[Federal Register Volume 66, Number 58 (Monday, March 26, 2001)]
[Proposed Rules]
[Pages 16411-16415]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-7232]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 66, No. 58 / Monday, March 26, 2001 / 
Proposed Rules  

[[Page 16411]]



FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

5 CFR Part 1600


Employee Elections to Contribute to the Thrift Savings Plan

AGENCY: Federal Retirement Thrift Investment Board.

ACTION: Proposed rule.

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

SUMMARY: The Executive Director of the Federal Retirement Thrift 
Investment Board (Board) proposes to amend the regulations on employee 
elections to contribute to the Thrift Savings Plan (TSP) to provide for 
employee participation in the Thrift Savings Plan to begin immediately 
upon the employee's appointment to a position covered by FERS or CSRS, 
or an equivalent retirement plan. Beginning July 1, 2001, participants 
also will be able to transfer into their TSP accounts funds from 
certain qualified retirement plans or conduit individual retirement 
accounts (IRAs). In addition, the limitations on employee contributions 
(as a percentage of basic pay) are phased out over the next 5 years.

DATES: Comments must be received on or before April 25, 2001.

ADDRESSES: Comments may be sent to: Elizabeth S. Woodruff, General 
Counsel, Federal Retirement Thrift Investment Board, 1250 H Street, 
N.W., Washington, D.C. 20005.

FOR FURTHER INFORMATION CONTACT: Salomon Gomez on (202) 942-1661; 
Merritt A. Willing on (202) 942-1666; or Patrick J. Forrest on (202) 
942-1659. FAX (202) 942-1676.

SUPPLEMENTARY INFORMATION: The Board administers the TSP, which was 
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. 8351 and 8401-8479. The TSP is a tax-
deferred retirement savings plan for Federal employees, which is 
similar to cash or deferred arrangements established under section 
401(k) of the Internal Revenue Code. Sums in a TSP participant's 
account are held in trust for that participant.
    On December 2, 1987, the Board published in the Federal Register 
(52 FR 45802) interim rules concerning the procedures governing the 
establishment of open seasons and election periods for Federal 
employees to make or change employee contributions to the TSP. On June 
22, 1988, the Board amended sections 1600.3, 1600.10, and 1600.13 (53 
FR 23379). On November 4, 1994, the Board published in the Federal 
Register (59 FR 55331) a final rule concerning contribution elections. 
The Board amended section 1600.1 of the final rule on November 18, 1996 
(61 FR 58754) to revise the definition of basic pay.
    On October 27, 2000, Congress passed Public Law 106-361. In it, 
Congress eliminates the waiting period for new and rehired employees to 
begin making employee contributions. The Act also permits participants 
to transfer moneys from certain qualified retirement accounts and 
conduit IRAs into their TSP accounts. Also, on December 21, 2000, 
Congress passed the Consolidated Appropriations Act for Fiscal Year 
2001, Public Law 106-554, which includes a provision changing the 
limits on FERS and CSRS TSP employee contributions (i.e., 10 and 5 
percent of basic pay, respectively) by raising the percentage 
limitation one percent each year until 2006, when the limits are 
removed altogether. However, the Internal Revenue Code annual limits on 
elective deferrals, I.R.C. sections 402(g) and 415(c), will continue to 
be applicable to TSP contributions. This proposal revises the 
regulation to incorporate these statutory changes.

Analysis

    Subpart A includes definitions that are relevant to contributions; 
the definition of highly compensated employee in the existing 
regulation is deleted because it is obsolete.
    In subpart B, the Board proposes to combine the portions of 
existing subparts B, C, and D that relate to contribution elections. 
The rule deletes obsolete references to the initial open season in 
1987, and makes changes necessary to permit immediate employee 
contributions. It eliminates the requirement that an employee who was 
previously eligible to participate in the TSP must wait until an open 
season to make a contribution election. Under the proposed rule, an 
employee is immediately eligible to make a contribution election for 
employee contributions. If the employee was previously eligible to 
receive employer contributions, the employee will also be immediately 
eligible to receive employer contributions. The proposed regulation 
makes other changes to differentiate between contribution elections, 
provided for in this part, and contribution allocations, provided for 
in part 1601.
    In subpart C, the Board proposes to reorganize the provisions of 
existing subpart C that describe the contributions program in general. 
The proposed regulation phases out the limits on employee contributions 
as a percentage of basic pay and explains the Internal Revenue Code's 
limitations on TSP contributions, which still apply.
    The Board proposes to delete the portions of existing subpart D 
that were not included in proposed subpart B, all of existing subpart 
E, and Sec. 1600.17 of existing subpart F because they are obsolete. 
Section 1600.18 of existing subpart F is incorporated into proposed 
subpart B. The proposed regulation creates a new subpart D which 
describes the kinds of qualified retirement accounts and conduit IRAs 
that may be transferred to the TSP, the method by which a transfer may 
be made, and the treatment accorded such funds in the TSP.

                         Cross-Reference Tables
------------------------------------------------------------------------
              Old section                          New section
------------------------------------------------------------------------
1600.1.................................  1600.1
1600.2(a)..............................  Deleted.
1600.2(b)..............................  1600.12(b)
1600.2(c)..............................  1600.15
1600.2(d)..............................  1600.16
1600.3.................................  Deleted.
1600.4(a)..............................  1600.11(a)
1600.4(b)..............................  Deleted.
1600.5.................................  1600.12(c)
1600.6.................................  1600.14
1600.7.................................  1600.13
1600.8.................................  Deleted.
1600.9.................................  1600.21
1600.10................................  1600.22
1600.11................................  1600.23
1600.12................................  1600.18
1600.13................................  Deleted.
1600.14................................  Deleted.
1600.15................................  Deleted.
1600.16................................  Deleted.
1600.17................................  Deleted.

[[Page 16412]]

 
1600.18................................  Deleted.
1600.1.................................  1600.1
1600.11................................  1600.4
1600.12................................  1600.2(b), 1600.5
1600.13................................  1600.7
1600.14................................  1600.6
1600.15................................  1600.2(c)
1600.16................................  1600.2(d)
1600.17................................  New.
1600.18................................  1600.12
1600.21................................  1600.9
1600.22................................  1600.10
1600.23................................  1600.11
1600.31................................  New.
1600.32................................  New.
1600.33................................  New.
------------------------------------------------------------------------

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 employees of the Federal Government.

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, 2 U.S.C. 602, 
632, 653, and 1501-1571, the effects of this regulation on state, 
local, and tribal governments and the private sector have been 
assessed. This regulation will not compel the expenditure in any one 
year of $100 million or more by state, local, and tribal governments, 
in the aggregate, or by the private sector. Therefore, a statement 
under section 1532 is not required.

List of Subjects in 5 CFR Part 1600

    Employment benefit plans, Government employees, Pensions, 
Retirement.

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

    For the reasons set out in the preamble, the Board proposes to 
revise 5 CFR part 1600 to read as follows:

PART 1600--EMPLOYEE ELECTIONS TO CONTRIBUTE TO THE THRIFT SAVINGS 
PLAN

Subpart A--General
Sec.
1600.1   Definitions.
Subpart B--Elections
1600.11   Types of elections.
1600.12   Period for making contribution elections.
1600.13   Effective dates of contribution elections.
1600.14   Method of election.
1600.15   Number of elections.
1600.16   Belated elections.
1600.17   Timing of agency contributions.
1600.18   Effect of transfer to FERS.
Subpart C--Program of Contributions
1600.21   Contributions in whole numbers.
1600.22   Maximum contributions.
1600.23   Required reduction of contribution rates.
Subpart D--Transfers From Other Qualified Retirement Plans
 1600.31   Accounts eligible for transfer.
1600.32   Methods for transferring account from qualified retirement 
plan or conduit IRA to TSP.
1600.33   TSP treatment accorded transferred funds.

    Authority: 5 U.S.C. 8351, 8432(b)(1)(A), 8474(b)(5) and (c)(1).

Subpart A--General


Sec. 1600.1  Definitions.

    Terms used in this part have the following meanings:
    Account or individual account means the account established for a 
participant in the Thrift Savings Plan under 5 U.S.C. 8439(a).
    Agency automatic (1%) contributions means any contributions made 
under 5 U.S.C. 8432(c)(1) and (c)(3).
    Agency matching contributions means any contributions made under 5 
U.S.C. 8432(c)(2).
    Basic pay means basic pay as defined in 5 U.S.C. 8331(3). For CSRS 
and FERS employees, 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 of participating in the 
Civil Service Retirement System or the Federal Employees' Retirement 
System, as the case may be.
    Board means the Federal Retirement Thrift Investment Board 
established under 5 U.S.C. 8472.
    Contribution allocation means the apportionment of a participant's 
future contributions and loan payments among the TSP investment funds.
    Contribution election means a request by an employee to start 
contributing to the TSP, to change the amount of contributions made to 
the TSP each pay period, or to terminate contributions to the TSP.
    CSRS means the Civil Service Retirement System established by 5 
U.S.C. chapter 83, subchapter III, or any equivalent Federal retirement 
system.
    CSRS employee or CSRS participant means any employee or participant 
covered by CSRS.
    Date of appointment means the effective date of an employee's 
accession by the current employing agency.
    Election period means the last calendar month of a TSP open season. 
It is the earliest period during which a TSP contribution election can 
become effective.
    Employee contributions means any contributions to the Thrift 
Savings Plan made under 5 U.S.C. 8351(a), 8432(a), or 8440a through 
8440e.
    Employer contributions means agency automatic (1%) contributions 
under 5 U.S.C. 8432(c)(1) or 8432(c)(3) and agency matching 
contributions under 5 U.S.C. 8432(c)(2).
    Employing agency means the organization that employs an individual 
eligible to contribute to the TSP and that has authority to make 
personnel compensation decisions for the individual.
    Executive Director means the Executive Director of the Federal 
Retirement Thrift Investment Board under 5 U.S.C. 8474.
    FERS means the Federal Employees' Retirement System established by 
5 U.S.C. chapter 84 or any equivalent Federal retirement system.
    FERS employee or FERS participant means any employee or TSP 
participant covered by FERS.
    Open season means the period during which employees may elect to 
make contributions to the TSP, change the amount of contributions, or 
terminate contributions (without losing the right to resume 
contributions during the next open season).
    Separation from Government service means the cessation of 
employment with the Federal Government, the U.S. Postal Service, or 
with any other employer, from a position that is deemed to be 
Government employment for purposes of participating in the TSP, for 31 
or more full calendar days.
    Thrift Savings Plan, TSP, or Plan means the Thrift Savings Plan 
established under subchapters III and VII of the Federal Employees' 
Retirement System Act of 1986, 5 U.S.C. 8351 and 8401-8479.
    Thrift Savings Plan Service Office (TSPSO) means the office of the 
TSP record keeper which provides service to participants. The TSPSO's 
address is: Thrift Savings Plan Service Office, National Finance 
Center, P.O. Box 61500, New Orleans, Louisiana 70161-1500.
    TSP record keeper means the entity that is engaged by the Board to 
perform

[[Page 16413]]

record keeping services for the Thrift Savings Plan. As of the date of 
publication of this part, the TSP record keeper is the National Finance 
Center, Office of Finance and Management, United States Department of 
Agriculture, located in New Orleans, Louisiana.

Subpart B--Elections


Sec. 1600.11  Types of elections.

    (a) Contribution elections. A contribution election can be made on 
a Form TSP-1, Thrift Savings Plan Election Form, and includes any one 
of the following elections:
    (1) To make employee contributions;
    (2) To change the amount of employee contributions; or
    (3) To terminate employee contributions.
    (b) Contribution allocation. A participant may make or change the 
manner in which future deposits to his or her account are allocated 
among the TSP's investment funds only in accordance with 5 CFR part 
1601.


Sec. 1600.12  Period for making contribution elections.

    (a) Participation upon initial appointment or reappointment. An 
employee may make a contribution election as follows:
    (1) Appointments made during the period January 1 through June 30, 
2001. An employee appointed, or reappointed following a separation from 
Government service, to a position covered by FERS or CSRS during the 
period January 1 through June 30, 2001, may make a TSP contribution 
election during the May 15 through July 31, 2001, open season.
    (2) Appointments made on or after July 1, 2001. An employee 
appointed, or reappointed following a separation from Government 
service, to a position covered by FERS or CSRS may make a TSP 
contribution election within 60 days after the effective date of the 
appointment.
    (b) Open season elections. Any employee may make a contribution 
election during an open season. Each year an open season will begin on 
May 15 and will end on July 31; a second open season will begin on 
November 15 and will end on January 31 of the following year. If the 
last day of an open season falls on a Saturday, Sunday, or legal 
holiday, the open season will be extended through the end of the next 
business day.
    (c) Election to terminate contributions. An employee may elect to 
terminate employee contributions to the TSP at any time. If an 
employee's election to terminate contributions is received by the 
employing agency during an open season, the employee, if otherwise 
eligible, may make an election to resume contributions during the next 
open season. If the election to terminate contributions is received by 
the employing agency outside an open season, the employee may not make 
an election to resume contributions until the second open season 
beginning after the election to terminate.
    (d) Forced termination of employee contributions due to in-service 
hardship withdrawal restrictions under 5 CFR part 1650. If an employee 
is reappointed to a position covered by FERS or CSRS following a 
separation from Government service and, at the time of separation, he 
or she had been previously ineligible to make employee contributions or 
receive agency matching contributions because of the restrictions on 
participants' ability to make contributions after having received an 
in-service hardship distribution, described in 5 CFR part 1650, the 
employee continues to be ineligible to make employee contributions or 
have agency matching contributions made on the employee's behalf during 
the six-month period described at Sec. 1650.32.


Sec. 1600.13  Effective dates of contribution elections.

    (a) Participation upon initial appointment or reappointment. (1) 
TSP contribution elections made pursuant to Sec. 1600.12(a)(1) will be 
effective no earlier than the first full pay period in July 2001. TSP 
contribution elections that are received by the employing agency 
between May 15, 2001, and June 30, 2001, will become effective the 
first full pay period of the election period. TSP contribution 
elections that are received by the employing agency during July 2001 
will become effective no later than the first full pay period after the 
date the employing agency receives the election.
    (2) TSP contribution elections made pursuant to Sec. 1600.12(a)(2) 
will become effective no later than the first full pay period after the 
election is received by the employing agency.
    (b) Open season elections. TSP contribution elections made pursuant 
to Sec. 1600.12(b) that are received by an employing agency during a 
portion of an open season which precedes the election period, except 
for an election to terminate contributions, will become effective the 
first full pay period of the election period. TSP contribution 
elections made pursuant to Sec. 1600.12(b) that are received by an 
employing agency during the election period will become effective no 
later than the first full pay period after the date the employing 
agency receives the election.
    (c) Election to terminate contributions. An election to terminate 
contributions, whenever it is made, will become effective no later than 
the first full pay period after the date the employing agency receives 
the election.
    (d) Elections resulting from transfer to FERS. Elections made 
pursuant to Sec. 1600.18 will become effective no later than the first 
full pay period after the date the employing agency receives the 
election. If the employee submits a contribution election at the same 
time that he or she submits the FERS transfer election, both elections 
will become effective the same pay period.


Sec. 1600.14  Method of election.

    (a) A participant must submit a contribution election to his or her 
employing agency. Employees may use either the paper TSP election form, 
Form TSP-1, or, if provided by their employing agency, electronic media 
to make an election. If an electronic medium is used, all relevant 
elements contained on the paper Form TSP-1 must be included in the 
electronic medium.
    (b) A contribution election must:
    (1) Be completed in accordance with the instructions on Form TSP-1, 
if a paper form is used;
    (2) Be made in accordance with the employing agency's instructions, 
if the submission is made electronically; and
    (3) Not exceed the maximum contribution limitations described in 
Sec. 1600.22.


Sec. 1600.15  Number of elections.

    Once a contribution election made during an open season becomes 
effective, no further contribution elections may be made during the 
same open season, except an election to terminate contributions.


Sec. 1600.16  Belated elections.

    When an employing agency determines that an employee was unable, 
for reasons that were beyond the employee's control (other than agency 
administrative error, as provided in 5 CFR part 1605), to make a 
contribution election within the time limits prescribed by this part, 
the agency may accept the employee's election within 30 calendar days 
after it advises the employee of its determination. The election will 
become effective no later than the first full pay period after the date 
the employing agency receives the election.


Sec. 1600.17  Timing of agency contributions.

    (a) Employees not previously eligible to receive agency 
contributions. An

[[Page 16414]]

employee appointed or reappointed to a position covered by FERS who had 
not been previously eligible to receive agency contributions is 
eligible to receive agency contributions the full second election 
period following the effective date of the appointment. If an employee 
is appointed during an election period, that election period is not 
counted as the first election period.
    (b) Employees previously eligible to receive agency contributions. 
An employee reappointed to a position covered by FERS who was 
previously eligible to receive agency contributions is immediately 
eligible to receive agency contributions.
    (c) Agency matching contributions that are attributable to the 
employee contributions made to the account of a FERS participant must 
change or terminate, as applicable, when the employee's contribution 
election becomes effective.


Sec. 1600.18  Effect of transfer to FERS.

    (a) If an employee appointed to a position covered by CSRS elects 
to transfer to FERS, the employee may make a contribution election 
simultaneously with the election to transfer to FERS, or within 30 
calendar days after the effective date of his or her transfer.
    (b) Eligibility to make employee contributions, and therefore to 
have agency matching contributions made on the employee's behalf, is 
subject to the restrictions on making employee contributions after 
receipt of a financial hardship in-service withdrawal described at 5 
CFR part 1650.
    (c) If the employee had elected to make TSP contributions while 
covered by CSRS, the election continues to be valid until the employee 
makes a new valid election.
    (d) Agency automatic (1%) contributions for all employees covered 
under this section and, if applicable, agency matching contributions 
attributable to employee contributions must begin the same pay period 
that the transfer to FERS becomes effective.

Subpart C--Program of Contributions


Sec. 1600.21  Contributions in whole numbers.

    Employees may elect to contribute a percentage of basic pay or a 
dollar amount, subject to the limits described in Sec. 1600.22. The 
election must be expressed in whole percentages or whole dollar 
amounts.


Sec. 1600.22  Maximum contributions.

    (a) Percentage of basic pay. (1) Subject to paragraphs (b) and (c) 
of this section, the maximum FERS employee contribution for 2001 is 11 
percent of basic pay per pay period. The maximum contribution will 
increase one percent a year until 2005, after which the percentage of 
basic pay limit will not apply and the maximum contribution will be 
limited only as provided in paragraphs (b) and (c) of this section.
    (2) Subject to paragraphs (b) and (c) of this section, the maximum 
CSRS employee contribution for 2001 is 6 percent of basic pay per pay 
period. The maximum contribution will increase one percent a year until 
2005, after which the percentage of basic pay limit will not apply and 
the maximum contribution will be limited only as provided in paragraphs 
(b) and (c) of this section.
    (b) Internal Revenue Code (I.R.C.) limit on elective deferrals. 
Section 402(g) of the I.R.C. (26 U.S.C. 402(g)) places a limit on the 
amount an employee may save on a tax-deferred basis through the TSP. 
Employee contributions to the TSP will be restricted to the I.R.C. 
limit; the TSP will not accept any contribution that exceeds the I.R.C. 
section 402(g) limit. If a participant contributes to the TSP and 
another plan, and the combined contributions exceed the I.R.C. section 
402(g) limit, he or she may request a refund of employee contributions 
from the TSP to conform with the limit.
    (c) I.R.C. limit on contributions to qualified plans. Section 
415(c) of the I.R.C. (26 U.S.C. 415(c)) also places a limit on the 
amount an employee may save on a tax-deferred basis through the TSP. 
Employee contributions, described in this section, and employer 
contributions, described in Sec. 1600.17, made to the TSP will be 
restricted to the I.R.C. section 415(c) limit. No employee contribution 
may be made to the TSP for any year to the extent that the sum of the 
employee contributions and the employer contributions for that year 
would exceed the I.R.C. section 415(c) limit.


Sec. 1600.23  Required reduction of contribution rates.

    (a) The employing agency will reduce the contribution of any FERS 
or CSRS employee who has elected a whole dollar amount but whose 
elected contribution for any pay period exceeds any of the applicable 
maximum percentages set forth in Sec. 1600.22. The employing agency 
will reduce the whole dollar amount to the highest whole dollar amount 
that does not exceed the applicable maximum percentage.
    (b) An employing agency will not contribute to a participant's TSP 
account any amounts in excess of the limits referred to in 
Sec. 1600.22(b) or (c).

Subpart D--Transfers From Other Qualified Retirement Plans


Sec. 1600.31  Accounts eligible for transfer.

    Effective July 1, 2001, participants may transfer funds in the 
following types of accounts into their existing TSP accounts. This 
option is not available to participants who have already made a full 
withdrawal of their account or who are receiving monthly payments.
    (a) Qualified retirement plan. For the purposes of this part, a 
qualified retirement plan is a qualified trust, described in section 
401(a) of the I.R.C. (26 U.S.C. 401(a)), which is exempt from taxation 
under I.R.C. section 501(a) (26 U.S.C. 501(a)), or an annuity plan, 
described in section 403(a) of the I.R.C. (26 U.S.C. 403(a)).
    (b) Conduit individual retirement account (conduit IRA). For the 
purposes of this part, a conduit IRA is an individual retirement 
account, described in I.R.C. section 408(a) (26 U.S.C. 408(a)), or an 
individual retirement annuity, described in I.R.C. section 408(b) (26 
U.S.C. 408(b)), that contains only funds transferred or rolled over 
from a qualified retirement plan (and earnings on those amounts).
    (c) Eligible rollover distribution. In order to be eligible for 
transfer to the TSP, distributions from accounts that qualify under 
either paragraph (a) or (b) of this section must also be eligible 
rollover distributions pursuant to I.R.C. section 402(c)(4) (26 U.S.C. 
402(c)).


Sec. 1600.32  Methods for transferring account from qualified 
retirement plan or conduit IRA to TSP.

    (a) Trustee to trustee transfer. Participants may request that the 
administrator of their qualified retirement plan or the custodian of 
their conduit IRA transfer any or all of their account directly to the 
TSP by completing and submitting a Form TSP-60, Request for a Rollover 
into the TSP, to the administrator or custodian and requesting that the 
transaction be completed.
    (b) Rollover by participant. Participants who have already received 
a distribution from their plan or conduit IRA may roll over all or part 
of the distribution into the TSP in accordance with the following 
requirements:
    (1) The participant must complete a Form TSP-60, Request for a 
Rollover into the TSP.
    (2) The administrator of the qualified retirement plan or the 
custodian of the conduit IRA must certify on the TSP transfer form the 
amount and date of the distribution, and that the distribution is an 
eligible rollover distribution in accordance with I.R.C. section 
402(c)(4).

[[Page 16415]]

    (3) The participant must submit the completed Form TSP-60, together 
with a certified check, cashier's check, cashier's draft, money order, 
or treasurer's check from a credit union, made out to the Thrift 
Savings Plan for the entire amount of the rollover. A participant may 
roll over the full amount of the distribution by making up, from his or 
her own funds, the amount that was withheld from the distribution for 
the payment of federal taxes.
    (4) The transaction must be completed within 60 days of the 
participant's receipt of the distribution from the retirement plan or 
conduit IRA. The transaction is not complete until the TSP record 
keeper receives the Form TSP-60, executed by both the participant and 
plan administrator or IRA custodian, together with the guaranteed funds 
for the amount to be rolled over.


Sec. 1600.33  Treatment accorded transferred funds.

    (a) All funds transferred to the TSP pursuant to Secs. 1600.31 and 
1600.32 will be treated as employee contributions.
    (b) All funds transferred to the TSP pursuant to Secs. 1600.31 and 
1600.32 will be invested in accordance with the participant's 
contribution allocation on file at the time the transfer is completed.
    (c) Funds transferred to the TSP pursuant to Secs. 1600.31 and 
1600.32 are not subject to the limits on contributions described in 
Sec. 1600.22.

[FR Doc. 01-7232 Filed 3-23-01; 8:45 am]
BILLING CODE 6760-01-P