Default Investment Fund Errors, 49173-49175 [2015-20273]
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49173
Proposed Rules
Federal Register
Vol. 80, No. 158
Monday, August 17, 2015
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
and fully operational before being made
available to charities and donors.
U.S. Office of Personnel Management.
Beth F. Cobert,
Acting Director.
[FR Doc. 2015–20238 Filed 8–14–15; 8:45 am]
BILLING CODE 6325–58–P
OFFICE OF PERSONNEL
MANAGEMENT
5 CFR Part 950
FEDERAL RETIREMENT THRIFT
INVESTMENT BOARD
RIN 3206–AM68
5 CFR Part 1605
Solicitation of Federal Civilian and
Uniformed Service Personnel for
Contributions to Private Voluntary
Organizations; Delay of Effective Date
and Addition of Comment Period
Default Investment Fund Errors
Office of Personnel
Management.
ACTION: Proposed rule with request for
comments.
AGENCY:
The U.S. Office of Personnel
Management (OPM) is issuing a
proposed rule to delay the effective date
that appeared in the final rule published
in the Federal Register on April 17,
2014 titled ‘‘Solicitation of Federal
Civilian and Uniformed Service
Personnel for Contributions to Private
Voluntary Organizations’’ to January 1,
2017. OPM is requesting comments on
the proposed rule.
DATES: OPM must receive comments on
or before September 16, 2015.
ADDRESSES: You may submit comments,
identified by RIN number ‘‘3206–
AM68’’, using the Federal eRulemaking
Portal: www.regulations.gov. Follow the
instructions for submitting comments.
FOR FURTHER INFORMATION CONTACT:
Mary Capule by telephone at (202) 606–
2564; by FAX at (202) 606–5056; or by
email at cfc@opm.gov.
SUPPLEMENTARY INFORMATION: OPM
proposes to delay the effective date of
the final rule entitled ‘‘Solicitation of
Federal Civilian and Uniformed Service
Personnel for Contributions to Private
Voluntary Organizations’’ (FR Doc.
2014–08574, in the Federal Register of
April 17, 2014 (79 FR 21581)), to
January 1, 2017. The new effective date
for the CFC regulations would ensure
that the tools needed to put these
reforms in place—including the pivotal
online charity application and donor
pledging systems—are thoroughly tested
mstockstill on DSK4VPTVN1PROD with PROPOSALS
SUMMARY:
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Federal Retirement Thrift
Investment Board
ACTION: Proposed rule with request for
comments.
AGENCY:
The Federal Retirement Thrift
Investment Board (Agency) proposes to
amend its regulations to codify
procedures for correcting certain default
investment fund errors.
DATES: Submit comments on or before
September 16, 2015.
ADDRESSES: You may submit comments
using one of the following methods:
• Federal Rulemaking Portal: https://
www.regulations.gov at Docket ID
number FRTIB–2015–0003. Follow the
instructions for submitting comments.
• Mail: Office of General Counsel,
Attn: James Petrick, Federal Retirement
Thrift Investment Board, 77 K Street
NE., Suite 1000, Washington, DC 20002.
• Hand Delivery/Courier: The address
for sending comments by hand delivery
or courier is the same as that for
submitting comments by mail.
• Facsimile: Comments may be
submitted by facsimile at (202) 942–
1676.
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:
Austen Townsend at (202) 864–8647.
SUPPLEMENTARY INFORMATION: The
Agency administers the Thrift Savings
Plan (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
SUMMARY:
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Fmt 4702
Sfmt 4702
civilian employees, members of the
uniformed services, and spouse
beneficiaries. 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 December 18, 2014, the President
signed the Smart Savings Act (‘‘the
Act’’), Public Law 113–255 (128 Stat.
2920). The Act directed the Agency to
invest any sums available for
investment in the TSP for which an
election has not been made in an ageappropriate target date asset allocation
investment fund. On July 13, 2015, the
Agency published a proposed rule to
change the TSP’s default investment
fund from the TSP’s Government
Securities Investment Fund to the ageappropriate TSP Lifecycle Fund (L
Fund) for civilian employees. 80 FR
39974. This proposed regulation would
update the TSP’s existing error
correction rules to address the
correction of default investment fund
errors caused by erroneous dates of
birth.
Default Investment Fund Errors
Erroneous dates of birth can result
from participant error, employing
agency error, Agency error, or recordkeeper error. A participant’s date of
birth is used to determine his or her ageappropriate L Fund. An erroneous date
of birth might therefore cause a
participant’s TSP account to be invested
in an L Fund that is different from the
L Fund his or her account would have
been invested in had the participant’s
correct date of birth been used. This
proposed regulation provides that the
Agency will pay breakage when an
erroneous date of birth caused by
Agency or record-keeper error results in
default investment in the wrong L Fund.
In addition, the Agency will charge
employing agencies breakage when an
erroneous date of birth caused by
employing agency error results in
default investment in the wrong L Fund.
To initiate a breakage calculation for an
employee, the employing agency must
notify the TSP that the participant is
entitled to breakage. A date of birth
change received from an employing
agency will not trigger corrective action
other than to update the date of birth.
Consistent with the existing error
correction procedures at 5 CFR 1605.22
for contribution allocation and
interfund transfer errors, the participant
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49174
Federal Register / Vol. 80, No. 158 / Monday, August 17, 2015 / Proposed Rules
must file a breakage claim within 30
days of either the date the TSP provides
the participant with a notice reflecting
the error or the date the TSP makes
available on its Web site a participant
statement reflecting the error, whichever
is earlier.
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
civilian employees and spouse
beneficiaries 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 Agency.
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.
List of Subjects in 5 CFR Part 1605
Government employees, Pensions,
Retirement.
Gregory T. Long,
Executive Director, Federal Retirement Thrift
Investment Board.
For the reasons stated in the
preamble, the Agency proposes to
amend 5 CFR chapter VI as follows:
PART 1605–CORRECTION OF
ADMINISTRATIVE ERRORS
1. The authority citation for part 1605
continues to read as follows:
mstockstill on DSK4VPTVN1PROD with PROPOSALS
Authority: 5 U.S.C. 8351, 8432(a), 8432(d),
8474(b)(5) and (c)(1). Subpart B also issued
under section 1043(b) of Public Law 104–
106, 110 Stat. 186 and § 7202(m)(2) of Public
Law 101–508, 104 Stat. 1388.
2. Amend § 1605.2 by revising the
heading and paragraphs (b)(1)(i) and (c)
to read as follows:
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*
*
*
*
*
(b) * * *
(1) * * *
(i) Use the participant’s contribution
allocation on file for the ‘‘as of’’ date to
determine how the funds would have
been invested. If there is no contribution
allocation on file, or one cannot be
derived based on the investment of
contributions, the TSP will consider the
funds to have been invested in the
default investment fund in effect for the
participant on the ‘‘as of’’ date.
*
*
*
*
*
(c) Posting contributions and loan
payments. Makeup and late
contributions, late loan payments, and
breakage, will be posted to the
participant’s account according to his or
her contribution allocation on file for
the posting date. If there is no
contribution allocation on file for the
posting date, they will be posted to the
default investment fund in effect for the
participant.
*
*
*
*
*
■ 3. Add § 1605.3 to read as follows:
§ 1605.3 Calculating, posting, and
charging breakage on errors involving
investment in the wrong fund.
(a) The TSP will calculate and post
breakage on date of birth errors that
result in default investment in the
wrong L Fund, contribution allocation
errors, and interfund transfer errors.
(b) The TSP will charge the
employing agency for positive breakage
on incorrect dates of birth caused by
employing agency error that result in
default investment in the wrong L Fund.
A date of birth change received from an
employing agency will not trigger
corrective action other than to update
the date of birth. To initiate a breakage
calculation for an employee, the
employing agency must notify the TSP
that the participant is entitled to
breakage.
■ 4. Amend § 1605.13 by revising
paragraph (a)(3) to read as follows:
§ 1605.13 Back pay awards and other
retroactive pay adjustments.
■
■
§ 1605.2 Calculating, posting, and
charging breakage on late contributions
and loan payments.
(a) * * *
(3) All contributions made under this
paragraph (a) and associated breakage
will be invested according to the
participant’s contribution allocation on
the posting date. Breakage will be
calculated using the share prices for the
default investment fund in effect for the
participant in accordance with § 1605.2
unless otherwise required by the
employing agency or the court or other
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Fmt 4702
Sfmt 4702
tribunal with jurisdiction over the back
pay case.
*
*
*
*
*
■ 5. Amend § 1605.16, by re-designating
the text of paragraph (a) as paragraph
(a)(1), adding paragraph (a)(2), redesignating the text of paragraph (b) as
paragraph (b)(1), and adding paragraphs
(b)(2) and (b)(3) to read as follows:
§ 1605.16 Claims for correction of
employing agency errors; time limitations.
(a) Agency’s discovery of error. (1)
Upon discovery of an error made within
the past six months involving the
correct or timely remittance of payments
to the TSP (other than a retirement
system misclassification error, as
covered in paragraph (c) of this section),
an employing agency must promptly
correct the error on its own initiative. If
the error was made more than six
months before it was discovered, the
agency may exercise sound discretion in
deciding whether to correct it, but, in
any event, the agency must act promptly
in doing so.
(2) For errors involving incorrect
dates of birth caused by employing
agency error that result in default
investment in the wrong L Fund, the
employing agency must promptly notify
the TSP that the participant is entitled
to breakage if the error is discovered
within 30 days of either the date the
TSP provides the participant with a
notice reflecting the error or the date the
TSP makes available on its Web site a
participant statement reflecting the
error, whichever is earlier. If it is
discovered after that time, the
employing agency may use its sound
discretion in deciding whether to pay
breakage, but, in any event, must act
promptly in doing so.
(b) Participant’s discovery of error. (1)
If an agency fails to discover an error of
which a participant has knowledge
involving the correct or timely
remittance of a payment to the TSP
(other than a retirement system
misclassification error as covered by
paragraph (c) of this section), the
participant may file a claim with his or
her employing agency to have the error
corrected without a time limit. The
agency must promptly correct any such
error for which the participant files a
claim within six months of its
occurrence; if the participant files a
claim to correct any such error after that
time, the agency may do so at its sound
discretion.
(2) For errors involving incorrect
dates of birth that result in default
investment in the wrong L Fund of
which a participant or beneficiary has
knowledge, he or she may file a claim
for breakage with the employing agency
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Federal Register / Vol. 80, No. 158 / Monday, August 17, 2015 / Proposed Rules
no later than 30 days after either the
date the TSP provides the participant
with a notice reflecting the error or the
date the TSP makes available on its Web
site a participant statement reflecting
the error, whichever is earlier. The
employing agency must promptly notify
the TSP that the participant is entitled
to breakage.
(3) If a participant or beneficiary fails
to file a claim for breakage for errors
involving incorrect dates of birth in a
timely manner, the employing agency
may nevertheless, in its sound
discretion, pay breakage on any such
error that is brought to its attention.
*
*
*
*
*
■ 6. Amend § 1605.22, by revising
paragraphs (b)(2), (c)(2), and (c)(3) to
read as follows:
§ 1605.31 Contributions missed as a result
of military service.
§ 1605.22 Claims for correction of Board
or TSP record keeper errors; time
limitations.
DEPARTMENT OF HOMELAND
SECURITY
mstockstill on DSK4VPTVN1PROD with PROPOSALS
*
*
*
*
*
(b) * * *
(1) * * *
(2) For errors involving an investment
in the wrong fund caused by Board or
TSP record keeper error, the Board or
the TSP record keeper must promptly
pay breakage if it is discovered within
30 days of the issuance of the most
recent TSP participant (or loan)
statement, transaction confirmation, or
other notice that reflected the error,
whichever is earlier. If it is discovered
after that time, the Board or TSP record
keeper may use its sound discretion in
deciding whether to pay breakage, but,
in any event, must act promptly in
doing so.
(c) * * *
(1) * * *
(2) For errors involving an investment
in the wrong fund of which a
participant or beneficiary has
knowledge, he or she may file a claim
for breakage with the Board or TSP
record keeper no later than 30 days after
the TSP provides the participant with a
transaction confirmation or other notice
reflecting the error, or makes available
on its Web site a participant statement
reflecting the error, whichever is earlier.
The Board or TSP record keeper must
promptly pay breakage for such errors.
(3) If a participant or beneficiary fails
to file a claim for breakage concerning
an error involving an investment in the
wrong fund in a timely manner, the
Board or TSP record keeper may
nevertheless, in its sound discretion,
pay breakage for any such error that is
brought to its attention.
*
*
*
*
*
■ 7. Amend § 1605.31 by revising
paragraph (d) to read as follows:
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16:52 Aug 14, 2015
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*
*
*
*
*
(d) Breakage. The employee is
entitled to breakage on agency
contributions made under paragraph (c)
of this section. The employee will elect
to have the calculation based on either
the contribution allocation(s) on file for
the participant during the period of
military service or the default
investment fund in effect for the
participant; the participant must make
this election at the same time his or her
makeup schedule is established
pursuant to § 1605.11(c).
[FR Doc. 2015–20273 Filed 8–14–15; 8:45 am]
BILLING CODE 6760–01–P
Office of the Secretary
6 CFR Part 5
[Docket No. DHS–2015–0046]
Privacy Act of 1974: Implementation of
Exemptions; Department of Homeland
Security DHS/CBP–001, Import
Information System, System of
Records, System of Records
Privacy Office, Department of
Homeland Security.
ACTION: Notice of proposed rulemaking.
AGENCY:
The Department of Homeland
Security is giving concurrent notice for
the newly established ‘‘Department of
Homeland Security/CBP–001, Import
Information System, System of Records’’
and this proposed rulemaking. In
accordance with the Privacy Act of
1974, the Department of Homeland
Security concurrently proposes to
consolidate, update, and rename two
current Department of Homeland
Security systems of records titled,
‘‘Department of Homeland Security/U.S.
Customs and Border Protection, DHS/
CBP–001 Automated Commercial
Environment/International Trade Data
System System of Records’’ and
‘‘Department of Homeland Security/U.S.
Customs and Border Protection, DHS/
CBP–015 Automated Commercial
System System of Records’’ as one new
system of records. The consolidated
system of records notice will be titled,
‘‘Department of Homeland Security/U.S.
Customs and Border Protection, DHS/
CBP–001 Import Information System
System of Records.’’ This system of
records will continue to collect and
maintain records on all commercial
goods imported into the United States,
SUMMARY:
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Fmt 4702
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49175
as well as information pertaining to the
carrier, broker, importer, and other
persons associated with the manifest,
import, or commercial entry
transactions for the goods. In this
proposed rulemaking, the Department
proposes to exempt portions of the
system of records from one or more
provisions of the Privacy Act because of
criminal, civil, and administrative
enforcement requirements.
DATES: Comments must be received on
or before September 16, 2015.
ADDRESSES: You may submit comments,
identified by docket number DHS–
2015–0046, by one of the following
methods:
• Federal e-Rulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: 202–343–4010.
• Mail: Karen L. Neuman, Chief
Privacy Officer, Privacy Office,
Department of Homeland Security,
Washington, DC 20528.
Instructions: All submissions received
must include the agency name and
docket number for this notice. All
comments received will be posted
without change to https://
www.regulations.gov, including any
personal information provided.
Docket: For access to the docket to
read background documents or
comments received, go to https://
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: For
general questions, please contact: John
Connors (202) 344–1610, CBP Privacy
Officer, Office of the Commissioner,
U.S. Customs and Border Protection,
Washington, DC 20229. For privacy
questions, please contact: Karen L.
Neuman, (202) 343–1717, Chief Privacy
Officer, Privacy Office, Department of
Homeland Security, Washington, DC
20528–0655.
SUPPLEMENTARY INFORMATION:
I. Background
In accordance with the Privacy Act of
1974, 5 U.S.C. 552a, the Department of
Homeland Security (DHS), U.S. Customs
and Border Protection (CBP) proposes to
consolidate, update, and rename as one
system of records notice (SORN) the
information currently contained in two
DHS SORNs titled, ‘‘DHS/CBP–001
Automated Commercial Environment/
International Trade Data System (ACE/
ITDS) System of Records’’ (71 FR 3109,
January 19, 2006) and ‘‘DHS/CBP–015
Automated Commercial System (ACS)
System of Records’’ (73 FR 77759,
December 19, 2008) . This new SORN,
entitled ‘‘DHS/CBP–001 Import
Information System (IIS),’’ will inform
the public about changes to the
E:\FR\FM\17AUP1.SGM
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]]>Agencies
[Federal Register Volume 80, Number 158 (Monday, August 17, 2015)]
[Proposed Rules]
[Pages 49173-49175]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20273]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Part 1605
Default Investment Fund Errors
AGENCY: Federal Retirement Thrift Investment Board
ACTION: Proposed rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Federal Retirement Thrift Investment Board (Agency)
proposes to amend its regulations to codify procedures for correcting
certain default investment fund errors.
DATES: Submit comments on or before September 16, 2015.
ADDRESSES: You may submit comments using one of the following methods:
Federal Rulemaking Portal: https://www.regulations.gov at
Docket ID number FRTIB-2015-0003. Follow the instructions for
submitting comments.
Mail: Office of General Counsel, Attn: James Petrick,
Federal Retirement Thrift Investment Board, 77 K Street NE., Suite
1000, Washington, DC 20002.
Hand Delivery/Courier: The address for sending comments by
hand delivery or courier is the same as that for submitting comments by
mail.
Facsimile: Comments may be submitted by facsimile at (202)
942-1676.
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: Austen Townsend at (202) 864-8647.
SUPPLEMENTARY INFORMATION: The Agency administers the Thrift Savings
Plan (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, members of the uniformed services, and
spouse beneficiaries. 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 December 18, 2014, the President signed the Smart Savings Act
(``the Act''), Public Law 113-255 (128 Stat. 2920). The Act directed
the Agency to invest any sums available for investment in the TSP for
which an election has not been made in an age-appropriate target date
asset allocation investment fund. On July 13, 2015, the Agency
published a proposed rule to change the TSP's default investment fund
from the TSP's Government Securities Investment Fund to the age-
appropriate TSP Lifecycle Fund (L Fund) for civilian employees. 80 FR
39974. This proposed regulation would update the TSP's existing error
correction rules to address the correction of default investment fund
errors caused by erroneous dates of birth.
Default Investment Fund Errors
Erroneous dates of birth can result from participant error,
employing agency error, Agency error, or record-keeper error. A
participant's date of birth is used to determine his or her age-
appropriate L Fund. An erroneous date of birth might therefore cause a
participant's TSP account to be invested in an L Fund that is different
from the L Fund his or her account would have been invested in had the
participant's correct date of birth been used. This proposed regulation
provides that the Agency will pay breakage when an erroneous date of
birth caused by Agency or record-keeper error results in default
investment in the wrong L Fund.
In addition, the Agency will charge employing agencies breakage
when an erroneous date of birth caused by employing agency error
results in default investment in the wrong L Fund. To initiate a
breakage calculation for an employee, the employing agency must notify
the TSP that the participant is entitled to breakage. A date of birth
change received from an employing agency will not trigger corrective
action other than to update the date of birth.
Consistent with the existing error correction procedures at 5 CFR
1605.22 for contribution allocation and interfund transfer errors, the
participant
[[Page 49174]]
must file a breakage claim within 30 days of either the date the TSP
provides the participant with a notice reflecting the error or the date
the TSP makes available on its Web site a participant statement
reflecting the error, whichever is earlier.
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 civilian employees and spouse beneficiaries 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 Agency.
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.
List of Subjects in 5 CFR Part 1605
Government employees, Pensions, Retirement.
Gregory T. Long,
Executive Director, Federal Retirement Thrift Investment Board.
For the reasons stated in the preamble, the Agency proposes to
amend 5 CFR chapter VI as follows:
PART 1605-CORRECTION OF ADMINISTRATIVE ERRORS
0
1. The authority citation for part 1605 continues to read as follows:
Authority: 5 U.S.C. 8351, 8432(a), 8432(d), 8474(b)(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
2. Amend Sec. 1605.2 by revising the heading and paragraphs (b)(1)(i)
and (c) to read as follows:
Sec. 1605.2 Calculating, posting, and charging breakage on late
contributions and loan payments.
* * * * *
(b) * * *
(1) * * *
(i) Use the participant's contribution allocation on file for the
``as of'' date to determine how the funds would have been invested. If
there is no contribution allocation on file, or one cannot be derived
based on the investment of contributions, the TSP will consider the
funds to have been invested in the default investment fund in effect
for the participant on the ``as of'' date.
* * * * *
(c) Posting contributions and loan payments. Makeup and late
contributions, late loan payments, and breakage, will be posted to the
participant's account according to his or her contribution allocation
on file for the posting date. If there is no contribution allocation on
file for the posting date, they will be posted to the default
investment fund in effect for the participant.
* * * * *
0
3. Add Sec. 1605.3 to read as follows:
Sec. 1605.3 Calculating, posting, and charging breakage on errors
involving investment in the wrong fund.
(a) The TSP will calculate and post breakage on date of birth
errors that result in default investment in the wrong L Fund,
contribution allocation errors, and interfund transfer errors.
(b) The TSP will charge the employing agency for positive breakage
on incorrect dates of birth caused by employing agency error that
result in default investment in the wrong L Fund. A date of birth
change received from an employing agency will not trigger corrective
action other than to update the date of birth. To initiate a breakage
calculation for an employee, the employing agency must notify the TSP
that the participant is entitled to breakage.
0
4. Amend Sec. 1605.13 by revising paragraph (a)(3) to read as follows:
Sec. 1605.13 Back pay awards and other retroactive pay adjustments.
(a) * * *
(3) All contributions made under this paragraph (a) and associated
breakage will be invested according to the participant's contribution
allocation on the posting date. Breakage will be calculated using the
share prices for the default investment fund in effect for the
participant in accordance with Sec. 1605.2 unless otherwise required
by the employing agency or the court or other tribunal with
jurisdiction over the back pay case.
* * * * *
0
5. Amend Sec. 1605.16, by re-designating the text of paragraph (a) as
paragraph (a)(1), adding paragraph (a)(2), re-designating the text of
paragraph (b) as paragraph (b)(1), and adding paragraphs (b)(2) and
(b)(3) to read as follows:
Sec. 1605.16 Claims for correction of employing agency errors; time
limitations.
(a) Agency's discovery of error. (1) Upon discovery of an error
made within the past six months involving the correct or timely
remittance of payments to the TSP (other than a retirement system
misclassification error, as covered in paragraph (c) of this section),
an employing agency must promptly correct the error on its own
initiative. If the error was made more than six months before it was
discovered, the agency may exercise sound discretion in deciding
whether to correct it, but, in any event, the agency must act promptly
in doing so.
(2) For errors involving incorrect dates of birth caused by
employing agency error that result in default investment in the wrong L
Fund, the employing agency must promptly notify the TSP that the
participant is entitled to breakage if the error is discovered within
30 days of either the date the TSP provides the participant with a
notice reflecting the error or the date the TSP makes available on its
Web site a participant statement reflecting the error, whichever is
earlier. If it is discovered after that time, the employing agency may
use its sound discretion in deciding whether to pay breakage, but, in
any event, must act promptly in doing so.
(b) Participant's discovery of error. (1) If an agency fails to
discover an error of which a participant has knowledge involving the
correct or timely remittance of a payment to the TSP (other than a
retirement system misclassification error as covered by paragraph (c)
of this section), the participant may file a claim with his or her
employing agency to have the error corrected without a time limit. The
agency must promptly correct any such error for which the participant
files a claim within six months of its occurrence; if the participant
files a claim to correct any such error after that time, the agency may
do so at its sound discretion.
(2) For errors involving incorrect dates of birth that result in
default investment in the wrong L Fund of which a participant or
beneficiary has knowledge, he or she may file a claim for breakage with
the employing agency
[[Page 49175]]
no later than 30 days after either the date the TSP provides the
participant with a notice reflecting the error or the date the TSP
makes available on its Web site a participant statement reflecting the
error, whichever is earlier. The employing agency must promptly notify
the TSP that the participant is entitled to breakage.
(3) If a participant or beneficiary fails to file a claim for
breakage for errors involving incorrect dates of birth in a timely
manner, the employing agency may nevertheless, in its sound discretion,
pay breakage on any such error that is brought to its attention.
* * * * *
0
6. Amend Sec. 1605.22, by revising paragraphs (b)(2), (c)(2), and
(c)(3) to read as follows:
Sec. 1605.22 Claims for correction of Board or TSP record keeper
errors; time limitations.
* * * * *
(b) * * *
(1) * * *
(2) For errors involving an investment in the wrong fund caused by
Board or TSP record keeper error, the Board or the TSP record keeper
must promptly pay breakage if it is discovered within 30 days of the
issuance of the most recent TSP participant (or loan) statement,
transaction confirmation, or other notice that reflected the error,
whichever is earlier. If it is discovered after that time, the Board or
TSP record keeper may use its sound discretion in deciding whether to
pay breakage, but, in any event, must act promptly in doing so.
(c) * * *
(1) * * *
(2) For errors involving an investment in the wrong fund of which a
participant or beneficiary has knowledge, he or she may file a claim
for breakage with the Board or TSP record keeper no later than 30 days
after the TSP provides the participant with a transaction confirmation
or other notice reflecting the error, or makes available on its Web
site a participant statement reflecting the error, whichever is
earlier. The Board or TSP record keeper must promptly pay breakage for
such errors.
(3) If a participant or beneficiary fails to file a claim for
breakage concerning an error involving an investment in the wrong fund
in a timely manner, the Board or TSP record keeper may nevertheless, in
its sound discretion, pay breakage for any such error that is brought
to its attention.
* * * * *
0
7. Amend Sec. 1605.31 by revising paragraph (d) to read as follows:
Sec. 1605.31 Contributions missed as a result of military service.
* * * * *
(d) Breakage. The employee is entitled to breakage on agency
contributions made under paragraph (c) of this section. The employee
will elect to have the calculation based on either the contribution
allocation(s) on file for the participant during the period of military
service or the default investment fund in effect for the participant;
the participant must make this election at the same time his or her
makeup schedule is established pursuant to Sec. 1605.11(c).
[FR Doc. 2015-20273 Filed 8-14-15; 8:45 am]
BILLING CODE 6760-01-P
