TSP Needs A New Annuity Provider
The Federal Retirement Thrift Investment Board is searching for a brand new company to provide services to its $590 billion annuity program for the TSP. The board runs the TSP, the 5.7 million federal and military retirement system for employees. The annuity contract comprises of a three-year base term and a one year option that could be done twice.
Kim Weaver, director of external affairs, advised that the current provider, Incumbent Metropolitan Life Insurance Co., whose current agreement with them is close to expiring, will be able to bid once more for the contract.
The Retirement System Act for Federal Employees lays out five forms of annuity that must be distributed to qualifying members and beneficiaries of the TSP. Since July 31st, current annual post-separation withdrawals covered 910 annuities, amounting to approximately $201,800,000 in the RFP states.
The Federal Business Opportunities website provides access to the RFP. Bids were due by October 1st. The board hopes to have a decision by January 1st of next year.
The board administers the TSP, the 5.7 million-federal employee retirement system, and uniformed service members.
