§8472 Federal Retirement Thrift Investment Board

Summary

Creates a Federal Retirement Thrift Investment Board inside the Executive branch and explains how it is set up and run. The Board has five members. The President picks three of them and names one as chair. Two more are picked by the President after taking into account recommendations: one from the Speaker of the House (after consulting the House minority leader) and one from the Senate majority leader (after consulting the Senate minority leader). Except as provided in section 311 of the Federal Employees’ Retirement System Act of 1986, the Senate must confirm the appointments. Members must have strong experience in managing investments and pension plans. Members normally serve four-year terms. The first set of appointments had staggered terms: the chair four years, the two members chosen with congressional recommendations three years, and the other members two years. Vacancies are filled the same way and replacements serve the rest of the term. Members stay in office until their successor arrives. The Board must set investment and management policies for the Thrift Savings Fund, run related programs, check investment performance, and approve its budget. The Board can adopt a seal, direct the Executive Director to act, remove the Executive Director with four votes for good cause, and do other needed tasks, but it cannot order the Director to buy or sell specific assets except under section 8438(c)(2)(B). Members must act only for the benefit of plan participants and beneficiaries. The Board must send an annual budget to the President and Congress as a separate item under section 1105 of title 31, and it may send legislative recommendations to the President and each House of Congress.