The Federal Retirement Thrift Investment Board (FRTIB) announced today that it has awarded its life annuity contract to Metropolitan Life Insurance Company (MetLife).
The Federal Employees’ Retirement System Act describes the annuity methods that are required to be made available to eligible Thrift Savings Plan (TSP) participants and spousal beneficiaries. There are eighteen annuity options and two annuity methods (single life and joint life). TSP participants may elect to use all or a portion of the proceeds of their TSP account to purchase an annuity. Account balances may consist of traditional contributions and earnings and Roth contributions and earnings (if the qualified distribution rules are met – participant is 591⁄2 or older and have Roth contributions for five years or more). Annuity purchases cannot combine traditional and Roth balances.
The annuity contract is for a performance period comprised of a three-year base period and one 2-year option period.