TSP board awards 4 contracts worth up to $4M a year

The Federal Retirement Thrift Investment Board awarded four investment consulting contracts worth up to $4 million each. The companies that won the awards will be able to compete for different task orders related to the management and support of the Thrift Savings Plan’s financial management.

“The four firms will assist the FRTIB with the following tasks: investment policy evaluation and design, portfolio governance and portfolio manager evaluation, investment option review and evaluation, investment manager search, benchmarking and participant behavior, research on improving operation efficiency, and Lifecycle Fund asset allocation and glide path analysis,” said Kim Weaver, director of external affairs for FRTIB, in a June 28 press release.

The four companies receiving the contracts are:

  • AON Hewitt Investment Consulting, Inc.
  • Mercer Investment Consulting LLC.
  • NEPC, LLC.
  • RVK, Inc.

These awards double the competition for financial management task orders; previously, only AON Hewitt and Mercer held these contracts.

The contracts are for one year, with four one-year options, and are worth up to $4 million per year. The first year has a guaranteed minimum of $5,000; every year afterwards has no minimum.

This comes as the agency develops its five-year strategic plan, which emphasizes using more data to make its decisions and improving dialogue and services for TSP participants.

Clifton Larson Allen audited TSP in 2015, noting cybersecurity as a major concern that the agency needed to address moving forward, especially as it adds a significant number of new participants.

In 2015, Congress included legislation in the National Defense Authorization Act that encourages existing current military members — and requires new ones — to invest in the TSP by 2018. The FRTIB projected in December that between 500,000 and 750,000 new participants would enroll within the first year and as many as 1 million within the first 18 months.

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THRIFT SAVINGS PLAN TICKER

Jan 22, 2021 Close Change YTD*
L Income 22.4267 -0.0117 5.15%
L 2025 11.3188 -0.0128 -
L 2030 39.4765 -0.0557 11.26%
L 2035 11.7987 -0.018 -
L 2040 44.4321 -0.0731 13.16%
L 2045 12.1251 -0.0209 -
L 2050 26.4545 -0.0483 14.79%
L 2055 12.7971 -0.0285 -
L 2060 12.7972 -0.0285 -
L 2065 12.7973 -0.0285 -
G Fund 16.5166 0.0003 0.97%
F Fund 21.0380 0.0068 7.50%
C Fund 57.2283 -0.1722 18.31%
S Fund 79.6030 0.4348 31.85%
I Fund 36.2547 -0.1668 8.17%
Closing price updated at approx 6pm ET each business day. More at tsp.gov
* YTD data is updated on the last day of the month.