[Federal Register Volume 59, Number 176 (Tuesday, September 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22482]
[[Page Unknown]]
[Federal Register: September 13, 1994]
VOL. 59, NO. 176
Tuesday, September 13, 1994
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Part 1650
Methods of Withdrawing Funds From the Thrift Savings Plan
AGENCY: Federal Retirement Thrift Investment Board.
ACTION: Proposed rule.
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SUMMARY: The Executive Director of the Federal Retirement Thrift
Investment Board is proposing to revise regulations on spousal rights
in accordance with changes made to the Federal Employees' Retirement
System Act of 1986 (FERSA) by Public Law 103-226 to delete all
references to former spouses and to accord all spouses of TSP
participants covered by the Federal Employees' Retirement System (FERS)
the right to a survivor annuity, unless they waive that option.
DATES: Comments must be submitted on or before October 13, 1994.
ADDRESSES: Comments may be sent to Robert Bloom, Assistant General
Counsel (Administration), Federal Retirement Thrift Investment Board,
1250 H Street NW., Washington, DC 20005.
FOR FURTHER INFORMATION CONTACT:
Robert Bloom at (202) 942-1662, FAX (202) 942-1676.
SUPPLEMENTARY INFORMATION: Public Law 103-226, 108 Stat. 111 (March 30,
1994), amends FERSA, 5 U.S.C. chapter 84 and section 8351, to give all
TSP participants, regardless of their eligibility for basic retirement
benefits, the same withdrawal options upon separation that have
previously been available only to participants who separate with
eligibility for basic retirement benefits. As a result, spouses of all
TSP participants, regardless of the participant's eligibility for basic
retirement benefits, have been provided with the same rights as those
previously available to spouses of participants who were eligible for
basic retirement benefits. This means that spouses of FERS participants
who were previously only entitled to notice (if the participant
separated without eligibility for basic retirement benefits) now have
the right to a survivor annuity, unless the spouse waives that right.
The required annuity is a joint life annuity with the spouse with 50
percent survivor benefits, level payments, and a no cash refund
feature. As a result of this statutory change, 5 CFR 1650.17 has been
revised to delete the requirement to notify the spouse with the TSP
participant who is covered by FERS lacks eligibility for basic
retirement benefits.
Spouses of Civil Service Retirement System (CSRS) participants are
entitled to notice whether or not the participant separated from
Federal service with eligibility for basic retirement benefits. This
notice requirement was not affected by Public Law 103-226.
Public Law 103-226 also eliminates the requirement to notify former
spouses of FERS and CSRS participants who separate from Federal service
without eligibility for basic retirement benefits that the participant
is withdrawing his or her TSP account. Accordingly, all references to
former spouse have been eliminated from 5 CFR part 1650, subpart G.
(Because there are no longer any references to ``former spouses,'' the
word ``current'' has also been eliminated wherever it appeared to
describe the spouse to whom a participant is married.) This means that
participants are no longer required to provide the TSP Service Office
with an address for a former spouse, or, if a former spouse cannot be
located, to obtain an exception to the requirement to notify a former
spouse.
In addition to the changes made by Public Law 103-226, other
changes explain or clarify spousal rights and exceptions to those
rights. Section 1650.19 is revised to delete language stating that the
employee and spouse may jointly waive the survivor annuity. The
participant waives the survivor annuity by electing a different
withdrawal option, while it is the spouse who must explicitly sign a
waiver statement.
Section 1650.21 provides that the Executive Director may grant an
exception to the requirement to obtain the spouse's signature or the
spouse notice requirement where the participant establishes to the
satisfaction of the Executive Director that the spouse's whereabouts
cannot be determined. The requirement to obtain the spouse's signature
on the appropriate form to waive the joint and survivor annuity is
referred to as the signature requirement. The notice requirement refers
to the entitlement of the spouse of a CSRS participant to notice of the
participant's withdrawal election. This section is being revised to
allow participants who are seeking an exception to the signature or the
notice requirement based on whereabouts unknown to submit statements in
lieu of affidavits or declarations in support of their requests. These
statements must be made pursuant to 18 U.S.C. 1001, which provides that
whoever, in any matter within the jurisdiction of any department or
agency of the United States knowingly and willfully falsifies, conceals
or covers up by any trick, scheme, or device a material fact, or makes
any false, fictitious or fraudulent statements or representations, or
makes or uses any false writing or document knowing the same to contain
any false, fictitious or fraudulent statement or entry, shall be fined
not more than $10,000 or imprisoned not more than five years, or both.
To ensure that the persons making the statements are aware of the
possible penalty, Sec. 1650.21(c) requires inclusion of the following
on each statement: I understand that a false statement or willful
misrepresentation is punishable under Federal Law (18 U.S.C. 1001) by a
fine or imprisonment or both.
To ease the burden on participants further, Secs. 1650.21 and
1650.22 are being revised to delete the requirement that the
participant obtain and provide only documents bearing an original
signature or which are embossed or which bear the imprint of a seal.
Participants may now submit photocopies of documents.
Sections 1650.21(d) and 1650.22(c) are added to explain that a
withdrawal form received within one year of approval of the exception
may be processed without a new exception. An exception is valid only
for the spouse for whom the exception has been approved.
Sections 1650.21(e) and 1650.22(d) are added to explain that the
requirements for establishing an exception in a loan application in 5
CFR 1655.18 are the same as those for establishing an exception in a
withdrawal application. It is for this purpose that the loan provisions
are cross-referenced.
Finally, Sec. 1650.22 provides that the Executive Director may
grant an exception to the requirement that the participant obtain his
or her spouse's signature where there are exceptional circumstances
that warrant such an exception. In Sec. 1650.22(b)(2)(iii) the example
of an acceptable court order which would relieve a participant of the
obligation to obtain his or her spouse's signature is revised.
Regulatory Flexibility Act
I certify that these regulations will not have a significant
economic impact on a substantial number of small entities. They will
affect Board procedures relating to the processing of requests for
exceptions to spouse signature and notice requirements applicable to
certain requests to withdraw account balances.
E.O. 12291
I certify that this is not a major rule.
Paperwork Reduction Act
I certify that these regulations do not require additional
reporting under the criteria of the Paperwork Reduction Act of 1980.
List of Subjects in 5 CFR Part 1650
Employment benefit plans, Government employees, Retirement,
Pensions.
Dated: September 6, 1994.
Roger W. Mehle,
Executive Director, Federal Retirement Thrift Investment Board.
For the reasons set out in the preamble, part 1650 of chapter VI of
title 5 of the Code of Federal Regulations is amended as set forth
below.
PART 1650--[AMENDED]
1. The authority citation for part 1650 is revised to read as
follows:
Authority: 5 U.S.C. 8351, 8433, 8434(a)(2)(E), 8434(b), 8435,
8436(b), 8467, 8474(b)(5) and 8474(c)(1).
2. Section 1650.16 is amended by revising the introductory text of
paragraph (a) and paragraph (b) to read as follows:
Sec. 1650.16 General.
(a) Pursuant to 5 U.S.C. 8435, 8351, and 8467, spouses of
participants are entitled under certain circumstances to:
* * * * *
(b) This subpart enumerates the circumstances under which such
spousal rights arise and prescribes the procedures which must be
followed by participants, spouses, and the Board to implement such
rights.
3. Section 1650.17 is revised to read as follows:
Sec. 1650.17 Withdrawal elections requiring notification to spouses.
No election of benefits, change of election of benefits, or
modification of the commencement date of an annuity can be made
effective for a CSRS participant prior to notice to the spouse of the
participant in accordance with the requirements of Sec. 1650.20.
4. Section 1650.18 is revised to read as follows:
Sec. 1650.18 Withdrawal elections requiring spousal waiver.
No withdrawal election may be made or changed by a FERS participant
which would defeat the spouse's entitlement to a survivor annuity
unless the affected spouse has signed the appropriate TSP form waiving
his or her right to the survivor annuity.
5. Section 1650.19 is revised to read as follows:
Sec. 1650.19 Spouse's waiver of survivor annuity.
(a) The right of the spouse to a survivor annuity may be waived in
writing by the spouse on the appropriate TSP form.
(b) When required by the regulations in this subpart, the
appropriate survivor annuity waiver shall be filed with the TSP Service
Office prior to the date the participant's election of benefits is
effective.
6. Section 1650.20 is amended by revising paragraph (a) to read as
follows:
Sec. 1650.20 Notice to spouse.
(a) Wherever in the regulations in this subpart it is required that
the Executive Director provide notice of an action affecting a
participant's account to the spouse of a participant prior to taking
the action, such requirements may be satisfied by the TSP Service
Office's sending a notice describing the action by first class mail to
the last address of the spouse on file with the Plan.
* * * * *
7. Section 1650.21 is revised to read as follows:
Sec. 1650.21 Executive Director's exception to requirement to notify
the spouse.
Whenever in the regulations in this subpart it is required that the
Executive Director give notice of an action to the spouse of a
participant, an exception to this requirement may be granted in cases
in which the participant establishes to the satisfaction of the
Executive Director that the spouse's whereabouts cannot be determined.
A request for an exception based on whereabouts unknown must be
submitted to the Executive Director on the appropriate TSP form
accompanied by either--
(a) A judicial determination (court order) which states that the
spouse's whereabouts cannot be determined; or
(b) A police or Governmental agency determination that is signed by
the appropriate department or division head which states that the
spouse's whereabouts cannot be determined; or
(c) Statements by the participant and two other persons. Each
statement must be signed and dated and must state the following: I
understand that a false statement or willful misrepresentation is
punishable under Federal Law (18 U.S.C. 1001) by a fine or imprisonment
or both.
(1) The participant's statement must give the full name of his or
her spouse, declare the inability to locate the spouse, and state the
efforts made to locate the spouse. Negative statements such as ``I have
not seen or heard from him/her'' or ``I have had no contact with him/
her'' are not sufficient. Examples of attempting to locate the spouse
include checking with relatives and mutual friends or using telephone
directories or directory assistance for the city of last known address.
(2) The statements from two other persons must support the
participant's statement that the participant does not know the
whereabouts of his or her spouse.
(d) A withdrawal election received within one year of an approved
exception may be processed so long as the spouse named on the form is
the spouse for whom the exception has been approved.
(e) The requirements for establishing an exception for a withdrawal
and the one-year period of validity of an approved exception apply to
exceptions for loans under 5 CFR 1655.18.
8. Section 1650.22 is revised to read as follows:
Sec. 1650.22 Executive Director's exception to the requirement to
obtain the spouse's signature.
Wherever in the regulations in this subpart the spouse's signature
is required, the Executive Director may grant an exception to this
requirement if the participant can show that:
(a) The spouse's whereabouts cannot be determined in accordance
with the provisions of Sec. 1650.21; or
(b) Due to exceptional circumstances, requiring the spouse's
signature would otherwise be inappropriate.
(1) An exception to the spousal signature requirement may be
granted based on exceptional circumstances only when the participant
presents a judicial determination (court order) or a governmental
agency determination signed by the appropriate department or division
head. A court order or a determination must contain a finding or a
recitation of such exceptional circumstances regarding the spouse as
would warrant an exception to the signature requirement.
(2) Exceptional circumstances is narrowly construed and includes
such circumstances as when a court order:
(i) Indicates that the spouse and the participant have been
maintaining separate residences with no financial relationship for
three or more years;
(ii) Indicates that the spouse abandoned the participant but, for
religious or similarly compelling reasons, the parties chose not to
divorce; or
(iii) Expressly states that the participant may obtain a loan from
his or her Thrift Savings Plan account or withdraw his or her thrift
Savings Plan account balance notwithstanding the absence of the
spouse's signature.
(c) A withdrawal election received within one year of an approved
exception may be processed so long as the spouse named on the form is
the spouse for whom the exception has been approved.
(d) The requirements for establishing an exception for a withdrawal
and the one-year period of validity of an approved exception apply to
exceptions for loans under 5 CFR 1655.18.
[FR Doc. 94-22482 Filed 9-12-94; 8:45 am]
BILLING CODE 6760-01-M