[Federal Register Volume 62, Number 90 (Friday, May 9, 1997)]
[Proposed Rules]
[Pages 25559-25561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12169]


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FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

5 CFR Part 1640


Periodic Participant Statements

AGENCY: Federal Retirement Thrift Investment Board.

ACTION: Proposed rule.

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SUMMARY: The Executive Director of the Federal Retirement Thrift 
Investment Board (Board) proposes to amend the Board's interim 
regulations concerning periodic information to be furnished to 
participants in the Thrift Savings Plan (TSP). The regulations 
implement various provisions of the Federal Employees' Retirement 
System Act of 1986 (FERSA), as amended. The proposed rule would clarify 
the types of periodic information provided to participants in the TSP, 
conform definitions in the interim regulations to those found in the 
Board's other regulations, and otherwise make the proposed regulations 
easier to read.

DATES: Comments must be received on or before June 9, 1997.

ADDRESSES: Comments may be sent to Merritt A. Willing, Federal 
Retirement Thrift Investment Board, 1250 H Street, N.W., Washington, 
D.C. 20005.

FOR FURTHER INFORMATION CONTACT: Merritt A. Willing on (202) 942-1661.

SUPPLEMENTARY INFORMATION: The Board administers the Thrift Savings 
Plan (TSP), a defined contribution plan for Federal employees 
established by the Federal Employees' Retirement System Act of 1986 
(FERSA), Pub. L. 99-335, 100 Stat. 514 (codified, as amended, largely 
at 5 U.S.C. 8401-8479). 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 requirement that periodic statements be provided to 
participants by the TSP is found at 5 U.S.C. 8439(c). On June 1, 1987, 
the Board published an interim rule with request for comments in the 
Federal Register (52 FR 20371) which implemented the periodic statement 
provision of FERSA. The Board has received comments from employees and

[[Page 25560]]

agencies suggesting that the Board issue periodic statements more than 
twice a year. The Board considered these comments but decided not to 
issue statements more often than is required by statute because of the 
administrative cost associated with additional statements, which is an 
expense borne by all TSP participants.
    Section 1640.1 contains definitions of words or terms used 
throughout the regulation. Some of the definitions contained in the 
interim regulations would be amended by the proposed rule to conform 
them to the Board's other regulations issued at 5 CFR chapter VI.
    Section 1640.2 requires the Board to provide information to each 
TSP participant at least once every six months, no later than 30 days 
before the last month of an open season.
    Sections 1640.3 and 1640.4 set forth the type of information that 
will be furnished to a participant regarding the status of his or her 
individual account during the reporting period.
    Section 1640.5 describes the information to be furnished to 
participants relating to investments in the three investment funds 
described in 5 U.S.C. 8438. Two types of information are provided: (1) 
a description of the investment fund, and (2) a five-year history of 
the performance of that type of investment.
    Section 1640.6 provides that individual account statements will be 
mailed to TSP participants by the Board's record keeper. Information 
regarding the TSP investments may either be mailed to TSP participants 
or included with other informational material that is distributed in a 
way reasonably designed to reach TSP participants.

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 only internal Government procedures related to the TSP.

Paperwork Reduction Act

    I certify that these regulations do not require additional 
reporting under the criteria of the Paperwork Reduction Act of 1980.

Unfunded Mandates Reform Act of 1995

    Pursuant to the Unfunded Mandates Reform Act of 1995, section 201, 
Pub. L. 104-4, 109 Stat. 48, 64, the effect of these regulations 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, and tribal 
governments in the aggregate or by the private sector. Therefore, a 
statement under section 202, 109 Stat. 48, 64-65, is not required.

Submission to Congress and the General Accounting Office

    Under 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 before the publication of this rule in today's Federal 
Register. This rule is not a major rule as defined in section 804(2).

List of Subjects in 5 CFR Part 1640

    Employee Benefit Plans, Government employees, Pensions, Reporting 
and recordkeeping requirements, Retirement.

    Federal Retirement Thrift Investment Board.
Roger W. Mehle,
Executive Director.

    For the reasons set forth in the preamble, part 1640 of chapter VI 
of title 5 of the Code of Federal Regulations is proposed to be amended 
as follows:

PART 1640--PERIODIC PARTICIPANT STATEMENTS

    1. The authority citation for part 1640 continues to read as 
follows:

    Authority: 5 U.S.C. 8439(c)(1) and (c)(2), 5 U.S.C. 8474 (b)(5) 
and (c)(1).

    2. Section 1640.1 is amended by removing the definitions of 
``Employee contribution,'' ``Employer basic contribution,'' ``Employer 
matching contribution,'' ``Source,'' ``Thrift Savings Fund,'' ``Thrift 
Savings Plan or Plan,'' and ``Thrift Savings Plan Service Office,'' by 
revising the definitions of ``C Fund,'' ``Executive Director,'' ``F 
Fund,'' ``G Fund,'' ``Individual account,'' ``Investment fund,'' ``Open 
season,'' and ``Participant,'' and by adding, in alphabetical order, 
three new definitions to read as follows:


Sec. 1640.1  Definitions.

* * * * *
    C Fund means the Common Stock Index Investment Fund established 
under 5 U.S.C. 8438(b)(1)(C);
    Executive Director means the Executive Director of the Board 
described in 5 U.S.C. 8474;
    F Fund means the Fixed Income Investment Fund established under 5 
U.S.C. 8438(b)(1)(B);
    G Fund means the Government Securities Investment Fund established 
under 5 U.S.C. 8438(b)(1)(A);
    Individual account means the account established for a participant 
in the Thrift Savings Plan under 5 U.S.C. 8439(a);
    Investment fund means either the G Fund, the F Fund, or the C Fund, 
or any other Thrift Savings Plan investment fund created after [the 
effective date of the final rule];
    Open season means the period during which participants may choose 
to begin making contributions to the Thrift Savings Plan, to change or 
discontinue the amount they are currently contributing to the Thrift 
Savings Plan (without losing the right to recommence contributions the 
next open season), or to allocate prospective contributions to the 
Thrift Savings Plan among the investment funds;
    Participant means any person with an individual account in the 
Thrift Savings Plan, or who would have an account in the Thrift Savings 
Plan but for an employing agency error;
    Record keeper means the entity that is engaged by the Board to 
perform record keeping services for the Thrift Savings Plan. As of [the 
effective date of the final rule], the record keeper is the National 
Finance Center, Office of the Chief Financial Officer, United States 
Department of Agriculture, located in New Orleans, Louisiana.
    Source of contributions means either agency automatic (1%) 
contributions under 5 U.S.C 8432(c)(1) or 8432(c)(3), agency matching 
contributions under 5 U.S.C. 8432(c)(2), or employee contributions 
under 5 U.S.C. 8351, or 8440(a) through 8440d;
    Thrift Savings Plan means the Federal Retirement Thrift Savings 
Plan established by the Federal Employees' Retirement System Act of 
1986 (FERSA), Public Law 99-335, 100 Stat. 514, which has been 
codified, as amended, largely at 5 U.S.C. 8401-8479.
    3. Section 1640.2 is revised to read as follows:


Sec. 1640.2  Duty to provide information.

    The Executive Director will provide the information prescribed in 
Secs. 1640.3 and 1640.5 at least once every six months, and not later 
than thirty (30) days before the last month of an open season.
    4. Section 1640.3 is amended by revising the introductory text and 
paragraphs (c)(2), (d) and (e) to read as follows:


Sec. 1640.3  Statement of individual account.

    The Executive Director will furnish each participant with the 
following information concerning that participant's individual account:
* * * * *

[[Page 25561]]

    (c) * * *
    (2) The amounts of contributions and earnings in the C Fund, the F 
Fund, and the G Fund, by source of contribution;
    (d) All transactions made in accordance with Sec. 1640.4 and 
affecting the individual account which occurred during the period 
covered by the statement;
    (e) Any other information that the Executive Director determines 
should be in the statement.
    5. Section 1640.4 is revised to read as follows:


Sec. 1640.4  Account transactions.

    (a) Where relevant, the following transactions will be reported in 
each individual account statement:
    (1) Contributions;
    (2) Earnings posted;
    (3) Withdrawals;
    (4) Forfeitures;
    (5) Loan Activity;
    (6) Transfers among investment funds;
    (7) Adjustments to prior transactions; and
    (8) Any other transaction that the Executive Director deems will 
affect the status of the individual account.
    (b) Where relevant, the statement will contain the following 
information concerning each transaction identified in paragraph (a) of 
this section:
    (1) Type of transaction;
    (2) Pay date of the pay period in which the transaction was 
reflected in the participant's salary payment;
    (3) Investment funds affected;
    (4) Date the transaction was processed;
    (5) Source of the contribution;
    (6) Amount of the transaction; and
    (7) Any other information the Executive Director deems relevant.
    6. Section 1640.5 is revised to read as follows:


Sec. 1640.5  Investment fund information.

    For each open season, the Executive Director will furnish each 
participant with a statement concerning each of the investment funds. 
This statement will contain the following information concerning each 
investment fund:
    (a) A summary description of the type of investments to be made by 
the fund, written in a manner that will allow the participant to make 
an informed decision; and
    (b) The performance history of the type of investments to be made 
by the fund, covering the five-year period preceding the date of the 
evaluation.
    7. Section 1640.6 is revised to read as follows:


Sec. 1640.6  Method of providing information.

    (a) Individual account statement. The information concerning each 
participant's individual account described in Secs. 1640.3 and 1640.4 
will be sent to the participant at the participant's last known 
address, by first class mail. It is the participant's responsibility to 
provide his or her current address to his or her agency or, in the case 
of a separated employee, to the record keeper.
    (b) Investment information. The investment information described in 
Sec. 1640.5 will be furnished to each participant either:
    (1) By mailing the information to the participant by the method 
described in paragraph (a) of this section; or
    (2) By including that information in material published by the 
Board and distributed in a manner reasonably designed to reach the 
participant. This includes distributing the material through the 
participant's agency or, in the case of a separated employee, through 
the record keeper.

[FR Doc. 97-12169 Filed 5-8-97; 8:45 am]
BILLING CODE 6760-01-P