[Federal Register Volume 72, Number 181 (Wednesday, September 19, 2007)]
[Rules and Regulations]
[Pages 53413-53414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-18463]


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FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

5 CFR Parts 1600, 1605, 1631, 1651, 1655 and 1690


Employee Contribution Election and Contribution Allocations; 
Correction of Administrative Errors; Availability of Records; Death 
Benefits; Loan Program; Thrift Savings Plan

AGENCY: Federal Retirement Thrift Investment Board

ACTION: Final rule.

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SUMMARY: The Federal Retirement Thrift Investment Board (Agency) is 
amending the Thrift Savings Plan (TSP) regulations to provide 
additional means to verify that an amount is eligible for rollover to 
the TSP as authorized by the Treasury Regulations interpreting I.R.C. 
401(a)(31), to provide that the procedures applicable to an employee 
who was misclassified as either CSRS or FERS and the retirement system 
is corrected to FICA also apply to an employee who elects retroactive 
non-appropriated fund retirement coverage, and to provide that it will 
authenticate records in a manner consistent with Federal law and 
regulations. The Agency is also amending the TSP regulations to provide 
that it will allow a non-spouse beneficiary to transfer a death benefit 
payment to an inherited IRA as authorized by the Pension Protection Act 
of 2006, to provide that a bankruptcy court now lacks jurisdiction over 
a TSP loan as provided in the Bankruptcy Abuse and Consumer Protection 
Act of 2005, and to eliminate examples of general and special powers of 
attorney (some of which are no longer acceptable to the Agency) and, 
instead, direct participants to a sample form at the TSP Web site.

DATES: Effective September 19, 2007.

FOR FURTHER INFORMATION CONTACT: Megan Graziano on (202) 942-1644.

SUPPLEMENTARY INFORMATION: The Agency administers the TSP, which was 
established by the Federal Employees' Retirement System Act of 1986 
(FERSA), Public Law 99-335, 100 Stat. 514. The TSP provisions of FERSA 
are codified, as amended, largely at 5 U.S.C. 8351 and 8401-79. The TSP 
is a tax-deferred retirement savings plan for Federal civilian 
employees and members of the uniformed services. The TSP is similar to 
cash or deferred arrangements established for private-sector employees 
under section 401(k) of the Internal Revenue Code (26 U.S.C. 401(k)).
    On August 10, 2007, the Agency published proposed rules with 
request for comments in the Federal Register (72 FR 44982). The Agency 
received one comment which stated that the Agency should accept any 
power of attorney that is properly executed and verifiable and that the 
Agency should not encourage the use of general powers of attorney. The 
Agency agrees and believes that this is consistent with the intent of 
the proposed rule. The remainder of this comment dealt with matters 
outside the scope of the proposed rule change. Therefore, the Executive 
Director is publishing the proposed rules as final without change.

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.

Unfunded Mandates Reform Act of 1995

    Pursuant to the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 602, 
632, 653, 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 Sec.  
1532 is not required.

Submission to Congress and the Government Accountability Office

    Pursuant to 5 U.S.C. 810(a)(1)(A), the Agency 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 publication of this rule in the Federal Register. 
This rule is not a major rule as defined at 5 U.S.C. 814(2).

List of Subjects

5 CFR Parts 1600, 1690

    Government employees, Pensions, Retirement.

5 CFR Parts 1605, 1651

    Claims, Government employees, Pensions, Retirement.

5 CFR Part 1631

    Courts, Freedom of information, Government employees.

5 CFR Part 1655

    Credit, Government employees, Pensions, Retirement.

Gregory T. Long,
Executive Director, Federal Retirement Thrift Investment Board.

0
For the reasons set forth in the preamble, the Agency is amending 5 CFR 
chapter VI as follows:

PART 1600--EMPLOYEE CONTRIBUTION ELECTIONS AND CONTRIBUTION

0
1. The authority citation for part 1600 continues to read as follows:

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


0
2. Amend Sec.  1600.32 by removing the second sentence of paragraph (a) 
and adding two sentences in its place, and revising paragraph (b)(2) to 
read as follows:


Sec.  1600.32  Methods for transferring eligible rollover distribution 
to TSP.

* * * * *
    (a) * * * The administrator or trustee must either complete the 
appropriate section of the form and forward the completed form and the 
distribution to the TSP record keeper or the Agency must receive 
sufficient evidence from

[[Page 53414]]

which to reasonably conclude that a contribution is a valid rollover 
contribution. By way of example, sufficient evidence to conclude a 
contribution is a valid rollover contribution includes a copy of the 
plan's determination letter, a letter or other statement from the plan 
indicating that it is an eligible retirement plan, a check indicating 
that the contribution is a direct rollover or a tax notice from the 
plan to the participant indicating that the participant could receive a 
rollover from the plan.
    (b) * * *
    (2) The administrator or trustee must either complete the 
appropriate section of the form and forward the completed form and the 
distribution to the TSP record keeper or the Agency must receive 
sufficient evidence from which to reasonably conclude that a 
contribution is a valid rollover contribution. By way of example, 
sufficient evidence to conclude a contribution is a valid rollover 
contribution includes a copy of the plan's determination letter, a 
letter or other statement from the plan indicating that it is an 
eligible retirement plan, a check indicating that the contribution is a 
direct rollover or a tax notice from the plan to the participant 
indicating that the participant could receive a rollover from the plan.
* * * * *

PART 1605--CORRECTION OF ADMINISTRATIVE ERRORS

0
3. The authority citation for part 1605 is revised to read as follows:

    Authority: 5 U.S.C. 8351, 8432a, and 8474(b)(5)(5) and (c)(1). 
Subpart B also issued under section 1043(b) of Public Law 104-106, 
110 Stat. 186 and sec. 7202(m)(2) of Public Law 101-508, 104 Stat. 
1388.


0
4. Section 1605.14 is amended by revising the third sentence of 
paragraph (a)(1), revising paragraph (c)(2) and adding paragraph (e) to 
read as follows:


Sec.  1605.14  Misclassified retirement system coverage.

    (a) * * *
    (1) * * * If the participant requests a refund of employee 
contributions, the employing agency must submit a negative adjustment 
record to remove these funds under the procedure described in Sec.  
1605.12.
* * * * *
    (c) * * *
    (2) Employer contributions in the account are subject to the rules 
in paragraph (a)(2) of this section.
* * * * *
    (e) The provisions of paragraph (c) of this section shall apply to 
any TSP contributions relating to a period for which an employee elects 
retroactive Nonappropriated Fund retirement coverage.

PART 1631--AVAILABILITY OF RECORDS

0
5. The authority citation for part 1631 continues to read as follows:

    Authority: 5 U.S.C. 552.

0
6. Add Sec.  1631.34 to read as follows:


Sec.  1631.34  Certification and authentication of records.

    (a) Upon request, the records custodian or other qualified 
individual shall authenticate copies of books, records, papers, 
writings, and documents by attaching a written declaration that 
complies with current Federal Rules of Evidence. No seal or 
notarization shall be required. Copies of any books, records, papers, 
or other documents in the Federal Retirement Thrift Investment Board 
shall be admitted in evidence equally with the originals thereof when 
authenticated in this manner.
    (b) Fees for copying and certification are set forth in 5 CFR 
1630.16.

PART 1651--DEATH BENEFITS

0
7. The authority citation for part 1651 continues to read as follows:

    Authority: 5 U.S.C. 8424] (d), 8432(j), 8433(e), 8435(c)(2), 
8474(b)(5) and 8474 (c)(1).


0
8. In Sec.  1651.14, redesignate paragraphs (g) and (h) as paragraphs 
(h) and (i), and add new paragraph (g) to read as follows:


Sec.  1651.14  How payment is made.

* * * * *
    (g) Payment to inherited IRA on behalf of a non-spouse beneficiary. 
If payment is to an inherited IRA on behalf of a non-spouse 
beneficiary, the check will be made payable to the account. Information 
pertaining to the inherited IRA must be submitted by the IRA trustee.
* * * * *

PART 1655--LOAN PROGRAM

0
9. The authority citation for part 1655 continues to read as follows:

    Authority: 5 U.S.C. 8433(g), 8439(a)(3) and 8474.


Sec.  1655.14  [Amended]

0
10. In Sec.  1655.14, the third sentence of paragraph (a) is removed.


Sec.  1655.15  [Amended]

0
11. In Sec.  1655.15 ``or'' is added to the end of paragraph (a)(5), a 
period replaces the semicolon at the end of paragraph (a)(6), ``or'' is 
removed from the end of paragraph (a)(6), and paragraph (a)(7) is 
removed.

PART 1690--THRIFT SAVINGS PLANS

0
12. The authority citation for part 1690 continues to read as follows:

    Authority: 5 U.S.C. 8474.

0
13. Amend Sec.  1690.12 by revising the second sentence in paragraph 
(b) and the third sentence in paragraph (c) to read as follows:


Sec.  1690.12  Power of attorney.

* * * * *
    (b) * * * Additional information regarding general powers of 
attorney can be accessed at http://www.tsp.gov.
    (c) * * * Additional information regarding special powers of 
attorney, as well as a sample form, can be accessed at http://www.tsp.gov.

 [FR Doc. E7-18463 Filed 9-18-07; 8:45 am]
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