[Federal Register Volume 63, Number 165 (Wednesday, August 26, 1998)]
[Rules and Regulations]
[Pages 45391-45392]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22806]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 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 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 63, No. 165 / Wednesday, August 26, 1998 / 
Rules and Regulations  

[[Page 45391]]


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

FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

5 CFR Part 1655


Thrift Savings Plan Loans

AGENCY: Federal Retirement Thrift Investment Board.

ACTION: Final rule.

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

SUMMARY: The Executive Director of the Federal Retirement Thrift 
Investment Board (Board) is adopting as final an amendment to the 
Board's Thrift Savings Plan (TSP) loan regulations without change. The 
amendment affects participants who are alleged to have submitted false 
information in support of their request for a TSP loan.

DATES: This final rule is effective August 26, 1998.

FOR FURTHER INFORMATION CONTACT: Elizabeth S. Woodruff, Federal 
Retirement Thrift Investment Board, 1250 H Street, NW, Washington, DC 
20005; (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, 
Pub. L. 99-335, 100 Stat 514, codified, as amended, largely at 5 U.S.C. 
8401-8479.
    On April 14, 1997, the Board published a final rule governing TSP 
loans in the Federal Register (62 FR 18019). On June 1, 1998, the Board 
published a proposed rule with request for comments in the Federal 
Register (63 FR 29674) which amended the final loan regulations by 
adding paragraph (f) to Sec. 1655.18. The amendment provides that, if 
the Board receives a written allegation from the spouse stating that a 
participant misrepresented his/her marital status or the address of the 
spouse of a CSRS participant, or that the participant submitted a Loan 
Agreement/Promissory Note with a forged signature of the spouse of a 
FERS participant, the Board will give the participant an opportunity to 
repay the loan within a 60-day period. If the participant does not 
repay the loan in full within the 60 days provided, the Board will 
conduct an investigation into the allegation. Where the Board finds 
evidence to suggest that the participant submitted false information, 
it will refer the case to the Department of Justice for criminal 
prosecution and, where the participant is still employed, to the 
Inspector General or other appropriate authority in the participant's 
employing agency for administrative action.

Regulatory Flexibility Act

    I certify that this amendment will not have a significant economic 
impact on a substantial number of small entities. It will only affect 
TSP participants.

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 prior to publication of this rule in today's Federal 
Register. This rule is not a major rule as defined at 5 U.S.C. 804(2).

List of Subjects in 5 CFR Part 1655

    Credit, Government employees, Pensions, Retirement.

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

    For the reasons set forth in the preamble, part 1655 of chapter VI 
of title 5 of the Code of Federal Regulations is amended as follows:

PART 1655--LOAN PROGRAMS

    1. The authority citation for part 1655 continues to read as 
follows:

    Authority: 5 U.S.C. 8433(g) and 8474.

    2. Section 1655.18 is amended by adding paragraph (f) to read as 
follows:


Sec. 1655.18  Spousal rights.

* * * * *
    (f)(1) By signing the Loan Application and the Loan Agreement/
Promissory Note, the participant represents that all information 
provided to the TSP during the loan process is true and correct, 
including statements concerning the participant's marital status and 
spouse's address at the time the application is filed and documentation 
that the current spouse has consented to the loan.
    (2) If the Board receives a written allegation from the spouse that 
the participant may have misrepresented his/her marital status or the 
spouse's address (in the case of a CSRS participant), or that the 
signature of the spouse of a FERS participant was forged, the Board 
will submit the questioned document to the spouse and request that he 
or she state in writing that the information is false or that the 
spouse's signature has been forged. In the event of an alleged forgery, 
the Board will also request the spouse to provide at least three 
signature samples.
    (3) If the spouse affirms the allegation in accordance with the 
procedure set forth in paragraph (f)(2) of this section and the loan 
has been disbursed, the Board will give the participant an opportunity 
to repay, within 60 days, the unpaid loan principal, plus unpaid 
interest. If the loan is repaid, the Board will not investigate the 
spouse's allegation.
    (4) Paragraph (f)(3) of this section will not apply where the 
participant has received a final divorce decree before the funds are 
received by the Thrift Savings Plan.
    (5) If the unpaid loan principal, plus unpaid interest, is not 
repaid to the Plan

[[Page 45392]]

in full within the time period provided in paragraph (f)(3) of this 
section, the Board will conduct an investigation into the allegation. 
If the participant has received a final divorce decree before the funds 
are received by the Thrift Savings Plan, the Board will begin its 
investigation immediately.
    (6) If, during its investigation, the Board finds evidence to 
suggest that the participant misrepresented his/her marital status or 
spouse's address (in the case of a CSRS participant), or submitted the 
Loan Agreement/Promissory Note with a forged signature, the Board will 
refer the case to the Department of Justice for criminal prosecution 
and, if the participant is still employed, to the Inspector General or 
other appropriate authority in the participant's employing agency for 
administrative action.
    (7) Upon receipt of an allegation described in paragraph (f)(2) of 
this section, the participant's account will be frozen and no 
withdrawal or loan will be permitted until after:
    (i) 30 days have elapsed since the participant's spouse was sent a 
copy of the questioned document and no written affirmation of the 
alleged false information or forgery (together with signature samples 
in the case of an alleged forgery) has been received by the Board;
    (ii) The loan is repaid pursuant to paragraph (f)(3) of this 
section;
    (iii) The Executive Director concludes that the Board's 
investigation did not yield persuasive evidence that supports the 
spouse's allegation;
    (iv) The Executive Director has been assured in writing by the 
spouse that any future request for a loan or withdrawal comports with 
the applicable requirement of notice or consent; or
    (v) The participant is divorced.

[FR Doc. 98-22806 Filed 8-25-98; 8:45 am]
BILLING CODE 6760-01-P