[Federal Register Volume 60, Number 136 (Monday, July 17, 1995)]
[Rules and Regulations]
[Pages 36630-36634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17471]




[[Page 36629]]

_______________________________________________________________________

Part IX





Federal Retirement Thrift Investment Board





_______________________________________________________________________



5 CFR Part 1601



Participant Choices of Investment Funds; Final Rule

  Federal Register / Vol. 60, No. 136 / Monday, July 17, 1995 / Rules 
and Regulations  
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[[Page 36630]]


FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

5 CFR Part 1601


Participant Choices of Investment Funds

AGENCY: Federal Retirement Thrift Investment Board.

ACTION: Final rule.

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SUMMARY: The Executive Director of the Federal Retirement Thrift 
Investment Board (Board) is publishing final rules on participants' 
choices of Thrift Savings Plan (TSP) investment funds. The final rules 
include amendments to the existing revised interim rules found at 
subparts A and C of 5 CFR Part 1601. The amendments 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. The amendments also increase the 
number of interfund transfers permitted per year from four (4) to 
twelve (12). No amendments have been made to subpart B.

EFFECTIVE DATE: These final rules are effective August 16, 1995.

ADDRESSES: Questions concerning these regulations may be addressed to 
David L. Hutner, Federal Retirement Thrift Investment Board, 1250 H 
Street, NW., Washington, DC 20005, (202) 942-1661.

SUPPLEMENTARY INFORMATION: Interim rules governing participants' 
choices of investment funds were originally published in the Federal 
Register on March 29, 1990 (55 FR 11880) 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 (56 FR 592) 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. On December 28, 1994, the 
Board published a proposed rule in the Federal Register (59 FR 66796) 
setting forth changes in the procedures by which TSP participants may 
make, change, or cancel interfund transfer requests. The Board did not 
receive any comments on the proposed regulations. On May 26, 1995, the 
December 28, 1994, proposed amendments to the interim rules were 
withdrawn and replaced by new proposed amendments (60 FR 27908). No 
comments on the proposed amendments have been received. However, the 
proposal to remove investment restrictions from the accounts of 
participants who are receiving equal payments has been deleted from the 
final rule because the technical changes necessary to accomplish that 
have not been completed. When those technical changes are completed, it 
is the Board's intention to amend the regulations to eliminate the 
investment restrictions.
    Thus, the final rule amends the interim rule by making changes to 
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 services to 
participants in addition to enabling them to make interfund transfer 
requests, but those other functions are not addressed in these 
regulations. The final rule also addresses a policy change which has 
been adopted by the Board and which was reflected in the May 26, 1995, 
proposal. It amends the interim rule by increasing the number of 
interfund transfers permitted per year from four (4) to twelve (12).

Section by Section Analysis

Subpart A

    The final 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 of the final 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 are widely available to all TSP participants.

Subpart B

    Supart B is unchanged by the final rule.
Subpart C

    Section 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 or a 
properly completed Form TSP-30 or by entry of the transaction on the 
ThriftLine. Section 1601.5(a) also states explicitly that Form 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 Funds 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 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 interim 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 of 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 final rule.
    Section 1601.5(c) retains the interim 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 interim rule, all participants requesting an interfund 

[[Page 36631]]
transfer were required to sign the acknowledgment of risk section on 
Form TSP-30 each time the form was submitted, unless the request was 
for investment of 100% of the account balance in the Government 
Securities Investment Fund (G Fund). The final 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 the 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 are 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. An Acknowledgment of Risk 
For ThriftLine Interfund Transfers (Form TSP-32) has been created for 
this purpose. The final 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 final 
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 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 or 
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 recordkeeping 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 final rule, which addresses only use of 
Form TSP-30, remains virtually unchanged in substance from the interim 
rule, except that paragraph (2) has been amended to reflect the rules 
set forth in Sec. 1601.5(d). The other change 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 
Sec. 1601.5(e)(1) is a substitute for several of the specific bases for 
rejection of forms that were included in the interim 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 final rule governs the timing and effective 
dates of interfund transfers. The final 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 final 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 the interaction are, in some cases, 
complex; therefore, participants are encouraged to avoid, if possible, 
mixing the two methods. 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 final rule allows participants to make up 
to twelve interfund transfers per calendar year rather than the four 
interfund transfers per calendar year that were previously allowed. 
Thus, under the final rule, participants may make one interfund 
transfer per month.
    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 Thrift-Line, 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 this rule is identical to the interim rule: Requests received on or 
before the 15th of a month (or next business day if the 15th is not a 
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 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, 
because that order can be affected by the uncertainties of mail 
delivery.
    Therefore, under the final rule, the date of receipt of Form TSP-30 
determines only the effective date for the interfund transfer that is 
requested. 

[[Page 36632]]
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 final rule provides more detailed rules 
governing receipt of multiple interfund transfer requests having the 
same 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 signed, 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, where 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.
    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)(ii), 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.(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 ThrfitLine 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 final 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 if the 15th is not a 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 canceled 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 request 
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 canceled, 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 canceled, then only that request will be canceled 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 
canceled. 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 canceled 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 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 
superseded 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 date 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 
canceled using the ThriftLine only if it has been entered into the TSP 
recordkeeping system and is, therefore, at the time the cancellation is 
entered on the ThriftLine, 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 method to make, change, or 
cancel interfund transfer requests.
    Section 1601.7 is unchanged by the final rule.

[[Page 36633]]


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.

    Accordingly, the revised interim rule revising 5 CFR Part 1601 
which was published at 56 FR 592 on January 7, 1991, is adopted as a 
final rule with the following changes:

PART 1601--PARTICIPANT CHOICE OF INVESTMENT FUNDS

    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 of 
``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 the 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 the 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, the F Fund, and/or the 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 the F Fund are eligible 
to make interfund transfer requests using the ThriftLine since they 
must, at some previous time, have submitted an Acknowledgment of Risk; 
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 the 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 the 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; or
    (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 the 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 is scheduled for a withdrawal of the 
entire account balance).
    (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 Sec. 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 twelve 
interfund transfers made effective during any calendar year, one in 
each calendar month.
    (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 recordkeeper 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 real-located 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.

[[Page 36634]]

    (c) Multiple interfund transfer requests. (1) If two or more 
properly completed interfund transfer requests with different dates (as 
determined by paragraph (c)(3) of this section) 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 two or more properly completed interfund transfer requests 
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 was submitted 
using the ThriftLine and one or more was 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 one 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 is the date of its telephone entry;
    (ii) The date of an interfund transfer request made on Form TSP-30 
is 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 canceled either in writing or by entering the 
cancellation of 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, the Form TSP-30 will 
be canceled; if the request was made on the ThriftLine it will only be 
canceled if the written cancellation specifies the date of the 
ThriftLine request to be canceled.
    (2) Cancellation on the ThriftLine. (i) An interfund transfer 
request may also be canceled 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 before 
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:
    (A) Dated on or before the date of the cancellation; and
    (B) Received and entered into the TSP recordkeeping system before 
the cancellation is attempted on the ThriftLine.
    (ii) 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. 95-17471 Filed 7-14-95; 8:45 am]
BILLING CODE 6760-01-M