[Federal Register Volume 60, Number 136 (Monday, July 17, 1995)]
[Rules and Regulations]
[Pages 36630-36634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17471]
[[Page 36629]]
_______________________________________________________________________
Part IX
Federal Retirement Thrift Investment Board
_______________________________________________________________________
5 CFR Part 1601
Participant Choices of Investment Funds; Final Rule
Federal Register / Vol. 60, No. 136 / Monday, July 17, 1995 / Rules
and Regulations
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[[Page 36630]]
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Part 1601
Participant Choices of Investment Funds
AGENCY: Federal Retirement Thrift Investment Board.
ACTION: Final rule.
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SUMMARY: The Executive Director of the Federal Retirement Thrift
Investment Board (Board) is publishing final rules on participants'
choices of Thrift Savings Plan (TSP) investment funds. The final rules
include amendments to the existing revised interim rules found at
subparts A and C of 5 CFR Part 1601. The amendments 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. The amendments also increase the
number of interfund transfers permitted per year from four (4) to
twelve (12). No amendments have been made to subpart B.
EFFECTIVE DATE: These final rules are effective August 16, 1995.
ADDRESSES: Questions concerning these regulations may be addressed to
David L. Hutner, Federal Retirement Thrift Investment Board, 1250 H
Street, NW., Washington, DC 20005, (202) 942-1661.
SUPPLEMENTARY INFORMATION: Interim rules governing participants'
choices of investment funds were originally published in the Federal
Register on March 29, 1990 (55 FR 11880) 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 (56 FR 592) 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. On December 28, 1994, the
Board published a proposed rule in the Federal Register (59 FR 66796)
setting forth changes in the procedures by which TSP participants may
make, change, or cancel interfund transfer requests. The Board did not
receive any comments on the proposed regulations. On May 26, 1995, the
December 28, 1994, proposed amendments to the interim rules were
withdrawn and replaced by new proposed amendments (60 FR 27908). No
comments on the proposed amendments have been received. However, the
proposal to remove investment restrictions from the accounts of
participants who are receiving equal payments has been deleted from the
final rule because the technical changes necessary to accomplish that
have not been completed. When those technical changes are completed, it
is the Board's intention to amend the regulations to eliminate the
investment restrictions.
Thus, the final rule amends the interim rule by making changes to
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 services to
participants in addition to enabling them to make interfund transfer
requests, but those other functions are not addressed in these
regulations. The final rule also addresses a policy change which has
been adopted by the Board and which was reflected in the May 26, 1995,
proposal. It amends the interim rule by increasing the number of
interfund transfers permitted per year from four (4) to twelve (12).
Section by Section Analysis
Subpart A
The final 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 of the final 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 are widely available to all TSP participants.
Subpart B
Supart B is unchanged by the final rule.
Subpart C
Section 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 or a
properly completed Form TSP-30 or by entry of the transaction on the
ThriftLine. Section 1601.5(a) also states explicitly that Form 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 Funds 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 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 interim 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 of 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 final rule.
Section 1601.5(c) retains the interim 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 interim rule, all participants requesting an interfund
[[Page 36631]]
transfer were required to sign the acknowledgment of risk section on
Form TSP-30 each time the form was submitted, unless the request was
for investment of 100% of the account balance in the Government
Securities Investment Fund (G Fund). The final 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 the 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 are 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. An Acknowledgment of Risk
For ThriftLine Interfund Transfers (Form TSP-32) has been created for
this purpose. The final 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 final
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 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 or
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 recordkeeping 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 final rule, which addresses only use of
Form TSP-30, remains virtually unchanged in substance from the interim
rule, except that paragraph (2) has been amended to reflect the rules
set forth in Sec. 1601.5(d). The other change 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
Sec. 1601.5(e)(1) is a substitute for several of the specific bases for
rejection of forms that were included in the interim 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 final rule governs the timing and effective
dates of interfund transfers. The final 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 final 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 the interaction are, in some cases,
complex; therefore, participants are encouraged to avoid, if possible,
mixing the two methods. 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 final rule allows participants to make up
to twelve interfund transfers per calendar year rather than the four
interfund transfers per calendar year that were previously allowed.
Thus, under the final rule, participants may make one interfund
transfer per month.
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 Thrift-Line, 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 this rule is identical to the interim rule: Requests received on or
before the 15th of a month (or next business day if the 15th is not a
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 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,
because that order can be affected by the uncertainties of mail
delivery.
Therefore, under the final rule, the date of receipt of Form TSP-30
determines only the effective date for the interfund transfer that is
requested.
[[Page 36632]]
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 final rule provides more detailed rules
governing receipt of multiple interfund transfer requests having the
same 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 signed, 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, where 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.
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)(ii), 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.(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 ThrfitLine 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 final 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 if the 15th is not a 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 canceled 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 request
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 canceled, 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 canceled, then only that request will be canceled 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
canceled. 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 canceled 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 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
superseded 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 date 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
canceled using the ThriftLine only if it has been entered into the TSP
recordkeeping system and is, therefore, at the time the cancellation is
entered on the ThriftLine, 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 method to make, change, or
cancel interfund transfer requests.
Section 1601.7 is unchanged by the final rule.
[[Page 36633]]
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.
Accordingly, the revised interim rule revising 5 CFR Part 1601
which was published at 56 FR 592 on January 7, 1991, is adopted as a
final rule with the following changes:
PART 1601--PARTICIPANT CHOICE OF INVESTMENT FUNDS
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 of
``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 the 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 the 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, the F Fund, and/or the 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 the F Fund are eligible
to make interfund transfer requests using the ThriftLine since they
must, at some previous time, have submitted an Acknowledgment of Risk;
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 the 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 the 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; or
(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 the 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 is scheduled for a withdrawal of the
entire account balance).
(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 Sec. 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 twelve
interfund transfers made effective during any calendar year, one in
each calendar month.
(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 recordkeeper 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 real-located 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.
[[Page 36634]]
(c) Multiple interfund transfer requests. (1) If two or more
properly completed interfund transfer requests with different dates (as
determined by paragraph (c)(3) of this section) 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 two or more properly completed interfund transfer requests
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 was submitted
using the ThriftLine and one or more was 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 one 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 is the date of its telephone entry;
(ii) The date of an interfund transfer request made on Form TSP-30
is 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 canceled either in writing or by entering the
cancellation of 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, the Form TSP-30 will
be canceled; if the request was made on the ThriftLine it will only be
canceled if the written cancellation specifies the date of the
ThriftLine request to be canceled.
(2) Cancellation on the ThriftLine. (i) An interfund transfer
request may also be canceled 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 before
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:
(A) Dated on or before the date of the cancellation; and
(B) Received and entered into the TSP recordkeeping system before
the cancellation is attempted on the ThriftLine.
(ii) 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. 95-17471 Filed 7-14-95; 8:45 am]
BILLING CODE 6760-01-M
