Jason Boyd

The meeting agenda included a review of the Recordkeeper Annual Service for Accenture Federal Services (AFS), focusing on the recent Converge transition performance, including initial call center issues and remediation efforts. Monthly reports covered participant activity, noting high loan/withdrawal processing and limited Mutual Fund Window enrollment, and investment performance for the G, F, C, S, I, and L Funds for July, showing positive performance in equity funds despite market turbulence. A legislative report discussed the GAO review of the Converge implementation and potential impacts of new legislation on the Mutual Fund Window. The Board also reviewed the 2021 Federal Information Security Modernization Act (FISMA) report, which deemed the Mainframe and Office 365 systems effective, though noting lower ratings in Contingency Planning and Supply Chain Risk Management. The Chief Technology Officer provided context on corrective actions for the FISMA findings. Finally, the Board reviewed and approved the Fiscal Year 2023 budget proposal of $481.4 million, which reflected a projected downward budgetary trend compared to FY2022 due to decommissioning legacy systems.

The meeting included an Investment Manager Annual Service Review for BlackRock, where the CEO provided an economic outlook and discussed digital currency. BlackRock reviewed the management of the C, S, I, and F Funds, noting performance achievements from securities lending. Monthly reports covered participant activity, which showed a two-year high in roll-ins, and a legislative update. Quarterly reports detailed investment performance for March, showing mixed results across funds largely influenced by the war in Ukraine and interest rate hikes. The budget review indicated the Agency executed approximately 68 percent of the second quarter targeted spending plan. Updates were provided on audit status, including the successful completion of the 2021 annual financial statement audit by CLA with an unmodified opinion, and a presentation from the Department of Labor EBSA regarding fiduciary oversight, which reported no material non-compliance findings. Finally, a detailed update on the Converge transition confirmed that testing, data readiness, and participant communication campaigns are on track for a projected go-live in the first week of June.

The meeting covered several key agenda items. The Participant Activity Report discussed the end-of-year processing schedule, including Required Minimum Distribution (RMD) balances posting, and the increase in the 2024 elective deferral limit to $23,000. It was noted that beginning in 2024, Roth balances will no longer be subject to RMDs prior to a participant's death due to SECURE 2.0 legislation. The Investment Review detailed November 2023 performance for BlackRock and State Street funds relative to their benchmarks, noting gains fueled by a decline in interest rates and specific stock performance (VMware). The Legislative Report summarized the status of the 2024 National Defense Authorization Act and noted funding expiration dates for several appropriations bills. The Quarterly Vendor Risk Management Report confirmed that five critical vendors are able to meet contractual obligations. The Semi-Annual Financial Statement Review for the six months ending June 30, 2023, found that financial statements were in conformity with GAAP. The Social Science Update presented research findings on behavioral science techniques—repetition, temporal reframing, peer influence, and framing—to encourage participants to increase TSP contributions, noting success with 'dollars per day' framing.

The meeting included monthly reports covering participant activity, which showed increased contribution rates and high participant satisfaction with the ThriftLine service. The investment report discussed February performance, noting that the C and S Funds posted losses while the I Fund gained, and provided year-to-date performance metrics. The legislative report indicated that Congress passed a continuing resolution for funding, and work continues on the fiscal year 2026 appropriations and debt ceiling discussions. A quarterly vendor risk management report for Q4 CY 2024 confirmed that critical vendors remain solvent. A significant portion of the meeting was dedicated to the annual service overview provided by BlackRock, the investment manager, detailing performance attribution for the F, C, S, and I Funds, investment philosophy utilizing total performance management, and updates on BlackRock's use of artificial intelligence and recent acquisitions.

The meeting commenced with the approval of the minutes from the July 22, 2025 Board meeting. Monthly reports included participant activity, noting a record high in interactions and satisfaction, and continued growth in mobile app usage. The investment performance report for July showed alignment with benchmarks for the F, C, and S Funds, while the I Fund trailed due to pricing and a stronger U.S. dollar. Year-to-date performance comparisons between BlackRock and State Street were reviewed. Legislative updates indicated Congress was in recess, with potential focus on a bill allowing veterans to contribute to TSP accounts and the upcoming National Defense Authorization Act. The Quarterly Metrics Report confirmed targets were met across all areas for FY 2025 Q3. The Internal Audit update detailed completed audits for business continuity, zero trust architecture, and interagency agreements, noting successful completion with no findings for some. The FY 2025 FISMA audit results were presented, indicating an optimized maturity rating across all ten domains with one recommendation issued by Williams Adley. The Office of the Chief Financial Officer presented its annual report, highlighting accomplishments such as developing a three-year budget approval cycle and the deployment of new tracking systems.