Rep. Norton Reintroduces Oversight Bill for Retirement Agency
Representative Eleanor Holmes Norton from Washington, D.C. has put forward a bill aimed at creating inspectors to oversee the Federal Retirement Recycling Investment Board (FRTIB), which manages the Thrift Savings Plan (TSP) for federal employees.
The proposed legislation is titled Federal Retirement Recycling Investment Board General Act of 2025 (HR 3364).
Norton first introduced this proposal back in 2022, coinciding with significant changes to the TSP website and the various issues that followed. During that time, she reached out to FRTIB regarding concerns related to the new website but felt their response didn’t adequately address her inquiries.
This dialogue, among other things, led to the push for an inspector role within the agency. Norton seems to be anticipating further problems, given the ongoing lack of oversight at FRTIB.
In her statement, she mentioned:
Many have reported issues with the TSP systems since the 2022 platform transition. These problems include mismatches in account balances, trouble accessing accounts, lost information for beneficiaries, and prolonged wait times for customer service. While some improvements have been made to TSP’s online systems, FRTIB must be held accountable like any other federal agency. Establishing an independent inspector is crucial to prevent future failures and address problems swiftly.
Issues Arising from 2022 TSP Website Overhaul
The 2022 updates to the TSP site involved more than just a surface-level redesign; they aimed to enhance the overall functionality and technology underpinning the system. The intention was to position TSP for future developments.
These efforts included replacing the core record-keeping system, updating customer service technology, revamping the “My Account” and TSP Agency/Payment Portal, and introducing additional online services, features, and security measures.
However, when major launches occur, they often face hiccups, primarily due to unexpectedly high call volumes and the new account setup processes. Many federal employees voiced their frustrations to lawmakers, with Norton among those who listened.
She was part of a group that asked the Government Accountability Office (GAO) to investigate the 2022 launch issues. The GAO’s report indicated that FRTIB struggled to oversee crucial aspects of the new TSP website’s development and rollout.
The GAO highlighted that while FRTIB identified its needs and considered alternatives, it failed to:
- Develop policies for managing product and service acquisitions.
- Ensure compliance with federal loan repayment requirements in their new record-keeping system.
- Guarantee that testing was completed as planned.
- Meet all project milestones before advancing.
- Fulfill personnel training and oversight roles effectively.
The GAO report included seven recommendations for FRTIB, none of which have been acted upon as of now.
Norton’s Bill Introduction Statement
Norton shared her thoughts on the new bill:
I’m presenting the Federal Retirement Recycling Investment Commission Inspector General Act of 2025, which aims to establish an independent inspector for FRTIB. This board manages retirement savings for federal employees through TSP.
Since FRTIB implemented a new record-management system to modernize TSP, numerous issues have surfaced—ranging from access problems to long wait times for customer service. Together with colleagues, I requested that GAO investigate these matters. Their findings indicate FRTIB does not fully adhere to essential management practices, greatly increasing the risk of deploying problematic systems.
With around 7.2 million participants and nearly $937 billion in assets, TSP is the largest defined contribution plan globally. Federal employees have devoted their careers to public service and deserve retirement plans that ensure excellent customer service and security.
While employee benefits security oversight is crucial, FRTIB lacks an independent inspector general like those in private-sector 401(k) plans. The challenges faced during the recent overhaul show that FRTIB absolutely needs this kind of oversight.
I urge my colleagues to support this bill.
