[Federal Register Volume 89, Number 51 (Thursday, March 14, 2024)]
[Rules and Regulations]
[Pages 18533-18534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05346]



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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. 89 , No. 51 / Thursday, March 14, 2024 / 
Rules and Regulations  

[[Page 18533]]



FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

5 CFR Part 1650


Removal of 30-Calendar-Day Waiting Period Between Withdrawals

AGENCY: Federal Retirement Thrift Investment Board.

ACTION: Direct final rule.

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SUMMARY: This direct final rule removes the Thrift Savings Plan (TSP)'s 
restriction on a participant's ability to request more than one 
withdrawal within a thirty-calendar-day period.

DATES: The effective date of this final rule is May 15, 2024 unless 
significant adverse comment is received by April 15, 2024.

ADDRESSES: You may submit comments using one of the following methods:
     Federal Rulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Office of General Counsel, Attn: Dharmesh Vashee, 
Federal Retirement Thrift Investment Board, 77 K Street NE, Suite 1000, 
Washington, DC 20002.
    The most helpful comments explain the reason for any recommended 
change and include data, information, and the authority that supports 
the recommended change.

FOR FURTHER INFORMATION CONTACT: For press inquiries: contact Kim 
Weaver at (202) 942-1641. For information about commenting on this 
rule: contact Elizabeth Harris at (202) 913-5300.

SUPPLEMENTARY INFORMATION: The Federal Retirement Thrift Investment 
Board (FRTIB) 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 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)).

Background

    On November 17, 2017, the President signed the TSP Modernization 
Act of 2017 (the ``Act''), Public Law 115-84 (131 Stat. 1272), which 
permitted the TSP to offer participants the ability to take withdrawals 
more frequently than they could under prior law. Accordingly, the FRTIB 
amended 5 CFR 1650 to allow participants to take up to four age-based 
withdrawals per calendar year and as many partial post-separation 
withdrawals as they desire--subject only to a 30-calendar-day waiting 
period between withdrawals. The waiting period was a practical 
necessity to avoid inadvertently processing duplicate withdrawal 
requests. Duplicate processing sometimes occurred, for example, when a 
participant faxed a withdrawal request form to the TSP and then 
immediately mailed the same withdrawal request form to the TSP. Our 
prior recordkeeping system was designed to reject withdrawal request 
forms that were received within 30 days of the date on which another 
withdrawal request form was processed. The 30-calendar-day waiting 
period ensured that, when multiple copies of a single withdrawal 
request form were received by the TSP recordkeeper, the withdrawal was 
only processed once.
    The TSP transitioned to a new recordkeeping system in June of 2022. 
In conjunction with the transition, the TSP moved to electronic 
processing of withdrawal requests and no longer relies primarily on 
paper-based processes. The 30-calendar-day waiting period is an 
obsolete requirement implemented to facilitate a primarily paper-based 
process no longer in use by the Thrift Savings Plan (TSP). Today, 
participants can complete most withdrawal requests entirely online 
instead of using paper forms. Accordingly, this direct final rule will 
remove the 30-calendar-day waiting period.

Direct Final Rulemaking

    A direct final rule is a final rule that does not go through 
proposed rulemaking first. We use direct final rulemaking when we 
expect that the rule will generate no significant adverse comments. We 
are issuing a direct final rule because we expect this regulatory 
change to be entirely non-controversial. However, to be certain that we 
are correct, we set the comment period to end before the effective 
date. If we receive a significant adverse comment, we will withdraw the 
direct final rule before it becomes effective.
    For purposes of this rulemaking, a significant adverse comment is 
one that explains (1) why the rule is inappropriate, including 
challenges to the rule's underlying premise or approach; or (2) why the 
rule will be ineffective or unacceptable without a change. In 
determining whether a significant adverse comment necessitates 
withdrawal of this direct final rule, the FRTIB will consider whether 
the comment raises an issue serious enough to warrant a substantive 
response had it been submitted in a standard notice-and-comment 
process. A comment recommending an addition to the rule will not be 
considered significant and adverse unless the comment explains how this 
direct final rule would be ineffective or unacceptable without the 
addition.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities. This regulation will 
affect Federal employees and members of the uniformed services who 
participate in the Thrift Savings Plan, which is a Federal defined 
contribution retirement savings plan created under the Federal 
Employees' Retirement System Act of 1986 (FERSA), Public Law 99-335, 
100 Stat. 514, and which is administered by the FRTIB.

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 
section 1532 is not required.

[[Page 18534]]

Submission to Congress and the General Accounting Office

    Pursuant to 5 U.S.C. 810(a)(1)(A), the FRTIB 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. 804(2).

List of Subjects in 5 CFR Part 1650

    Alimony, Claims, Government employees, Pensions, Retirement.

Ravindra Deo,
Executive Director, Federal Retirement Thrift Investment Board.

    For the reasons stated in the preamble, the FRTIB amends 5 CFR part 
1650 as follows:

PART 1650--METHODS OF WITHDRAWING FUNDS FROM THE THRIFT SAVINGS 
PLAN

0
1. The authority citation for Part 1650 continues to read as follows:

    Authority: 5 U.S.C. 8351, 8432d, 8433, 8434, 8435, 8474(b)(5) 
and 8474(c)(1).


Sec.  1650.11  [Amended]

0
2. Amend Sec.  1650.11 by removing paragraph (d).

0
3. Amend Sec.  1650.31 by revising paragraph (c) to read as follows:


Sec.  1650.31  Age-based withdrawals.

* * * * *
    (c) A participant is permitted four age-based withdrawals per 
calendar year for an account.

[FR Doc. 2024-05346 Filed 3-13-24; 8:45 am]
BILLING CODE 6760-01-P