[Federal Register Volume 61, Number 208 (Friday, October 25, 1996)]
[Rules and Regulations]
[Pages 55201-55202]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27548]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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Federal Register / Vol. 61, No. 208 / Friday, October 25, 1996 /
Rules and Regulations
[[Page 55201]]
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Part 1620
Thrift Savings Plan Participation for Certain Employees of the
District of Columbia Financial Responsibility and Management Authority
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 is publishing interim regulations to implement
sections 102 (e) and (f) of the District of Columbia Financial
Responsibility and Management Assistance Act of 1995 (Act), as amended.
Under this Act, a newly hired employee of the District of Columbia
Financial Responsibility and Management Assistance Authority
(Authority) can elect FERS retirement coverage; and certain persons who
separate from Federal employment and who are employed by the Authority
may elect to participate in the Federal retirement system in which they
last participated before separating from Federal service. These
regulations address participation in the Thrift Savings Plan (TSP) by
eligible employees of the Authority who elect Federal retirement
coverage. These regulations do not apply to eligibility to participate
in retirement programs administered by the Office of Personnel
Management (OPM).
DATES: This interim rule is effective October 25, 1996. Comments must
be received on or before December 24, 1996.
ADDRESSES: Comments may be sent to Patrick J. Forrest, Federal
Retirement Thrift Investment Board, 1250 H Street, N.W., Washington,
D.C. 20005.
FOR FURTHER INFORMATION CONTACT:
Patrick J. Forrest, (202) 942-1662.
SUPPLEMENTARY INFORMATION: The Federal Retirement Thrift Investment
Board (Board) administers the Thrift Savings Plan (TSP), which was
established by the Federal Employees' Retirement System Act of 1986,
Pub. L. 99-335, 100 Stat. 514 (1986), which has been codified, as
amended, largely at 5 U.S.C. 8401-8479 (1994). The TSP is a tax-
deferred retirement savings plan for Federal employees that is similar
to cash or deferred arrangements established under section 401(k) of
the Internal Revenue Code.
The District of Columbia Financial Responsibility and Management
Assistance Act of 1995 (1995 Act), Pub. L. 104-8, section 101, 109
Stat. 97, 100, established the District of Columbia Financial
Responsibility and Management Assistance Authority (Authority) as an
entity within the Government of the District of Columbia. Under the
1995 Act, a person who separated from Federal employment and who became
employed by the Authority within two months could elect to participate
in the Federal retirement system in which he or she last participated
before separating from Federal service. On January 29, 1996, the Board
published an interim rule, with request for comments in the Federal
Register (61 FR 2872), which governed TSP participation by eligible
employees of the Authority who elected retirement coverage under the
Federal Employees' Retirement System (FERS) or the Civil Service
Retirement System (CSRS). The Board received no comment on that interim
rule.
On April 26, 1996, the 1995 Act was amended by the Omnibus
Consolidated Rescissions and Appropriations Act of 1996 (Omnibus Act),
Pub. L. 104-134, section 153, 110 Stat. 1321, reprinted in 1996
U.S.C.C.A.N. (110 Stat. 1321) 221-224. Under the 1995 Act, as amended,
a newly hired employee of the Authority can elect FERS retirement
coverage; and an employee who leaves Federal service to work for the
Authority can elect continued Federal retirement coverage, but only if
the election is made before the employee separates from Federal service
and if employment with the Authority commences within three days after
separating from Federal service.
The Board is amending its interim rule so that it applies to any
employee of the Authority who is covered by FERS or CSRS, whether the
employee elected Federal retirement coverage under the 1995 Act or
under the 1995 Act as amended by the Omnibus Act.
Regulatory Flexibility Act
I certify that these regulations will not have a significant
economic impact on a substantial number of small entities because the
regulations will affect only a small number of employees of a single
agency of the Government of the District of Columbia.
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)(3)(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. Elections made
under these regulations will affect some qualifying employees'
participation in the TSP retroactive to their entry on duty with the
Authority. The intent of the legislation is to allow eligible employees
to participate in the TSP as soon as practicable. A delay in the
effective date of these regulations would be contrary to the intent of
the legislation and to the public interest because it would delay the
election opportunity for eligible employees of the Authority.
Submission to Congress and the General Accounting Office
Under section 801(a)(1)(A) of the Administrative Procedure Act
(APA), as amended by the Regulatory Enforcement Fairness Act of 1996,
Pub. L. 104-121, title II, 110 Stat. 847, 857-875 (5 U.S.C.
801(a)(1)(A)), the Board submitted a report containing this rule and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to the publication of this rule in today's Federal Register. This rule
is not a major rule as defined in section 804(2) of the APA as amended
(5 U.S.C. 804(2)).
[[Page 55202]]
Unfunded Mandates Reform Act of 1995
Pursuant to the Unfunded Mandates Reform Act of 1995, Pub. L. 104-
4, section 201, 109 Stat. 48, 64, the effect of this regulation on
State, local, and tribal governments and on the private sector has been
assessed. This regulation will not compel the expenditure in any one
year of $100 million or more by any State, local, or tribal governments
in the aggregate or by the private sector. Therefore, a statement under
section 202, 109 Stat. 48, 64-65, is not required.
List of Subjects in 5 CFR Part 1620
District of Columbia, Employment benefit plans, Government
employees, Pensions, Retirement.
Federal Retirement Thrift Investment Board.
Roger W. Mehle,
Executive Director.
For the reasons set out in the preamble, 5 CFR Chapter VI is
amended as set forth below:
PART 1620--CONTINUATION OF ELIGIBILITY
1. The authority citation for part 1620 is revised to read as
follows:
Authority: 5 U.S.C. 8474 and 8432b; Pub. L. 99-591, 100 Stat.
3341; Pub. L. 100-238, 101 Stat. 1744; Pub. L. 100-659, 102 Stat.
3910; Pub. L. 101-508, 104 Stat. 1388; Pub. L. 104-106, 110 Stat.
186; Pub. L. 104-134, 110 Stat. 1321.
2. Section 1620.110 is revised to read as follows:
Sec. 1620.110 Scope.
The District of Columbia Financial Responsibility and Management
Assistance Authority (Authority) was established by the District of
Columbia Financial Responsibility and Management Assistance Act of
1995, Pub. L. 104-8, 109 Stat. 97, which was amended by the Omnibus
Consolidated Rescissions and Appropriations Act of 1996, section 153,
Pub. L. 104-134, 110 Stat. 1321. Although the Authority is an agency of
the District of Columbia Government, certain of its employees may elect
Federal Employees' Retirement System (FERS) or Civil Service Retirement
System (CSRS) coverage. This subpart governs participation in the
Thrift Savings Plan (TSP) by employees of the Authority who elect to be
covered by FERS or CSRS.
3. Section 1620.111 is amended by revising the definition of Basic
pay to read as follows:
Sec. 1620.111 Definitions.
* * * * *
Basic pay means basic pay as defined in 5 U.S.C. 8331(3), and it is
the rate of pay used in computing any amount the individual is
otherwise required to contribute to the Civil Service Retirement and
Disability Fund as a condition for participating in the Civil Service
Retirement System or the Federal Employees' Retirement System, as the
case may be.
* * * * *
4. Section 1620.112 is revised to read as follows:
Sec. 1620.112 Eligibility requirements.
To be eligible to participate in the TSP, an employee of the
Authority must be covered by FERS or CSRS pursuant to the District of
Columbia Financial Responsibility and Management Assistance Act of
1995, as amended.
5. Section 1620.114 is revised to read as follows:
Sec. 1620.114 Employee contributions.
(a) An employee of the Authority who is separated from Federal
service for less than 31 full calendar days before commencing
employment with the Authority and who is covered by FERS or CSRS will
be eligible to contribute to the TSP as though he or she had
transferred to the Authority from the losing Federal agency, i.e., as
though the employee did not have a TSP separation as defined by the
TSP.
(b) An employee of the Authority who is separated from Federal
service for 31 or more full calendar days before commencing employment
with the Authority and who is covered by FERS or CSRS will be eligible
to contribute to the TSP as follows:
(1) If the employee was previously eligible to participate in the
TSP, the employee will be eligible to contribute to the TSP in the
first open season (as determined in accordance with paragraph (d) of
this section) beginning after the date the employee commences
employment with the Authority.
(2) If the employee was not previously eligible to participate in
the TSP, the employee will be eligible to contribute to the TSP in the
second open season (as determined in accordance with paragraph (d) of
this section) beginning after the date the employee commences
employment with the Authority.
(c) An employee of the Authority with no period of prior Federal
service who elects to be covered by FERS will be eligible to contribute
to the TSP in the second open season (as determined in accordance with
paragraph (d) of this section) beginning after the effective date of
the FERS coverage.
(d) If an employee of the Authority who is described in paragraphs
(b) and (c) of this section is employed by the Authority during an open
season but before the election period (the last calendar month of the
open season), that open season will be considered the employee's first
open season.
(e) TSP employee contributions from employees of the Authority are
subject to the limits described at 5 CFR part 1600, subpart C.
6. Section 1620.118 is revised to read as follows:
Sec. 1620.118 Failure to participate or delay in participation.
If an employee of the Authority who elects to be covered by FERS or
CSRS fails to participate or is delayed in participating in the TSP
because of a delay in the implementation of the Act, the employee may
request that retroactive corrective action be taken in accordance with
5 CFR part 1605, as though the delay were attributable to employing
agency error. Lost earnings shall be payable pursuant to 5 CFR part
1606 due to delay described in this section, as though the delay were
attributable to employing agency error.
[FR Doc. 96-27548 Filed 10-24-96; 8:45 am]
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