Washington, D.C. – The Federal Retirement Thrift Investment Board had a successful 2023 in terms of making progress toward the long-term strategic goals for the Thrift Savings Plan. With more TSP participants than ever contributing enough to their retirement accounts to receive a full match from the government, the board saw a record high of 86.8% of feds in the Federal Employees Retirement System (FERS) and 84.9% of active-duty military members in the Blended Retirement System (BRS) contributing at least 5% of their biweekly paychecks into the TSP.
The total assets in the TSP have reached $845 billion, also a record high, with 36% of the 7 million total TSP participants now having Roth balances. Ravi Deo, executive director of the FRTIB, expressed gratitude for the trust placed in the board by federal employees and emphasized the need to continue earning that trust.
The switch to auto-enroll participants at a 5% contribution rate in 2020 was credited for the growing number of participants receiving the full matching rate by Jim Courtney, director of FRTIB’s Office of Communications and Education. Furthermore, the improvements during 2023 align with the goals set in FRTIB’s strategic plan for fiscal 2022 through 2026.
A survey conducted in June and July 2023 revealed that a little over half of TSP participants are confident they are on track for retirement, with noticeable changes in the confidence levels of participants who have separated from public service. As the board moves forward, it aims to use the survey results to improve communications, resources, and training for participants.
In addition to focusing on FERS participants, the board is also working on reaching and educating younger military members enrolled in BRS, recognizing the challenges of engaging with a transient and young demographic. The goal is to emphasize the importance of good retirement savings habits early on for military members.
Overall, the success of 2023 has paved the way for continued progress and improvements in helping federal employees and military members secure their retirement through the TSP.