PRIA, Government Policy, Made Personal

Summary

Creates a Federal Retirement Thrift Investment Board in the Executive branch. The Board has five members. The President picks three members and chooses one of those as Chair. The President also picks two members after considering recommendations: one from the Speaker of the House (after the House minority leader is consulted) and one from the Senate majority leader (after the Senate minority leader is consulted). Except as provided in section 311 of the Federal Employees’ Retirement System Act of 1986, these appointments need Senate approval. Members must have strong experience with financial investments and pension plans. Normally members serve 4-year terms. For the first set of members the Chair serves 4 years, the two recommended members serve 3 years, and the others serve 2 years. Vacancies are filled the same way as the original appointment and the new member serves the rest of the term. No member leaves until a successor takes office. The Board must set policies for investing and managing the Thrift Savings Fund and for running related benefit rules. It must review investment performance and approve the Board’s budget. The Board can adopt a seal, direct the Executive Director to carry out its policies, remove the Executive Director for good cause with four votes, and take other needed actions. Except for investments under section 8438(c)(2)(B), the Board cannot tell the Executive Director to buy or sell specific assets. Board members must act only for the benefit of 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.

Title 5, §8472

Government Organization and Employees, Source: USLM XML via OLRC

(a)There is established in the Executive branch of the Government a Federal Retirement Thrift Investment Board.

(b)The Board shall be composed of—

(1)3 members appointed by the President, of whom 1 shall be designated by the President as Chairman; and

(2)2 members appointed by the President, of whom—

(A)1 shall be appointed by the President after taking into consideration the recommendation made by the Speaker of the House of Representatives in consultation with the minority leader of the House of Representatives; and

(B)1 shall be appointed by the President after taking into consideration the recommendation made by the majority leader of the Senate in consultation with the minority leader of the Senate.

(c)Except as provided in section 311 of the Federal Employees’ Retirement System Act of 1986, appointments under subsection (a) shall be made by and with the advice and consent of the Senate.

(d)Members of the Board shall have substantial experience, training, and expertise in the management of financial investments and pension benefit plans.

(e)(1)Except as provided in section 311 of the Federal Employees’ Retirement System Act of 1986, a member of the Board shall be appointed for a term of 4 years, except that of the members first appointed (other than the members appointed under such section)—

(A)the Chairman shall be appointed for a term of 4 years;

(B)the members appointed under subsection (b)(2) shall be appointed for terms of 3 years; and

(C)the remaining members shall be appointed for terms of 2 years.

(2)(A)A vacancy on the Board shall be filled in the manner in which the original appointment was made and shall be subject to any conditions which applied with respect to the original appointment.

(B)An individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced.

(3)The term of any member shall not expire before the date on which the member’s successor takes office.

(f)The Board shall—

(1)establish policies for—

(A)the investment and management of the Thrift Savings Fund; and

(B)the administration of subchapter III of this chapter;

(2)review the performance of investments made for the Thrift Savings Fund; and

(3)review and approve the budget of the Board.

(g)(1)The Board may—

(A)adopt, alter, and use a seal;

(B)except as provided in paragraph (2), direct the Executive Director to take such action as the Board considers appropriate to carry out the provisions of this subchapter and subchapter III of this chapter and the policies of the Board;

(C)upon the concurring votes of four members, remove the Executive Director from office for good cause shown; and

(D)take such other actions as may be necessary to carry out the functions of the Board.

(2)Except in the case of investments under section 8438(c)(2)(B), the Board may not direct the Executive Director to invest or to cause to be invested any sums in the Thrift Savings Fund in a specific asset or to dispose of or cause to be disposed of any specific asset of such Fund.

(h)The members of the Board shall discharge their responsibilities solely in the interest of participants and beneficiaries under this subchapter and subchapter III of this chapter.

(i)The Board shall prepare and submit to the President, and, at the same time, to the appropriate committees of Congress, an annual budget of the expenses and other items relating to the Board which shall be included as a separate item in the budget required to be transmitted to the Congress under section 1105 of title 31.

(j)The Board may submit to the President, and, at the same time, shall submit to each House of the Congress, any legislative recommendations of the Board relating to any of its functions under this title or any other provision of law.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 311 of the Federal Employees’ Retirement System Act of 1986 [Pub. L. 99–335], referred to in subsecs. (c) and (e)(1), is set out as a note below.

Amendments

2014—Subsec. (g)(2). Pub. L. 113–255 substituted “under section 8438(c)(2)(B)” for “required by section 8438 of this title to be invested in securities of the Government”. 1986—Subsecs. (i), (j). Pub. L. 99–509 added subsecs. (i) and (j).

Statutory Notes and Related Subsidiaries

Effective Date

of 1986 AmendmentAmendment by Pub. L. 99–509 effective Jan. 1, 1987, see section 6001(f) of Pub. L. 99–509, set out as a note under section 8432 of this title. Initial Appointments to Federal Retirement Thrift Investment Board Pub. L. 99–335, title III, § 311,

June 6, 1986, 100 Stat. 608, provided that: “(a) Initial Appointment of Members.—section 8472(c) of title 5, United States Code (as added by section 101(a) of this Act) shall not apply to the members of the Federal Retirement Thrift Investment Board first appointed to such Board. “(b) Terms of Service.—Notwithstanding subsection (e)(1) of section 8472 of title 5, United States Code (as added by section 101(a) of this Act), the term of service of each member of the Federal Retirement Thrift Investment Board appointed pursuant to subsection (a) shall be 1 year, except that such member shall continue to serve until his successor is appointed under subsection (b) of such section 8472 and confirmed under subsection (c) of such section.” Authorization of Appropriations for Certain Expenses of Federal Retirement Thrift Investment Management System Pub. L. 99–335, title VII, § 701,

June 6, 1986, 100 Stat. 631, as amended by Pub. L. 99–500, § 101(m) [title IV, § 401], Oct. 18, 1986, 100 Stat. 1783–308, 1783–322, and Pub. L. 99–591, § 101(m) [title IV, § 401], Oct. 30, 1986, 100 Stat. 3341–308, 3341–322, provided for authorization of appropriations for expenses incurred in the administration of the Federal Retirement Thrift Investment Management System under this subchapter during fiscal years 1986 and 1987.

§8472 Federal Retirement Thrift Investment Board