Employee Contribution Elections and Contribution Allocations; Uniformed Services Accounts; Methods of Withdrawing Funds From the Thrift Savings Plan; Death Benefits; Thrift Savings Plan, 78877-78881 [2010-31656]
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78877
Rules and Regulations
Federal Register
Vol. 75, No. 242
Friday, December 17, 2010
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
FEDERAL RETIREMENT THRIFT
INVESTMENT BOARD
5 CFR Parts 1600, 1604, 1650, 1651,
and 1690
Employee Contribution Elections and
Contribution Allocations; Uniformed
Services Accounts; Methods of
Withdrawing Funds From the Thrift
Savings Plan; Death Benefits; Thrift
Savings Plan
Federal Retirement Thrift
Investment Board.
ACTION: Final rule.
AGENCY:
The Federal Retirement Thrift
Investment Board (Agency) is amending
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: This final rule is effective
December 20, 2010.
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)).
This regulation was published in
proposed form on November 10, 2010
(75 FR 69026). The Agency received two
comments. Both commenters
recommended changes to the Agency’s
regulations. However, each of the
recommendations offered by the
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SUMMARY:
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commenters are either outside the scope
of this proposed rule or would result in
a change that is beyond the authority
granted by the Thrift Savings Plan
Enhancement Act of 2009 (‘‘the Act’’),
Public Law 111–31 (Division B, Title I),
123 Stat. 1776, 1853. Therefore, the
Agency is publishing the proposed rule
as final without substantive
modification.
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.
Subject to certain restrictions on
contributions, loans, and withdrawal
elections, the Act authorizes the Agency
to allow a spouse of a deceased
participant to retain a lump sum death
benefit payment in the TSP. This final
rule conforms the Agency’s regulations
to the Act and sets 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
balance of the beneficiary participant
account is less than $200 on the date the
account is established. 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 in the form of
a U.S. Treasury check.
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
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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
civilian accounts and uniformed
services accounts, 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
market-driven 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 for beneficiaries who are
spouses. Therefore, regardless of the
allocation of the participant’s account
balance at the time of his or her death,
funds in a beneficiary participant
account will initially be allocated
entirely to the G Fund. 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
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
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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
cannot accept a contribution allocation
request from a spouse beneficiary and a
spouse beneficiary cannot 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
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rollover distribution (within the
meaning of Internal Revenue Code
section 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.
As currently written, the Agency’s
regulations prohibit 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.
This final rule removes the above
described limitation on incoming
transfers and rollovers. Thus, a spouse
beneficiary will 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 a
practical matter, require that one
account be transferred to the other.
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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)–(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
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.
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§ 1600.31
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 § 1532 is not required.
Submission to Congress and the
General Accounting Office
Pursuant to 5 U.S.C. 810(a)(1)(A), the
Agency submitted a report containing
this rule and other required information
to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller
General of the United States before
publication of this rule in the Federal
Register. This rule is not a major rule as
defined at 5 U.S.C. 804(2).
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.
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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 § 1604.8 to read as follows:
§ 1604.8
5 CFR Part 1600
Government employees, Pensions,
Retirement.
5 CFR Part 1604
Military personnel, Pensions,
Retirement.
PART 1650—METHODS OF
WITHDRAWING FUNDS FROM THE
THRIFT SAVINGS PLAN
5 CFR Part 1650
5. The authority citation for part 1650
continues to read as follows:
Alimony, Claims, Government
employees, Pensions, Retirement.
■
5 CFR Part 1651
Authority: 5 U.S.C. 8351, 8433, 8434,
8435, 8474(b)(5), and 8474(c)(1).
Claims, Government employees,
Pensions, Retirement.
■
6. Amend § 1650.13, by removing
paragraph (f).
5 CFR Part 1690
PART 1651—DEATH BENEFITS
Government employees, Pensions,
Retirement.
For the reasons stated in the preamble,
the Agency amends 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:
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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)).
8. Amend § 1651.5, by revising
paragraph (a) to read as follows:
■
§ 1651.5
■
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7. Revise the authority citation for part
1651 to read as follows:
■
Gregory T. Long,
Executive Director, Federal Retirement Thrift
Investment Board.
Spouse of participant.
(a) For purposes of payment under
§ 1651.2(a)(2) and establishment of
beneficiary participant accounts under
§ 1651.19, 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. The state law of the
participant’s domicile will be used to
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determine whether the participant was
married at the time of death.
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■ 9. 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 of the beneficiary
participant account is less than $200 on
the date the 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.
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■ 10. Add § 1651.19 to read as follows:
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.
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§ 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.
Regardless of the allocation of the
deceased participant’s account balance
at the time of his or her death, each
beneficiary participant account will be
initially allocated 100 percent to the
Government Securities Investment (G)
Fund. 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
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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 any
withdrawal option is available to
separated participants. The provisions
of § 1650.12, § 1650.13, and § 1650.14
shall apply as if all references 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, and § 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
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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
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 § 1651.19, 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
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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
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
11. The authority citation for part
1690 continues to read as follows:
■
Authority: 5 U.S.C. 8474.
12. Amend § 1690.1, to add the
definitions of ‘‘Beneficiary participant’’,
‘‘Beneficiary participant account’’,
‘‘Civilian beneficiary participant
account’’, and ‘‘Uniformed services
beneficiary participant account’’, and by
revising the definitions 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
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.
*
*
*
*
*
[FR Doc. 2010–31656 Filed 12–16–10; 8:45 am]
BILLING CODE 6760–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2010–0596; Directorate
Identifier 2010–NE–22–AD; Amendment 39–
16533; AD 2010–24–14]
srobinson on DSKHWCL6B1PROD with RULES
RIN 2120–AA64
Airworthiness Directives; Pratt &
Whitney PW4000 Series Turbofan
Engines
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
The FAA is adopting a new
airworthiness directive (AD) for certain
Pratt & Whitney PW4000 series turbofan
SUMMARY:
VerDate Mar<15>2010
16:01 Dec 16, 2010
Jkt 223001
engines. This AD requires initial and
repetitive borescope inspections (BSI) or
fluorescent penetrant inspections (FPI)
for cracks in the anti-vortex tube (AVT)
shelf slots on the 10th stage disk of the
high-pressure compressor (HPC) drum
rotor disk assembly. This AD results
from 47 reports received since 2007 of
HPC 10th stage disks found cracked in
the AVT shelf slots during shop visit
inspections. We are issuing this AD to
prevent failure of the HPC 10th stage
disk, uncontained engine failure, and
damage to the airplane.
This AD becomes effective
January 21, 2011. The Director of the
Federal Register approved the
incorporation by reference of certain
publications listed in the regulations as
of January 21, 2011.
DATES:
You can get the service
information identified in this AD from
Pratt & Whitney, 400 Main St., East
Hartford, CT 06108; telephone (860)
565–8770; fax (860) 565–4503.
The Docket Operations office is
located at Docket Management Facility,
U.S. Department of Transportation, 1200
New Jersey Avenue, SE., West Building
Ground Floor, Room W12–140,
Washington, DC 20590–0001.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
James Gray, Aerospace Engineer, Engine
Certification Office, FAA, Engine and
Propeller Directorate, 12 New England
Executive Park, Burlington, MA 01803;
e-mail: james.e.gray@faa.gov; telephone
(781) 238–7742; fax (781) 238–7199.
The FAA
proposed to amend 14 CFR part 39 with
a proposed AD. The proposed AD
applies to certain Pratt & Whitney
PW4000 series turbofan engines. We
published the proposed AD in the
Federal Register on July 14, 2010 (75 FR
40757). That action proposed to require
initial and repetitive BSI or FPI for
cracks in the AVT shelf slots on the 10th
stage disk of the HPC drum rotor disk
assembly.
SUPPLEMENTARY INFORMATION:
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 AD, the regulatory
evaluation, any comments received, and
other information. The street address for
the Docket Operations office (telephone
(800) 647–5527) is provided in the
ADDRESSES section. Comments will be
available in the AD docket shortly after
receipt.
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
78881
Comments
We provided the public the
opportunity to participate in the
development of this AD. We have
considered the comments received.
Request for Airplane Model Changes in
the Applicability
One commenter, The Boeing
Company, requests that we change the
list of airplane models in the
applicability paragraph. The commenter
requests that we add the 747–400 and
–400F airplane models, and remove the
747–200 airplane model. These changes
will make the list accurate.
We agree. We changed the AD
applicability to reflect these changes.
Request To Include Engine Removal
Disassembly Labor Costs
One commenter, Japan Airlines,
requests that we change the costs of
compliance estimate to include engine
removal and disassembly labor costs.
The commenter states that their
domestic routes can go 7,000 cycles-inservice or more between engine
overhauls. Since the inspection
compliance interval in the proposed AD
is within every 7,200 cycles-in-service,
some of their engines could be removed
and disassembled before they would
normally be scheduled.
We do not agree. The inspection
compliance interval of within every
7,200 cycles-in-service captures when
most of the fleet will remove the lowpressure turbine shaft, or overhaul the
HPC. Most operators will incur no
additional costs. We did not change the
AD.
Request To Add Service Bulletins as
Terminating Action
Two commenters, Martinair Holland
and Delta Airlines, Inc., request that we
add Pratt & Whitney Service Bulletin
(SB) No. PW4ENG 72–801 to the AD as
terminating action for the repeat
inspection. The commenters state that
Pratt & Whitney issued that SB, as well
as SB No. PW4G–100–72–225, to
introduce a redesigned HPC 9th stage
stator that will correct the cracking
problem.
We agree. We modified the AD to
include optional terminating action for
the repetitive inspections.
Reference the Latest Service Bulletin
Since we issued the proposed AD,
Pratt & Whitney has issued Revision 1
of Pratt & Whitney SB No. PW4ENG 72–
799. We updated the AD to reference
Revision 1 of this SB.
E:\FR\FM\17DER1.SGM
17DER1
]]>Agencies
[Federal Register Volume 75, Number 242 (Friday, December 17, 2010)]
[Rules and Regulations]
[Pages 78877-78881]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-31656]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 /
Rules and Regulations
[[Page 78877]]
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Parts 1600, 1604, 1650, 1651, and 1690
Employee Contribution Elections and Contribution Allocations;
Uniformed Services Accounts; Methods of Withdrawing Funds From the
Thrift Savings Plan; Death Benefits; Thrift Savings Plan
AGENCY: Federal Retirement Thrift Investment Board.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Retirement Thrift Investment Board (Agency) is
amending 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: This final rule is effective December 20, 2010.
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)).
This regulation was published in proposed form on November 10, 2010
(75 FR 69026). The Agency received two comments. Both commenters
recommended changes to the Agency's regulations. However, each of the
recommendations offered by the commenters are either outside the scope
of this proposed rule or would result in a change that is beyond the
authority granted by the Thrift Savings Plan Enhancement Act of 2009
(``the Act''), Public Law 111-31 (Division B, Title I), 123 Stat. 1776,
1853. Therefore, the Agency is publishing the proposed rule as final
without substantive modification.
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. Subject to certain restrictions on contributions,
loans, and withdrawal elections, the Act authorizes the Agency to allow
a spouse of a deceased participant to retain a lump sum death benefit
payment in the TSP. This final rule conforms the Agency's regulations
to the Act and sets 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 balance of the beneficiary
participant account is less than $200 on the date the account is
established. 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 in
the form of a U.S. Treasury check.
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 civilian accounts and uniformed services accounts, 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 market-driven 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 for beneficiaries who are spouses. Therefore,
regardless of the allocation of the participant's account balance at
the time of his or her death, funds in a beneficiary participant
account will initially be allocated entirely to the G Fund. 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 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
[[Page 78878]]
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 cannot accept a contribution allocation request
from a spouse beneficiary and a spouse beneficiary cannot 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 section 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.
As currently written, the Agency's regulations prohibit
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.
This final rule removes the above described limitation on incoming
transfers and rollovers. Thus, a spouse beneficiary will 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 a 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)-(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
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.
[[Page 78879]]
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.
Submission to Congress and the General Accounting Office
Pursuant to 5 U.S.C. 810(a)(1)(A), the Agency submitted a report
containing this rule and other required information to the U.S. Senate,
the U.S. House of Representatives, and the Comptroller General of the
United States before publication of this rule in the Federal Register.
This rule is not a major rule as defined at 5 U.S.C. 804(2).
List of Subjects
5 CFR Part 1600
Government employees, Pensions, Retirement.
5 CFR Part 1604
Military personnel, Pensions, Retirement.
5 CFR Part 1650
Alimony, Claims, Government employees, 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.
0
For the reasons stated in the preamble, the Agency amends 5 CFR chapter
VI as follows:
PART 1600--EMPLOYEE CONTRIBUTION ELECTIONS AND CONTRIBUTION
ALLOCATIONS
0
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.
0
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
0
3. The authority citation for part 1604 continues to read as follows:
Authority: 5 U.S.C. 8440e, 8474(b)(5) and (c)(1).
0
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 1650--METHODS OF WITHDRAWING FUNDS FROM THE THRIFT SAVINGS
PLAN
0
5. The authority citation for part 1650 continues to read as follows:
Authority: 5 U.S.C. 8351, 8433, 8434, 8435, 8474(b)(5), and
8474(c)(1).
0
6. Amend Sec. 1650.13, by removing paragraph (f).
PART 1651--DEATH BENEFITS
0
7. 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)).
0
8. 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) and
establishment of beneficiary participant accounts under Sec. 1651.19,
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. The state law of the participant's domicile
will be used to determine whether the participant was married at the
time of death.
* * * * *
0
9. 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 of the beneficiary
participant account is less than $200 on the date the 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.
* * * * *
0
10. 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. Regardless of the allocation of
the deceased participant's account balance at the time of his or her
death, each beneficiary participant account will be initially allocated
100 percent to the Government Securities Investment (G) Fund. 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
[[Page 78880]]
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 any
withdrawal option is available to separated participants. The
provisions of Sec. 1650.12, Sec. 1650.13, and Sec. 1650.14 shall
apply as if all references 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, and 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 Sec. 1651.19, 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. 1651.3 and Sec. 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
0
11. The authority citation for part 1690 continues to read as follows:
Authority: 5 U.S.C. 8474.
0
12. Amend Sec. 1690.1, to add the definitions of ``Beneficiary
participant'', ``Beneficiary participant account'', ``Civilian
beneficiary participant account'', and ``Uniformed services beneficiary
participant account'', and by revising the definitions 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.
* * * * *
[[Page 78881]]
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 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. 2010-31656 Filed 12-16-10; 8:45 am]
BILLING CODE 6760-01-P
