1

We help people 

retire with dignity.

We ensure that 

FRTIB is a great 

place to work.

We pursue flawless operations.

We maintain excellent relationships 

with entities that 

oversee, regulate, 

govern, and influence the TSP.

Our Vision
2

To administer 

the TSP solely 

in the interest of 

participants and 

beneficiaries.

Our Mission
 3

Our Values

Participant-Focused

We are passionate about delivering valuable products and services to participants.

We listen, respect, and carefully consider the needs of participants in all we do. 

We respond in a timely and accurate manner to participant requests.

Integrity

We are trustworthy and value individual and organizational honesty, consistency, and credibility. 

We ensure the financial integrity of the Thrift Savings Fund.

We operate with independence and act ethically to carry out our fiduciary responsibility.

Efficiency

We deliver the best value for our participants. 

We simplify processes and optimize technology to deliver secure and cost-effective solutions. 

We work as an integrated team and communicate clearly internally and externally.
4

Our History

Approximately twenty-five years ago, the 

TSP received the first 

employee contributions and became 

part of the threepart retirement program for employees 

covered under the 

Federal Employee 

Retirement System. 

However, we do not 

have to return to 

those early days in 

order to illustrate how 

much the Plan has 

grown. If we only revisit the last ten years, 

it becomes clearly evident that the TSP is a 

continuously evolving 

and growing plan.

Client base

The TSP had fewer than 3 million FERS and CSRS participants in 

2002, the year that uniformed services members were first allowed 

to contribute to the TSP.

Investments

In 2002, the TSP was a monthly valued plan with $102 billion in assets under management. The S and I Funds were in their infancy, 

as they had just been established in May 2001. The TSP would later 

expand its investment lineup in 2005 to include Lifecycle Funds.

Plan Benefits

In 2003, the Agency converted to daily valuation and entered into a 

contractual arrangement to build a new TSP recordkeeping system. 

During the past ten years, the TSP expanded its benefit features 

to allow:

•	 rollovers into the Plan

•	 partial and mixed withdrawals

•	 immediate contributions

•	 automatic enrollment for newly hired and rehired FERS and 

CSRS employees

•	 TSP accounts for spouse beneficiaries

•	 a Roth contribution option

Participant Communications

Enhancements to our participant communications include:

•	 expansion from one call center to two, with toll-free access 

(2003)

•	 annual statements with special messaging and account balance 

history (2007)

•	 complete redesign of the TSP website (2010)

•	 addition of a projected TSP lifetime payment on participant 

statements (2011) 
 5

Technology 

A series of technology improvements were implemented between 

2006 and 2010. A back-up data center was added in 2006 to support 

an emergency or disaster situation. In 2009, we completed the move of 

one of our data centers and in 2010 we completed a system modernization effort, which stabilized a network reliant on end-of-life technology and added redundancy.

Vendor relationships

Concurrent with the conversion of the recordkeeping platform, management of the system was transitioned from a single contract, managed and hosted by the National Finance Center, to a design where 

FRTIB oversees the full array of system infrastructure and operations, 

including contracts and service relationships for software support, 

data center operations, accounting, and call centers. 

In the last ten years, the FRTIB has made significant achievements in its 

efforts to comply with legislative mandates, serve more participants, offer better services, and maintain low costs. Despite these achievements, 

the Agency recognized that it needed to do a better job in planning the 

TSP’s future. Thus in 2009, the Agency held its first strategic planning 

retreat and produced a one-year plan. This plan was project-focused 

and was not integrated into the budget. The following year, the planning 

retreat was expanded to include senior managers with the goal of leveraging all aspects of the Agency’s leadership. In 2011, the strategic plan 

expanded to cover three years but remained heavily project-focused. 

Most recently, the plan was further extended to cover a five-year planning period and was fully integrated with the budgeting process in an 

effort to ensure the Agency’s long-term fiscal stability.
6

Our Current Environment

The TSP is affected not only 

by changes in the 

defined contribution world, but 

also by changes 

and volatility 

in the financial 

markets as well 

as the legislative 

and regulatory 

environment. In 

developing the 

2013–2017 strategic plan, we carefully examined 

the current state 

of the Agency 

and the environment in which it 

operates.

The key factors defining the Agency’s current environment are:

•	 The TSP has 4.6 million1 participants ($321 billion assets under management). Within this population, just under 16% (725,000) are members of 

the uniformed services and 28% (1.3 million) represent accounts with no 

current contributions (largely separated and retired account holders). 

•	 The TSP was built for simplicity, not complexity, with five core indexed 

options and five custom target date funds. The Roth TSP contribution 

option has considerably increased the Plan’s complexity.

•	 Benefits will continue to evolve as a result of legislation. Current emphasis is on fee disclosure, retirement income readiness and adequacy, 

and the possible role of annuities in defined contribution plans.

•	 We offer limited “intuitive” decision tools for participants making retirement income decisions and do not provide withdrawal options that are 

as flexible as retail retirement products.

•	 We largely respond to participant inquiries and requests. Our outbound communication is designed to be one-to-many, i.e., the website. Without the ability to retain participant email addresses, we 

communicate one-to-one primarily by phone. 

•	 The Agency’s internal infrastructure has been neglected in favor of enhanced participant programs and benefits. We are now at a point where 

internal business processes must be enhanced to keep pace with the 

Plan's growth and increasing complexity.

•	 The prior modernization of the Agency’s Information Technology (IT) 

infrastructure addressed long-standing weaknesses and risk in infrastructure management and IT services. However, substantial demands 

for additional service improvements shaped by the environment described above compel us to pursue a second generation of significant 

IT improvements in infrastructure, security, and applications. 

1 As of August 31, 2012
 7

•	 The Agency is constrained by human resources. A number of 

open positions have remained unfilled because the Agency has 

not had the resources to focus on filling them. This has limited the 

Agency staff to handling day-to-day operations, while launching 

Roth TSP, and this has limited our ability to pursue other projects. 

•	 The Agency recently moved to new office space which relieved 

some of the space constraints. However, to accommodate future needs, the Agency will likely have to expand use of flexible 

workplace alternatives such as telework, alternative work site, 

and hoteling.
8

Our Vision of the Future

Over the coming years, 

the Agency will seek to 

expand its business intelligence capabilities, 

partner with external 

resources (e.g., academic, research, etc.), 

and engage consulting 

support when needed, 

to achieve greater 

insight into future participant demographics 

as well as the changing 

financial and information technology landscape. This knowledge 

will help us refine our 

vision of the future, 

manage and respond 

to a changing external environment, and 

anticipate our participants' expectations.

•	 The wave of Baby Boomers that are now retiring will increase our 

workload and drive us to innovate programs. Because inertia is a 

powerful force and the TSP is viewed very favorably, we expect 

that most retirees will leave their money in the TSP for years following their retirement. Our workload will reach a peak as this 

generation reaches the statutory withdrawal deadline and life expectancy. The TSP will need a highly effective retirement income 

strategy, more flexible retirement withdrawal options, and bestin-class decision making tools to retain its strong reputation. 

•	 The new Federal employees that replace the Baby Boomers will 

have a different set of expectations and will drive innovation in 

technology, communications, and account services. The benefits 

and services offered by the TSP will be compared with those offered by other defined contribution plans as well as the financial 

services industry. The TSP will need to harness technology to 

communicate and educate participants using whatever method 

they prefer (e.g., print, postal mail, email, social networks, telephone, Internet, video, games, smartphone applications, etc.). 

We will need to have effective one-to-one engagement with our 

participants. We will be able to respond quickly to participant 

inquiries coming from a variety of sources and, conversely, will 

be able to have effective targeted and multi-channel outbound 

communications and education with our participants.

•	 We expect the TSP’s participant base to become increasingly 

diverse, capturing greater participation of younger Federal 

workers, as well as separated and retired workers. Additionally, 

we anticipate that a significant segment of the TSP’s population 

growth will be uniformed services members. We will be challenged to understand our participants, their investment behaviors, preferences, and demographic composition. 

•	 The TSP is very large and is going to get much larger. It will continue to enjoy strong growth in assets under management and 

participation. The TSP has historically enjoyed growth in excess of 

private sector defined contribution plans. Using internally generated estimates, the TSP will administer over 7.6 million accounts 

and manage assets in excess of $594 billion by 2017. A conservative third party estimates the TSP will reach over 6 million participants and garner assets in excess of $546 billion by 2017.
 9

We have structured the Agency’s strategic plan around its vision, as these are the principle elements 

we hold as being fundamental to achieving our mission.

Strategic Goal 1: We help people retire with dignity.

Outcome

1.1. We deliver compelling messaging that encourages Federal employees and uniformed services members to save for their retirement through the TSP. 

1.2. We educate, communicate, and interact with participants to help them make smart choices 

with their TSP account.

1.3. We deliver innovative products and programs to assist participants in achieving their retirement goals using the TSP.

Performance Metric Description Target

FERS participation rate Percentage of FERS participants in the Plan 

relative to the eligible FERS population

Above the average of large 

employers/plans2

FERS average deferral rate Deferral rate determined by relationship of 

employee contributions to annual base pay3

Steady shrinkage of FERS 

participants deferring less than 5%

Participant satisfaction Participant satisfaction will be measured 

biennially via the TSP Participant Survey

Overall satisfaction will be rated a 

minimum of 80%4

Participation of uniformed 

services members

Percentage of active duty participants in 

the Plan relative to the eligible active duty 

population

Steady increase in active duty 

military participation rate

Average asset allocation Participants elect asset allocations that 

reflect greater age-based diversification

Steady annual increase in the dollar 

amount participants allocate to the 

L Funds 

OPM Benefits survey All Federal employees rank which benefits 

are most valued 

TSP retains top 3 position

2 Based on readily available market information (e.g., Hewitt, PSCA, EBRI, etc.)

3 Data received from OPM

4 It should be noted that in periods of economic downturn or stress, participant satisfaction will likely be negatively impacted.

Strategic Goals and Outcomes
10

Strategic Goal 2: We ensure that FRTIB is a great place to work.

Outcome

2.1. We attract extraordinary people from the public and private sectors.

2.2. We offer educational and training opportunities that enhance our employees’ skills and promote professional development.

2.3. We foster high performance by creating and maintaining a culture where individuals and 

diversity are promoted and valued.

2.4. We work seamlessly and collaboratively at all levels of the organization.

Performance Metric Description Target

FRTIB employee satisfaction5 Annual rating received via the Best Places to 

Work Index based on the Federal Employee 

Viewpoint Survey

FRTIB score is to be above the 

Federal Government average 

Individual Development Plan 

(IDP)

Percent (%) of FRTIB employees who complete 

IDPs 

98% of all FRTIB employees complete 

an annual IDP

Training and Development Number of training and professional 

development hours completed6

On average, FRTIB employees 

will complete 40 hours per year 

of professional training and 

development

5 As measured by the OPM administered Federal Employee Viewpoint Survey. Specific questions from the survey are to be identified.

6 Includes business conference attendance and completion of continuing education requirements.
 11

Strategic Goal 3: We pursue flawless operations.

Outcome

3.1 We manage plan assets consistent with our fiduciary obligations.

3.2 We accurately, securely, and consistently receive, value, transact, and distribute participant 

funds with “dial-tone consistency.”

3.3 We apply best-in-class internal business processes to ensure secure and efficient Agency 

operations.

Performance Metric Description Target

Daily Unified processing Percent (%) of trading days the Unified processing 

is successfully completed by 6 a.m., Eastern time

98%

Daily investment Daily investment is performed on time and 

accurately each day

98%

Availability of participant 

information

Percent (%) of time the website is available 

(excluding scheduled maintenance)

Percent (%) of time the call center is available 

during established business hours

Length of call center wait time

99%

99%

At least 85% of all calls are answered 

within 20 seconds.

Payroll contributions Percent (%) of valid Agency payroll contribution 

files processed within standards (2 business days 

of receipt)

99%

Participant transactions Percent of transactions processed within 

standards:

Loans

Withdrawals

Death benefits

Court orders

At least 90% of loans are processed 

within 5 business days of receipt (annual).

At least 90% of withdrawals are processed 

within 5 business days of receipt.

At least 95% of all all death payments are 

entered into the system within 5 business 

days if payment forms received are in 

good order or do not require legal review 

and POA/guardianship.

An issue decision letter is completed 

for at least 95% of all retirement benefit 

court orders within 25 business days of 

receipt of the order.

An issue decision letter is completed for 

at least 95% of all child support orders 

within 35 business days of receipt of 

the order.
12

Performance Metric Description Target

Financial audit opinion Maintain unqualified opinion on FRTIB financial 

statements from independent auditor

Unqualified opinion each year; 

No significant or material financial 

weakness. 90% of other issues resolved 

within the time frame promised 

Performance audit Department of Labor (DOL) and Government 

Accountability Office (GAO) audit 

recommendations

90% of findings resolved in time frame 

promised

Strategic Goal 4: We maintain excellent relationships with entities that oversee, 

regulate, govern, and influence the TSP.

Outcome

4.1 We foster strong relationships with our external partners7 to support our legislative, regulatory, and programmatic initiatives.

4.2 We provide thorough and sound advice to enable our Board to make prudent decisions.

Performance Metric Description Target

Audit reports FRTIB management has provided requested 

information and has been cooperative

Prepared By Client (PBCs) requests 

are responded to on time, a 

minimum of 90% of the time.

Satisfaction of Board with 

relevant information

Ability to assist the Board in decision 

making

Successful Board review

Setting the Stage for Strategic Initiatives

7 Identified as Congress, Department of Labor, Employee Thrift Advisory Council (ETAC), FRTIB Board, Treasury and the Office of Personnel 

Management (OPM).
 13

In recent years, the FRTIB has been challenged to achieve its strategic initiatives as the Agency has 

faced significant resource constraints. With a mission-critical requirement to deliver operational assurance or “dial-tone consistency” to participants, the Agency has been forced to narrow the main focus 

of its efforts to day-to-day operations and the implementation of Roth TSP.

The implementation of Roth TSP began in July 2010 and proved to be one of the most complicated and 

“resource rich” efforts undertaken by the Agency in its recent history. Planning, developing, and testing 

for Roth TSP encumbered the majority of the FRTIB staff, as well as the Agency’s recordkeeping contractor staff. Roth exposed the Agency’s limited ability to undertake major initiatives in a parallel environment, as varying efforts often relied heavily on input from the same individuals. Consequently, a number 

of important efforts were delayed or postponed in order to properly implement Roth TSP. These effects, 

which support our "steady state" operations will largely be initiated in the next 12–24 months.

These efforts include:

•	 Re-bids of several contracts

♦ Investment management

♦ Technology and Enterprise Support Services (TESS) (Recordkeeping)

♦ Annuity

♦ Service Bureau (data entry)

♦ Operations center (processing team—legal, death, etc.)

♦ Call center

•	 Resolution of IT security-related audit findings

•	 Implementation of enhanced web user-authentication and participant interactions and 

functionality on the web

•	 Systems development/update of court and death benefit processing applications, upgrade of core 

recordkeeping software (OmniPlus) and associated enterprise upgrades, and improved reporting 

capabilities

•	 Updating the voice response system (ThriftLine)

•	 Capturing participant email addresses

•	 Rollout of e-messaging to all participants

•	 Over 100 backlogged systems change requests (SCRs)

•	 Benefit/process/cost benchmarking

•	 Ensure participants receive mailed information by developing a process to reduce the level of 

returned mail and related costs 

Setting the Stage
14

In identifying and prioritizing the strategic initiatives, the FRTIB estimated that existing staffing has 

approximately 5% of its capacity available to address strategic initiatives. Consequently, our ability 

to undertake the previously mentioned efforts, as well as the strategic initiatives that are discussed 

in the next section, is largely dependent upon our ability to increase the Agency’s bench strength by 

adding key resources in areas such as Human Resources, IT, Communications, Benefits Operations, 

and Risk Management. 

In recognition of our resource constraints, we prioritized our strategic initiatives to allow for appropriate emphasis to be directed to continued operational excellence the elimination of the current 

business backlogs and the level of criticality. As a result, the initiatives identified as a part of the 

Agency’s planning process were categorized as Mission Critical (Priority A), Necessary (Priority B) 

and Important (Priority C). The Agency’s fiscal 2013 budget of $170.5 million was approved after the 

identification of these strategic initiatives. While funding will allow for meeting numerous operational 

requirements, it does not provide full funding of strategic initiatives. Consequently, the unfunded 

initiatives are further broken out from those which the budget allows the Agency to pursue immediately. As the fiscal year progresses, some and possibly all of the unfunded initiatives may be funded 

from the Agency’s contingency funds or other available sources. 

Estimated Resource Utilization

Daily Operations

50%

Legislative &

Treasury 5%

Acquisitions

20%

Audits 10%

Crisis Intervention 2%

Strategic Initiatives 5%

Administration 2%

Budget 2%

Policy 1%

HCM/Training 3%
 15

Our mission and foremost priority is to administer the TSP and maintain excellence in daily operations. Flowing directly from this objective is the need to address a number of tactical elements and 

immediately clear the backlog of mission-critical activities, including non-Roth upgrades to our system software that have been postponed or slowed because of efforts to launch Roth TSP. 

Looking forward to strategic initiatives, the FRTIB has recognized the need to place greater emphasis 

on building internal enterprise-wide capacity—strengthening systems, enhancing IT security, streamlining processes, and increasing the capacity to support growth expectations and increased complexity. These priorities are reflected in the key initiatives the Agency will undertake in the near term. 

Finally, and as previously noted, the Agency will focus first on Mission Critical and Necessary initiatives 

that can be immediately funded in the FY 2013 budget. The unfunded initiatives will be reviewed at 

mid-year and pursued should additional budget flexibility be approved. As additional resources become available, we will increase our efforts on level B and C initiatives. 

Funded Initiatives

Mission Critical Initiatives 

The FRTIB’s immediate focus and resources will be directed to the following level A strategic initiatives:

A1. Implement Enterprise Information Security & Risk Management (EISRM)

In September 2011, in accordance with the Federal Information Security Management Act 

(FISMA), the FRTIB Executive Director signed Directive 61 establishing the Enterprise Information Security and Risk Management (EISRM) program. Implementing this program and the 

19 related policies will ensure and enable secure operations and strengthen the Agency’s IT 

risk management. 

Alignment with Strategic Goal: 3

A2. Human Capital Management

The key to successfully meeting our strategic goals is the successful implementation of a robust 

Human Capital Plan. Integral to this initiative is scaling up the Human Resources staff, thereby 

providing the Agency with the capacity to fill open positions and address future staffing and 

staff development needs. 

The Human Capital Plan incorporates the following elements: 

•	 aligning and planning recruitment against the Agency’s strategic plan and budget

•	 recruiting staff with skills to meet both current and future business and technology 

requirements

2013–2017 Strategic Initiatives
16

•	 retaining staff and institutional knowledge

•	 developing management and staff

Alignment with Strategic Goals: 1, 2, 3

Necessary Initiatives (Priority B)

Efforts on Priority B and C strategic initiatives will, in most cases, commence immediately. However, 

these initiatives will not have a high impact on resource utilization and capacity constraints in the near 

term. As resources are brought online or redeployed following progress on Mission Critical initiatives, 

we will increase our focus on these initiatives. 

B1. Integrated Acquisition Strategy 

While the FRTIB recognizes it is not bound by all requirements of the Federal Acquisition 

Regulation (FAR), it subscribes to following best practices in acquisition planning and contracting as identified in the FAR. To this end, the FRTIB will establish and enhance its acquisition 

policies, planning, procedures, and governance to ensure adherence to these standards.

Alignment with Strategic Goal: 3

B2. Enterprise Risk Management

The Enterprise Risk goal is to protect and create value for participants and beneficiaries by 

identifying and proactively addressing enterprise level risks and opportunities. 

Implementing and integrating an enterprise-level risk framework will help us:

•	 align our risk appetite with our business model, budget, and initiatives

•	 identify and manage risks 

•	 enhance our risk response decisions 

•	 reduce operational surprises

Alignment with Strategic Goals: 1, 3, 4
 17

Unfunded Initiatives

The following initiatives were identified through the Agency's planning process; however, within the 

constraint of the FY 2013 budget, these initiatives were not explicitly funded. These unfunded initiatives will be revisited at mid-year and pursued if additional funding is approved.

B3. Information Technology Architecture of the Future

We will define and design the future of our IT architecture to maintain reliable operations and 

strengthen our IT risk management. The key elements include:

•	 Moving to a diverse computing digital ecosystem for Board staff over a period of 5 years 

to improve productivity and system resiliency. 

•	 Executing a call center transformation to a more secure and efficient virtual desktop infrastructure where all programs, applications and data are maintained and processed at our 

data center (not on individual PC’s). 

•	 Performing a comprehensive enterprise platform and availability study in FY 2014.8 

Alignment with Strategic Goal: 3

B4. Smarter Decision-Making

Our current analytical tools and skill sets provide a limited ability to learn from TSP and 

marketplace activity and data in order to project future state and participant behavior. We 

will improve our data mining and business intelligence capabilities; broaden research and 

analysis relating to our participant population; and engage in the benchmarking of the Plan, 

key operational processes, and costs.

The intent of such a review would also provide a road map for future procurement processes for 

the TSP, particularly as assets grow well past $300 billion. 

Alignment with Strategic Goals: 1, 3

8 This study will: 1) identify viable platforms for the recordkeeping systems (alternative to the mainframe); and 2) design platforms to meet 

Recovery Point Objectives and Recovery Time Objectives established by conducting a Business Impact Assessment (BIA).
18

C1. Integrated Financial Management Information System (IFMIS) 

Implementation of a fully functioning integrated financial management system within the 

Agency will improve governance by providing real-time financial information that managers 

can use to administer programs effectively, formulate budgets, and manage resources. Sound 

IFMIS systems, coupled with the adoption of centralized Treasury operations, will not only 

help our agency improve control over finances, but will also enhance transparency and accountability, identify opportunities for greater efficiencies, and deter the opportunity for fraud. 

Alignment with Strategic Goals: 3, 4

C2. New Media Communications

For years, the TSP has relied heavily on print and Web for delivering our messages to participants. We understand that technology, demographics and participant expectations are 

changing and we need to adapt to those participants who seek greater engagement through 

email, text, and social media. In recognition of the changing demographics of the Plan, we will 

develop and implement strategies to deliver compelling programs, tools, and messaging to 

Federal employees of all levels and at all points in their careers.

Alignment with Strategic Goal: 1

C3. Retirement Income Strategies

With the retirement of the Baby Boomer generation and the increasing importance of individual responsibility for retirement savings, the TSP will play a greater role in the retirement 

security of its participants. Providing the tools to assist participants in appropriate planning 

and affording a degree of flexibility in the retirement-related drawdown options available to 

participants will be vital. A comprehensive approach will encompass potentially restructuring 

the withdrawal options, examining the annuitization options, expanding education, making 

appropriate internal policy decisions, gaining any needed legislative and regulatory approvals, 

and effecting systems changes.

Alignment with Strategic Goal: 1
 19

The Federal Retirement Thrift Investment Board enjoys unique opportunities and challenges. The 

Agency has experienced strong historical growth and all indications point to the continued growth 

in accounts and assets. As benefits, services, and delivery methods evolve to meet the needs of our 

growing and increasingly diverse participant base, the Plan's complexity will also increase.

Looking forward, we recognize that we must build greater capacity and infrastructure to continue to 

provide high quality, efficient, accurate, and secure services to a population that could exceed 6 

million participants in five years. Consequently, a critical effort will be to build the human capacity 

needed to implement the programs and enhancements identified. From there, our efforts over the 

next several years will be directed toward strengthening systems and streamlining processes.

Our attention will also focus on efforts that directly impact our participants. Expanded communications tools and methodologies will be made available. We will initiate new media communications 

and start developing our overarching approach to helping participants improve their TSP retirement 

adequacy, preparation, and planning. Additionally, we will re-examine the possibility of offering a 

mutual fund window to provide greater investment flexibility. 

As the Agency matures, we look back over the past 25 years to celebrate our tremendous success and 

look forward to enthusiastically embracing the growth, activity, and change that lies ahead.

Summary