How does the TSP select its annuity provider?
The annuity provider is selected through a competitive procurement. Vendors are required to meet minimum qualifications for ratings and licensure before their proposals are considered for evaluation. The proposals of vendors that meet these minimum requirements are then evaluated by the TSP for financial responsibility and solvency, administrative capability, business plan, and cost. The selected annuity provider is awarded a 3-year contract with a provision for one 2-year option.
