[Federal Register Volume 59, Number 9 (Thursday, January 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-861]


  Federal Register / Vol. 59, No. 9 / Thursday, January 13, 1994 /
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[[Page Unknown]]

[Federal Register: January 13, 1994]


                                                     VOL. 59, NO. 9

                                         Thursday, January 13, 1994
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FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

5 CFR Part 1620

 

Removal of Investment Restrictions for Judges, Justices, and 
Magistrates

AGENCY: Federal Retirement Thrift Investment Board.

ACTION: Interim rule with request for comments.

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SUMMARY: The Executive Director of the Federal Retirement Thrift 
Investment Board (Board) is publishing amendments to interim 
regulations on participation in the Thrift Savings Plan (TSP) by 
certain justices, judges, and magistrates. These amendments reflect the 
provisions of the Thrift Savings Plan Technical Amendments Act of 1990, 
which removed a previously existing requirement that these judges, 
justices, and magistrates invest their entire TSP accounts in the 
Government Securities Investment Fund (G Fund). The amendments conform 
part 1620 with the provisions of 5 CFR part 1601, which also provide 
that such judges, justices, and magistrates may now invest in all three 
TSP investment funds in a manner similar to participants covered by the 
Civil Service Retirement System (CSRS).

DATES: Effective Date: These interim rules are effective on January 13, 
1994. Comments: Comments must be received on or before March 14, 1994.

ADDRESSES: Comments may be sent to: David L. Hutner, Federal Retirement 
Thrift Investment Board, 1250 H Street NW, Washington, DC 20005.

FOR FURTHER INFORMATION CONTACT:
David L. Hutner, (202) 942-1661.

SUPPLEMENTARY INFORMATION: With respect to choice of Thrift Savings 
Plan (TSP) investment funds, judges and justices covered by 5 U.S.C. 
8440a (added by the Federal Employees Health Benefits Amendments Act of 
1988, Public Law 100-654, November 14, 1988) and bankruptcy judges and 
magistrates covered by 5 U.S.C. 8440b (added by the Retirement and 
Survivors' Annuities for Bankruptcy Judges and Magistrates Act of 1988, 
Public Law 100-659, November 15, 1988) are subject to the same rules as 
those applicable to participants covered by the Civil Service 
Retirement System (CSRS). At the time of enactment of 5 U.S.C. 8440a 
and 5 U.S.C. 8440b, CSRS employees were required to invest their entire 
TSP account balances in the Government Securities Investment Fund 
established under 5 U.S.C. 8438(b)(1)(A). Thus, justices, judges and 
magistrates covered by those provisions were similarly limited to 
investment in the G Fund. The restrictions were reflected in the 
regulations at 5 CFR 1620.83(c) and 5 CFR 1620.72(d), which provided 
that new TSP contributions by participants covered by 5 U.S.C. 8440a 
and 5 U.S.C. 8440b, respectively, must be invested in the G Fund; and 
in the regulations at 5 CFR 1620.84 and 5 CFR 1620.73, which provided 
that the accounts of participants invested in the C or F Funds prior to 
becoming covered by 5 U.S.C. 8440a or 5 U.S.C. 8440b, respectively, 
shall, upon the participant becoming so covered, be transferred 
entirely to the G Fund.
    The requirement that CSRS participants invest their entire TSP 
accounts in the G Fund was eliminated by amendments to 5 U.S.C. 8438 
contained in section 3 of the Thrift Savings Plan Technical Amendments 
Act of 1990, Pub. L. 101-335, July 17, 1990. The lifting of the 
investment restrictions was made effective as of the second TSP 
election period commencing after enactment, or such earlier date as 
prescribed in regulations by the Executive Director. The Executive 
Director issued regulations, published in the Federal Register on 
January 7, 1991, implementing the removal of the investment 
restrictions effective as of December 31, 1990. Those regulations, 
found at 5 CFR part 1601, provided that the lifting of the investment 
restrictions applied to participants covered by 5 U.S.C. 8440a and 5 
U.S.C. 8440b, and that such participants could invest their TSP 
accounts in all three TSP investment funds in the same manner as other 
TSP participants. The present amendments, by deleting the investment 
restrictions previously contained in 5 CFR 1620.72(d), 1620.73, 
1620.83(c), and 1620.84, conform the provisions of part 1620 with the 
regulations implementing Public Law 101-335 that resulted in the 
elimination of the investment restrictions previously applicable to 
participants covered by 5 U.S.C. 8440a and 8440b.

Regulatory Flexibility Act

    I certify that these regulations will not have a significant 
economic impact on a substantial number of small entities.

Paperwork Reduction Act

    I certify that these regulations do not require additional 
reporting under the criteria of the Paperwork Reduction Act of 1980.

Waiver of Notice of Proposed Rulemaking

    Pursuant to 5 U.S.C. 553(b)(B), I find that because of the need for 
TSP participants to be fully advised of their statutory investment 
options, good cause exists for waiving the general notice of proposed 
rulemaking.

List of Subjects in 5 CFR Part 1620

    Employee benefit plans, Government employees, Retirement, Pensions.

    Federal Retirement Thrift Investment Board.
Francis X. Cavanaugh,
Executive Director.

    Part 1620 of chapter VI of title 5 of the Code of Federal 
Regulations is amended as set forth below:

PART 1620--[AMENDED]

    1. The authority citation for part 1620 continues to read as 
follows:

    Authority: 5 U.S.C. 8474, 5 U.S.C. 2101.


Sec. 1620.72  [Amended]

    2. Section 1620.72 is amended by removing paragraph (d).


Sec. 1620.73  [Removed]

    3. Section 1620.73 is removed and Secs. 1620.74, 1620.75, and 
1620.76 are redesignated as Secs. 1620.73, 1620.74, and 1620.75.


Sec. 1620.83  [Amended]

    4. Section 1620.83 is amended by removing paragraph (c).


Sec. 1620.84  [Removed]

    5. Section 1620.84 is removed and Secs. 1620.85 and 1620.86 are 
redesignated as Secs. 1620.84 and 1620.85.

[FR Doc. 94-861 Filed 1-12-94; 8:45 am]
BILLING CODE 6760-01-M