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EBSA News Release: [07/24/2003]
Contact Name: Gloria Della
Phone Number: (202) 693-8664

Labor Department Testifies on Oversight of the Thrift Savings Plan

WASHINGTON—Alan D. Lebowitz, deputy assistant secretary of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), today explained to Congress the agency’s oversight of the Thrift Saving Plan (TSP), benefiting the more than 3 million participants and beneficiaries who invest in the retirement plan.

Under the Federal Employees’ Retirement System Act (FERSA), EBSA is responsible for oversight and administration of the rules on fiduciary standards, prohibited transactions and bonding. The agency also has broad investigative and audit authority over the activities of the TSP board of directors and other plan fiduciaries who make investments and operate the plan. The TSP covers employees in the federal government, Congress, judiciary and military. Since its inception 17 years ago, the TSP has accumulated over $113 billion in assets.

In testimony before the House Government Reform Committee, Lebowitz highlighted the department’s program on fiduciary compliance audits. The audits test for compliance with the FERSA law. Next year, the department plans to review the TSP’s customer service, loan and withdrawal subsystems to address concerns about access to its Web site.

In his testimony, Lebowitz stated, “To date, the department has made over 800 recommendations under its audit program on which the TSP board complied 95 percent of the time. This high rate of compliance with our audit recommendations is attributable to the longstanding and positive working relationship between the department and TSP fiduciaries.”

Lebowitz told the committee that the department will continue its open and candid exchange of views with the TSP’s new executive director and board members. Copies of the full testimony are available on the Internet at www.dol.gov/ebsa.

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