Federal Retirement Thrift Investment Board
Encyclopedia
The Federal Retirement Thrift Investment Board was established as an independent agency of the United States government
by the Federal Employees Retirement System Act of 1986. It is one of the smaller executive branch
agencies
, with just over 80 employees. It was established to administer the Thrift Savings Plan
, which provides Federal
employees the opportunity to save for additional retirement
security. The Thrift Savings Plan is a tax-deferred defined contribution plan
similar to a private sector 401(k)
plan. The Thrift Savings Plan is one of the three parts of the Federal Employees Retirement System
, and is the largest defined contribution plan in the world with over 3.7 million participants and assets worth over $244 billion dollars. Both the board and its Chairman are nominated by the President
and confirmed by the United States Senate
. The current Chairman is Andrew Saul
.
Governance of the agency is carried out by a five-person, part-time Board of Presidential appointees and by a full-time Executive Director selected by those appointees. Each of these persons is required by FERSA to have "substantial experience, training, and expertise in the management of financial investments and pension benefit plans." 5 U.S.C. 8472(d). The Board members collectively establish the policies under which the TSP operates and furnish general oversight. The Executive Director carries out the policies established by the Board members and otherwise acts as the full-time chief executive of the agency. The Board and the Executive Director convene monthly in meetings open to the public to review policies, practices, and performance.
The first Chairman of the board was Roger W. Mehle, who was appointed on October 1, 1986. In 1988 he was reappointed and served continuously until January 31, 1994. President Clinton appointed James H. Atkins to replace him, and the board named Mehle the agency's executive director. Clinton named Atkins to another term in 1997, and to a third term via a recess appointment in 2000. He was succeeded by Andrew Saul, who named Gary Amelio executive director in 2002, replacing Mehle. The current Executive Director is Gregory Long.
Independent agencies of the United States government
Independent agencies of the United States federal government are those agencies that exist outside of the federal executive departments...
by the Federal Employees Retirement System Act of 1986. It is one of the smaller executive branch
Executive (government)
Executive branch of Government is the part of government that has sole authority and responsibility for the daily administration of the state bureaucracy. The division of power into separate branches of government is central to the idea of the separation of powers.In many countries, the term...
agencies
Government agency
A government or state agency is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an intelligence agency. There is a notable variety of agency types...
, with just over 80 employees. It was established to administer the Thrift Savings Plan
Thrift Savings Plan
The Thrift Savings Plan is a defined contribution plan for United States civil service employees and retirees as well as for members of the uniformed services....
, which provides Federal
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
employees the opportunity to save for additional retirement
Retirement
Retirement is the point where a person stops employment completely. A person may also semi-retire by reducing work hours.Many people choose to retire when they are eligible for private or public pension benefits, although some are forced to retire when physical conditions don't allow the person to...
security. The Thrift Savings Plan is a tax-deferred defined contribution plan
Defined contribution plan
In economics, a defined contribution plan is a type of retirement plan in which the amount of the employer's annual contribution is specified. Individual accounts are set up for participants and benefits are based on the amounts credited to these accounts plus any investment earnings on the money...
similar to a private sector 401(k)
401(k)
A 401 is a type of retirement savings account in the United States, which takes its name from subsection of the Internal Revenue Code . A contributor can begin to withdraw funds after reaching the age of 59 1/2 years...
plan. The Thrift Savings Plan is one of the three parts of the Federal Employees Retirement System
Federal Employees Retirement System
The Federal Employees Retirement System is the current retirement system for employees within the U.S. federal civilian employees...
, and is the largest defined contribution plan in the world with over 3.7 million participants and assets worth over $244 billion dollars. Both the board and its Chairman are nominated by the President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
and confirmed by the United States Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
. The current Chairman is Andrew Saul
Andrew Saul
Andrew Marshall Saul is an American millionaire businessman from Katonah, New York who serves as the Chairman of the Federal Retirement Thrift Investment Board and Vice Chairman of the Metropolitan Transportation Authority in New York City, United States...
.
Governance of the agency is carried out by a five-person, part-time Board of Presidential appointees and by a full-time Executive Director selected by those appointees. Each of these persons is required by FERSA to have "substantial experience, training, and expertise in the management of financial investments and pension benefit plans." 5 U.S.C. 8472(d). The Board members collectively establish the policies under which the TSP operates and furnish general oversight. The Executive Director carries out the policies established by the Board members and otherwise acts as the full-time chief executive of the agency. The Board and the Executive Director convene monthly in meetings open to the public to review policies, practices, and performance.
The first Chairman of the board was Roger W. Mehle, who was appointed on October 1, 1986. In 1988 he was reappointed and served continuously until January 31, 1994. President Clinton appointed James H. Atkins to replace him, and the board named Mehle the agency's executive director. Clinton named Atkins to another term in 1997, and to a third term via a recess appointment in 2000. He was succeeded by Andrew Saul, who named Gary Amelio executive director in 2002, replacing Mehle. The current Executive Director is Gregory Long.