[Federal Register Volume 60, Number 178 (Thursday, September 14, 1995)]
[Rules and Regulations]
[Pages 47836-47837]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22868]
[[Page 47835]]
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Part V
Federal Retirement Thrift Investment Board
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5 CFR Part 1601
Participant Choices of Investment Funds; Final Rule
Federal Register / Vol. 60, No. 178 / Thursday, September 14, 1995 /
Rules and Regulations
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[[Page 47836]]
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Part 1601
Participant Choices of Investment Funds
AGENCY: Federal Retirement Thrift Investment Board.
ACTION: Final rules; amendment.
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SUMMARY: The Executive Director of the Federal Retirement Thrift
Investment Board (Board) is publishing an amendment to final rules on
participants' choices of Thrift Savings Plan (TSP) investment funds.
The amendment has the effect of eliminating the automatic transfer to
the Government Securities Investment (G) Fund of the accounts of
participants who begin to withdraw their accounts as a series of equal
payments. The amendment also makes participants who are receiving their
accounts as a series of equal payments eligible to make interfund
transfers pursuant to the same rules applicable to all other TSP
participants.
EFFECTIVE DATE: This amendment is effective September 16, 1995.
FOR FURTHER INFORMATION CONTACT:
Questions concerning this amendment may be addressed to David L.
Hutner, Federal Retirement Thrift Investment Board, 1250 H Street NW.,
Washington, D.C. 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 at 56 FR 592 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. On December 28,
1994, the Board published proposed amendments to the interim rules 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 amendments. 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 new proposed
amendments were received, and final rules were published on July 17,
1995 (60 FR 36630). However, a proposal to remove investment
restrictions from the accounts of participants who are receiving equal
payments (which was included in the May 26 proposal) was deleted from
the final rules because the technical changes necessary to accomplish
that procedure had not been completed. It was stated in the preamble to
the final rules that when those technical changes were completed, the
Board intended to amend the regulations to eliminate the investment
restrictions. The required technical changes will be completed by
October 1995. Accordingly, these amendments are designed to eliminate
the investment restrictions that have previously applied to
participants receiving equal payments.
There are two aspects to the investment restrictions applicable to
participants receiving equal payments, both of which are incorporated
in 5 CFR 1601.4(c). First, upon commencement of withdrawal of a
participant's account through a series of equal payments, the
participant's entire account balance is automatically transferred to
the G Fund. Second, participants receiving withdrawals by a series of
equal payments are not permitted to make interfund transfers out of the
G Fund. The present amendment eliminates both restrictions. Thus, as of
the effective date of the amendment, participants who are already in
equal payment status will be eligible to make interfund transfer
requests to be effective October 31, 1995.
The final automatic transfer to the G Fund will be effective
September 30, 1995. Participants whose first equal payment is effective
October 31, 1995, or later, will not have their accounts automatically
transferred to the G Fund. Participants whose first equal payment is
issued (in November) effective October 31, 1995, will also be eligible
to request an interfund transfer effective as of that date.
Participants whose first equal payment is issued (in November)
effective October 31, 1995, will receive a notice advising them of
their ability to make interfund transfer requests. Participants who
request equal payment withdrawals commencing in subsequent months with
similarly be notified that they may make interfund transfers while they
are receiving equal payments.
There will also be a one-time notice issued in mid-September 1995
to participants who are already receiving equal payments. The
participants will be advised that beginning September 16, 1995, they
will be eligible to make interfund transfer requests. Their first
interfund transfer opportunity will be for interfund transfers
effective October 31, 1995.
In order to make an interfund transfer effective October 31, 1995,
the interfund transfer request must be received by October 16, 1995. On
September 16, 1995, the TSP recordkeeper will begin accepting interfund
transfer requests for transfers effective October 31, 1995, in
accordance with the ordinary rules for processing interfund transfer
requests that are set forth in this part.
Regulatory Flexibility Act
I will 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.
Waiver of Notice of Proposed Rulemaking and 30-day Delay of Effective
Date
Pursuant to 5 U.S.C. 553(b)(3)(B), (d)(1) and (d)(3), I find that
good cause exists for waiving the general notice of proposed rulemaking
and for making these amendments effective in less than 30 days. These
amendments remove restrictions on TSP participants' ability to choose
the investment funds in which their accounts will be invested.
Moreover, the substantive provision of this amendment was originally
included in proposed amendments published in the Federal Register (60
FR 27908) on May 26, 1995. Although the final rules published on July
17, 1995, deleted the substantive provision of the present amendment
for the reasons stated in the preamble to the final rules (60 FR
36630), no comments were received during the 52 days the proposal was
outstanding. Accordingly, I find that publication of these amendments
in proposed form is unnecessary.
List of Subjects in 5 CFR Part 1601
Employee benefit plans, Government employees, Retirement, Pensions.
Dated: September 11, 1995.
Roger W. Mehle,
Executive Director, Federal Retirement Thrift Investment Board.
Accordingly, 5 CFR Part 1601 is amended as follows:
PART 1601--PARTICIPANTS' CHOICES OF INVESTMENT FUNDS
1. The authority citation for Part 1601 continues to read as
follows:
[[Page 47837]]
Authority: 5 U.S.C 8351, 8438, 8474 (b)(5) and (c)(1).
Sec. 1601.4 [Amended]
2. Section 1601.4 is amended by removing paragraph (c).
[FR Doc. 95-22868 Filed 9-13-95; 8:45 am]
BILLING CODE 6760-01-M
