Legal Process for the Enforcement of a Tax Levy or Criminal Restitution Order Against a Participant Account, 53603-53605 [2014-21636]
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Federal Register / Vol. 79, No. 175 / Wednesday, September 10, 2014 / Rules and Regulations
States Postal Service, or the Postal
Regulatory Commission.
Authorized agency official means the
head of an agency or an official who is
authorized to act for the head of the
agency in the matter concerned.
Beneficiary means the eligible person
who may request the flag following the
order of precedence specified in
§ 550.1505.
Employee means an employee as
defined in section 2105 of title 5, United
States Code; an officer or employee of
the United States Postal Service; and an
officer or employee of the Postal
Regulatory Commission.
Flag means a standard United States
flag that is at least 3 feet by 5 feet.
§ 550.1504
Eligibility.
If none, to any individual related by
blood or close family affiliation.
§ 550.1506
(a) An authorized agency official may,
upon the request of a beneficiary,
furnish one United States flag for an
individual who—
(1) Was an employee of the agency at
the time of death; and
(2) Died of injuries incurred in
connection with such individual’s
employment with the Federal
Government suffered as a result of—
(i) A criminal act;
(ii) An act of terrorism;
(iii) A natural disaster; or
(iv) Other circumstances, as
determined by the President.
(b) An authorized agency official may
not furnish a flag when the death is the
result of—
(1) Unlawful or negligent action of the
employee;
(2) Willful misconduct of the
employee; or
(3) Activities unrelated to the
employee’s status as a Federal
employee.
(c) The decision whether to furnish a
flag to the beneficiary of an eligible
employee is at the discretion of the
agency. When an authorized agency
official determines the agency will
furnish a flag for a deceased eligible
employee, the official must follow the
order of precedence specified in
§ 550.1505.
§ 550.1507
§ 550.1505
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Beneficiary receipt of a flag.
One eligible beneficiary, following the
order of precedence in § 550.1505, may
be provided a flag by the agency once
the agency has—
(a) Documented the date and nature of
death of the employee and certified that
it conforms to the eligibility criteria in
§ 550.1504;
(b) Received a request from a
beneficiary; and
(c) Established the beneficiary’s
relationship to the deceased employee
and determined whether the beneficiary
may receive the flag, consistent with the
order of precedence under 550.1505.
AGENCY:
Order of precedence.
If the authorized agency official
determines the agency will furnish a
flag, it must be issued to one beneficiary
pursuant to the following order of
precedence—
(a) The widow or widower;
(b) If none, to a child (including step,
foster, or adopted child), according to
age (i.e., oldest to youngest);
(c) If none, to a parent (including step,
foster, or adoptive parent);
(d) If none, to a sibling (including
step, half, or adopted sibling), according
to age; (i.e., oldest to youngest);
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Agency responsibilities.
To efficiently and effectively
implement the provisions of the law and
these regulations, an agency that wishes
to furnish a flag pursuant to this part
must —
(a) Establish procedures for procuring
and furnishing a flag, including
reaching out to survivors of known
eligible employees to provide
information and offer assistance on
obtaining a flag;
(b) Notify its employees of the flag
benefit annually; and
(c) Disclose information necessary to
prove that a deceased individual is an
eligible employee as described in
§ 550.1504 to the extent that such
information is not classified and to the
extent that such disclosure does not
endanger the national security of the
United States.
[FR Doc. 2014–21587 Filed 9–9–14; 8:45 am]
BILLING CODE 6325–39–P
FEDERAL RETIREMENT THRIFT
INVESTMENT BOARD
5 CFR Parts 1653
Legal Process for the Enforcement of
a Tax Levy or Criminal Restitution
Order Against a Participant Account
Federal Retirement Thrift
Investment Board.
ACTION: Final rule.
The Federal Retirement Thrift
Investment Board (Agency) proposes to
amend its regulations to explain the
Board’s procedures for responding to tax
levies and criminal restitution orders
that comply with the statutory
requirements.
DATES: This rule is effective on
September 10, 2014.
FOR FURTHER INFORMATION CONTACT: Erin
Graham at 202–942–1605.
SUMMARY:
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53603
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:
Legal Process for the Enforcement of
Internal Revenue Service Levies or
Restitution Pursuant to the Mandatory
Victims Restitution Act
The TSP’s governing statute includes
an anti-alienation provision that
protects funds from execution, levy,
attachment, garnishment, or other legal
process, except for certain enumerated
exceptions that, until recently, did not
include federal tax levies. On January
14, 2013 the President signed into law
P.L. No. 112–267, 126 Stat. 2440 (2013),
entitled ‘‘To amend title 5, United States
Code, to make clear that accounts in the
Thrift Savings Fund are subject to
certain Federal tax levies.’’ The
legislation amends 5 U.S.C. 8437(e)(3) to
state, ‘‘Moneys due or payable from the
Thrift Savings Fund to any individual
and, in the case of an individual who is
an employee or Member (or former
employee or Member), the balance in
the account of the employee or Member
(or former employee or Member) . . .
shall be subject to a Federal tax levy
under section 6331 of the Internal
Revenue Code of 1986.’’ In enacting the
amendment to 5 U.S.C. 8437, Congress
placed IRS levies in a small company of
exceptions which include child support
obligations, alimony obligations, and
restitution pursuant to the Mandatory
Victims Restitution Act (MVRA).
Congress has deemed these instances as
the only permissible reasons for funds
to be diverted from a participant’s
account. The Agency has previously
promulgated regulations governing the
payments from accounts in each of these
situations. The regulations for levies
and criminal restitution will be similar
to those previously issued.
On June 26, 2014, the Agency
published a proposal to amend its
regulations to explain the Agency’s
procedures for responding to legal
process for the enforcement of
participant’s levy or criminal restitution
order. The Agency received one
comment to the proposed regulation,
which expressed opposition to allowing
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Federal Register / Vol. 79, No. 175 / Wednesday, September 10, 2014 / Rules and Regulations
the IRS to levy Federal Thrift Savings
Plan accounts. However, the Thrift
Savings Plan is required by law to honor
IRS levies and criminal restitution
orders, and the regulations only explain
the payout process. Therefore, the
Agency is publishing the proposed rule
as final without substantive
modification.
■
Regulatory Flexibility Act
■
PART 1653—COURT ORDERS AND
LEGAL PROCESSES AFFECTING
THRIFT SAVINGS PLAN ACCOUNT
1. The authority citation for part 1653
continues to read as follows:
Authority: 5 U.S.C. 8432d, 8435, 8436(b),
8437(e), 8439(a)(3), 8467, 8474(b)(5), and
8474(c)(1).
2. Subpart D is added to read as
follows:
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, members of the uniformed
services who participate in the Thrift
Savings Plan, and their beneficiaries.
The TSP is a Federal defined
contribution retirement savings plan
created FERSA and is administered by
the Agency.
Paperwork Reduction Act
Subpart D—Process for the Enforcement of
a Participant’s Legal Obligation To Pay a
Federal Tax Levy or Criminal Restitution
Order
Sec.
1653.31 Definitions.
1653.32 Qualifying Federal tax levy.
1653.33 Qualifying Criminal Restitution
Order.
1653.34 Processing Federal tax levies and
Criminal Restitution Orders.
1653.35 Calculating entitlement.
1653.36 Payment.
I certify that these regulations do not
require additional reporting under the
Paperwork Reduction Act.
Subpart D—Process for the
Enforcement of a Participant’s Legal
Obligation To Pay a Federal Tax Levy
or Criminal Restitution Order
Unfunded Mandates Reform Act of
1995
§ 1653.31
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.
§ 1653.32
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 in 5 CFR Part 1653
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Taxes, Claims, Government
employees, Pensions, Retirement.
Gregory T. Long,
Executive Director, Federal Retirement Thrift
Investment Board.
For the reasons stated in the
preamble, the Agency amends 5 CFR
chapter VI as follows:
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Definitions.
(a) Definitions generally applicable to
the Thrift Savings Plan are set forth at
5 CFR 1690.1.
(b) As used in this subpart:
Criminal Restitution Order means a
complete copy of the judgment in a
criminal case issued by a federal court
ordering restitution for a crime
described in 18 U.S.C. 3663A.
Tax levy means a signed form 668–A
served by the IRS for the satisfaction of
a federal tax debt.
Qualifying Federal tax levy.
(a) The TSP will only honor the terms
of a tax levy that is qualifying under
paragraph (b) of this section.
(b) A tax levy must meet each of the
following requirements to be considered
qualifying:
(1) The Internal Revenue Service
issued the levy.
(2) The levy includes a signature
certifying that it attaches to a retirement
plan.
(3) The levy requires the TSP to pay
a stated dollar amount from a TSP
participant’s account.
(4) The levy is dated no earlier than
thirty (30) days before receipt.
(5) The levy is issued in the name of
the participant only.
(6) The levy expressly refers to the
‘‘Thrift Savings Plan’’ or describes the
TSP in such a way that it cannot be
confused with other Federal
Government retirement benefits or nonFederal retirement benefits.
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(c) The following levies will not be
considered qualifying:
(1) A levy relating to a TSP account
with a zero dollar account balance;
(2) A levy relating to a TSP account
that contains only nonvested money,
unless the money will become vested
within 30 days of the date the TSP
receives the order if the participant were
to remain in Government service;
(3) A levy requiring the TSP to make
a payment at a specified date in the
future;
(4) A levy that does not contain a
signature certifying that it applies to
retirement plans;
(5) A levy requiring a series of
payments;
(6) A levy that designates the specific
TSP Fund, source of contributions, or
balance from which the payment or
portions of the payment shall be made.
§ 1653.33
Order.
Qualifying Criminal Restitution
(a) The TSP will only honor the terms
of a criminal restitution order that is
qualifying under paragraph (b) of this
section.
(b) A criminal restitution order must
meet each of the following requirements
to be considered qualifying:
(1) The restitution must be ordered in
the sentencing of the participant as
required by 18 U.S.C. 3663A and 18
U.S.C. 3664.
(2) The restitution order and
accompanying documentation must
require the TSP to:
(i) Pay a stated dollar amount from a
participant’s TSP account; or
(ii) Freeze the participant’s TSP
account in anticipation of an order to
pay from the account.
(c) The following orders will not be
considered qualifying:
(1) A restitution order relating to a
TSP account with a zero dollar account
balance;
(2) A restitution order relating to a
TSP account that contains only
nonvested money, unless the money
will become vested within 30 days of
the date the TSP receives the order if the
participant were to remain in
Government service;
(3) A restitution order requiring the
TSP to make a payment in the future;
(4) A forfeiture order related to a
monetary garnishment of funds;
(5) A restitution order requiring a
series of payments;
(6) A restitution order that designates
the specific TSP Fund, source of
contributions, or balance from which
the payment or portions of the payment
shall be made.
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mstockstill on DSK4VPTVN1PROD with RULES
§ 1653.34 Processing tax levies and
Criminal Restitution Orders.
(a) The payment of tax levies and
criminal restitution orders from the TSP
is governed solely by the Federal
Employees’ Retirement Systems Act, 5
U.S.C. chapter 84, and by the terms of
this subpart. Although the TSP will
honor tax levies or criminal restitution
orders properly issued, those entities
have no jurisdiction over the TSP and
the TSP cannot be made a party to the
underlying proceedings.
(b) The TSP will review a tax levy or
criminal restitution order to determine
whether it is enforceable against the
TSP only after it has received a
complete copy of the document. Receipt
by an employing agency or any other
agency of the Government does not
constitute receipt by the TSP. Tax levies
and criminal restitution orders should
be submitted to the TSP record keeper
at the current address as provided at
https://www.tsp.gov. Receipt by the TSP
record keeper is considered receipt by
the TSP. To be complete, a tax levy or
criminal restitution order must meet all
the requirements of § 1653.32 or
§ 1653.33; it must also provide (or be
accompanied by a document that
provides):
(1) The participant’s TSP account
number or Social Security number
(SSN); and
(2) The name and mailing address of
the payee.
(c) As soon as practicable after the
TSP receives a document that purports
to be a qualifying tax levy or criminal
restitution order, the participant’s
account will be frozen. After the
participant’s account is frozen, no
withdrawal or loan disbursements will
be allowed until the account is
unfrozen. All other account activity will
be permitted, including contributions,
loan repayments, adjustments,
contribution allocations and interfund
transfers. Once a disbursement from the
account is made in accordance with the
restitution order or levy, the hold will
be removed from the participant’s
account.
(d) As soon as practicable after receipt
of a complete copy of a tax levy or
criminal restitution order, the TSP will
review it to determine whether it is
qualifying as described in § 1653.32 or
§ 1653.33. The TSP will mail a decision
letter to all parties containing the
following information:
(1) A determination regarding
whether the restitution order or levy is
qualifying;
(2) A statement of the applicable
statutes and regulations;
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53605
(3) An explanation of the effect the
restitution order or levy has on the
participant’s TSP account; and
(4) If the qualifying restitution order
or levy requires payment, the letter will
provide:
(i) An explanation of how the
payment will be calculated and an
estimated amount of payment;
(ii) The anticipated date of payment.
(e) The TSP decision letter is final.
There is no administrative appeal from
the TSP decision.
[FR Doc. 2014–21636 Filed 9–9–14; 8:45 am]
§ 1653.35
BILLING CODE 6760–01–P
Calculating entitlement.
A levy or criminal restitution order
can only require the payment of a
specified dollar amount from the TSP. If
the restitution order or levy awards a
specific dollar amount, the payee’s
entitlement will be the lesser of:
(a) The dollar amount stated in the
levy or restitution order; or
(b) The vested account balance on the
date of disbursement, minus any
outstanding loan balance.
§ 1653.36
Payment.
(a) Payment pursuant to a qualifying
levy or criminal restitution order will be
made 30 days after the TSP decision
letter.
(b) In no case will payment exceed the
participant’s calculated entitlement.
(c) The entire amount of a restitution
order or levy entitlement must be
disbursed at one time. A series of
payments will not be made. A payment
pursuant to a restitution order or levy
extinguishes all rights to any further
payment under that order or levy, even
if the entire amount of the entitlement
cannot be paid. Any further award must
be contained in a separate restitution
order or levy.
(d) If a participant has funds in more
than one type of account, payment will
be made from each account in the
following order, until the amount of the
levy or restitution order is reached:
(1) Civilian account;
(2) Uniformed services account;
(3) Beneficiary participant account.
(e) Payment will be made pro rata
from the participant’s traditional and
Roth balances. The distribution from the
traditional balance will be further pro
rated between the tax-deferred balance
and tax-exempt balance. The payment
from the Roth balance will be further
pro rated between contributions in the
Roth balance and earnings in the Roth
balance. In addition, all payments will
be distributed pro rata from all TSP
Funds in which the participant’s
account is invested. All pro rated
amounts will be based on the balances
in each fund or source of contributions
on the day the disbursement is made.
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(f) The payment is taxable to the
participant and is subject to Federal
income tax withholding. The tax
withholding will be taken from the
payee’s entitlement and the gross
amount of the payment (i.e., the net
payment distributed to the payee plus
the amount withheld from the payment
for taxes) will be reported to the IRS as
income to the participant.
(g) A properly paid levy or restitution
order cannot be returned to the TSP.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1220
[Docket No. AMS–LPS–13–0066]
Soybean Promotion, Research, and
Consumer Information Program:
Amendment of Procedures and
Notification of Request for Referendum
Agricultural Marketing Service,
USDA.
ACTION: Affirmation of interim rule as a
final rule.
AGENCY:
The Agricultural Marketing
Service (AMS) is affirming without
changes its interim rule (79 FR 12037)
to amend the procedures to Request a
Referendum at 7 CFR Part 1220 by
removing the specific number of
soybean producers eligible to request a
referendum under the Soybean
Promotion, Research, and Consumer
Information program, commonly known
as the Soybean Checkoff Program. The
number of soybean producers will be
replaced with language that allows the
Secretary of Agriculture (Secretary) to
update this number based on
information provided by the U.S.
Department of Agriculture (USDA).
Additionally, this rule removes specific
USDA and Farm Service Agency (FSA)
Web site and office addresses and
replaces them with more flexible
language. These changes will enable
AMS to announce future Requests for
Referendum without engaging in
additional informal rulemaking.
DATES: Effective Date: September 11,
2014.
FOR FURTHER INFORMATION CONTACT:
James R. Brow, Agricultural Marketing
Specialist, Research and Promotion
Division, Livestock, Poultry, and Seed
Program, AMS, USDA, Room 2010–S,
STOP 0251, 1400 Independence Avenue
SW., Washington, DC, 20250–0251;
Telephone 202/720–0633; Fax 202/720–
SUMMARY:
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]]>Agencies
[Federal Register Volume 79, Number 175 (Wednesday, September 10, 2014)]
[Rules and Regulations]
[Pages 53603-53605]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-21636]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Parts 1653
Legal Process for the Enforcement of a Tax Levy or Criminal
Restitution Order Against a Participant Account
AGENCY: Federal Retirement Thrift Investment Board.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Retirement Thrift Investment Board (Agency)
proposes to amend its regulations to explain the Board's procedures for
responding to tax levies and criminal restitution orders that comply
with the statutory requirements.
DATES: This rule is effective on September 10, 2014.
FOR FURTHER INFORMATION CONTACT: Erin Graham at 202-942-1605.
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)).
Legal Process for the Enforcement of Internal Revenue Service Levies or
Restitution Pursuant to the Mandatory Victims Restitution Act
The TSP's governing statute includes an anti-alienation provision
that protects funds from execution, levy, attachment, garnishment, or
other legal process, except for certain enumerated exceptions that,
until recently, did not include federal tax levies. On January 14, 2013
the President signed into law P.L. No. 112-267, 126 Stat. 2440 (2013),
entitled ``To amend title 5, United States Code, to make clear that
accounts in the Thrift Savings Fund are subject to certain Federal tax
levies.'' The legislation amends 5 U.S.C. 8437(e)(3) to state, ``Moneys
due or payable from the Thrift Savings Fund to any individual and, in
the case of an individual who is an employee or Member (or former
employee or Member), the balance in the account of the employee or
Member (or former employee or Member) . . . shall be subject to a
Federal tax levy under section 6331 of the Internal Revenue Code of
1986.'' In enacting the amendment to 5 U.S.C. 8437, Congress placed IRS
levies in a small company of exceptions which include child support
obligations, alimony obligations, and restitution pursuant to the
Mandatory Victims Restitution Act (MVRA). Congress has deemed these
instances as the only permissible reasons for funds to be diverted from
a participant's account. The Agency has previously promulgated
regulations governing the payments from accounts in each of these
situations. The regulations for levies and criminal restitution will be
similar to those previously issued.
On June 26, 2014, the Agency published a proposal to amend its
regulations to explain the Agency's procedures for responding to legal
process for the enforcement of participant's levy or criminal
restitution order. The Agency received one comment to the proposed
regulation, which expressed opposition to allowing
[[Page 53604]]
the IRS to levy Federal Thrift Savings Plan accounts. However, the
Thrift Savings Plan is required by law to honor IRS levies and criminal
restitution orders, and the regulations only explain the payout
process. Therefore, the Agency is publishing the proposed rule as final
without substantive modification.
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, members of the uniformed services who
participate in the Thrift Savings Plan, and their beneficiaries. The
TSP is a Federal defined contribution retirement savings plan created
FERSA and is administered by the Agency.
Paperwork Reduction Act
I certify that these regulations do not require additional
reporting under the Paperwork Reduction Act.
Unfunded Mandates Reform Act of 1995
Pursuant to the Unfunded Mandates Reform Act of 1995, 2 U.S.C.
Sec. Sec. 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 in 5 CFR Part 1653
Taxes, Claims, Government employees, Pensions, Retirement.
Gregory T. Long,
Executive Director, Federal Retirement Thrift Investment Board.
For the reasons stated in the preamble, the Agency amends 5 CFR
chapter VI as follows:
PART 1653--COURT ORDERS AND LEGAL PROCESSES AFFECTING THRIFT
SAVINGS PLAN ACCOUNT
0
1. The authority citation for part 1653 continues to read as follows:
Authority: 5 U.S.C. 8432d, 8435, 8436(b), 8437(e), 8439(a)(3),
8467, 8474(b)(5), and 8474(c)(1).
0
2. Subpart D is added to read as follows:
Subpart D--Process for the Enforcement of a Participant's Legal
Obligation To Pay a Federal Tax Levy or Criminal Restitution Order
Sec.
1653.31 Definitions.
1653.32 Qualifying Federal tax levy.
1653.33 Qualifying Criminal Restitution Order.
1653.34 Processing Federal tax levies and Criminal Restitution
Orders.
1653.35 Calculating entitlement.
1653.36 Payment.
Subpart D--Process for the Enforcement of a Participant's Legal
Obligation To Pay a Federal Tax Levy or Criminal Restitution Order
Sec. 1653.31 Definitions.
(a) Definitions generally applicable to the Thrift Savings Plan are
set forth at 5 CFR 1690.1.
(b) As used in this subpart:
Criminal Restitution Order means a complete copy of the judgment in
a criminal case issued by a federal court ordering restitution for a
crime described in 18 U.S.C. 3663A.
Tax levy means a signed form 668-A served by the IRS for the
satisfaction of a federal tax debt.
Sec. 1653.32 Qualifying Federal tax levy.
(a) The TSP will only honor the terms of a tax levy that is
qualifying under paragraph (b) of this section.
(b) A tax levy must meet each of the following requirements to be
considered qualifying:
(1) The Internal Revenue Service issued the levy.
(2) The levy includes a signature certifying that it attaches to a
retirement plan.
(3) The levy requires the TSP to pay a stated dollar amount from a
TSP participant's account.
(4) The levy is dated no earlier than thirty (30) days before
receipt.
(5) The levy is issued in the name of the participant only.
(6) The levy expressly refers to the ``Thrift Savings Plan'' or
describes the TSP in such a way that it cannot be confused with other
Federal Government retirement benefits or non-Federal retirement
benefits.
(c) The following levies will not be considered qualifying:
(1) A levy relating to a TSP account with a zero dollar account
balance;
(2) A levy relating to a TSP account that contains only nonvested
money, unless the money will become vested within 30 days of the date
the TSP receives the order if the participant were to remain in
Government service;
(3) A levy requiring the TSP to make a payment at a specified date
in the future;
(4) A levy that does not contain a signature certifying that it
applies to retirement plans;
(5) A levy requiring a series of payments;
(6) A levy that designates the specific TSP Fund, source of
contributions, or balance from which the payment or portions of the
payment shall be made.
Sec. 1653.33 Qualifying Criminal Restitution Order.
(a) The TSP will only honor the terms of a criminal restitution
order that is qualifying under paragraph (b) of this section.
(b) A criminal restitution order must meet each of the following
requirements to be considered qualifying:
(1) The restitution must be ordered in the sentencing of the
participant as required by 18 U.S.C. 3663A and 18 U.S.C. 3664.
(2) The restitution order and accompanying documentation must
require the TSP to:
(i) Pay a stated dollar amount from a participant's TSP account; or
(ii) Freeze the participant's TSP account in anticipation of an
order to pay from the account.
(c) The following orders will not be considered qualifying:
(1) A restitution order relating to a TSP account with a zero
dollar account balance;
(2) A restitution order relating to a TSP account that contains
only nonvested money, unless the money will become vested within 30
days of the date the TSP receives the order if the participant were to
remain in Government service;
(3) A restitution order requiring the TSP to make a payment in the
future;
(4) A forfeiture order related to a monetary garnishment of funds;
(5) A restitution order requiring a series of payments;
(6) A restitution order that designates the specific TSP Fund,
source of contributions, or balance from which the payment or portions
of the payment shall be made.
[[Page 53605]]
Sec. 1653.34 Processing tax levies and Criminal Restitution Orders.
(a) The payment of tax levies and criminal restitution orders from
the TSP is governed solely by the Federal Employees' Retirement Systems
Act, 5 U.S.C. chapter 84, and by the terms of this subpart. Although
the TSP will honor tax levies or criminal restitution orders properly
issued, those entities have no jurisdiction over the TSP and the TSP
cannot be made a party to the underlying proceedings.
(b) The TSP will review a tax levy or criminal restitution order to
determine whether it is enforceable against the TSP only after it has
received a complete copy of the document. Receipt by an employing
agency or any other agency of the Government does not constitute
receipt by the TSP. Tax levies and criminal restitution orders should
be submitted to the TSP record keeper at the current address as
provided at https://www.tsp.gov. Receipt by the TSP record keeper is
considered receipt by the TSP. To be complete, a tax levy or criminal
restitution order must meet all the requirements of Sec. 1653.32 or
Sec. 1653.33; it must also provide (or be accompanied by a document
that provides):
(1) The participant's TSP account number or Social Security number
(SSN); and
(2) The name and mailing address of the payee.
(c) As soon as practicable after the TSP receives a document that
purports to be a qualifying tax levy or criminal restitution order, the
participant's account will be frozen. After the participant's account
is frozen, no withdrawal or loan disbursements will be allowed until
the account is unfrozen. All other account activity will be permitted,
including contributions, loan repayments, adjustments, contribution
allocations and interfund transfers. Once a disbursement from the
account is made in accordance with the restitution order or levy, the
hold will be removed from the participant's account.
(d) As soon as practicable after receipt of a complete copy of a
tax levy or criminal restitution order, the TSP will review it to
determine whether it is qualifying as described in Sec. 1653.32 or
Sec. 1653.33. The TSP will mail a decision letter to all parties
containing the following information:
(1) A determination regarding whether the restitution order or levy
is qualifying;
(2) A statement of the applicable statutes and regulations;
(3) An explanation of the effect the restitution order or levy has
on the participant's TSP account; and
(4) If the qualifying restitution order or levy requires payment,
the letter will provide:
(i) An explanation of how the payment will be calculated and an
estimated amount of payment;
(ii) The anticipated date of payment.
(e) The TSP decision letter is final. There is no administrative
appeal from the TSP decision.
Sec. 1653.35 Calculating entitlement.
A levy or criminal restitution order can only require the payment
of a specified dollar amount from the TSP. If the restitution order or
levy awards a specific dollar amount, the payee's entitlement will be
the lesser of:
(a) The dollar amount stated in the levy or restitution order; or
(b) The vested account balance on the date of disbursement, minus
any outstanding loan balance.
Sec. 1653.36 Payment.
(a) Payment pursuant to a qualifying levy or criminal restitution
order will be made 30 days after the TSP decision letter.
(b) In no case will payment exceed the participant's calculated
entitlement.
(c) The entire amount of a restitution order or levy entitlement
must be disbursed at one time. A series of payments will not be made. A
payment pursuant to a restitution order or levy extinguishes all rights
to any further payment under that order or levy, even if the entire
amount of the entitlement cannot be paid. Any further award must be
contained in a separate restitution order or levy.
(d) If a participant has funds in more than one type of account,
payment will be made from each account in the following order, until
the amount of the levy or restitution order is reached:
(1) Civilian account;
(2) Uniformed services account;
(3) Beneficiary participant account.
(e) Payment will be made pro rata from the participant's
traditional and Roth balances. The distribution from the traditional
balance will be further pro rated between the tax-deferred balance and
tax-exempt balance. The payment from the Roth balance will be further
pro rated between contributions in the Roth balance and earnings in the
Roth balance. In addition, all payments will be distributed pro rata
from all TSP Funds in which the participant's account is invested. All
pro rated amounts will be based on the balances in each fund or source
of contributions on the day the disbursement is made.
(f) The payment is taxable to the participant and is subject to
Federal income tax withholding. The tax withholding will be taken from
the payee's entitlement and the gross amount of the payment (i.e., the
net payment distributed to the payee plus the amount withheld from the
payment for taxes) will be reported to the IRS as income to the
participant.
(g) A properly paid levy or restitution order cannot be returned to
the TSP.
[FR Doc. 2014-21636 Filed 9-9-14; 8:45 am]
BILLING CODE 6760-01-P
