Employee Contribution Elections and Contribution Allocations; Uniformed Services Accounts; Death Benefits; Thrift Savings Plan, 69026-69030 [2010-28320]
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69026
Proposed Rules
Federal Register
Vol. 75, No. 217
Wednesday, November 10, 2010
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.
FEDERAL RETIREMENT THRIFT
INVESTMENT BOARD
5 CFR Parts 1600, 1604, 1651, and 1690
Employee Contribution Elections and
Contribution Allocations; Uniformed
Services Accounts; Death Benefits;
Thrift Savings Plan
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 establish
procedures to maintain beneficiary
participant accounts for spouse
beneficiaries in accordance with the
Thrift Savings Plan Enhancement Act of
2009.
DATES: Comments must be received on
or before December 10, 2010.
ADDRESSES: You may submit comments
using one of the following methods:
• Federal Rulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Office of General Counsel,
Attn: Thomas Emswiler, Federal
Retirement Thrift Investment Board,
1250 H Street, NW., Washington, DC
20005.
• 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. We will post all
substantive comments (including any
personal information provided) without
change (with the exception of redaction
of SSNs, profanities, et cetera) on
https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Laurissa Stokes at 202–942–1645.
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SUMMARY:
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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 and members of the
uniformed services. The TSP is similar
to cash or deferred arrangements
established for private-sector employees
under section 401(k) of the Internal
Revenue Code (26 U.S.C. 401(k)).
SUPPLEMENTARY INFORMATION:
Congressional Authorization for
Beneficiary Participant Accounts
Currently, a spouse beneficiary of a
TSP participant must either transfer his
or her TSP death benefit payment to
another eligible employer plan or
individual retirement account (IRA), or
receive the payment immediately. On
June 22, 2009, the President signed the
Thrift Savings Plan Enhancement Act of
2009 (‘‘the Act’’), Public Law 111–31
(Division B, Title I), 123 Stat. 1776,
1853. The Act authorized the Agency to
allow a spouse of a deceased participant
to retain a lump sum death benefit
payment in the TSP, subject to certain
restrictions on contributions, loans, and
withdrawal elections. This proposed
rule would conform the Agency’s
regulations to the Act and would set
forth the rules and limitations
applicable to beneficiary participant
accounts.
Establishing a Beneficiary Participant
Account
The Agency will automatically
establish a beneficiary participant
account upon identifying a deceased
participant’s spouse as a sole or partial
beneficiary eligible for a lump sum
death benefit payment. Consistent with
its treatment of accounts of participants
who have separated from Federal
service, the Agency will not maintain a
beneficiary participant account if the
amount of the deceased participant’s
vested account balance to which the
spouse is entitled is less than $200. The
Agency also will not transfer this de
minimus amount to another eligible
plan or pay it by electronic funds
transfer. Instead the TSP will make an
immediate distribution to the spouse.
A civilian beneficiary participant
account is a beneficiary participant
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account that is established with a death
benefit payment from a civilian TSP
participant account to which
contributions were made by or on behalf
of a civilian employee (i.e. a civilian
TSP participant account). A uniformed
services beneficiary participant account
is a beneficiary participant account that
is established with a death benefit
payment from a TSP participant account
to which contributions were made by or
on behalf of a member of the uniformed
services (i.e. a uniformed services TSP
participant account).
Consistent with its treatment of
accounts of participants who have both
a civilian account and a uniformed
services account, the TSP will maintain
civilian beneficiary participant accounts
separate from uniformed services
beneficiary participant accounts.
Beneficiary participants who acquire
both a uniformed services participant
account and a civilian beneficiary
participant account will receive two
separate TSP account numbers; one for
the civilian beneficiary participant
account and one for the uniformed
services beneficiary participant account.
Initial Account Balance Allocation
Upon notice of a participant’s death,
the Agency currently transfers all funds
in a deceased participant’s account to
the Government Securities Investment
(G) Fund. This practice protects the
account balance from risk of incurring
losses between the time the Agency
receives notice of the participant’s death
and the time the Agency makes a
distribution to a beneficiary. The
Agency will continue this practice even
when it appears that the beneficiary is
the participant’s spouse. Therefore,
funds in a beneficiary participant
account will initially be allocated
entirely to the G Fund regardless of the
allocation of the participant’s account
balance at the time of his or her death.
Once a beneficiary participant account
is established, the spouse beneficiary
may redistribute the beneficiary
participant account balance among the
TSP investment funds by making an
interfund transfer.
Withdrawal Options
A spouse beneficiary will be afforded
the same withdrawal options with
respect to his or her beneficiary
participant account that the participant
would have had with respect to his or
her TSP account if the participant was
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living and separated from service.
Accordingly, a spouse beneficiary may
elect to withdraw all or a portion of his
or her beneficiary participant account as
a partial payment or as a full
withdrawal, that is in a single payment,
a series of monthly payments, a life
annuity, or any combination of these
options. The spouse beneficiary cannot
request loans, age-based withdrawals, or
financial hardship withdrawals.
Required Minimum Distributions
The Internal Revenue Code requires
spouse beneficiaries to receive a portion
of their beneficiary participant account
on or before the later of—(1) The end of
the calendar year immediately following
the calendar year in which the
participant died; or (2) The end of the
calendar year in which the employee
would have attained age 701⁄2. The
Agency will ensure that the annual total
payments satisfy any applicable
minimum distribution requirement of
the Internal Revenue Code by making a
supplemental payment, if necessary.
The Agency will calculate minimum
distributions based on the beneficiary
participant account balance and the
beneficiary participant’s age, using the
IRS Single Life Table, Treas. Reg.
§ 1.401(a)(9)–9, Q&A 1.
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Spousal Rights After Remarriage
Sections 8351 and 8435, Title 5 of the
United States Code give certain rights to
the spouses of participants. These
spousal rights are not applicable to the
spouse of a beneficiary participant.
Thus, if a beneficiary participant
remarries, his or her new spouse will
not have the right to consent, notice, or
any particular form of distribution (e.g.
joint and survivor annuity) with respect
to withdrawals from the beneficiary
participant account.
Contributions, Transfers, and Rollovers
to Beneficiary Participant Accounts
The Thrift Savings Plan Enhancement
Act of 2009 prohibits a spouse
beneficiary from making contributions
or ‘‘transfers’’ (trustee-to-trustee transfers
or rollovers) to a beneficiary participant
account. Accordingly, the Agency will
not accept a contribution allocation
request from a spouse beneficiary and a
spouse beneficiary may not transfer or
roll over any distributions from an IRA
or an eligible employer plan into a
beneficiary participant account.
A beneficiary participant may acquire
multiple civilian beneficiary participant
accounts and/or multiple uniformed
services beneficiary participants if he or
she remarries a Federal employee who
then dies having designated him or her
as a beneficiary. Beneficiary participant
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accounts cannot be combined since
combining accounts requires a transfer
from one beneficiary participant
account to another.
Combining a Uniformed Services
Beneficiary Participant Account and a
Civilian Beneficiary Participant
Account Not Permitted
Transfers and Rollovers From
Beneficiary Participant Accounts
The Agency’s regulations currently
provide that a participant may combine
his or her uniformed services account
with a civilian account through a
‘‘transfer.’’ See 5 CFR 1604.5(b). Even in
the absence of this regulatory language,
combining accounts would, as practical
matter, require that one account be
transferred to the other. Because the
Thrift Savings Plan Enhancement Act
prohibits contributions or transfers to a
beneficiary participant account, a
spouse beneficiary cannot combine his
or her uniformed services beneficiary
participant account with his or her
civilian beneficiary participant account.
A spouse beneficiary may transfer or
roll over all or a portion of an eligible
rollover distribution (within the
meaning of Internal Revenue Code
§ 402(c)(4)) to a traditional IRA, Roth
IRA, or eligible employer plan. A spouse
beneficiary who is a current or former
Federal employee may also transfer or
roll over all or a portion of an eligible
rollover distribution from a civilian
beneficiary participant account into his
or her own civilian or uniformed
services TSP participant account.
A spouse beneficiary who is a current
or former Federal employee may,
likewise, transfer or roll over all or a
portion of an eligible rollover
distribution from a uniformed services
beneficiary participant account into a
civilian or uniformed services TSP
participant account. However, a transfer
of a uniformed services beneficiary
participant account to a civilian TSP
participant account cannot include taxexempt money attributable to the
combat zone exclusion. Any tax-exempt
money must remain in the uniformed
services beneficiary account unless it is
transferred or rolled over to an IRA or
it is transferred directly to a uniformed
services TSP participant account or
other eligible employer plan that
accepts tax-exempt money.
Section 1600.31 of the Agency’s
regulations currently prohibits
participants from requesting incoming
transfers or rollovers if they are
receiving monthly payments from their
TSP accounts. For this reason, a spouse
beneficiary who is a current or former
Federal employee would not be
permitted to transfer an eligible rollover
distribution from a beneficiary
participant account to his or her own
TSP participant account if he or she is
receiving monthly payments from that
account. The Agency proposes to
remove this limitation on incoming
transfers and rollovers. Thus, a spouse
beneficiary would be permitted to
transfer or roll over all or a portion of
an eligible rollover distribution from his
or her beneficiary participant account to
his or her own TSP participant account
even if he or she is receiving monthly
payments.
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Death of a Beneficiary Participant
The balance of a beneficiary
participant account must be disbursed
upon the death of the beneficiary
participant. A beneficiary participant
may designate a beneficiary for his or
her beneficiary participant account. If
the beneficiary participant does not
designate a beneficiary for his or her
beneficiary participant account, the
account will be disbursed in accordance
with the order of precedence set forth at
5 CFR 1651(a)(2) through (6). No
individual who is entitled to a death
benefit from a beneficiary participant
account shall be eligible to keep his or
her benefit in the TSP.
A recipient of a death benefit payment
from a beneficiary participant account
cannot transfer the payment to an IRA
or eligible retirement plan (including
the TSP). The Internal Revenue Code
permits death benefit distributions to be
rolled over only when the distribution
is ‘‘paid to the spouse of the employee’’
or the ‘‘designated beneficiary (as
defined by section 401(a)(9)(E)) of the
employee.’’ 26 U.S.C. 402(c)(9)
(emphasis added); 26 U.S.C. 402(c)(11)
(emphasis added). Because a beneficiary
participant is not the employee, the TSP
must pay the recipient of the death
benefit payment directly and the
payment will be fully taxable to that
individual in the year of distribution. 26
U.S.C. 402(a).
Regulatory Flexibility Act
I certify that this regulation will not
have a significant economic impact on
a substantial number of small entities.
This regulation will affect Federal
employees and members of the
uniformed services who participate in
the Thrift Savings Plan, which is a
Federal defined contribution retirement
savings plan created under the Federal
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Employees’ Retirement System Act of
1986 (FERSA), Public Law 99–335, 100
Stat. 514, and which is administered by
the Agency. It will also affect their
spouse beneficiaries.
Paperwork Reduction Act
I certify that these regulations do not
require additional reporting under the
criteria of the Paperwork Reduction Act.
plan or a rollover contribution, within
the meaning of I.R.C. section 408(d)(3)
(26 U.S.C. 408(d)(3)), from a traditional
IRA may cause to be transferred (or
transfer) that distribution into his or her
TSP account.
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PART 1604—UNIFORMED SERVICES
ACCOUNTS
Unfunded Mandates Reform Act of
1995
3. The authority citation for part 1604
continues to read as follows:
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 § 1532 is not required.
Authority: 5 U.S.C. 8440e, 8474(b)(5) and
(c)(1).
4. Revise § 1604.8 to read as follows:
§ 1604.8
Death benefits.
List of Subjects
The account balance of a deceased
service member will be paid as
described at 5 CFR part 1651. If a
service member account contains
combat zone contributions, the death
benefit payment will be made pro rata
from all sources.
5 CFR Part 1600
PART 1651—DEATH BENEFITS
Government employees, Pensions,
Retirement.
5. Revise the authority citation for
part 1651 to read as follows:
5 CFR Part 1604
Authority: 5 U.S.C. 8424(d), 8432(j),
8433(e), 8435(c)(2), 8474(b)(5), 8474(c)(1),
and Sec. 109, Pub. L. 111–31,123 Stat. 1176
(5 U.S.C. 8433(e)).
Military personnel, Pensions,
Retirement.
5 CFR Part 1651
6. Amend § 1651.5 by revising
paragraph (a) to read as follows:
Claims, Government employees,
Pensions, Retirement.
§ 1651.5
5 CFR Part 1690
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 1600—EMPLOYEE
CONTRIBUTION ELECTIONS AND
CONTRIBUTION ALLOCATIONS
1. The authority citation for part 1600
continues to read as follows:
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Authority: 5 U.S.C. 8351, 8432(a), 8432(b),
8432(c), 8432(j), 8474(b)(5) and (c)(1), Thrift
Savings Plan Enhancement Act of 2009,
section 102.
2. Amend § 1600.31, by revising
paragraph (a) to read as follows:
§ 1600.31
Accounts eligible for transfer.
(a) A participant who has an open
TSP account and is entitled to receive
(or receives) an eligible rollover
distribution, within the meaning of
I.R.C. section 402(c)(4) (26 U.S.C.
402(c)(4)), from an eligible employer
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Spouse of participant.
(a) For purposes of payment under
§ 1651.2(a)(2) of this chapter and
establishment of beneficiary participant
accounts under § 1651.19 of this
chapter, the spouse of the participant is
the person to whom the participant was
married on the date of death. A person
is considered to be married even if the
parties are separated, unless a court
decree of divorce or annulment has been
entered. State law of the participant’s
domicile will be used to determine
whether the participant was married at
the time of death.
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7. Amend § 1651.14 by revising
paragraph (c) to read as follows:
§ 1651.14
How payment is made.
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(c) Payment to the participant’s
spouse. The Agency will automatically
establish a beneficiary participant
account (described in § 1651.19) for any
spouse beneficiary. The Agency will not
maintain a beneficiary participant
account if the balance is less than $200
on the date the beneficiary participant
account is established. The Agency also
will not transfer this amount to another
eligible plan or pay it by electronic
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funds transfer. Instead the spouse will
receive an immediate distribution in the
form of a check.
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8. Add § 1651.19 to read as follows:
§ 1651.19 Beneficiary participant
accounts.
A beneficiary participant account may
be established only for a spouse of a
deceased participant who is a sole or
partial beneficiary of the deceased
participant’s TSP account. Beneficiary
participant accounts are subject to the
following rules and procedures:
(a) Initial investment allocation. Each
beneficiary participant account will be
initially allocated 100 percent to the
Government Securities Investment (G)
Fund regardless of the allocation of the
deceased participant’s account balance
at the time of his or her death. A
beneficiary participant may redistribute
his or her beneficiary participant
account balance among the TSP
investment funds by making an
interfund transfer request described in
part 1601, subpart C, of this chapter.
(b) Contributions. A beneficiary
participant may not make contributions
or transfers to his or her beneficiary
participant account. The TSP will not
accept a contribution allocation request
described in part 1601, subpart B of this
chapter for a beneficiary participant
account.
(c) Required minimum distributions.
(1) A beneficiary participant must begin
receiving annual distributions from his
or her beneficiary participant account
balance on or before the later of—
(i) The end of the calendar year
immediately following the calendar year
in which the participant died; or
(ii) The end of the calendar year in
which the participant would have
attained age 701⁄2.
(2) The TSP will ensure that the
amount of the beneficiary participant’s
annual distributions that occur after the
required minimum distribution date
satisfy the applicable minimum
distribution requirements of the Internal
Revenue Code. The TSP will calculate
minimum distributions based on the
beneficiary participant account balance
and the beneficiary participant’s age,
using the IRS Single Life Table, 26 CFR
1.401(a)(9)–9, Q&A–1.
(d) Withdrawal elections. A
beneficiary participant may elect to
withdraw all or a portion of his or her
beneficiary participant account as a
partial payment or as a full withdrawal,
that is in a single payment, a series of
monthly payments, a life annuity, or
any combination of these options. The
provisions of §§ 1650.12, 1650.13, and
1650.14 shall apply as if all references
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to a participant are references to a
beneficiary participant and all
references to an account balance are
references to a beneficiary participant
account balance.
(e) Ineligibility for certain
withdrawals. A beneficiary participant
is ineligible to request the following
types of withdrawals from his or her
beneficiary participant account: Agebased withdrawals described in
§ 1650.31 of this chapter, financial
hardship withdrawals described in
§ 1650.32 of this chapter, or loans
described in part 1655 of this chapter.
A beneficiary participant will not be
ineligible for a partial withdrawal
because the deceased participant
previously elected an age-based
withdrawal.
(f) Spousal rights. The spousal rights
described in 5 U.S.C. 8351, 5 U.S.C.
8435, or § 1650.61 of this chapter do not
apply to beneficiary participant
accounts.
(g) Transfers. A beneficiary
participant may request that the TSP
transfer all or a portion of an eligible
rollover distribution (within the
meaning of I.R.C. section 402(c)(4)) from
his or her beneficiary participant
account to traditional IRA, Roth IRA or
eligible employer plan (including a
civilian or uniformed services TSP
account other than a beneficiary
participant account). In order to request
such a transfer, the beneficiary
participant must use the transfer form
provided by the TSP.
(h) Periodic statements. The TSP will
furnish beneficiary participants with
periodic statements in a manner
consistent with part 1640 of this
chapter.
(i) Privacy Act. Part 1630 of this
chapter shall apply with respect to a
beneficiary participant as if the
beneficiary participant is a TSP
participant.
(j) Error correction. If, because of an
error committed by the Board or the TSP
record keeper, a beneficiary
participant’s account is not credited or
charged with the investment gains or
losses the account would have received
had the error not occurred, the account
will be credited subject to and in
accordance with the rules and
procedures set forth in § 1605.21. A
beneficiary participant may submit a
claim for correction of Board or TSP
record keeper error pursuant to the
procedures described in § 1605.22.
(k) Court orders. Court orders relating
to a civilian beneficiary participant
account or uniformed services
beneficiary participant account shall be
processed pursuant to the procedures
set forth in part 1653 of this chapter as
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if all references to a TSP participant are
references to a beneficiary participant
and all references to a TSP account or
account balance are references to a
beneficiary participant account or
beneficiary participant account balance.
Notwithstanding any provision of part
1653, a payee of a court-ordered
distribution from a beneficiary
participant account cannot request a
transfer of the court-ordered distribution
to an eligible employer plan or IRA.
(l) Death of beneficiary participant.
To the extent it is not inconsistent with
this section, a beneficiary participant
account shall be disbursed upon the
death of the beneficiary participant in
accordance with part 1651 as if any
reference to a participant is a reference
to a beneficiary participant. For
example, a beneficiary participant may
designate a beneficiary for his or her
beneficiary participant account in
accordance with §§ 1651.3 and 1651.4 of
this chapter. No individual who is
entitled to a death benefit from a
beneficiary participant account shall be
eligible to keep the death benefit in the
TSP or request that the TSP transfer all
or a portion of the death benefit to an
IRA or eligible employer plan.
(m) Uniformed services beneficiary
participant accounts. Uniformed
services beneficiary participant
accounts are subject to the following
additional rules and procedures:
(1) Uniformed services beneficiary
participant accounts are established and
maintained separately from civilian
beneficiary participant accounts.
Beneficiary participants who have a
uniformed services beneficiary
participant account and a civilian
beneficiary participant account will be
issued two separate TSP account
numbers. A beneficiary participant must
file separate interfund transfers and/or
withdrawal requests for each account
and submit separate beneficiary
designation forms for each account;
(2) A uniformed services beneficiary
participant account and a civilian
beneficiary participant account cannot
be combined;
(3) If a uniformed services beneficiary
participant account contains combat
zone contributions, any payments or
withdrawals from the account will be
distributed pro rata from all sources;
(4) A beneficiary participant may
transfer or roll over all or any portion
of an eligible rollover distribution
(within the meaning of I.R.C. section
402(c)(4)) from a uniformed services
beneficiary participant account into a
civilian or uniformed services TSP
participant account. However, taxexempt money attributable to combat
zone contributions cannot be transferred
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69029
from a uniformed services beneficiary
participant account to a civilian TSP
participant account.
(n) Multiple beneficiary accounts.
Each beneficiary participant account is
maintained separately from all other
beneficiary participant accounts. If an
individual has multiple beneficiary
participant accounts, each of the
individual’s beneficiary participant
accounts will have a unique account
number. A beneficiary participant must
file separate interfund transfers and/or
withdrawal requests and submit
separate beneficiary designation forms
for each beneficiary participant account
that the TSP maintains for him or her.
A beneficiary participant account
cannot be combined with another
beneficiary participant account.
PART 1690—THRIFT SAVINGS PLAN
9. The authority citation for part 1690
continues to read as follows:
Authority: 5 U.S.C. 8474.
10. Amend § 1690.1, by adding the
definitions of ‘‘Beneficiary participant’’,
‘‘Beneficiary participant account’’,
‘‘Civilian beneficiary participant
account’’, and ‘‘Uniformed services
beneficiary participant account’’, and by
revising the definition of ‘‘Plan
participant’’ and ‘‘Spouse’’ in
alphabetical order to read as follows:
§ 1690.1
Definitions.
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Beneficiary participant means a
spouse beneficiary for whom the TSP
maintains a beneficiary participant
account pursuant to 5 U.S.C. 8433(e)
and in accordance with 5 CFR 1651.19.
Beneficiary participant account
means an account maintained pursuant
to 5 U.S.C. 8433(e) and in accordance
with 5 CFR 1651.19. The term includes
both civilian beneficiary participant
accounts and uniformed services
beneficiary participant accounts.
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Civilian beneficiary participant
account means a beneficiary participant
account that is established with a death
benefit payment from a TSP account to
which contributions were made by or on
behalf of a civilian employee.
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Plan participant or participant means
any person with an account (other than
a beneficiary participant account) in the
Thrift Savings Plan or who would have
an account (other than a beneficiary
account) but for an employing agency
error.
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Spouse means the person to whom a
TSP participant is married on the date
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he or she signs a form on which the TSP
requests spousal information, including
a spouse from whom the participant is
legally separated, and a person with
whom the participant is living in a
relationship that constitutes a common
law marriage in the jurisdiction in
which they live. Where a participant is
seeking to reclaim an account that has
been forfeited pursuant to 5 CFR
1650.16, spouse also means the person
to whom the participant was married on
the withdrawal deadline. For purposes
of 5 CFR 1651.5 and 5 CFR 1651.19,
spouse also means the person to whom
the participant was married on the date
of the participant’s death.
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Uniformed services beneficiary
participant account means a beneficiary
participant account that is established
with a death benefit payment from a
TSP account to which contributions
were made by or on behalf of a member
of the uniformed services.
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[FR Doc. 2010–28320 Filed 11–9–10; 8:45 am]
BILLING CODE 6760–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2010–1109; Directorate
Identifier 2010–NM–155–AD]
RIN 2120–AA64
Airworthiness Directives; Bombardier,
Inc. Model CL–600–2C10 (Regional Jet
Series 700, 701, & 702) Airplanes,
Model CL–600–2D15 (Regional Jet
Series 705) Airplanes, and Model CL–
600–2D24 (Regional Jet Series 900)
Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
AGENCY:
We propose to adopt a new
airworthiness directive (AD) for the
products listed above. This proposed
AD results from mandatory continuing
airworthiness information (MCAI)
originated by an aviation authority of
another country to identify and correct
an unsafe condition on an aviation
product. The MCAI describes the unsafe
condition as:
erowe on DSK5CLS3C1PROD with PROPOSALS-1
SUMMARY:
Rudder Travel Limiter (RTL) return spring,
part number (P/N) E0650–069–2750S, failed
prior to completion of the required
endurance test. In addition, the replacement
RTL return spring, P/N 670–93465–1 * * *
was found to be susceptible to chafing on the
VerDate Mar<15>2010
15:01 Nov 09, 2010
Jkt 223001
primary actuator, which could also result in
eventual dormant spring failure. There are
two return springs in the RTL and if both
springs failed, a subsequent mechanical
disconnect of the RTL components would
result in an unannunciated failure of the
RTL. This, in turn, would permit an increase
of rudder authority beyond normal structural
limits and, in the event of a strong rudder
input, controllability of the aeroplane could
be affected.
*
*
*
*
*
The proposed AD would require
actions that are intended to address the
unsafe condition described in the MCAI.
DATES: We must receive comments on
this proposed AD by December 27,
2010.
You may send comments by
any of the following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: (202) 493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations,
M–30, West Building Ground Floor,
Room W12–140, 1200 New Jersey
Avenue, SE., Washington, DC 20590.
• Hand Delivery: U.S. Department of
Transportation, Docket Operations,
M–30, West Building Ground Floor,
Room W12–40, 1200 New Jersey
Avenue, SE., Washington, DC, between
9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.
For service information identified in
this proposed AD, contact Bombardier,
ˆ
Inc., 400 Cote-Vertu Road West, Dorval,
´
Quebec H4S 1Y9, Canada; telephone
514–855–5000; fax 514–855–7401;
e-mail thd.crj@aero.bombardier.com;
Internet https://www.bombardier.com.
You may review copies of the
referenced service information at the
FAA, Transport Airplane Directorate,
1601 Lind Avenue, SW., Renton,
Washington. For information on the
availability of this material at the FAA,
call 425–227–1221.
ADDRESSES:
Examining the AD Docket
You may examine the AD docket on
the Internet at https://
www.regulations.gov; or in person at the
Docket Operations office between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays. The AD docket
contains this proposed AD, the
regulatory evaluation, any comments
received, and other information. The
street address for the Docket Operations
office (telephone (800) 647–5527) is in
the ADDRESSES section. Comments will
be available in the AD docket shortly
after receipt.
FOR FURTHER INFORMATION CONTACT:
Cesar Gomez, Aerospace Engineer,
PO 00000
Frm 00005
Fmt 4702
Sfmt 4702
Airframe and Mechanical Systems
Branch, ANE–171, FAA, New York
Aircraft Certification Office, 1600
Stewart Avenue, Suite 410, Westbury,
New York 11590; telephone (516) 228–
7318; fax (516) 794–5531.
SUPPLEMENTARY INFORMATION:
Comments Invited
We invite you to send any written
relevant data, views, or arguments about
this proposed AD. Send your comments
to an address listed under the
ADDRESSES section. Include ‘‘Docket No.
FAA–2010–1109; Directorate Identifier
2010–NM–155–AD’’ at the beginning of
your comments. We specifically invite
comments on the overall regulatory,
economic, environmental, and energy
aspects of this proposed AD. We will
consider all comments received by the
closing date and may amend this
proposed AD based on those comments.
We will post all comments we
receive, without change, to https://
www.regulations.gov, including any
personal information you provide. We
will also post a report summarizing each
substantive verbal contact we receive
about this proposed AD.
Discussion
Transport Canada Civil Aviation
(TCCA), which is the aviation authority
for Canada, has issued Canadian
Airworthiness Directive CF–2010–18,
dated June 16, 2010 (referred to after
this as ‘‘the MCAI’’), to correct an unsafe
condition for the specified products.
The MCAI states:
Rudder Travel Limiter (RTL) return spring,
part number (P/N) E0650–069–2750S, failed
prior to completion of the required
endurance test. In addition, the replacement
RTL return spring, P/N 670–93465–1 (see
Note) was found to be susceptible to chafing
on the primary actuator, which could also
result in eventual dormant spring failure.
There are two return springs in the RTL and
if both springs failed, a subsequent
mechanical disconnect of the RTL
components would result in an
unannunciated failure of the RTL. This, in
turn, would permit an increase of rudder
authority beyond normal structural limits
and, in the event of a strong rudder input,
controllability of the aeroplane could be
affected.
Note: RTL return springs, P/N 670–93465–
1, were installed in production aeroplanes
serial number 10266 (CL–600–2C10) and
15182 (CL–600–2D24) respectively and were
introduced in-service by [Bombardier]
Service Bulletin (SB) 670BA–27–047. SB
670BA–27–047 has since been superseded by
[Bombardier] SB 670BA–27–055.
This directive mandates repetitive [detailed]
inspection of the RTL [for broken] return
springs and [damage through the casing, or
chafing of the casing of the] primary actuator,
with replacement of parts as necessary.
E:\FR\FM\10NOP1.SGM
10NOP1
]]>Agencies
[Federal Register Volume 75, Number 217 (Wednesday, November 10, 2010)]
[Proposed Rules]
[Pages 69026-69030]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-28320]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
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.
========================================================================
Federal Register / Vol. 75, No. 217 / Wednesday, November 10, 2010 /
Proposed Rules
[[Page 69026]]
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Parts 1600, 1604, 1651, and 1690
Employee Contribution Elections and Contribution Allocations;
Uniformed Services Accounts; Death Benefits; Thrift Savings Plan
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 establish procedures to maintain
beneficiary participant accounts for spouse beneficiaries in accordance
with the Thrift Savings Plan Enhancement Act of 2009.
DATES: Comments must be received on or before December 10, 2010.
ADDRESSES: You may submit comments using one of the following methods:
Federal Rulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Mail: Office of General Counsel, Attn: Thomas Emswiler,
Federal Retirement Thrift Investment Board, 1250 H Street, NW.,
Washington, DC 20005.
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. We will post all substantive comments
(including any personal information provided) without change (with the
exception of redaction of SSNs, profanities, et cetera) on https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Laurissa Stokes at 202-942-1645.
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 and members of the uniformed services. The
TSP is similar to cash or deferred arrangements established for
private-sector employees under section 401(k) of the Internal Revenue
Code (26 U.S.C. 401(k)).
Congressional Authorization for Beneficiary Participant Accounts
Currently, a spouse beneficiary of a TSP participant must either
transfer his or her TSP death benefit payment to another eligible
employer plan or individual retirement account (IRA), or receive the
payment immediately. On June 22, 2009, the President signed the Thrift
Savings Plan Enhancement Act of 2009 (``the Act''), Public Law 111-31
(Division B, Title I), 123 Stat. 1776, 1853. The Act authorized the
Agency to allow a spouse of a deceased participant to retain a lump sum
death benefit payment in the TSP, subject to certain restrictions on
contributions, loans, and withdrawal elections. This proposed rule
would conform the Agency's regulations to the Act and would set forth
the rules and limitations applicable to beneficiary participant
accounts.
Establishing a Beneficiary Participant Account
The Agency will automatically establish a beneficiary participant
account upon identifying a deceased participant's spouse as a sole or
partial beneficiary eligible for a lump sum death benefit payment.
Consistent with its treatment of accounts of participants who have
separated from Federal service, the Agency will not maintain a
beneficiary participant account if the amount of the deceased
participant's vested account balance to which the spouse is entitled is
less than $200. The Agency also will not transfer this de minimus
amount to another eligible plan or pay it by electronic funds transfer.
Instead the TSP will make an immediate distribution to the spouse.
A civilian beneficiary participant account is a beneficiary
participant account that is established with a death benefit payment
from a civilian TSP participant account to which contributions were
made by or on behalf of a civilian employee (i.e. a civilian TSP
participant account). A uniformed services beneficiary participant
account is a beneficiary participant account that is established with a
death benefit payment from a TSP participant account to which
contributions were made by or on behalf of a member of the uniformed
services (i.e. a uniformed services TSP participant account).
Consistent with its treatment of accounts of participants who have
both a civilian account and a uniformed services account, the TSP will
maintain civilian beneficiary participant accounts separate from
uniformed services beneficiary participant accounts. Beneficiary
participants who acquire both a uniformed services participant account
and a civilian beneficiary participant account will receive two
separate TSP account numbers; one for the civilian beneficiary
participant account and one for the uniformed services beneficiary
participant account.
Initial Account Balance Allocation
Upon notice of a participant's death, the Agency currently
transfers all funds in a deceased participant's account to the
Government Securities Investment (G) Fund. This practice protects the
account balance from risk of incurring losses between the time the
Agency receives notice of the participant's death and the time the
Agency makes a distribution to a beneficiary. The Agency will continue
this practice even when it appears that the beneficiary is the
participant's spouse. Therefore, funds in a beneficiary participant
account will initially be allocated entirely to the G Fund regardless
of the allocation of the participant's account balance at the time of
his or her death. Once a beneficiary participant account is
established, the spouse beneficiary may redistribute the beneficiary
participant account balance among the TSP investment funds by making an
interfund transfer.
Withdrawal Options
A spouse beneficiary will be afforded the same withdrawal options
with respect to his or her beneficiary participant account that the
participant would have had with respect to his or her TSP account if
the participant was
[[Page 69027]]
living and separated from service. Accordingly, a spouse beneficiary
may elect to withdraw all or a portion of his or her beneficiary
participant account as a partial payment or as a full withdrawal, that
is in a single payment, a series of monthly payments, a life annuity,
or any combination of these options. The spouse beneficiary cannot
request loans, age-based withdrawals, or financial hardship
withdrawals.
Required Minimum Distributions
The Internal Revenue Code requires spouse beneficiaries to receive
a portion of their beneficiary participant account on or before the
later of--(1) The end of the calendar year immediately following the
calendar year in which the participant died; or (2) The end of the
calendar year in which the employee would have attained age 70\1/2\.
The Agency will ensure that the annual total payments satisfy any
applicable minimum distribution requirement of the Internal Revenue
Code by making a supplemental payment, if necessary. The Agency will
calculate minimum distributions based on the beneficiary participant
account balance and the beneficiary participant's age, using the IRS
Single Life Table, Treas. Reg. Sec. 1.401(a)(9)-9, Q&A 1.
Spousal Rights After Remarriage
Sections 8351 and 8435, Title 5 of the United States Code give
certain rights to the spouses of participants. These spousal rights are
not applicable to the spouse of a beneficiary participant. Thus, if a
beneficiary participant remarries, his or her new spouse will not have
the right to consent, notice, or any particular form of distribution
(e.g. joint and survivor annuity) with respect to withdrawals from the
beneficiary participant account.
Contributions, Transfers, and Rollovers to Beneficiary Participant
Accounts
The Thrift Savings Plan Enhancement Act of 2009 prohibits a spouse
beneficiary from making contributions or ``transfers'' (trustee-to-
trustee transfers or rollovers) to a beneficiary participant account.
Accordingly, the Agency will not accept a contribution allocation
request from a spouse beneficiary and a spouse beneficiary may not
transfer or roll over any distributions from an IRA or an eligible
employer plan into a beneficiary participant account.
A beneficiary participant may acquire multiple civilian beneficiary
participant accounts and/or multiple uniformed services beneficiary
participants if he or she remarries a Federal employee who then dies
having designated him or her as a beneficiary. Beneficiary participant
accounts cannot be combined since combining accounts requires a
transfer from one beneficiary participant account to another.
Transfers and Rollovers From Beneficiary Participant Accounts
A spouse beneficiary may transfer or roll over all or a portion of
an eligible rollover distribution (within the meaning of Internal
Revenue Code Sec. 402(c)(4)) to a traditional IRA, Roth IRA, or
eligible employer plan. A spouse beneficiary who is a current or former
Federal employee may also transfer or roll over all or a portion of an
eligible rollover distribution from a civilian beneficiary participant
account into his or her own civilian or uniformed services TSP
participant account.
A spouse beneficiary who is a current or former Federal employee
may, likewise, transfer or roll over all or a portion of an eligible
rollover distribution from a uniformed services beneficiary participant
account into a civilian or uniformed services TSP participant account.
However, a transfer of a uniformed services beneficiary participant
account to a civilian TSP participant account cannot include tax-exempt
money attributable to the combat zone exclusion. Any tax-exempt money
must remain in the uniformed services beneficiary account unless it is
transferred or rolled over to an IRA or it is transferred directly to a
uniformed services TSP participant account or other eligible employer
plan that accepts tax-exempt money.
Section 1600.31 of the Agency's regulations currently prohibits
participants from requesting incoming transfers or rollovers if they
are receiving monthly payments from their TSP accounts. For this
reason, a spouse beneficiary who is a current or former Federal
employee would not be permitted to transfer an eligible rollover
distribution from a beneficiary participant account to his or her own
TSP participant account if he or she is receiving monthly payments from
that account. The Agency proposes to remove this limitation on incoming
transfers and rollovers. Thus, a spouse beneficiary would be permitted
to transfer or roll over all or a portion of an eligible rollover
distribution from his or her beneficiary participant account to his or
her own TSP participant account even if he or she is receiving monthly
payments.
Combining a Uniformed Services Beneficiary Participant Account and a
Civilian Beneficiary Participant Account Not Permitted
The Agency's regulations currently provide that a participant may
combine his or her uniformed services account with a civilian account
through a ``transfer.'' See 5 CFR 1604.5(b). Even in the absence of
this regulatory language, combining accounts would, as practical
matter, require that one account be transferred to the other. Because
the Thrift Savings Plan Enhancement Act prohibits contributions or
transfers to a beneficiary participant account, a spouse beneficiary
cannot combine his or her uniformed services beneficiary participant
account with his or her civilian beneficiary participant account.
Death of a Beneficiary Participant
The balance of a beneficiary participant account must be disbursed
upon the death of the beneficiary participant. A beneficiary
participant may designate a beneficiary for his or her beneficiary
participant account. If the beneficiary participant does not designate
a beneficiary for his or her beneficiary participant account, the
account will be disbursed in accordance with the order of precedence
set forth at 5 CFR 1651(a)(2) through (6). No individual who is
entitled to a death benefit from a beneficiary participant account
shall be eligible to keep his or her benefit in the TSP.
A recipient of a death benefit payment from a beneficiary
participant account cannot transfer the payment to an IRA or eligible
retirement plan (including the TSP). The Internal Revenue Code permits
death benefit distributions to be rolled over only when the
distribution is ``paid to the spouse of the employee'' or the
``designated beneficiary (as defined by section 401(a)(9)(E)) of the
employee.'' 26 U.S.C. 402(c)(9) (emphasis added); 26 U.S.C. 402(c)(11)
(emphasis added). Because a beneficiary participant is not the
employee, the TSP must pay the recipient of the death benefit payment
directly and the payment will be fully taxable to that individual in
the year of distribution. 26 U.S.C. 402(a).
Regulatory Flexibility Act
I certify that this regulation will not have a significant economic
impact on a substantial number of small entities. This regulation will
affect Federal employees and members of the uniformed services who
participate in the Thrift Savings Plan, which is a Federal defined
contribution retirement savings plan created under the Federal
[[Page 69028]]
Employees' Retirement System Act of 1986 (FERSA), Public Law 99-335,
100 Stat. 514, and which is administered by the Agency. It will also
affect their spouse beneficiaries.
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 Sec.
1532 is not required.
List of Subjects
5 CFR Part 1600
Government employees, Pensions, Retirement.
5 CFR Part 1604
Military personnel, Pensions, Retirement.
5 CFR Part 1651
Claims, Government employees, Pensions, Retirement.
5 CFR Part 1690
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 1600--EMPLOYEE CONTRIBUTION ELECTIONS AND CONTRIBUTION
ALLOCATIONS
1. The authority citation for part 1600 continues to read as
follows:
Authority: 5 U.S.C. 8351, 8432(a), 8432(b), 8432(c), 8432(j),
8474(b)(5) and (c)(1), Thrift Savings Plan Enhancement Act of 2009,
section 102.
2. Amend Sec. 1600.31, by revising paragraph (a) to read as
follows:
Sec. 1600.31 Accounts eligible for transfer.
(a) A participant who has an open TSP account and is entitled to
receive (or receives) an eligible rollover distribution, within the
meaning of I.R.C. section 402(c)(4) (26 U.S.C. 402(c)(4)), from an
eligible employer plan or a rollover contribution, within the meaning
of I.R.C. section 408(d)(3) (26 U.S.C. 408(d)(3)), from a traditional
IRA may cause to be transferred (or transfer) that distribution into
his or her TSP account.
* * * * *
PART 1604--UNIFORMED SERVICES ACCOUNTS
3. The authority citation for part 1604 continues to read as
follows:
Authority: 5 U.S.C. 8440e, 8474(b)(5) and (c)(1).
4. Revise Sec. 1604.8 to read as follows:
Sec. 1604.8 Death benefits.
The account balance of a deceased service member will be paid as
described at 5 CFR part 1651. If a service member account contains
combat zone contributions, the death benefit payment will be made pro
rata from all sources.
PART 1651--DEATH BENEFITS
5. Revise the authority citation for part 1651 to read as follows:
Authority: 5 U.S.C. 8424(d), 8432(j), 8433(e), 8435(c)(2),
8474(b)(5), 8474(c)(1), and Sec. 109, Pub. L. 111-31,123 Stat. 1176
(5 U.S.C. 8433(e)).
6. Amend Sec. 1651.5 by revising paragraph (a) to read as follows:
Sec. 1651.5 Spouse of participant.
(a) For purposes of payment under Sec. 1651.2(a)(2) of this
chapter and establishment of beneficiary participant accounts under
Sec. 1651.19 of this chapter, the spouse of the participant is the
person to whom the participant was married on the date of death. A
person is considered to be married even if the parties are separated,
unless a court decree of divorce or annulment has been entered. State
law of the participant's domicile will be used to determine whether the
participant was married at the time of death.
* * * * *
7. Amend Sec. 1651.14 by revising paragraph (c) to read as
follows:
Sec. 1651.14 How payment is made.
* * * * *
(c) Payment to the participant's spouse. The Agency will
automatically establish a beneficiary participant account (described in
Sec. 1651.19) for any spouse beneficiary. The Agency will not maintain
a beneficiary participant account if the balance is less than $200 on
the date the beneficiary participant account is established. The Agency
also will not transfer this amount to another eligible plan or pay it
by electronic funds transfer. Instead the spouse will receive an
immediate distribution in the form of a check.
* * * * *
8. Add Sec. 1651.19 to read as follows:
Sec. 1651.19 Beneficiary participant accounts.
A beneficiary participant account may be established only for a
spouse of a deceased participant who is a sole or partial beneficiary
of the deceased participant's TSP account. Beneficiary participant
accounts are subject to the following rules and procedures:
(a) Initial investment allocation. Each beneficiary participant
account will be initially allocated 100 percent to the Government
Securities Investment (G) Fund regardless of the allocation of the
deceased participant's account balance at the time of his or her death.
A beneficiary participant may redistribute his or her beneficiary
participant account balance among the TSP investment funds by making an
interfund transfer request described in part 1601, subpart C, of this
chapter.
(b) Contributions. A beneficiary participant may not make
contributions or transfers to his or her beneficiary participant
account. The TSP will not accept a contribution allocation request
described in part 1601, subpart B of this chapter for a beneficiary
participant account.
(c) Required minimum distributions. (1) A beneficiary participant
must begin receiving annual distributions from his or her beneficiary
participant account balance on or before the later of--
(i) The end of the calendar year immediately following the calendar
year in which the participant died; or
(ii) The end of the calendar year in which the participant would
have attained age 70\1/2\.
(2) The TSP will ensure that the amount of the beneficiary
participant's annual distributions that occur after the required
minimum distribution date satisfy the applicable minimum distribution
requirements of the Internal Revenue Code. The TSP will calculate
minimum distributions based on the beneficiary participant account
balance and the beneficiary participant's age, using the IRS Single
Life Table, 26 CFR 1.401(a)(9)-9, Q&A-1.
(d) Withdrawal elections. A beneficiary participant may elect to
withdraw all or a portion of his or her beneficiary participant account
as a partial payment or as a full withdrawal, that is in a single
payment, a series of monthly payments, a life annuity, or any
combination of these options. The provisions of Sec. Sec. 1650.12,
1650.13, and 1650.14 shall apply as if all references
[[Page 69029]]
to a participant are references to a beneficiary participant and all
references to an account balance are references to a beneficiary
participant account balance.
(e) Ineligibility for certain withdrawals. A beneficiary
participant is ineligible to request the following types of withdrawals
from his or her beneficiary participant account: Age-based withdrawals
described in Sec. 1650.31 of this chapter, financial hardship
withdrawals described in Sec. 1650.32 of this chapter, or loans
described in part 1655 of this chapter. A beneficiary participant will
not be ineligible for a partial withdrawal because the deceased
participant previously elected an age-based withdrawal.
(f) Spousal rights. The spousal rights described in 5 U.S.C. 8351,
5 U.S.C. 8435, or Sec. 1650.61 of this chapter do not apply to
beneficiary participant accounts.
(g) Transfers. A beneficiary participant may request that the TSP
transfer all or a portion of an eligible rollover distribution (within
the meaning of I.R.C. section 402(c)(4)) from his or her beneficiary
participant account to traditional IRA, Roth IRA or eligible employer
plan (including a civilian or uniformed services TSP account other than
a beneficiary participant account). In order to request such a
transfer, the beneficiary participant must use the transfer form
provided by the TSP.
(h) Periodic statements. The TSP will furnish beneficiary
participants with periodic statements in a manner consistent with part
1640 of this chapter.
(i) Privacy Act. Part 1630 of this chapter shall apply with respect
to a beneficiary participant as if the beneficiary participant is a TSP
participant.
(j) Error correction. If, because of an error committed by the
Board or the TSP record keeper, a beneficiary participant's account is
not credited or charged with the investment gains or losses the account
would have received had the error not occurred, the account will be
credited subject to and in accordance with the rules and procedures set
forth in Sec. 1605.21. A beneficiary participant may submit a claim
for correction of Board or TSP record keeper error pursuant to the
procedures described in Sec. 1605.22.
(k) Court orders. Court orders relating to a civilian beneficiary
participant account or uniformed services beneficiary participant
account shall be processed pursuant to the procedures set forth in part
1653 of this chapter as if all references to a TSP participant are
references to a beneficiary participant and all references to a TSP
account or account balance are references to a beneficiary participant
account or beneficiary participant account balance. Notwithstanding any
provision of part 1653, a payee of a court-ordered distribution from a
beneficiary participant account cannot request a transfer of the court-
ordered distribution to an eligible employer plan or IRA.
(l) Death of beneficiary participant. To the extent it is not
inconsistent with this section, a beneficiary participant account shall
be disbursed upon the death of the beneficiary participant in
accordance with part 1651 as if any reference to a participant is a
reference to a beneficiary participant. For example, a beneficiary
participant may designate a beneficiary for his or her beneficiary
participant account in accordance with Sec. Sec. 1651.3 and 1651.4 of
this chapter. No individual who is entitled to a death benefit from a
beneficiary participant account shall be eligible to keep the death
benefit in the TSP or request that the TSP transfer all or a portion of
the death benefit to an IRA or eligible employer plan.
(m) Uniformed services beneficiary participant accounts. Uniformed
services beneficiary participant accounts are subject to the following
additional rules and procedures:
(1) Uniformed services beneficiary participant accounts are
established and maintained separately from civilian beneficiary
participant accounts. Beneficiary participants who have a uniformed
services beneficiary participant account and a civilian beneficiary
participant account will be issued two separate TSP account numbers. A
beneficiary participant must file separate interfund transfers and/or
withdrawal requests for each account and submit separate beneficiary
designation forms for each account;
(2) A uniformed services beneficiary participant account and a
civilian beneficiary participant account cannot be combined;
(3) If a uniformed services beneficiary participant account
contains combat zone contributions, any payments or withdrawals from
the account will be distributed pro rata from all sources;
(4) A beneficiary participant may transfer or roll over all or any
portion of an eligible rollover distribution (within the meaning of
I.R.C. section 402(c)(4)) from a uniformed services beneficiary
participant account into a civilian or uniformed services TSP
participant account. However, tax-exempt money attributable to combat
zone contributions cannot be transferred from a uniformed services
beneficiary participant account to a civilian TSP participant account.
(n) Multiple beneficiary accounts. Each beneficiary participant
account is maintained separately from all other beneficiary participant
accounts. If an individual has multiple beneficiary participant
accounts, each of the individual's beneficiary participant accounts
will have a unique account number. A beneficiary participant must file
separate interfund transfers and/or withdrawal requests and submit
separate beneficiary designation forms for each beneficiary participant
account that the TSP maintains for him or her. A beneficiary
participant account cannot be combined with another beneficiary
participant account.
PART 1690--THRIFT SAVINGS PLAN
9. The authority citation for part 1690 continues to read as
follows:
Authority: 5 U.S.C. 8474.
10. Amend Sec. 1690.1, by adding the definitions of ``Beneficiary
participant'', ``Beneficiary participant account'', ``Civilian
beneficiary participant account'', and ``Uniformed services beneficiary
participant account'', and by revising the definition of ``Plan
participant'' and ``Spouse'' in alphabetical order to read as follows:
Sec. 1690.1 Definitions.
* * * * *
Beneficiary participant means a spouse beneficiary for whom the TSP
maintains a beneficiary participant account pursuant to 5 U.S.C.
8433(e) and in accordance with 5 CFR 1651.19.
Beneficiary participant account means an account maintained
pursuant to 5 U.S.C. 8433(e) and in accordance with 5 CFR 1651.19. The
term includes both civilian beneficiary participant accounts and
uniformed services beneficiary participant accounts.
* * * * *
Civilian beneficiary participant account means a beneficiary
participant account that is established with a death benefit payment
from a TSP account to which contributions were made by or on behalf of
a civilian employee.
* * * * *
Plan participant or participant means any person with an account
(other than a beneficiary participant account) in the Thrift Savings
Plan or who would have an account (other than a beneficiary account)
but for an employing agency error.
* * * * *
Spouse means the person to whom a TSP participant is married on the
date
[[Page 69030]]
he or she signs a form on which the TSP requests spousal information,
including a spouse from whom the participant is legally separated, and
a person with whom the participant is living in a relationship that
constitutes a common law marriage in the jurisdiction in which they
live. Where a participant is seeking to reclaim an account that has
been forfeited pursuant to 5 CFR 1650.16, spouse also means the person
to whom the participant was married on the withdrawal deadline. For
purposes of 5 CFR 1651.5 and 5 CFR 1651.19, spouse also means the
person to whom the participant was married on the date of the
participant's death.
* * * * *
Uniformed services beneficiary participant account means a
beneficiary participant account that is established with a death
benefit payment from a TSP account to which contributions were made by
or on behalf of a member of the uniformed services.
* * * * *
[FR Doc. 2010-28320 Filed 11-9-10; 8:45 am]
BILLING CODE 6760-01-P
