[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31653]
[Federal Register: December 28, 1994]
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FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Part 1601
Participant Choices of Investment Funds
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) is publishing proposed amendments to interim
regulations on participants' choices of Thrift Savings Plan (TSP)
investment funds. The proposed amendments, to subparts A and C of 5 CFR
part 1601, reflect changes in the methods by which TSP participants may
request interfund transfers, including use of an automated voice
response system to make, change, or cancel interfund transfer requests.
DATES: Comments must be received on or before January 27, 1995.
ADDRESSES: Comments may be sent to: David L. Hutner, Federal Retirement
Thrift Investment Board, 1250 H Street, NW., Washington, DC 20005.
FOR FURTHER INFORMATION CONTACT: David L. Hutner, (202) 942-1661.
SUPPLEMENTARY INFORMATION: Interim rules governing participants'
choices of investment funds were originally published in the Federal
Register on March 29, 1990, as an amendment to title 5 of the Code of
Federal Regulations, adding Part 1601, Participants' Choice of
Investment Funds. Revised interim rules were published in the Federal
Register on January 7, 1991, primarily to implement section 3 of the
Thrift Savings Plan Technical Amendments Act of 1990 (TSPTAA), which
removed investment restrictions that had been in place prior to the
effective date of the TSPTAA. The present proposed rules, when adopted,
will further amend the interim rules by making changes in the
procedures by which TSP participants may make, change, or cancel
interfund transfer requests. The primary change in the procedures
involves the availability of the automated voice response system, known
as the ``ThriftLine,'' for participants to make interfund transfer
requests over the telephone. The ThriftLine provides service to
participants in addition to enabling them to make interfund transfer
requests, but those other functions are not addressed in the proposed
regulations.
Section by Section Analysis
Subpart A
The proposed rule amends Sec. 1601.1, which contains the
definitions applicable to part 1601, by revising one definition and
adding three new ones.
The definition of ``Interfund transfer request'' has been amended
to reflect that properly completing and submitting to the TSP
recordkeeper an Interfund Transfer Request (Form TSP-30) is no longer
the exclusive method to request an interfund transfer. A request may
also be made by proper entry of the transaction on the automated
ThriftLine.
Definitions of ``Board'' (the Federal Retirement Thrift Investment
Board), ``Acknowledgment of Risk,'' and ``ThriftLine'' have been added.
Under 5 U.S.C. 8439(d), all participants who invest in the Common Stock
Index Investment Fund (C Fund) or the Fixed Income Investment Fund (F
Fund) must sign an acknowledgment that the investment is made at the
participant's own risk and that the participant is not protected
against losses on the investment or guaranteed a return on the
investment. Under Sec. 1601.5 (as amended by the proposed rule), the
procedures for satisfying the requirements of 5 U.S.C. 8439(d) have
been changed.
Instructions for use of the ThriftLine to make interfund transfer
requests on the telephone will be widely available to all TSP
participants.
Subpart C
Proposed Sec. 1601.5 sets forth the methods by which interfund
transfer requests can be made. Section 1601.5(a) contains the general
rule that interfund transfer requests may now be made either by
submission of a properly completed Form TSP-30 or by entry of the
transaction on the ThriftLine. Section 1601.5(a) also states explicitly
that Forms TSP-30 generated prior to October 1990 cannot be used to
make interfund transfer requests. Such forms can be readily identified
because they were preprinted with participants' names and addresses,
described restrictions on the amounts that could be invested in the C
Fund and F Fund, and specified a particular effective date for the
interfund transfer. Similarly, Form TSP-30-S, which was designed for
use only by certain FERS participants to make interfund transfers
effective as of the end of December 1990, cannot be used to make
interfund transfer requests.
Section 1601.5(b) retains the rule that interfund transfer requests
must include designations of percentages to be invested in each of the
TSP investment funds in multiples of 5 percent that total 100 percent.
This requirement applies regardless of whether the interfund transfer
request is entered on the ThriftLine or is submitted on Form TSP-30.
Section 1601.5 also retains from the previous rule the admonition that
an interfund transfer request does not affect future contributions made
by a participant. If a participant wishes to change the allocation of
future contributions among the investment funds, that can only be
accomplished by submission to his or her employing agency of a properly
completed Election Form (TSP-1) during a TSP Open Season. The rules for
submission of Election Forms are set forth in subpart B, which is
unchanged by the proposed amendments.
Section 1601.5(c) retains the previous rule that percentages
elected by the participant are applied to the account balance as of the
effective date of the interfund transfer, which is established as
provided in Sec. 1601.6. The percentages are applied to the account in
the same manner, whether submitted on Form TSP-30 or entered on the
ThriftLine.
Section 1601.5(d) contains significant changes to the procedures
governing the acknowledgment of risk required by 5 U.S.C. 8439(d).
Under the previous rule, all participants requesting an interfund
transfer were required to sign the acknowledgment of risk section on
Form TSP-30, unless the request was for investment of 100% of the
account balance in the Government Securities Investment Fund (G Fund).
The proposed rule is premised on a determination that each participant
should only be required to acknowledge investment risk once. To date,
participants who have invested any portion of their accounts in the C
Fund or F Fund at any time must have already signed an acknowledgment
of risk, either on Form TSP-1 or on Form TSP-30, since those are the
only two methods by which money could have been invested in the C Fund
or F Fund. Accordingly, all participants whose account records indicate
that they have invested in the C Fund or F Fund (regardless of whether
they currently have money in those funds) are deemed to have satisfied
the requirements of 5 U.S.C. 8439(d), and will be permitted to use the
ThriftLine to request interfund transfers without further
acknowledgment of investment risk. Participants who have never invested
in the C Fund or F Fund, and therefore have never been required to sign
an acknowledgment of risk, will not be permitted to make interfund
transfers on the ThriftLine until the TSP recordkeeper receives a
signed acknowledgment of risk form from them. A new acknowledgment of
Risk For ThriftLine Interfund Transfers (Form TSP-32) has been created
for this purpose.
The proposed rule treats participants who may continue to make
their interfund transfer requests on paper, using Form TSP-30,
consistently with those who use the ThriftLine. Since it is only
necessary to acknowledge investment risk once, participants who use
Form TSP-30 and fail to sign the acknowledgment of risk section will no
longer have their forms rejected if they have previously invested any
portion of their TSP account in the C Fund or F Fund, or if the TSP
recordkeeper has received a properly completed Form TSP-32. Form TSP-30
has been amended to delete the statement that all forms requesting
investment in the C Fund or F Fund will be rejected if the
acknowledgment of risk section of the form is not signed. The proposed
rule retains the requirement that the form itself (as opposed to the
acknowledgment of risk section) must be signed and dated in all cases.
It is anticipated that some participants may continue to sign the
acknowledgment of risk section even though they have already invested
in the C Fund and/or F Fund and therefore do not need to sign again.
This is not an area of concern to the Board, however, because the
superfluous signature does not impose a significant burden on
participants. Any participant who submits Form TSP-30 requesting
investment in the C Fund or F Fund and is uncertain as to whether he or
she has ever invested in those funds should sign the acknowledgment of
risk section of the form to eliminate the possibility that the form
will be rejected for lack of an acknowledgment of risk. For purposes of
determining whether participants' interfund transfer requests should be
processed, the TSP recordkeeper system will identify whether a
participant has ever invested in the C Fund or F Fund, even if the
participant subsequently transferred his or her entire account to the G
Fund.
Section 1601.5(e) of the proposed rule, which addresses only use of
Form TSP-30, remains virtually unchanged in substance from the previous
rule, except that paragraph (2) has been amended to reflect the rules
set forth in Sec. 1601.5(d). The other changes to this section are
designed to consolidate the language for ease of reading rather than to
make substantive changes to the procedures for processing interfund
transfer requests. In particular, the language ``or otherwise is not
properly completed in accordance with the instructions on the form'' in
proposed Sec. 1601.5(e)(1) is a substitute for several of the specific
bases for rejection of forms that were included in the previous rule.
Since the instructions on Form TSP-30 include requirements that had
been reflected in separate paragraphs of the previous rule, those
paragraphs have been eliminated to avoid redundancy.
Section 1601.5(f) has not been changed in substance.
Section 1601.6 of the proposed rule governs the timing and
effective dates of interfund transfers. Although the proposal adopts
the same general principles that were embodied in the previous rule,
the proposed rule sets forth the order of precedence with respect to
multiple transfer requests and cancellations using the ThriftLine and/
or Form TSP-30. Although the proposed rule permits interaction between
entry of transactions on the ThriftLine and on paper (i.e., by Form
TSP-30 or written cancellations), the Board notes that the rules
governing that interaction are, in some cases, complex; therefore,
participants are encouraged to avoid, if possible, mixing the two
media. The ThriftLine provides the most expeditious and certain method
of entering all transactions, because it eliminates any delays caused
by mail delivery and processing of documents.
Section 1601.6(a) of the proposal is identical to the previous
rule. Participants may make up to four interfund transfers per calendar
year, based on the effective dates of the transfers. Any transfer as of
the end of December counts for the year that ends with that December.
Section 1601.6(b) contains the general rule governing the date on
which an interfund transfer will be made effective, based on the date
of receipt of the interfund transfer request. In the case of a request
made on the ThriftLine, the date of receipt is the date the transaction
is entered on the ThriftLine. In the case of a request made by Form
TSP-30, the date of receipt is the date the form is delivered to the
TSP recordkeeper. Apart from the fact that interfund transfer requests
may now be received by two methods, the general rule adopted by the
proposal is identical to the previous rule: requests received by the
15th of a month (or next business day) are effective as of the end of
the month of receipt; requests received after the 15th of a month are
effective as of the end of the month following receipt.
Section 1601.6(c) sets forth the rules governing receipt of more
than one interfund transfer request during the same one-month period
after the 15th of one month (or next business day) and on or before the
15th of the next month. The basic rule, set forth in Sec. 1601.6(c)(1),
is that the request with the latest date of signature (if Form TSP-30
is used) or entry (if the ThriftLine is used) controls. Thus, if a
properly completed Form TSP-30 was dated June 17 and received by NFC on
June 25, and another interfund transfer request was entered on the
ThriftLine on June 23, the ThriftLine transaction would supersede the
request on Form TSP-30, because the June 23 ThriftLine transaction was
later than the June 17 signature on the Form TSP-30.
The rules are based on the presumption that, when a participant
enters a new transfer on the ThriftLine, he or she intends to supersede
a form that was mailed on an earlier date. The rules also presume that
a participant intends for a later ThriftLine entry to supersede an
earlier one. Similarly, where a Form TSP-30 is dated one day and
another Form TSP-30 is dated on a subsequent day, it is presumed that
the participant intends to override the earlier dated form, regardless
of the order in which the forms may be received by the TSP
recordkeeper, which can be affected by the uncertainties of mail
delivery.
Therefore, under the proposed rules, the date of receipt of Form
TSP-30 determines only the effective date for the interfund transfer
that is requested. A Form TSP-30 dated June 8 and received by the TSP
recordkeeper on June 12 cannot be superseded by a subsequent form dated
June 13 but not received by the recordkeeper until June 17. The former
will be processed as of the end of June; the latter as of the end of
July. If participants using Form TSP-30 wish to control the month end
for which a transfer is to be made effective, it is their
responsibility to ensure that the form is actually delivered to NFC
during the proper one-month period. This can be accomplished in most
cases by allowing sufficient time to accommodate potential mail delays
or by using overnight mail (or other guaranteed forms of delivery).
Participants can also control the effective date of their interfund
transfers by using the ThriftLine rather than Form TSP-30, because the
ThriftLine provides immediate acceptance of properly entered interfund
transfer requests.
Section 1601.6(c)(2) of the proposal provides more detailed rules
governing receipt of multiple interfund transfer requests having the
same date and requesting transfers for the same effective date. Section
1601.6(c)(2)(i) provides that as between a ThriftLine request and a
Form TSP-30 dated the same day, the ThriftLine entry will be made
effective. Thus, the ThriftLine entry will supersede a Form TSP-30
dated the same day.
Section 1601.6(c)(2)(ii) provides that as between two transactions
entered the same day on the ThriftLine, the one entered later in the
day supersedes the earlier request.
Finally, Sec. 1601.6(c)(2)(iii) provides that if more than one Form
TSP-30 has the same date, then all shall be rejected, unless they
contain an identical percentage allocation among the investment funds,
in which case that allocation will be accepted. Unlike interfund
transfer requests entered on the ThriftLine, were Forms TSP-30 bear the
same date but different allocation elections, the Board has no way to
determine which form represents the participant's latest request. What
is most important to participants is that there be uniform rules that
can be consistently applied in cases involving multiple interfund
transfer requests. The proposed rule accomplishes that purpose.
Section 1601.6(c)(3) sets forth the rules for determining the date
of an interfund transfer request. Under Sec. 1601.6(c)(3)(i), if made
on the ThriftLine, the date of the interfund transfer request is the
date of the telephone entry of the transaction. Under
Sec. 1601.6(c)(3)(iii), if the interfund transfer request is made on
Form TSP-30, the date of the request is the signature date entered on
the form by the participant. As previously discussed, the date of
receipt of the form is not the date of the request; the receipt date
controls only the effective date for which the form is deemed to be a
request. Finally, under Sec. 1601.6(c)(3)(iii), the date on which a
transaction is entered on the ThriftLine is determined by application
of Central Time. For example, a transaction entered at 12:15 a.m.
Eastern Time on the 16th of a month will be considered a transaction
entered on the 15th, because it was 11:15 p.m. Central Time when the
transaction occurred. Conversely, a transaction entered at 11:15 p.m.
Pacific Time on the 15th, is entered at 1:15 a.m. Central Time and will
therefore be considered a transaction entered on the 16th. The
determination of the date on which a ThriftLine transaction was
requested may be important for two purposes: (1) to determine whether
the request was made by the applicable 15th of the month cutoff date,
and (2) to determine whether the request supersedes or cancels another
request.
Section 1601.6(d) of the proposed rule governs cancellation of
interfund transfer requests. Under Sec. 1601.6(d)(1), a signed and
dated cancellation letter containing the required information must be
received by the same cutoff date (15th of the month or next business
day) that applies to receipt of an interfund transfer request that is
to be effective as of the end of the month for which the transfer to be
cancelled is pending. For example, a letter to cancel a pending
interfund transfer that is to be made effective as of the end of June
must be received by June 15 (or next business day). A cancellation
letter will not cancel a transfer with a date after the date of the
cancellation letter. If a cancellation letter does not state
unambiguously the specific interfund transfer request to be cancelled,
it will cancel any earlier dated interfund transfer request that is
pending for the applicable effective date. If the letter does state
unambiguously the interfund transfer request to be cancelled, then only
that request will be cancelled by the letter.
The TSP recordkeeper will compare multiple interfund transfer
requests to determine which is the controlling request prior to
determining the effect of a written cancellation. For example, assume
there are two interfund transfer requests received prior to June 15,
one dated June 3 and one dated June 5. The June 5 request supersedes
the June 3 request. If there is a cancellation letter dated June 10
(and received by June 15) specifying cancellation of the June 5
request, then no interfund transfer would be processed, because the
June 3 request would be superseded and the June 5 request would be
cancelled. On the other hand, if the June 10 letter specified
cancellation of the June 3 request, then the June 5 request would be
processed, because it would not be superseded by the earlier June 3
request nor would it be cancelled by the June 10 cancellation letter
that specified cancellation of the June 3 request.
The last sentence of Sec. 1601.6(d)(1) governs the rate situation
where the written cancellation bears the same date as an interfund
transfer request. A different rule applies depending upon whether the
interfund transfer request was submitted on Form TSP-30 or entered on
the ThriftLine. In the former case, it is presumed that the
cancellation letter was intended to cancel a Form TSP-30 dated the same
day. In the latter case, with one exception, the ThriftLine entry is
presumed to supersede the cancellation letter, which may have been an
attempt to cancel another Form TSP-30 that was received for a prior
effective date or that has not yet been received or entered into the
TSP system. The only exception is where the written cancellation
specifically states that it is intended to cancel the ThriftLine entry
of the same date; in that situation, the cancellation letter will be
effective to cancel the ThriftLine request of the same date.
Under Sec. 1601.6(d)(2), a cancellation entered on the ThriftLine
before the relevant 15th of the month cutoff will cancel a pending
interfund transfer request that had been entered previously on the
ThriftLine. An interfund transfer request made using Form TSP-30 can be
cancelled using the ThriftLine only if it has been entered into the TSP
recordkeeping system and is, therefore, at the time the cancellation is
entered, a pending transfer. In that regard, participants are cautioned
that in many cases Forms TSP-30 are not entered into the TSP
recordkeeping system until after the 15th cutoff, even if they are
received before that cutoff. If that is the case, then the participant
cannot use the ThriftLine to cancel an interfund transfer request that
was submitted on Form TSP-30. For that reason, participants who prefer
to make interfund transfer requests by use of Form TSP-30 are
encouraged to cancel only in writing. The Board will not be responsible
for a participant's inability to cancel a Form TSP-30 by use of the
ThriftLine. Participants are encouraged to use, in any one interfund
transfer period, only one medium to make, change, or cancel interfund
transfer requests.
Regulatory Flexibility Act
I certify that these regulations will not have a significant
economic impact on a substantial number of small entities.
Paperwork Reduction Act
I certify that these regulations do not require additional
reporting under the criteria of the Paperwork Reduction Act of 1980.
List of Subjects in 5 CFR Part 1601
Employee benefit plans, Government employees, Retirement, Pensions.
Roger W. Mehle,
Executive Director, Federal Retirement Thrift Investment Board.
For the reasons set out in the preamble, part 1601 of chapter VI of
title 5 of the Code of Federal Regulations is proposed to be amended as
set forth below:
PART 1601--[AMENDED]
1. The authority citation for Part 1601 continues to read as
follows:
Authority: 5 U.S.C. 8351, 8438, 8474 (b)(5) and (c)(1).
2. Section 1601.1 is amended by revising the definition ``Interfund
Transfer Request'' and adding in alphabetical order definitions
``Acknowledgment of Risk'', ``Board'', and ``ThriftLine'', to read as
follows:
Sec. 1601.1 Definitions.
* * * * *
Acknowledgment of Risk means an acknowledgment that any investment
in the C Fund or F Fund is made at the participant's risk, that the
participant is not protected by the United States Government or the
Board against any loss on the investment, and that neither the United
States Government nor the Board guarantees any return on the
investment.
* * * * *
Board means the Federal Retirement Thrift Investment Board.
* * * * *
Interfund transfer request means submission of a properly completed
Interfund Transfer Request (Form TSP-30) or proper entry of an
interfund transfer through use of the ThriftLine.
* * * * *
ThriftLine means the automated voice response system by which TSP
participants may, among other things, make interfund transfer requests
by telephone.
* * * * *
3. Section 1601.5 is revised to read as follows:
Sec. 1601.5. Methods of requesting an interfund transfer.
(a) To make an interfund transfer, participants may either submit
to the TSP recordkeeper a properly completed Interfund Transfer Request
(Form TSP-30), or may enter the interfund transfer request over the
telephone by using the ThriftLine. Forms TSP-30 generated prior to
October 1990, which were preprinted with a participant's name and
address, described restrictions on the amounts which could be invested
in the C Fund and F Fund, and specified an effective date for the
interfund transfer, are obsolete forms. They will be rejected by the
TSP recordkeeper if submitted to make an interfund transfer request.
Similarly, Form TSP-30-S, which was designed for use only by certain
FERS participants to make interfund transfers effective as of the end
of December 1990, are obsolete forms which will be rejected by the TSP
recordkeeper if submitted to make an interfund transfer request.
(b) To make an interfund transfer request, a participant must
designate the percentages of his or her account balance that are to be
invested in the C Fund, F Fund, and/or G Fund. The percentages selected
by the participant must be in multiples of 5 percent and must total 100
percent. An interfund transfer request has no effect on contributions
made by a participant after the effective date of the interfund
transfer (as determined in accordance with Sec. 1601.6); such
subsequent contributions will continue to be allocated among the
investment funds in accordance with the participant's election under
subpart B of this part.
(c) The percentages elected by the participant will be applied to
the participant's account balance attributable to each source of
contributions as of the effective date of the interfund transfer, as
determined in accordance with Sec. 1601.6.
(d) Participants who have at any time in the past invested any
portion of their TSP accounts in the C Fund or F Fund are eligible to
make interfund transfer requests using the ThriftLine; such
participants need not, if using Form TSP-30 to make a written interfund
transfer request, complete the section of the form that contains the
acknowledgment of risk. Participants who have not at any time in the
past invested any portion of their TSP accounts in the C Fund or F Fund
are not eligible to make interfund transfers using the ThriftLine until
a properly completed Acknowledgment of Risk for ThriftLine Interfund
Transfer (Form TSP-32) has been received by the TSP recordkeeper.
Participants who have not at any time in the past invested any portion
of their TSP accounts in the C Fund or F Fund must complete the
acknowledgment of risk section of Form TSP-30 if they make a written
interfund transfer request, unless a properly completed Form TSP-32 has
been received by the TSP recordkeeper.
(e) An Interfund Transfer Request (Form TSP-30) that has been
submitted to the TSP recordkeeper will not be processed and will have
no effect, if:
(1) it is not signed and dated, or otherwise is not properly
completed in accordance with the instructions on the form;
(2) in the case of a participant who has not previously invested
any portion of his or her TSP account in the C Fund or F Fund and for
whom a properly completed Form TSP-32 has not been received by the TSP
recordkeeper, the acknowledgment of risk section of the Form TSP-30 is
not signed; or
(3) the participant is not otherwise eligible to make an interfund
transfer (e.g. because he or she has already made the maximum number of
interfund transfers permitted during the year).
(f) If a Form TSP-30 is rejected, the form will have no effect. The
participant will be provided with a brief written statement of the
reason the form was rejected.
4. Section 1601.6 is revised to read as follows:
Sec. 1601.6 Timing and effective dates of interfund transfers.
(a) Annual Limit. A participant may have no more than four
interfund transfers made effective during any calendar year. For
purposes of this limitation, an interfund transfer made effective as of
the end of December will count against the limit for the calendar year
in which that December falls.
(b) Effective dates. Interfund transfer requests received by the
TSP recordkeeper (whether by Form TSP-30 or on the ThriftLine) on or
before the 15th day of a month (or, if the 15th day is not a business
day, by the next business day) shall be effective as of the end of the
month during which the interfund transfer request was received.
Interfund transfer requests received by the TSP record-keeper after the
15th day of a month (or, if applicable, by the next business day) will
be effective as of the end of the month following the month during
which the interfund transfer request was received. Account balances
that are reallocated among the investment funds effective as of the end
of any month will reflect the effects of all other account activity
posted to the account effective during or as of the end of that month.
(c) Multiple interfund transfer requests. (1) If more than one
properly completed interfund transfer request with different dates are
received for the same participant after the 15th day of one month (or,
if applicable, after the next business day), but on or before the 15th
day of the next month (or, if applicable, the next business day), the
interfund transfer request with the latest date (as determined by
paragraph (c)(3) of this section) will be made effective and the
earlier interfund transfer request(s) will be superseded.
(2) If more than one properly completed interfund transfer request
with the same dates are received for the same participant after the
15th day of one month (or, if applicable, after the next business day),
but on or before the 15th day of the next month (or, if applicable, the
next business day), the following rules shall apply:
(i) If one or more of the interfund transfer requests were
submitted using the ThriftLine and one or more were made on Form TSP-
30, the request(s) made on the ThriftLine will supersede the request(s)
made on Form TSP-30;
(ii) If more than one of the interfund transfer requests were made
on the ThriftLine, the request entered at the latest time of day will
supersede the earlier request(s); and
(iii) If more than one of the interfund transfer requests were
submitted using Form TSP-30, all such forms will be rejected, unless
they all contain identical percentage allocations among the TSP
investment funds, in which case they will be accepted.
(3) For purposes of determining the date of an interfund transfer
request:
(i) The date of an interfund transfer request made on the
ThriftLine shall be the date of its telephone entry;
(ii) The date of an interfund transfer request made on Form TSP-30
shall be the signature date set forth on the form by the participant;
and
(iii) Central time will be used for determining the date on which a
transaction is entered on the ThriftLine.
(d) Cancellation of interfund transfer requests. Interfund transfer
requests may be cancelled either in writing or by entering the
cancellation on the ThriftLine:
(1) Cancellation by letter. A participant may cancel an interfund
transfer request by submitting a letter to the TSP recordkeeper
requesting cancellation. To be accepted, the cancellation letter must
be signed and dated and must contain the participant's name, Social
Security number, and date of birth. To be effective, the cancellation
letter must be received on or before the 15th day of the month as of
the end of which the interfund transfer is to be effective (or, if
applicable, by the next business day). Unless the letter states
unambiguously the specific interfund transfer request it seeks to
cancel, the written cancellation will apply to any interfund transfer
request with a date (as determined under paragraph (c)(3) of this
section) before the date of the cancellation letter. If the date of a
cancellation letter is the same as the date of an interfund transfer
request and the request was made on Form TSP-30, it will be cancelled;
if the request was made on the ThriftLine it will only be cancelled if
the written cancellation specifies the date of the ThriftLine request
to be cancelled.
(2) Cancellation on ThriftLine. An interfund transfer request may
also be cancelled by entering the cancellation on the ThriftLine on or
before the 15th day of the month (or, if applicable, the next business
day) as of the end of which the interfund transfer is to be effective.
A cancellation entered on the ThriftLine will apply to a pending
interfund transfer request entered on the ThriftLine prior to the entry
of the cancellation. A cancellation entered on the Thriftline can only
apply to interfund transfer requests submitted on Forms TSP-30 that
were:
(i) Dated on or before the date of the cancellation; and
(ii) Received and entered into the TSP recordkeeping system before
the cancellation is attempted on the ThriftLine.
(3) Cancellation of Form TSP-30 Using ThriftLine. The Board cannot
guarantee that the TSP recordkeeper will enter Forms TSP-30 into the
TSP recordkeeping system before the 15th day of the month, regardless
of the date the Form TSP-30 may have been received. Thus, participants
cannot rely on the ThriftLine to cancel an interfund transfer request
that was submitted on Form TSP-30, and participants are discouraged
from attempting to do so. The Board is not responsible for any
consequences of a participant's inability to cancel on the ThriftLine
an interfund transfer request submitted on Form TSP-30.
[FR Doc. 94-31653 Filed 12-27-94; 8:45 am]
BILLING CODE 6760-01-M
