FRTIB is looking for Thrift Savings Plan fund managers

The Federal Retirement Thrift Investment Board (FRTIB) announced Friday that it has released a request for proposal for the Thrift Savings Plan fixed income index investment F fund, the common stock index investment C fund, the small capitalization stock index investment S fund, and the international stock index investment I fund.

The TSP is a retirement savings plan for federal employees similar to a 401(k). Monthly returns for April showed increases from March in all funds except the government securities investment G fund.

The board will select two managers to each manage assets for all four funds, and each contract will be for a two-year term, with four two-year options. FRTIB expects to award the contracts by December, according to the announcement.

The F fund is a bond index fund that tracks the Bloomberg Barclays U.S. Aggregate Bond Index. This index includes U.S. Government, agency, mortgage-backed, asset-backed, corporate, and foreign government (issued in the U.S.) sectors of the US bond market. As of April, the fund held $29.5 billion in assets, according to TSP.

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BlackRock Institutional Trust Company, N.A. (BlackRock), a firm selected through full and open competitions, was selected as the fund manager for the F fund last year.

The C fund is a stock index fund that tracks the S&P 500 Index, a broad market index made up of stocks of 500 large to medium-sized U.S. companies. As of April 2019, the C fund held $206.4 billion in assets, TSP said in Friday’s announcement.

BlackRock was also chosen as fund manager for the C fund in 2015.

The S fund is a stock index fund that tracks the Dow Jones U.S. Completion Total Stock Market Index, a broad market index made up of stocks of US companies not included in the S&P 500 Index. As of April 2019, the S fund held $72.2 billion in assets, according to TSP.

The I fund is a stock index fund that tracks the MSCI EAFE (Europe, Australasia, Far East) Index, a broad market index made up of the equity markets of the developed world outside of the U.S. and Canada. TSP said that as of April, the I Fund held $49.8 billion in assets.

BlackRock is the current manager for these assets.

Meanwhile, FRTIB is preparing to implement more withdrawal options for participants, and new tools to help federal employees better save for retirement. The withdrawal flexibilities will be available starting Sept. 15, and were mandated under the TSP Modernization Act  signed into law in November 2017.

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