[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31653]


[Federal Register: December 28, 1994]


=======================================================================
-----------------------------------------------------------------------

FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

5 CFR Part 1601


Participant Choices of Investment Funds

AGENCY: Federal Retirement Thrift Investment Board.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Executive Director of the Federal Retirement Thrift 
Investment Board (Board) is publishing proposed amendments to interim 
regulations on participants' choices of Thrift Savings Plan (TSP) 
investment funds. The proposed amendments, to subparts A and C of 5 CFR 
part 1601, reflect changes in the methods by which TSP participants may 
request interfund transfers, including use of an automated voice 
response system to make, change, or cancel interfund transfer requests.

DATES: Comments must be received on or before January 27, 1995.

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: Interim rules governing participants' 
choices of investment funds were originally published in the Federal 
Register on March 29, 1990, as an amendment to title 5 of the Code of 
Federal Regulations, adding Part 1601, Participants' Choice of 
Investment Funds. Revised interim rules were published in the Federal 
Register on January 7, 1991, primarily to implement section 3 of the 
Thrift Savings Plan Technical Amendments Act of 1990 (TSPTAA), which 
removed investment restrictions that had been in place prior to the 
effective date of the TSPTAA. The present proposed rules, when adopted, 
will further amend the interim rules by making changes in the 
procedures by which TSP participants may make, change, or cancel 
interfund transfer requests. The primary change in the procedures 
involves the availability of the automated voice response system, known 
as the ``ThriftLine,'' for participants to make interfund transfer 
requests over the telephone. The ThriftLine provides service to 
participants in addition to enabling them to make interfund transfer 
requests, but those other functions are not addressed in the proposed 
regulations.

Section by Section Analysis

Subpart A

    The proposed rule amends Sec. 1601.1, which contains the 
definitions applicable to part 1601, by revising one definition and 
adding three new ones.
    The definition of ``Interfund transfer request'' has been amended 
to reflect that properly completing and submitting to the TSP 
recordkeeper an Interfund Transfer Request (Form TSP-30) is no longer 
the exclusive method to request an interfund transfer. A request may 
also be made by proper entry of the transaction on the automated 
ThriftLine.
    Definitions of ``Board'' (the Federal Retirement Thrift Investment 
Board), ``Acknowledgment of Risk,'' and ``ThriftLine'' have been added. 
Under 5 U.S.C. 8439(d), all participants who invest in the Common Stock 
Index Investment Fund (C Fund) or the Fixed Income Investment Fund (F 
Fund) must sign an acknowledgment that the investment is made at the 
participant's own risk and that the participant is not protected 
against losses on the investment or guaranteed a return on the 
investment. Under Sec. 1601.5 (as amended by the proposed rule), the 
procedures for satisfying the requirements of 5 U.S.C. 8439(d) have 
been changed.
    Instructions for use of the ThriftLine to make interfund transfer 
requests on the telephone will be widely available to all TSP 
participants.

Subpart C

    Proposed Sec. 1601.5 sets forth the methods by which interfund 
transfer requests can be made. Section 1601.5(a) contains the general 
rule that interfund transfer requests may now be made either by 
submission of a properly completed Form TSP-30 or by entry of the 
transaction on the ThriftLine. Section 1601.5(a) also states explicitly 
that Forms TSP-30 generated prior to October 1990 cannot be used to 
make interfund transfer requests. Such forms can be readily identified 
because they were preprinted with participants' names and addresses, 
described restrictions on the amounts that could be invested in the C 
Fund and F Fund, and specified a particular effective date for the 
interfund transfer. Similarly, Form TSP-30-S, which was designed for 
use only by certain FERS participants to make interfund transfers 
effective as of the end of December 1990, cannot be used to make 
interfund transfer requests.
    Section 1601.5(b) retains the rule that interfund transfer requests 
must include designations of percentages to be invested in each of the 
TSP investment funds in multiples of 5 percent that total 100 percent. 
This requirement applies regardless of whether the interfund transfer 
request is entered on the ThriftLine or is submitted on Form TSP-30. 
Section 1601.5 also retains from the previous rule the admonition that 
an interfund transfer request does not affect future contributions made 
by a participant. If a participant wishes to change the allocation of 
future contributions among the investment funds, that can only be 
accomplished by submission to his or her employing agency of a properly 
completed Election Form (TSP-1) during a TSP Open Season. The rules for 
submission of Election Forms are set forth in subpart B, which is 
unchanged by the proposed amendments.
    Section 1601.5(c) retains the previous rule that percentages 
elected by the participant are applied to the account balance as of the 
effective date of the interfund transfer, which is established as 
provided in Sec. 1601.6. The percentages are applied to the account in 
the same manner, whether submitted on Form TSP-30 or entered on the 
ThriftLine.
    Section 1601.5(d) contains significant changes to the procedures 
governing the acknowledgment of risk required by 5 U.S.C. 8439(d). 
Under the previous rule, all participants requesting an interfund 
transfer were required to sign the acknowledgment of risk section on 
Form TSP-30, unless the request was for investment of 100% of the 
account balance in the Government Securities Investment Fund (G Fund). 
The proposed rule is premised on a determination that each participant 
should only be required to acknowledge investment risk once. To date, 
participants who have invested any portion of their accounts in the C 
Fund or F Fund at any time must have already signed an acknowledgment 
of risk, either on Form TSP-1 or on Form TSP-30, since those are the 
only two methods by which money could have been invested in the C Fund 
or F Fund. Accordingly, all participants whose account records indicate 
that they have invested in the C Fund or F Fund (regardless of whether 
they currently have money in those funds) are deemed to have satisfied 
the requirements of 5 U.S.C. 8439(d), and will be permitted to use the 
ThriftLine to request interfund transfers without further 
acknowledgment of investment risk. Participants who have never invested 
in the C Fund or F Fund, and therefore have never been required to sign 
an acknowledgment of risk, will not be permitted to make interfund 
transfers on the ThriftLine until the TSP recordkeeper receives a 
signed acknowledgment of risk form from them. A new acknowledgment of 
Risk For ThriftLine Interfund Transfers (Form TSP-32) has been created 
for this purpose.
    The proposed rule treats participants who may continue to make 
their interfund transfer requests on paper, using Form TSP-30, 
consistently with those who use the ThriftLine. Since it is only 
necessary to acknowledge investment risk once, participants who use 
Form TSP-30 and fail to sign the acknowledgment of risk section will no 
longer have their forms rejected if they have previously invested any 
portion of their TSP account in the C Fund or F Fund, or if the TSP 
recordkeeper has received a properly completed Form TSP-32. Form TSP-30 
has been amended to delete the statement that all forms requesting 
investment in the C Fund or F Fund will be rejected if the 
acknowledgment of risk section of the form is not signed. The proposed 
rule retains the requirement that the form itself (as opposed to the 
acknowledgment of risk section) must be signed and dated in all cases.
    It is anticipated that some participants may continue to sign the 
acknowledgment of risk section even though they have already invested 
in the C Fund and/or F Fund and therefore do not need to sign again. 
This is not an area of concern to the Board, however, because the 
superfluous signature does not impose a significant burden on 
participants. Any participant who submits Form TSP-30 requesting 
investment in the C Fund or F Fund and is uncertain as to whether he or 
she has ever invested in those funds should sign the acknowledgment of 
risk section of the form to eliminate the possibility that the form 
will be rejected for lack of an acknowledgment of risk. For purposes of 
determining whether participants' interfund transfer requests should be 
processed, the TSP recordkeeper system will identify whether a 
participant has ever invested in the C Fund or F Fund, even if the 
participant subsequently transferred his or her entire account to the G 
Fund.
    Section 1601.5(e) of the proposed rule, which addresses only use of 
Form TSP-30, remains virtually unchanged in substance from the previous 
rule, except that paragraph (2) has been amended to reflect the rules 
set forth in Sec. 1601.5(d). The other changes to this section are 
designed to consolidate the language for ease of reading rather than to 
make substantive changes to the procedures for processing interfund 
transfer requests. In particular, the language ``or otherwise is not 
properly completed in accordance with the instructions on the form'' in 
proposed Sec. 1601.5(e)(1) is a substitute for several of the specific 
bases for rejection of forms that were included in the previous rule. 
Since the instructions on Form TSP-30 include requirements that had 
been reflected in separate paragraphs of the previous rule, those 
paragraphs have been eliminated to avoid redundancy.
    Section 1601.5(f) has not been changed in substance.
    Section 1601.6 of the proposed rule governs the timing and 
effective dates of interfund transfers. Although the proposal adopts 
the same general principles that were embodied in the previous rule, 
the proposed rule sets forth the order of precedence with respect to 
multiple transfer requests and cancellations using the ThriftLine and/
or Form TSP-30. Although the proposed rule permits interaction between 
entry of transactions on the ThriftLine and on paper (i.e., by Form 
TSP-30 or written cancellations), the Board notes that the rules 
governing that interaction are, in some cases, complex; therefore, 
participants are encouraged to avoid, if possible, mixing the two 
media. The ThriftLine provides the most expeditious and certain method 
of entering all transactions, because it eliminates any delays caused 
by mail delivery and processing of documents.
    Section 1601.6(a) of the proposal is identical to the previous 
rule. Participants may make up to four interfund transfers per calendar 
year, based on the effective dates of the transfers. Any transfer as of 
the end of December counts for the year that ends with that December.
    Section 1601.6(b) contains the general rule governing the date on 
which an interfund transfer will be made effective, based on the date 
of receipt of the interfund transfer request. In the case of a request 
made on the ThriftLine, the date of receipt is the date the transaction 
is entered on the ThriftLine. In the case of a request made by Form 
TSP-30, the date of receipt is the date the form is delivered to the 
TSP recordkeeper. Apart from the fact that interfund transfer requests 
may now be received by two methods, the general rule adopted by the 
proposal is identical to the previous rule: requests received by the 
15th of a month (or next business day) are effective as of the end of 
the month of receipt; requests received after the 15th of a month are 
effective as of the end of the month following receipt.
    Section 1601.6(c) sets forth the rules governing receipt of more 
than one interfund transfer request during the same one-month period 
after the 15th of one month (or next business day) and on or before the 
15th of the next month. The basic rule, set forth in Sec. 1601.6(c)(1), 
is that the request with the latest date of signature (if Form TSP-30 
is used) or entry (if the ThriftLine is used) controls. Thus, if a 
properly completed Form TSP-30 was dated June 17 and received by NFC on 
June 25, and another interfund transfer request was entered on the 
ThriftLine on June 23, the ThriftLine transaction would supersede the 
request on Form TSP-30, because the June 23 ThriftLine transaction was 
later than the June 17 signature on the Form TSP-30.
    The rules are based on the presumption that, when a participant 
enters a new transfer on the ThriftLine, he or she intends to supersede 
a form that was mailed on an earlier date. The rules also presume that 
a participant intends for a later ThriftLine entry to supersede an 
earlier one. Similarly, where a Form TSP-30 is dated one day and 
another Form TSP-30 is dated on a subsequent day, it is presumed that 
the participant intends to override the earlier dated form, regardless 
of the order in which the forms may be received by the TSP 
recordkeeper, which can be affected by the uncertainties of mail 
delivery.
    Therefore, under the proposed rules, the date of receipt of Form 
TSP-30 determines only the effective date for the interfund transfer 
that is requested. A Form TSP-30 dated June 8 and received by the TSP 
recordkeeper on June 12 cannot be superseded by a subsequent form dated 
June 13 but not received by the recordkeeper until June 17. The former 
will be processed as of the end of June; the latter as of the end of 
July. If participants using Form TSP-30 wish to control the month end 
for which a transfer is to be made effective, it is their 
responsibility to ensure that the form is actually delivered to NFC 
during the proper one-month period. This can be accomplished in most 
cases by allowing sufficient time to accommodate potential mail delays 
or by using overnight mail (or other guaranteed forms of delivery). 
Participants can also control the effective date of their interfund 
transfers by using the ThriftLine rather than Form TSP-30, because the 
ThriftLine provides immediate acceptance of properly entered interfund 
transfer requests.
    Section 1601.6(c)(2) of the proposal provides more detailed rules 
governing receipt of multiple interfund transfer requests having the 
same date and requesting transfers for the same effective date. Section 
1601.6(c)(2)(i) provides that as between a ThriftLine request and a 
Form TSP-30 dated the same day, the ThriftLine entry will be made 
effective. Thus, the ThriftLine entry will supersede a Form TSP-30 
dated the same day.
    Section 1601.6(c)(2)(ii) provides that as between two transactions 
entered the same day on the ThriftLine, the one entered later in the 
day supersedes the earlier request.
    Finally, Sec. 1601.6(c)(2)(iii) provides that if more than one Form 
TSP-30 has the same date, then all shall be rejected, unless they 
contain an identical percentage allocation among the investment funds, 
in which case that allocation will be accepted. Unlike interfund 
transfer requests entered on the ThriftLine, were Forms TSP-30 bear the 
same date but different allocation elections, the Board has no way to 
determine which form represents the participant's latest request. What 
is most important to participants is that there be uniform rules that 
can be consistently applied in cases involving multiple interfund 
transfer requests. The proposed rule accomplishes that purpose.
    Section 1601.6(c)(3) sets forth the rules for determining the date 
of an interfund transfer request. Under Sec. 1601.6(c)(3)(i), if made 
on the ThriftLine, the date of the interfund transfer request is the 
date of the telephone entry of the transaction. Under 
Sec. 1601.6(c)(3)(iii), if the interfund transfer request is made on 
Form TSP-30, the date of the request is the signature date entered on 
the form by the participant. As previously discussed, the date of 
receipt of the form is not the date of the request; the receipt date 
controls only the effective date for which the form is deemed to be a 
request. Finally, under Sec. 1601.6(c)(3)(iii), the date on which a 
transaction is entered on the ThriftLine is determined by application 
of Central Time. For example, a transaction entered at 12:15 a.m. 
Eastern Time on the 16th of a month will be considered a transaction 
entered on the 15th, because it was 11:15 p.m. Central Time when the 
transaction occurred. Conversely, a transaction entered at 11:15 p.m. 
Pacific Time on the 15th, is entered at 1:15 a.m. Central Time and will 
therefore be considered a transaction entered on the 16th. The 
determination of the date on which a ThriftLine transaction was 
requested may be important for two purposes: (1) to determine whether 
the request was made by the applicable 15th of the month cutoff date, 
and (2) to determine whether the request supersedes or cancels another 
request.
    Section 1601.6(d) of the proposed rule governs cancellation of 
interfund transfer requests. Under Sec. 1601.6(d)(1), a signed and 
dated cancellation letter containing the required information must be 
received by the same cutoff date (15th of the month or next business 
day) that applies to receipt of an interfund transfer request that is 
to be effective as of the end of the month for which the transfer to be 
cancelled is pending. For example, a letter to cancel a pending 
interfund transfer that is to be made effective as of the end of June 
must be received by June 15 (or next business day). A cancellation 
letter will not cancel a transfer with a date after the date of the 
cancellation letter. If a cancellation letter does not state 
unambiguously the specific interfund transfer request to be cancelled, 
it will cancel any earlier dated interfund transfer request that is 
pending for the applicable effective date. If the letter does state 
unambiguously the interfund transfer request to be cancelled, then only 
that request will be cancelled by the letter.
    The TSP recordkeeper will compare multiple interfund transfer 
requests to determine which is the controlling request prior to 
determining the effect of a written cancellation. For example, assume 
there are two interfund transfer requests received prior to June 15, 
one dated June 3 and one dated June 5. The June 5 request supersedes 
the June 3 request. If there is a cancellation letter dated June 10 
(and received by June 15) specifying cancellation of the June 5 
request, then no interfund transfer would be processed, because the 
June 3 request would be superseded and the June 5 request would be 
cancelled. On the other hand, if the June 10 letter specified 
cancellation of the June 3 request, then the June 5 request would be 
processed, because it would not be superseded by the earlier June 3 
request nor would it be cancelled by the June 10 cancellation letter 
that specified cancellation of the June 3 request.
    The last sentence of Sec. 1601.6(d)(1) governs the rate situation 
where the written cancellation bears the same date as an interfund 
transfer request. A different rule applies depending upon whether the 
interfund transfer request was submitted on Form TSP-30 or entered on 
the ThriftLine. In the former case, it is presumed that the 
cancellation letter was intended to cancel a Form TSP-30 dated the same 
day. In the latter case, with one exception, the ThriftLine entry is 
presumed to supersede the cancellation letter, which may have been an 
attempt to cancel another Form TSP-30 that was received for a prior 
effective date or that has not yet been received or entered into the 
TSP system. The only exception is where the written cancellation 
specifically states that it is intended to cancel the ThriftLine entry 
of the same date; in that situation, the cancellation letter will be 
effective to cancel the ThriftLine request of the same date.
    Under Sec. 1601.6(d)(2), a cancellation entered on the ThriftLine 
before the relevant 15th of the month cutoff will cancel a pending 
interfund transfer request that had been entered previously on the 
ThriftLine. An interfund transfer request made using Form TSP-30 can be 
cancelled using the ThriftLine only if it has been entered into the TSP 
recordkeeping system and is, therefore, at the time the cancellation is 
entered, a pending transfer. In that regard, participants are cautioned 
that in many cases Forms TSP-30 are not entered into the TSP 
recordkeeping system until after the 15th cutoff, even if they are 
received before that cutoff. If that is the case, then the participant 
cannot use the ThriftLine to cancel an interfund transfer request that 
was submitted on Form TSP-30. For that reason, participants who prefer 
to make interfund transfer requests by use of Form TSP-30 are 
encouraged to cancel only in writing. The Board will not be responsible 
for a participant's inability to cancel a Form TSP-30 by use of the 
ThriftLine. Participants are encouraged to use, in any one interfund 
transfer period, only one medium to make, change, or cancel interfund 
transfer requests.

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.

List of Subjects in 5 CFR Part 1601

    Employee benefit plans, Government employees, Retirement, Pensions.
Roger W. Mehle,
Executive Director, Federal Retirement Thrift Investment Board.
    For the reasons set out in the preamble, part 1601 of chapter VI of 
title 5 of the Code of Federal Regulations is proposed to be amended as 
set forth below:

PART 1601--[AMENDED]

    1. The authority citation for Part 1601 continues to read as 
follows:

    Authority: 5 U.S.C. 8351, 8438, 8474 (b)(5) and (c)(1).

    2. Section 1601.1 is amended by revising the definition ``Interfund 
Transfer Request'' and adding in alphabetical order definitions 
``Acknowledgment of Risk'', ``Board'', and ``ThriftLine'', to read as 
follows:


Sec. 1601.1  Definitions.

* * * * *
    Acknowledgment of Risk means an acknowledgment that any investment 
in the C Fund or F Fund is made at the participant's risk, that the 
participant is not protected by the United States Government or the 
Board against any loss on the investment, and that neither the United 
States Government nor the Board guarantees any return on the 
investment.
* * * * *
    Board means the Federal Retirement Thrift Investment Board.
* * * * *
    Interfund transfer request means submission of a properly completed 
Interfund Transfer Request (Form TSP-30) or proper entry of an 
interfund transfer through use of the ThriftLine.
* * * * *
    ThriftLine means the automated voice response system by which TSP 
participants may, among other things, make interfund transfer requests 
by telephone.
* * * * *
    3. Section 1601.5 is revised to read as follows:


Sec. 1601.5.  Methods of requesting an interfund transfer.

    (a) To make an interfund transfer, participants may either submit 
to the TSP recordkeeper a properly completed Interfund Transfer Request 
(Form TSP-30), or may enter the interfund transfer request over the 
telephone by using the ThriftLine. Forms TSP-30 generated prior to 
October 1990, which were preprinted with a participant's name and 
address, described restrictions on the amounts which could be invested 
in the C Fund and F Fund, and specified an effective date for the 
interfund transfer, are obsolete forms. They will be rejected by the 
TSP recordkeeper if submitted to make an interfund transfer request. 
Similarly, Form TSP-30-S, which was designed for use only by certain 
FERS participants to make interfund transfers effective as of the end 
of December 1990, are obsolete forms which will be rejected by the TSP 
recordkeeper if submitted to make an interfund transfer request.
    (b) To make an interfund transfer request, a participant must 
designate the percentages of his or her account balance that are to be 
invested in the C Fund, F Fund, and/or G Fund. The percentages selected 
by the participant must be in multiples of 5 percent and must total 100 
percent. An interfund transfer request has no effect on contributions 
made by a participant after the effective date of the interfund 
transfer (as determined in accordance with Sec. 1601.6); such 
subsequent contributions will continue to be allocated among the 
investment funds in accordance with the participant's election under 
subpart B of this part.
    (c) The percentages elected by the participant will be applied to 
the participant's account balance attributable to each source of 
contributions as of the effective date of the interfund transfer, as 
determined in accordance with Sec. 1601.6.
    (d) Participants who have at any time in the past invested any 
portion of their TSP accounts in the C Fund or F Fund are eligible to 
make interfund transfer requests using the ThriftLine; such 
participants need not, if using Form TSP-30 to make a written interfund 
transfer request, complete the section of the form that contains the 
acknowledgment of risk. Participants who have not at any time in the 
past invested any portion of their TSP accounts in the C Fund or F Fund 
are not eligible to make interfund transfers using the ThriftLine until 
a properly completed Acknowledgment of Risk for ThriftLine Interfund 
Transfer (Form TSP-32) has been received by the TSP recordkeeper. 
Participants who have not at any time in the past invested any portion 
of their TSP accounts in the C Fund or F Fund must complete the 
acknowledgment of risk section of Form TSP-30 if they make a written 
interfund transfer request, unless a properly completed Form TSP-32 has 
been received by the TSP recordkeeper.
    (e) An Interfund Transfer Request (Form TSP-30) that has been 
submitted to the TSP recordkeeper will not be processed and will have 
no effect, if:
    (1) it is not signed and dated, or otherwise is not properly 
completed in accordance with the instructions on the form;
    (2) in the case of a participant who has not previously invested 
any portion of his or her TSP account in the C Fund or F Fund and for 
whom a properly completed Form TSP-32 has not been received by the TSP 
recordkeeper, the acknowledgment of risk section of the Form TSP-30 is 
not signed; or
    (3) the participant is not otherwise eligible to make an interfund 
transfer (e.g. because he or she has already made the maximum number of 
interfund transfers permitted during the year).
    (f) If a Form TSP-30 is rejected, the form will have no effect. The 
participant will be provided with a brief written statement of the 
reason the form was rejected.
    4. Section 1601.6 is revised to read as follows:


Sec. 1601.6  Timing and effective dates of interfund transfers.

    (a) Annual Limit. A participant may have no more than four 
interfund transfers made effective during any calendar year. For 
purposes of this limitation, an interfund transfer made effective as of 
the end of December will count against the limit for the calendar year 
in which that December falls.
    (b) Effective dates. Interfund transfer requests received by the 
TSP recordkeeper (whether by Form TSP-30 or on the ThriftLine) on or 
before the 15th day of a month (or, if the 15th day is not a business 
day, by the next business day) shall be effective as of the end of the 
month during which the interfund transfer request was received. 
Interfund transfer requests received by the TSP record-keeper after the 
15th day of a month (or, if applicable, by the next business day) will 
be effective as of the end of the month following the month during 
which the interfund transfer request was received. Account balances 
that are reallocated among the investment funds effective as of the end 
of any month will reflect the effects of all other account activity 
posted to the account effective during or as of the end of that month.
    (c) Multiple interfund transfer requests. (1) If more than one 
properly completed interfund transfer request with different dates are 
received for the same participant after the 15th day of one month (or, 
if applicable, after the next business day), but on or before the 15th 
day of the next month (or, if applicable, the next business day), the 
interfund transfer request with the latest date (as determined by 
paragraph (c)(3) of this section) will be made effective and the 
earlier interfund transfer request(s) will be superseded.
    (2) If more than one properly completed interfund transfer request 
with the same dates are received for the same participant after the 
15th day of one month (or, if applicable, after the next business day), 
but on or before the 15th day of the next month (or, if applicable, the 
next business day), the following rules shall apply:
    (i) If one or more of the interfund transfer requests were 
submitted using the ThriftLine and one or more were made on Form TSP-
30, the request(s) made on the ThriftLine will supersede the request(s) 
made on Form TSP-30;
    (ii) If more than one of the interfund transfer requests were made 
on the ThriftLine, the request entered at the latest time of day will 
supersede the earlier request(s); and
    (iii) If more than one of the interfund transfer requests were 
submitted using Form TSP-30, all such forms will be rejected, unless 
they all contain identical percentage allocations among the TSP 
investment funds, in which case they will be accepted.
    (3) For purposes of determining the date of an interfund transfer 
request:
    (i) The date of an interfund transfer request made on the 
ThriftLine shall be the date of its telephone entry;
    (ii) The date of an interfund transfer request made on Form TSP-30 
shall be the signature date set forth on the form by the participant; 
and
    (iii) Central time will be used for determining the date on which a 
transaction is entered on the ThriftLine.
    (d) Cancellation of interfund transfer requests. Interfund transfer 
requests may be cancelled either in writing or by entering the 
cancellation on the ThriftLine:
    (1) Cancellation by letter. A participant may cancel an interfund 
transfer request by submitting a letter to the TSP recordkeeper 
requesting cancellation. To be accepted, the cancellation letter must 
be signed and dated and must contain the participant's name, Social 
Security number, and date of birth. To be effective, the cancellation 
letter must be received on or before the 15th day of the month as of 
the end of which the interfund transfer is to be effective (or, if 
applicable, by the next business day). Unless the letter states 
unambiguously the specific interfund transfer request it seeks to 
cancel, the written cancellation will apply to any interfund transfer 
request with a date (as determined under paragraph (c)(3) of this 
section) before the date of the cancellation letter. If the date of a 
cancellation letter is the same as the date of an interfund transfer 
request and the request was made on Form TSP-30, it will be cancelled; 
if the request was made on the ThriftLine it will only be cancelled if 
the written cancellation specifies the date of the ThriftLine request 
to be cancelled.
    (2) Cancellation on ThriftLine. An interfund transfer request may 
also be cancelled by entering the cancellation on the ThriftLine on or 
before the 15th day of the month (or, if applicable, the next business 
day) as of the end of which the interfund transfer is to be effective. 
A cancellation entered on the ThriftLine will apply to a pending 
interfund transfer request entered on the ThriftLine prior to the entry 
of the cancellation. A cancellation entered on the Thriftline can only 
apply to interfund transfer requests submitted on Forms TSP-30 that 
were:
    (i) Dated on or before the date of the cancellation; and
    (ii) Received and entered into the TSP recordkeeping system before 
the cancellation is attempted on the ThriftLine.
    (3) Cancellation of Form TSP-30 Using ThriftLine. The Board cannot 
guarantee that the TSP recordkeeper will enter Forms TSP-30 into the 
TSP recordkeeping system before the 15th day of the month, regardless 
of the date the Form TSP-30 may have been received. Thus, participants 
cannot rely on the ThriftLine to cancel an interfund transfer request 
that was submitted on Form TSP-30, and participants are discouraged 
from attempting to do so. The Board is not responsible for any 
consequences of a participant's inability to cancel on the ThriftLine 
an interfund transfer request submitted on Form TSP-30.

[FR Doc. 94-31653 Filed 12-27-94; 8:45 am]
BILLING CODE 6760-01-M