the I Fund, BlackRock’s 

performance was ahead of the International Index by 31 basis points primarily due to 

fair value pricing. State Street’s performance for the F, C, and S Funds was also in line 

with respective indices for the month. Their I Fund performance fell behind the 

International Index by 12 basis points with the difference primarily attributable to fair 

value pricing.

Reviewing the markets for May, Mr. McCaffrey noted that the Federal 

Reserve Board raised its target interest rate range in early May, and the debt ceiling 

impasse captured much of the market’s attention for the rest of the month. United

States stocks were just slightly ahead and international stocks were lower, made worse 

for U.S. investors due to an increase in the value of the dollar. This caused the C and S 

Funds to post small gains and the I Fund to deliver a loss. Higher U.S. interest rates led 

to a decline in the value of the F Fund and all L Funds had losses for the period.

Mr. McCaffrey then turned to year-to-date performance. BlackRock’s F 

Fund performance was ahead of the Fixed Income Index by 19 basis points, primarily 

due to the year-end pricing difference discussed at previous meetings. BlackRock’s C 

Fund performance matched the Large Cap Index returns. Performance for the S Fund 

exceeded the Small Mid Cap Index returns by nine basis points, primarily due to 

securities lending. Performance for the I Fund was ahead of the International Index by 

50 basis points, primarily due to tax advantage.

State Street’s year-to-date performance for the F Fund exceeded the 

Fixed Income Index returns by 19 basis points, primarily due to the year-end pricing 

difference, and performance for the C and S Funds was in line with the Funds’ indices.
5

For the I Fund, performance was ahead of the International Index by 34 basis points 

primarily due to tax advantage.

Investment performance for stocks is positive so far in June. Through 

Monday, June 26, the C Fund has gained 3.68 percent, the S Fund is ahead 4.52 

percent, and the I Fund has gained 2.54 percent. The bond market is roughly flat. The F 

Fund is ahead 0.06 percent, and the G Fund has earned 0.28 percent.

4. Quarterly Vendor Risk Management Report. 

Mr. Brandt presented the Office of Planning and Risk’s (OPR) synopsis of 

the risk assessment for five key vendors. See “Quarterly Vendor Risk Management 

Report” (attached). OPR has assessed the vendors’ solvency, liquidity, profitability, and 

other factors and provided its analysis for the first quarter of 2023 in a memo to the 

Board and the Executive Director.

5. Office of Technology Services Annual Presentation. 

Mr. Desai presented the Office of Technology Services (OTS) annual 

review. See “Office of Technology Services Annual Report” (attached). He began by 

highlighting some of OTS’ accomplishments. In anticipation of Converge, OTS revisited 

its mission, vision, and functional statement. OTS also streamlined its structure, so it 

better aligns with the Agency's model and its technology needs.

Mr. Desai then proceeded to describe OTS’s current structure, which 

includes a Service Delivery Division, a Security Management Division, and an 

Operations and Strategy Division. Over the past few years, OTS has worked to ensure 

the accurate and timely transfer of data to the new recordkeeper while also 

decommissioning the legacy infrastructure. In addition, they have worked to enhance 

the Agency’s security posture and improved FISMA scores in all nine domains. OTS 

has commenced continuous penetration testing at both 77K and the Converge vendor. 

The Agency has also transitioned to a zero-trust architecture. FRTIB is ahead of most 

federal agencies in implementation of this mandate. OTS has also moved the Agency to 

a fully cloud-based Microsoft ecosystem.

Mr. Desai then discussed OTS’s future. Zero-trust architecture will 

continue to mature, and OTS will continue to partner with other organizations such as 

the Department of Justice to improve security and the end user experience. OTS, in 

collaboration with other offices, will be monitoring and managing supply chain risk. In 

addition, they will be working to change how technology is governed while also 

continuing to invest in people to enhance and broaden technical expertise.

In response to a question from Member Bilyeu, Mr. Desai explained that 

OTS staff stays on top of current issues such as Artificial Intelligence, along with 

general trends by actively engaging in various forums, such as the Federal CIO Council 

and the Federal CISO Council, as well as public-private partnership organizations that 

address current and upcoming technology challenges.
6

In response to a question from Chair Gerber, Mr. Desai stated that those 

who work for OTS are highly skilled professionals who are in demand, and they have 

experienced some turnover. Mr. Desai assured the Board that OTS leadership 

understands this and regularly works to develop staff’s skills.

6. Department of Labor Presentation. 

Chair Gerber welcomed officials from the Employee Benefits Security 

Administration (EBSA). Lisa Gomez, Assistant Secretary of Labor at EBSA began the 

presentation by expressing appreciation for the relationship between EBSA and the 

TSP in ensuring the protection of TSP participants. See “U.S. Department of Labor 

Employee Benefits Security Administration Fiscal Year (FY) 2023 Thrift Savings Plan 

Fiduciary Oversight Program” (attached).

Michael Auerbach, Chief Accountant at EBSA, also expressed his 

appreciation for FRTIB’s cooperation in EBSA’s fiduciary oversight audits, which 

focused this year on functions and processes that transitioned with the start of 

Converge. He then introduced Heather Flanagan, Lead Engagement Partner with 

KPMG, who discussed audit activity from May 2022 to June 2023.

Ms. Flanagan reported the audit team completed four audits in 2022 after 

its April 2022 Board presentation, and they have nine audits and projects scheduled for 

2023. Ms. Flanagan highlighted an upcoming “status of prior year findings” audit, which 

is meant to clean up old recommendations that are no longer relevant or are not 

covered in another continuing audit. She also noted that this year’s audits include the 

first audit of State Street as a TSP investment manager.

Ms. Flanagan then reviewed the four completed 2022 audits. Three of 

these audits were pre-implementation reviews meant to uncover any high-level issues 

or concerns prior to the implementation of Converge. The fourth was the recurring audit 

of the G Fund, and none of these audits resulted in recommendations. Turning to 2023, 

she noted that the report for the withdrawals audit has been finalized, and the computer 

access and vendor management audits are almost complete. The expectation is that 

upon completion of those audits, 14 recommendations will be closed, and 13 new 

recommendations will be made, primarily in the withdrawals audit.

Ms. Flanagan discussed that prior to Converge, the aging of 

recommendations was an issue, with the majority exceeding five years. Prior to 

Converge there were 119 open recommendations, and this year the audit team is 

looking at 97 of them with a current estimate that 94 will be closed. These 

recommendations cover ten audit areas and include IT and process audits. Closing 

these recommendations will involve marking some as implemented and others as no 

longer relevant to the current system. The goal of the attempt to closeout old 

recommendations is to give the Board a clear view of where things stand with the 

implementation of Converge. EBSA will review the approximately 25 remaining open
7

recommendations in the future to determine if they are still relevant or have been 

implemented. In response to a question from Member Bilyeu, Ms. Flanagan confirmed 

that EBSA was not addressing those recommendations this year because they 

anticipate reviewing them as part of future-year audits.

In response to a question from Member Olivares on how these audits 

compared to the private sector, Ms. Flanagan explained that the audit team looks at 

industry best practices along with the quality of the implemented controls. In addition, 

they look to the Government Accountability Office to determine whether the established 

policies and procedures line up with government standards.

In response to a follow-up question from Member Olivares on how EBSA’s 

work with the TSP compares to private sector defined contribution plans, Timothy 

Hauser, Deputy Assistant Secretary for Program Operations at EBSA, stated that there 

is significant variability in the private sector on policies, procedures, and cybersecurity. 

Considering this variability, Mr. Hauser stated that his own sense of the TSP is that its 

security posture is significantly improved in recent years and much closer to the upper 

end of what EBSA sees in its efforts. Mr. Hauser credited the FRTIB staff for the work 

effort, conscientiousness, and focused attention that has been directed towards 

cybersecurity. Ms. Flanagan added that with IT audits, they always look to the National 

Institute of Standards and Technology as a benchmark for controls. Mr. Hauser 

highlighted the common issue of vendor controls that is an issue throughout defined 

contribution plans.

Chair Gerber expressed appreciation that the audit working relationship is 

healthy and credited everyone involved in making sure that there is a high level of 

communication and transparency. Mr. Auerbach echoed that as the TSP is the largest 

defined contribution plan in the world, it should always strive to be a best-in-class 

operation.

7. Adjourn. 

On a vote taken by the Chair, the members closed the meeting at 11:10

a.m. to enter into executive session.

At 1:29 p.m., upon completion of the executive session, the members 

reconvened the open portion of the meeting.

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

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

meeting at 1:29 p.m.
8

MOTION: That this meeting be adjourned.

Dharmesh Vashee

General Counsel and Secretary 

Attachments

1. Recordkeeper Service Update (Accenture Federal Services)

2. Thrift Savings Fund Statistics May 2023

3. May 2023 Performance Review – G, F, C, S, I, and L Funds

4. Quarterly Vendor Risk Management Report

5. Office of Technology Services Annual Report

6. U.S. Department of Labor Employee Benefits Security Administration Fiscal Year

(FY) 2023 Thrift Savings Plan Fiduciary Oversight Program