Congresswoman Eleanor Holmes Norton (D-DC) has reintroduced legislation to establish an inspector general to oversee the Federal Retirement Thrift Investment Board (FRTIB), the agency that oversees the Thrift Savings Plan (TSP).
The bill is known as the Federal Retirement Thrift Investment Board Inspector General Act of 2025 (H.R. 3364).
Norton previously introduced the legislation in 2022 during the time period where the FRTIB introduced the new TSP website and all of the accompanying problems that came with that.
Also around that time, she sent a letter asking about problems related to the launch of the new TSP website and received a response from the FRTIB, however, she was not satisfied with the response and said the FRTIB’s response did not address the questions posed in her letter.
That exchange is at least in part what led her to introduce the legislation at that time to create the inspector general for the agency. She apparently is still wary of the FRTIB and the possibility for future problems due to a lack of oversight of the agency.
She said in a statement:
I frequently heard from constituents about many problems with the TSP system after it changed platforms in 2022, including discrepancies in account balances, difficulties accessing accounts, lost beneficiary information, and hours-long wait times for customer service. While I am pleased that the widespread problems with the TSP’s online system have been addressed since then, the FRTIB should be held to the same standards of accountability as any other federal agency. Accountability mechanisms at FRTIB, including establishing an independent inspector general, are necessary to prevent a recurrence of similar widespread failures and ensure any future issues are promptly and effectively addressed.
2022 TSP Website Changes and Resulting Problems
Changes to the TSP website rolled out in 2022 were more than just a website refresh and included an overhaul of almost everything behind the TSP’s platform and its underlying technology. The premise behind the changes was to ensure that the TSP system was positioned for future changes.
It included a replacement of FRTIB’s core record-keeping system, re-platforming the TSP customer service contact center technology, re-platforming of “My Account” and the TSP Agency/Payroll portal, and the introduction of more online services, features, and security standards.
Problems quickly arose when it was launched that primarily stemmed from unexpectedly high call volume and a new account setup process. Many federal employees reached out to their Congressional representatives about the problems, and Norton was one of the lawmakers who heard frustrations voiced by her constituents.
She was also among a group of lawmakers who requested that the Government Accountability Office (GAO) investigate the problems with the 2022 launch of the new TSP website. GAO issued a report last year in which it concluded that the FRTIB failed to adequately oversee all necessary aspects of the development and rollout process of the new TSP website.
The GAO report said that the FRTIB identified its needs and addressed alternatives to meet them but failed to do the following:
- Develop policies and procedures to govern the way it acquires products and services until after the TSP services acquisition was underway
- Ensure that the new TSP recordkeeping system was consistent with federal requirements for loan repayment, court ordered benefits and accessibility
- Verify that AFS had completed tests in accordance with plans
- Ensure that all milestones were met before progressing through the acquisition process
- Confirm that personnel requirements for training, background investigations and contract monitoring were met
GAO listed seven recommendations in its report for the FRTIB. As of the time of this writing, all seven are still listed as open, meaning, “Actions to satisfy the intent of the recommendation have not been taken or are being planned.”
Norton Statement Introducing the Legislation
Norton also issued an introductory statement about the bill. She said:
Today, I introduce the Federal Retirement Thrift Investment Board Inspector General Act of 2025, which would create an independent Inspector General (IG) for the Federal Retirement Thrift Investment Board (FRTIB). The FRTIB administers the Thrift Savings Plan (TSP), the retirement savings and investment plan for federal employees.
In 2022, the FRTIB launched a new recordkeeping system with the goal of modernizing TSP’s recordkeeping, improving customer service and bolstering cybersecurity. There were widespread problems with the new system, including account access, account balances, missing or incomplete information in accounts and hours-long wait times to reach customer service. I, along with several colleagues, asked the Government Accountability Office (GAO) to examine the implementation of the new system. GAO found that FRTIB “did not fully implement key acquisition management practices…[which] significantly increased the risk of a problematic rollout of the new system.”
TSP has approximately 7.2 million participants and $937 billion in assets, making it the world’s largest defined contribution plan. Federal employees dedicate their careers to serving our country, and they deserve a retirement savings and investment plan that provides top-tier customer support and security.
While the Employee Benefits Security Administration has oversight responsibility for TSP, as it does for private sector 401(k) plans, there is no IG for the FRTIB. The problems with the rollout of the recordkeeping system are evidence enough that the FRTIB needs an independent IG.
I urge my colleagues to support this bill.
