Default Investment Fund Errors, 49173-49175 [2015-20273]

Download as PDF 49173 Proposed Rules Federal Register Vol. 80, No. 158 Monday, August 17, 2015 This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. and fully operational before being made available to charities and donors. U.S. Office of Personnel Management. Beth F. Cobert, Acting Director. [FR Doc. 2015–20238 Filed 8–14–15; 8:45 am] BILLING CODE 6325–58–P OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 950 FEDERAL RETIREMENT THRIFT INVESTMENT BOARD RIN 3206–AM68 5 CFR Part 1605 Solicitation of Federal Civilian and Uniformed Service Personnel for Contributions to Private Voluntary Organizations; Delay of Effective Date and Addition of Comment Period Default Investment Fund Errors Office of Personnel Management. ACTION: Proposed rule with request for comments. AGENCY: The U.S. Office of Personnel Management (OPM) is issuing a proposed rule to delay the effective date that appeared in the final rule published in the Federal Register on April 17, 2014 titled ‘‘Solicitation of Federal Civilian and Uniformed Service Personnel for Contributions to Private Voluntary Organizations’’ to January 1, 2017. OPM is requesting comments on the proposed rule. DATES: OPM must receive comments on or before September 16, 2015. ADDRESSES: You may submit comments, identified by RIN number ‘‘3206– AM68’’, using the Federal eRulemaking Portal: www.regulations.gov. Follow the instructions for submitting comments. FOR FURTHER INFORMATION CONTACT: Mary Capule by telephone at (202) 606– 2564; by FAX at (202) 606–5056; or by email at cfc@opm.gov. SUPPLEMENTARY INFORMATION: OPM proposes to delay the effective date of the final rule entitled ‘‘Solicitation of Federal Civilian and Uniformed Service Personnel for Contributions to Private Voluntary Organizations’’ (FR Doc. 2014–08574, in the Federal Register of April 17, 2014 (79 FR 21581)), to January 1, 2017. The new effective date for the CFC regulations would ensure that the tools needed to put these reforms in place—including the pivotal online charity application and donor pledging systems—are thoroughly tested mstockstill on DSK4VPTVN1PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 16:52 Aug 14, 2015 Jkt 235001 Federal Retirement Thrift Investment Board ACTION: Proposed rule with request for comments. AGENCY: The Federal Retirement Thrift Investment Board (Agency) proposes to amend its regulations to codify procedures for correcting certain default investment fund errors. DATES: Submit comments on or before September 16, 2015. ADDRESSES: You may submit comments using one of the following methods: • Federal Rulemaking Portal: http:// www.regulations.gov at Docket ID number FRTIB–2015–0003. Follow the instructions for submitting comments. • Mail: Office of General Counsel, Attn: James Petrick, Federal Retirement Thrift Investment Board, 77 K Street NE., Suite 1000, Washington, DC 20002. • Hand Delivery/Courier: The address for sending comments by hand delivery or courier is the same as that for submitting comments by mail. • Facsimile: Comments may be submitted by facsimile at (202) 942– 1676. The most helpful comments explain the reason for any recommended change and include data, information, and the authority that supports the recommended change. FOR FURTHER INFORMATION CONTACT: Austen Townsend at (202) 864–8647. SUPPLEMENTARY INFORMATION: The Agency administers the Thrift Savings Plan (TSP), which was established by the Federal Employees’ Retirement System Act of 1986 (FERSA), Public Law 99–335, 100 Stat. 514. The TSP provisions of FERSA are codified, as amended, largely at 5 U.S.C. 8351 and 8401–79. The TSP is a tax-deferred retirement savings plan for Federal SUMMARY: PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 civilian employees, members of the uniformed services, and spouse beneficiaries. The TSP is similar to cash or deferred arrangements established for private-sector employees under section 401(k) of the Internal Revenue Code (26 U.S.C. 401(k)). On December 18, 2014, the President signed the Smart Savings Act (‘‘the Act’’), Public Law 113–255 (128 Stat. 2920). The Act directed the Agency to invest any sums available for investment in the TSP for which an election has not been made in an ageappropriate target date asset allocation investment fund. On July 13, 2015, the Agency published a proposed rule to change the TSP’s default investment fund from the TSP’s Government Securities Investment Fund to the ageappropriate TSP Lifecycle Fund (L Fund) for civilian employees. 80 FR 39974. This proposed regulation would update the TSP’s existing error correction rules to address the correction of default investment fund errors caused by erroneous dates of birth. Default Investment Fund Errors Erroneous dates of birth can result from participant error, employing agency error, Agency error, or recordkeeper error. A participant’s date of birth is used to determine his or her ageappropriate L Fund. An erroneous date of birth might therefore cause a participant’s TSP account to be invested in an L Fund that is different from the L Fund his or her account would have been invested in had the participant’s correct date of birth been used. This proposed regulation provides that the Agency will pay breakage when an erroneous date of birth caused by Agency or record-keeper error results in default investment in the wrong L Fund. In addition, the Agency will charge employing agencies breakage when an erroneous date of birth caused by employing agency error results in default investment in the wrong L Fund. To initiate a breakage calculation for an employee, the employing agency must notify the TSP that the participant is entitled to breakage. A date of birth change received from an employing agency will not trigger corrective action other than to update the date of birth. Consistent with the existing error correction procedures at 5 CFR 1605.22 for contribution allocation and interfund transfer errors, the participant E:\FR\FM\17AUP1.SGM 17AUP1 49174 Federal Register / Vol. 80, No. 158 / Monday, August 17, 2015 / Proposed Rules must file a breakage claim within 30 days of either the date the TSP provides the participant with a notice reflecting the error or the date the TSP makes available on its Web site a participant statement reflecting the error, whichever is earlier. Regulatory Flexibility Act I certify that this regulation will not have a significant economic impact on a substantial number of small entities. This regulation will affect Federal civilian employees and spouse beneficiaries who participate in the Thrift Savings Plan, which is a Federal defined contribution retirement savings plan created under the Federal Employees’ Retirement System Act of 1986 (FERSA), Public Law 99–335, 100 Stat. 514, and which is administered by the Agency. Paperwork Reduction Act I certify that these regulations do not require additional reporting under the criteria of the Paperwork Reduction Act. Unfunded Mandates Reform Act of 1995 Pursuant to the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 602, 632, 653, 1501–1571, the effects of this regulation on state, local, and tribal governments and the private sector have been assessed. This regulation will not compel the expenditure in any one year of $100 million or more by state, local, and tribal governments, in the aggregate, or by the private sector. Therefore, a statement under section 1532 is not required. List of Subjects in 5 CFR Part 1605 Government employees, Pensions, Retirement. Gregory T. Long, Executive Director, Federal Retirement Thrift Investment Board. For the reasons stated in the preamble, the Agency proposes to amend 5 CFR chapter VI as follows: PART 1605–CORRECTION OF ADMINISTRATIVE ERRORS 1. The authority citation for part 1605 continues to read as follows: mstockstill on DSK4VPTVN1PROD with PROPOSALS Authority: 5 U.S.C. 8351, 8432(a), 8432(d), 8474(b)(5) and (c)(1). Subpart B also issued under section 1043(b) of Public Law 104– 106, 110 Stat. 186 and § 7202(m)(2) of Public Law 101–508, 104 Stat. 1388. 2. Amend § 1605.2 by revising the heading and paragraphs (b)(1)(i) and (c) to read as follows: VerDate Sep<11>2014 16:52 Aug 14, 2015 Jkt 235001 * * * * * (b) * * * (1) * * * (i) Use the participant’s contribution allocation on file for the ‘‘as of’’ date to determine how the funds would have been invested. If there is no contribution allocation on file, or one cannot be derived based on the investment of contributions, the TSP will consider the funds to have been invested in the default investment fund in effect for the participant on the ‘‘as of’’ date. * * * * * (c) Posting contributions and loan payments. Makeup and late contributions, late loan payments, and breakage, will be posted to the participant’s account according to his or her contribution allocation on file for the posting date. If there is no contribution allocation on file for the posting date, they will be posted to the default investment fund in effect for the participant. * * * * * ■ 3. Add § 1605.3 to read as follows: § 1605.3 Calculating, posting, and charging breakage on errors involving investment in the wrong fund. (a) The TSP will calculate and post breakage on date of birth errors that result in default investment in the wrong L Fund, contribution allocation errors, and interfund transfer errors. (b) The TSP will charge the employing agency for positive breakage on incorrect dates of birth caused by employing agency error that result in default investment in the wrong L Fund. A date of birth change received from an employing agency will not trigger corrective action other than to update the date of birth. To initiate a breakage calculation for an employee, the employing agency must notify the TSP that the participant is entitled to breakage. ■ 4. Amend § 1605.13 by revising paragraph (a)(3) to read as follows: § 1605.13 Back pay awards and other retroactive pay adjustments. ■ ■ § 1605.2 Calculating, posting, and charging breakage on late contributions and loan payments. (a) * * * (3) All contributions made under this paragraph (a) and associated breakage will be invested according to the participant’s contribution allocation on the posting date. Breakage will be calculated using the share prices for the default investment fund in effect for the participant in accordance with § 1605.2 unless otherwise required by the employing agency or the court or other PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 tribunal with jurisdiction over the back pay case. * * * * * ■ 5. Amend § 1605.16, by re-designating the text of paragraph (a) as paragraph (a)(1), adding paragraph (a)(2), redesignating the text of paragraph (b) as paragraph (b)(1), and adding paragraphs (b)(2) and (b)(3) to read as follows: § 1605.16 Claims for correction of employing agency errors; time limitations. (a) Agency’s discovery of error. (1) Upon discovery of an error made within the past six months involving the correct or timely remittance of payments to the TSP (other than a retirement system misclassification error, as covered in paragraph (c) of this section), an employing agency must promptly correct the error on its own initiative. If the error was made more than six months before it was discovered, the agency may exercise sound discretion in deciding whether to correct it, but, in any event, the agency must act promptly in doing so. (2) For errors involving incorrect dates of birth caused by employing agency error that result in default investment in the wrong L Fund, the employing agency must promptly notify the TSP that the participant is entitled to breakage if the error is discovered within 30 days of either the date the TSP provides the participant with a notice reflecting the error or the date the TSP makes available on its Web site a participant statement reflecting the error, whichever is earlier. If it is discovered after that time, the employing agency may use its sound discretion in deciding whether to pay breakage, but, in any event, must act promptly in doing so. (b) Participant’s discovery of error. (1) If an agency fails to discover an error of which a participant has knowledge involving the correct or timely remittance of a payment to the TSP (other than a retirement system misclassification error as covered by paragraph (c) of this section), the participant may file a claim with his or her employing agency to have the error corrected without a time limit. The agency must promptly correct any such error for which the participant files a claim within six months of its occurrence; if the participant files a claim to correct any such error after that time, the agency may do so at its sound discretion. (2) For errors involving incorrect dates of birth that result in default investment in the wrong L Fund of which a participant or beneficiary has knowledge, he or she may file a claim for breakage with the employing agency E:\FR\FM\17AUP1.SGM 17AUP1 Federal Register / Vol. 80, No. 158 / Monday, August 17, 2015 / Proposed Rules no later than 30 days after either the date the TSP provides the participant with a notice reflecting the error or the date the TSP makes available on its Web site a participant statement reflecting the error, whichever is earlier. The employing agency must promptly notify the TSP that the participant is entitled to breakage. (3) If a participant or beneficiary fails to file a claim for breakage for errors involving incorrect dates of birth in a timely manner, the employing agency may nevertheless, in its sound discretion, pay breakage on any such error that is brought to its attention. * * * * * ■ 6. Amend § 1605.22, by revising paragraphs (b)(2), (c)(2), and (c)(3) to read as follows: § 1605.31 Contributions missed as a result of military service. § 1605.22 Claims for correction of Board or TSP record keeper errors; time limitations. DEPARTMENT OF HOMELAND SECURITY mstockstill on DSK4VPTVN1PROD with PROPOSALS * * * * * (b) * * * (1) * * * (2) For errors involving an investment in the wrong fund caused by Board or TSP record keeper error, the Board or the TSP record keeper must promptly pay breakage if it is discovered within 30 days of the issuance of the most recent TSP participant (or loan) statement, transaction confirmation, or other notice that reflected the error, whichever is earlier. If it is discovered after that time, the Board or TSP record keeper may use its sound discretion in deciding whether to pay breakage, but, in any event, must act promptly in doing so. (c) * * * (1) * * * (2) For errors involving an investment in the wrong fund of which a participant or beneficiary has knowledge, he or she may file a claim for breakage with the Board or TSP record keeper no later than 30 days after the TSP provides the participant with a transaction confirmation or other notice reflecting the error, or makes available on its Web site a participant statement reflecting the error, whichever is earlier. The Board or TSP record keeper must promptly pay breakage for such errors. (3) If a participant or beneficiary fails to file a claim for breakage concerning an error involving an investment in the wrong fund in a timely manner, the Board or TSP record keeper may nevertheless, in its sound discretion, pay breakage for any such error that is brought to its attention. * * * * * ■ 7. Amend § 1605.31 by revising paragraph (d) to read as follows: VerDate Sep<11>2014 16:52 Aug 14, 2015 Jkt 235001 * * * * * (d) Breakage. The employee is entitled to breakage on agency contributions made under paragraph (c) of this section. The employee will elect to have the calculation based on either the contribution allocation(s) on file for the participant during the period of military service or the default investment fund in effect for the participant; the participant must make this election at the same time his or her makeup schedule is established pursuant to § 1605.11(c). [FR Doc. 2015–20273 Filed 8–14–15; 8:45 am] BILLING CODE 6760–01–P Office of the Secretary 6 CFR Part 5 [Docket No. DHS–2015–0046] Privacy Act of 1974: Implementation of Exemptions; Department of Homeland Security DHS/CBP–001, Import Information System, System of Records, System of Records Privacy Office, Department of Homeland Security. ACTION: Notice of proposed rulemaking. AGENCY: The Department of Homeland Security is giving concurrent notice for the newly established ‘‘Department of Homeland Security/CBP–001, Import Information System, System of Records’’ and this proposed rulemaking. In accordance with the Privacy Act of 1974, the Department of Homeland Security concurrently proposes to consolidate, update, and rename two current Department of Homeland Security systems of records titled, ‘‘Department of Homeland Security/U.S. Customs and Border Protection, DHS/ CBP–001 Automated Commercial Environment/International Trade Data System System of Records’’ and ‘‘Department of Homeland Security/U.S. Customs and Border Protection, DHS/ CBP–015 Automated Commercial System System of Records’’ as one new system of records. The consolidated system of records notice will be titled, ‘‘Department of Homeland Security/U.S. Customs and Border Protection, DHS/ CBP–001 Import Information System System of Records.’’ This system of records will continue to collect and maintain records on all commercial goods imported into the United States, SUMMARY: PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 49175 as well as information pertaining to the carrier, broker, importer, and other persons associated with the manifest, import, or commercial entry transactions for the goods. In this proposed rulemaking, the Department proposes to exempt portions of the system of records from one or more provisions of the Privacy Act because of criminal, civil, and administrative enforcement requirements. DATES: Comments must be received on or before September 16, 2015. ADDRESSES: You may submit comments, identified by docket number DHS– 2015–0046, by one of the following methods: • Federal e-Rulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. • Fax: 202–343–4010. • Mail: Karen L. Neuman, Chief Privacy Officer, Privacy Office, Department of Homeland Security, Washington, DC 20528. Instructions: All submissions received must include the agency name and docket number for this notice. All comments received will be posted without change to http:// www.regulations.gov, including any personal information provided. Docket: For access to the docket to read background documents or comments received, go to http:// www.regulations.gov. FOR FURTHER INFORMATION CONTACT: For general questions, please contact: John Connors (202) 344–1610, CBP Privacy Officer, Office of the Commissioner, U.S. Customs and Border Protection, Washington, DC 20229. For privacy questions, please contact: Karen L. Neuman, (202) 343–1717, Chief Privacy Officer, Privacy Office, Department of Homeland Security, Washington, DC 20528–0655. SUPPLEMENTARY INFORMATION: I. Background In accordance with the Privacy Act of 1974, 5 U.S.C. 552a, the Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP) proposes to consolidate, update, and rename as one system of records notice (SORN) the information currently contained in two DHS SORNs titled, ‘‘DHS/CBP–001 Automated Commercial Environment/ International Trade Data System (ACE/ ITDS) System of Records’’ (71 FR 3109, January 19, 2006) and ‘‘DHS/CBP–015 Automated Commercial System (ACS) System of Records’’ (73 FR 77759, December 19, 2008) . This new SORN, entitled ‘‘DHS/CBP–001 Import Information System (IIS),’’ will inform the public about changes to the E:\FR\FM\17AUP1.SGM 17AUP1

Agencies

[Federal Register Volume 80, Number 158 (Monday, August 17, 2015)]
[Proposed Rules]
[Pages 49173-49175]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20273]


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FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

5 CFR Part 1605


Default Investment Fund Errors

AGENCY: Federal Retirement Thrift Investment Board

ACTION: Proposed rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The Federal Retirement Thrift Investment Board (Agency) 
proposes to amend its regulations to codify procedures for correcting 
certain default investment fund errors.

DATES: Submit comments on or before September 16, 2015.

ADDRESSES: You may submit comments using one of the following methods:
     Federal Rulemaking Portal: http://www.regulations.gov at 
Docket ID number FRTIB-2015-0003. Follow the instructions for 
submitting comments.
     Mail: Office of General Counsel, Attn: James Petrick, 
Federal Retirement Thrift Investment Board, 77 K Street NE., Suite 
1000, Washington, DC 20002.
     Hand Delivery/Courier: The address for sending comments by 
hand delivery or courier is the same as that for submitting comments by 
mail.
     Facsimile: Comments may be submitted by facsimile at (202) 
942-1676.
    The most helpful comments explain the reason for any recommended 
change and include data, information, and the authority that supports 
the recommended change.

FOR FURTHER INFORMATION CONTACT: Austen Townsend at (202) 864-8647.

SUPPLEMENTARY INFORMATION: The Agency administers the Thrift Savings 
Plan (TSP), which was established by the Federal Employees' Retirement 
System Act of 1986 (FERSA), Public Law 99-335, 100 Stat. 514. The TSP 
provisions of FERSA are codified, as amended, largely at 5 U.S.C. 8351 
and 8401-79. The TSP is a tax-deferred retirement savings plan for 
Federal civilian employees, members of the uniformed services, and 
spouse beneficiaries. The TSP is similar to cash or deferred 
arrangements established for private-sector employees under section 
401(k) of the Internal Revenue Code (26 U.S.C. 401(k)).
    On December 18, 2014, the President signed the Smart Savings Act 
(``the Act''), Public Law 113-255 (128 Stat. 2920). The Act directed 
the Agency to invest any sums available for investment in the TSP for 
which an election has not been made in an age-appropriate target date 
asset allocation investment fund. On July 13, 2015, the Agency 
published a proposed rule to change the TSP's default investment fund 
from the TSP's Government Securities Investment Fund to the age-
appropriate TSP Lifecycle Fund (L Fund) for civilian employees. 80 FR 
39974. This proposed regulation would update the TSP's existing error 
correction rules to address the correction of default investment fund 
errors caused by erroneous dates of birth.

Default Investment Fund Errors

    Erroneous dates of birth can result from participant error, 
employing agency error, Agency error, or record-keeper error. A 
participant's date of birth is used to determine his or her age-
appropriate L Fund. An erroneous date of birth might therefore cause a 
participant's TSP account to be invested in an L Fund that is different 
from the L Fund his or her account would have been invested in had the 
participant's correct date of birth been used. This proposed regulation 
provides that the Agency will pay breakage when an erroneous date of 
birth caused by Agency or record-keeper error results in default 
investment in the wrong L Fund.
    In addition, the Agency will charge employing agencies breakage 
when an erroneous date of birth caused by employing agency error 
results in default investment in the wrong L Fund. To initiate a 
breakage calculation for an employee, the employing agency must notify 
the TSP that the participant is entitled to breakage. A date of birth 
change received from an employing agency will not trigger corrective 
action other than to update the date of birth.
    Consistent with the existing error correction procedures at 5 CFR 
1605.22 for contribution allocation and interfund transfer errors, the 
participant

[[Page 49174]]

must file a breakage claim within 30 days of either the date the TSP 
provides the participant with a notice reflecting the error or the date 
the TSP makes available on its Web site a participant statement 
reflecting the error, whichever is earlier.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities. This regulation will 
affect Federal civilian employees and spouse beneficiaries who 
participate in the Thrift Savings Plan, which is a Federal defined 
contribution retirement savings plan created under the Federal 
Employees' Retirement System Act of 1986 (FERSA), Public Law 99-335, 
100 Stat. 514, and which is administered by the Agency.

Paperwork Reduction Act

    I certify that these regulations do not require additional 
reporting under the criteria of the Paperwork Reduction Act.

Unfunded Mandates Reform Act of 1995

    Pursuant to the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 602, 
632, 653, 1501-1571, the effects of this regulation on state, local, 
and tribal governments and the private sector have been assessed. This 
regulation will not compel the expenditure in any one year of $100 
million or more by state, local, and tribal governments, in the 
aggregate, or by the private sector. Therefore, a statement under 
section 1532 is not required.

List of Subjects in 5 CFR Part 1605

    Government employees, Pensions, Retirement.

Gregory T. Long,
Executive Director, Federal Retirement Thrift Investment Board.
    For the reasons stated in the preamble, the Agency proposes to 
amend 5 CFR chapter VI as follows:

PART 1605-CORRECTION OF ADMINISTRATIVE ERRORS

0
1. The authority citation for part 1605 continues to read as follows:

    Authority:  5 U.S.C. 8351, 8432(a), 8432(d), 8474(b)(5) and 
(c)(1). Subpart B also issued under section 1043(b) of Public Law 
104-106, 110 Stat. 186 and Sec.  7202(m)(2) of Public Law 101-508, 
104 Stat. 1388.

0
2. Amend Sec.  1605.2 by revising the heading and paragraphs (b)(1)(i) 
and (c) to read as follows:


Sec.  1605.2  Calculating, posting, and charging breakage on late 
contributions and loan payments.

* * * * *
    (b) * * *
    (1) * * *
    (i) Use the participant's contribution allocation on file for the 
``as of'' date to determine how the funds would have been invested. If 
there is no contribution allocation on file, or one cannot be derived 
based on the investment of contributions, the TSP will consider the 
funds to have been invested in the default investment fund in effect 
for the participant on the ``as of'' date.
* * * * *
    (c) Posting contributions and loan payments. Makeup and late 
contributions, late loan payments, and breakage, will be posted to the 
participant's account according to his or her contribution allocation 
on file for the posting date. If there is no contribution allocation on 
file for the posting date, they will be posted to the default 
investment fund in effect for the participant.
* * * * *
0
3. Add Sec.  1605.3 to read as follows:


Sec.  1605.3  Calculating, posting, and charging breakage on errors 
involving investment in the wrong fund.

    (a) The TSP will calculate and post breakage on date of birth 
errors that result in default investment in the wrong L Fund, 
contribution allocation errors, and interfund transfer errors.
    (b) The TSP will charge the employing agency for positive breakage 
on incorrect dates of birth caused by employing agency error that 
result in default investment in the wrong L Fund. A date of birth 
change received from an employing agency will not trigger corrective 
action other than to update the date of birth. To initiate a breakage 
calculation for an employee, the employing agency must notify the TSP 
that the participant is entitled to breakage.
0
4. Amend Sec.  1605.13 by revising paragraph (a)(3) to read as follows:


Sec.  1605.13  Back pay awards and other retroactive pay adjustments.

    (a) * * *
    (3) All contributions made under this paragraph (a) and associated 
breakage will be invested according to the participant's contribution 
allocation on the posting date. Breakage will be calculated using the 
share prices for the default investment fund in effect for the 
participant in accordance with Sec.  1605.2 unless otherwise required 
by the employing agency or the court or other tribunal with 
jurisdiction over the back pay case.
* * * * *
0
5. Amend Sec.  1605.16, by re-designating the text of paragraph (a) as 
paragraph (a)(1), adding paragraph (a)(2), re-designating the text of 
paragraph (b) as paragraph (b)(1), and adding paragraphs (b)(2) and 
(b)(3) to read as follows:


Sec.  1605.16  Claims for correction of employing agency errors; time 
limitations.

    (a) Agency's discovery of error. (1) Upon discovery of an error 
made within the past six months involving the correct or timely 
remittance of payments to the TSP (other than a retirement system 
misclassification error, as covered in paragraph (c) of this section), 
an employing agency must promptly correct the error on its own 
initiative. If the error was made more than six months before it was 
discovered, the agency may exercise sound discretion in deciding 
whether to correct it, but, in any event, the agency must act promptly 
in doing so.
    (2) For errors involving incorrect dates of birth caused by 
employing agency error that result in default investment in the wrong L 
Fund, the employing agency must promptly notify the TSP that the 
participant is entitled to breakage if the error is discovered within 
30 days of either the date the TSP provides the participant with a 
notice reflecting the error or the date the TSP makes available on its 
Web site a participant statement reflecting the error, whichever is 
earlier. If it is discovered after that time, the employing agency may 
use its sound discretion in deciding whether to pay breakage, but, in 
any event, must act promptly in doing so.
    (b) Participant's discovery of error. (1) If an agency fails to 
discover an error of which a participant has knowledge involving the 
correct or timely remittance of a payment to the TSP (other than a 
retirement system misclassification error as covered by paragraph (c) 
of this section), the participant may file a claim with his or her 
employing agency to have the error corrected without a time limit. The 
agency must promptly correct any such error for which the participant 
files a claim within six months of its occurrence; if the participant 
files a claim to correct any such error after that time, the agency may 
do so at its sound discretion.
    (2) For errors involving incorrect dates of birth that result in 
default investment in the wrong L Fund of which a participant or 
beneficiary has knowledge, he or she may file a claim for breakage with 
the employing agency

[[Page 49175]]

no later than 30 days after either the date the TSP provides the 
participant with a notice reflecting the error or the date the TSP 
makes available on its Web site a participant statement reflecting the 
error, whichever is earlier. The employing agency must promptly notify 
the TSP that the participant is entitled to breakage.
    (3) If a participant or beneficiary fails to file a claim for 
breakage for errors involving incorrect dates of birth in a timely 
manner, the employing agency may nevertheless, in its sound discretion, 
pay breakage on any such error that is brought to its attention.
* * * * *
0
6. Amend Sec.  1605.22, by revising paragraphs (b)(2), (c)(2), and 
(c)(3) to read as follows:


Sec.  1605.22  Claims for correction of Board or TSP record keeper 
errors; time limitations.

* * * * *
    (b) * * *
    (1) * * *
    (2) For errors involving an investment in the wrong fund caused by 
Board or TSP record keeper error, the Board or the TSP record keeper 
must promptly pay breakage if it is discovered within 30 days of the 
issuance of the most recent TSP participant (or loan) statement, 
transaction confirmation, or other notice that reflected the error, 
whichever is earlier. If it is discovered after that time, the Board or 
TSP record keeper may use its sound discretion in deciding whether to 
pay breakage, but, in any event, must act promptly in doing so.
    (c) * * *
    (1) * * *
    (2) For errors involving an investment in the wrong fund of which a 
participant or beneficiary has knowledge, he or she may file a claim 
for breakage with the Board or TSP record keeper no later than 30 days 
after the TSP provides the participant with a transaction confirmation 
or other notice reflecting the error, or makes available on its Web 
site a participant statement reflecting the error, whichever is 
earlier. The Board or TSP record keeper must promptly pay breakage for 
such errors.
    (3) If a participant or beneficiary fails to file a claim for 
breakage concerning an error involving an investment in the wrong fund 
in a timely manner, the Board or TSP record keeper may nevertheless, in 
its sound discretion, pay breakage for any such error that is brought 
to its attention.
* * * * *
0
7. Amend Sec.  1605.31 by revising paragraph (d) to read as follows:


Sec.  1605.31  Contributions missed as a result of military service.

* * * * *
    (d) Breakage. The employee is entitled to breakage on agency 
contributions made under paragraph (c) of this section. The employee 
will elect to have the calculation based on either the contribution 
allocation(s) on file for the participant during the period of military 
service or the default investment fund in effect for the participant; 
the participant must make this election at the same time his or her 
makeup schedule is established pursuant to Sec.  1605.11(c).

[FR Doc. 2015-20273 Filed 8-14-15; 8:45 am]
 BILLING CODE 6760-01-P