[Federal Register Volume 60, Number 89 (Tuesday, May 9, 1995)]
[Rules and Regulations]
[Page 24535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11235]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 60, No. 89 / Tuesday, May 9, 1995 / Rules and
Regulations
[[Page 24535]]
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Part 1603
Vesting
AGENCY: Federal Retirement Thrift Investment Board.
ACTION: Interim rule with request for comment.
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SUMMARY: This interim amendment implements section 4 of the Uniformed
Services Employment and Reemployment Rights Act (USERRA) which
clarifies that certain military service will now be counted for vesting
purposes under the Thrift Savings Plan (TSP).
DATES: This interim amendment is effective August 2, 1990. Comments
must be received by June 30, 1995.
ADDRESSES: Comments may be sent to: James B. Petrick, Federal
Retirement Thrift Investment Board, 1250 H Street, N.W., Washington,
D.C. 20005.
FOR FURTHER INFORMATION CONTACT:
James B. Petrick, (202) 942-1664.
SUPPLEMENTARY INFORMATION: Part 1603 establishes the rules for vesting
of TSP basic (1%) contributions. Under those rules, persons who
separate from Federal service with less than three years of civilian
service (or in come cases, two years of civilian service) forfeit their
basic contributions and attributable earnings. If employees have the
requisite service when they separate, the contributions and
attributable earnings are not forfeited.
Section 4 of the Uniformed Services Employment and Reemployment
Rights Act (USERRA), Public Law 103-353 (October 14, 1994), added
section 8432b to title 5 of the United States Code. Section 8432b
contains provisions dealing specifically with participation in the TSP
by Federal employees returning from covered military service. Among
those provisions is 5 U.S.C. 8432b(h)(1)(B), which requires that
persons who separate from Federal service to perform military service
and who thereafter exercise restoration or reemployment rights be
credited with service for the period of their absence for TSP vesting
purposes. Because only civilian service was previously creditable for
TSP vesting purposes, it is necessary to amend the definition of
service credible for vesting under part 1603 to include military
service credible under USERRA. It is also necessary to change all other
references to ``civilian service'' to refer only to ``service.'' In
addition, the new definition of ``year of service'' eliminates any
reference to the Federal Personnel Manual, which no longer exists.
Regulatory Flexibility Act
I certify that this amendment will not have a significant economic
impact on a substantial number of small entities. It will affect only a
small number of Federal employees who separate from employment to
perform military service and who are later reemployed.
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 and 30-Day Delay of Effective
Date
Under 5 U.S.C. 553(b)(B) and (d)(3), I find that good cause exists
for waiving the general notice of proposed rulemaking and for making
these regulations effective in less than 30 days. It is necessary for
these regulations to be effective as of August 2, 1990, which is the
day on which employees may receive credit for military service under
Public Law 103-353 and subpart H of part 1620 for vesting purposes.
List of Subjects in 5 CFR Part 1603
Employee benefit plans, Government employees, Retirement, Pension.
Dated: May 2, 1995.
Roger W. Mehle,
Executive Director, Federal Retirement Thrift Investment Board.
For the reasons set out in the preamble, 5 CFR part 1603 is amended
as follows:
PART 1603--VESTING
1. The authority citation for part 1603 is revised to read as
follows:
Authority: 5 U.S.C. 8432(g), 8432b(h)(1), 8474(b)(5), and
8474(c)(1).
2. Section 1603.1 is amended by removing the definitions of
``civilian service'' and ``year of civilian service'' and adding the
definitions of ``service'' and ``year of service'' to read as follows:
Sec. 1603.1 Definitions.
* * * * *
Service for purposes of TSP vesting means: (1) Any non-military
service which is creditable under either 5 U.S.C. 8411 or subchapter
III of chapter 83 of title 5, U.S.C., determined without regard to any
time limitations, any deposit or redeposit requirements contained in
those statutory provisions after performing the service involved, or
any requirement that the individual give notice in writing to the
official by whom that individual is paid of that individual's desire to
become subject to the retirement system established by either chapter
83 or chapter 84 of title 5, United States Code; or (2) Any military
service creditable under the provisions of 5 U.S.C. 8432b(h)(1) and the
regulations issued at subpart H of part 1620 of this chapter.
* * * * *
Year of service means one full calendar year of service.
3. Section 1603.3 is amended in paragraph (a) by revising the
phrase ``three years of civilian service'' to read ``three years of
service''; and in paragraph (b) by revising the phrase ``two years of
civilian service'' to read ``two years of service''.
[FR Doc. 95-11235 Filed 5-8-95; 8:45 am]
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