Automatic Enrollment Program, 57665-57666 [2020-17811]

Download as PDF 57665 Rules and Regulations Federal Register Vol. 85, No. 180 Wednesday, September 16, 2020 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. FEDERAL RETIREMENT THRIFT INVESTMENT BOARD 5 CFR Parts 1600 and 1650 Automatic Enrollment Program Federal Retirement Thrift Investment Board. ACTION: Final rule. AGENCY: The Federal Retirement Thrift Investment Board (‘‘FRTIB’’) is amending its regulations to increase the automatic enrollment percentage from 3 percent to 5 percent of basic pay for all participants who are automatically enrolled in the Thrift Savings Plan (TSP) on or after October 1, 2020 and for Blended Retirement Service (BRS) participants who are automatically reenrolled in the TSP on or after January 1, 2021. In addition, the FRTIB is making a non-substantive clarification regarding installment payments calculated based on life expectancy. DATES: The change to the automatic enrollment percentage is effective October 1, 2020, for participants who are automatically enrolled in the TSP on or after that date, and January 1, 2021, for BRS participants who are automatically re-enrolled in the TSP on or after that date. The clarification regarding installment payments calculated based on life expectancy is effective immediately. FOR FURTHER INFORMATION CONTACT: Austen Townsend, (202) 864–8647. SUPPLEMENTARY INFORMATION: The FRTIB 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 jbell on DSKJLSW7X2PROD with RULES SUMMARY: VerDate Sep<11>2014 16:31 Sep 15, 2020 Jkt 250001 under section 401(k) of the Internal Revenue Code (26 U.S.C. 401(k)). On February 18, 2020, pursuant to its authority under the Thrift Savings Plan Enhancement Act of 2009 and National Defense Authorization Act for Fiscal Year 2016,1 the FRTIB published a proposed rule with request for comments in the Federal Register (85 FR 8767) to increase the automatic enrollment rate and the automatic reenrollment rate to 5 percent, effective October 1, 2020 and January 1, 2021, respectively. In addition, the FRTIB proposed to amend its rule regarding installment payments calculated based on life expectancy to clarify that, for each year following the year in which the installment payments begin, the installment payment amount for the year will be calculated on the first installment payment date of that year. The FRTIB received three comments on the proposed rule. Two comments expressed strong support for the automatic enrollment and re-enrollment rate change noting, in particular, the importance of ensuring that a participant receives the full amount of Agency/Service Matching Contributions he or she is entitled to. The third comment did not address the substance of the regulation. Therefore, the FRTIB is publishing the proposed rule as final without change. As noted in the preamble to the proposed rule, participants who are automatically enrolled in the TSP as of September 30, 2020 will not be affected by the automatic enrollment rate increase. However, BRS participants who are automatically enrolled in the TSP as of September 30, 2020 and subsequently terminate their TSP contributions will be affected by the automatic re-enrollment rate increase unless they elect to resume TSP contributions by the last full pay period of the year. All participants may elect to change their contribution rates at any 1 The Thrift Savings Plan Enhancement Act of 2009 authorized the FRTIB to add an automatic enrollment program for all Federal employees eligible to participate in the TSP. The National Defense Authorization Act for Fiscal Year 2016 extended the automatic enrollment program, with an additional automatic re-enrollment feature, to certain members of the uniformed services. Under the automatic enrollment program, the Executive Director has the statutory authority to select a default contribution rate for automatically enrolled participants that is no less than 2 percent and no more than 5 percent of basic pay. PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 time by contacting their respective agencies. 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 TSP, and beneficiary participants. 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, and 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 2 U.S.C. 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 1650 Alimony, Claims, Government employees, Pensions, Retirement. Ravindra Deo, Executive Director, Federal Retirement Thrift Investment Board. For the reasons stated in the preamble, the FRTIB amends 5 CFR Chapter VI as follows: E:\FR\FM\16SER1.SGM 16SER1 57666 Federal Register / Vol. 85, No. 180 / Wednesday, September 16, 2020 / Rules and Regulations PART 1600—EMPLOYEE CONTRIBUTION ELECTIONS, CONTRIBUTION ALLOCATIONS, AND AUTOMATIC ENROLLMENT PROGRAM NATIONAL CREDIT UNION ADMINISTRATION 1. The authority citation continues to read as follows: Chartering and Field of Membership ■ Authority: 5 U.S.C. 8351, 8432(a), 8432(b), 8432(c), 8432(j), 8432d, 8474(b)(5) and (c)(1), and 8440e. § 1600.34 [Amended] 2. In § 1600.34, amend paragraphs (a), (b), and (c) by removing the term ‘‘3%’’ and adding the term ‘‘5%’’ in its place. ■ § 1600.37 [Amended] 12 CFR Part 701 RIN 3133–AF06 Correction In rule document 2020–16988 appearing on pages 56498–56514 in the issue of September 14, 2020, make the following correction: On page 56498, in the third column, in the DATES section, in the second line ‘‘September 14, 2020’’ should read ‘‘October 14, 2020’’. [FR Doc. C1–2020–16988 Filed 9–14–20; 11:15 am] 3. In § 1600.37, amend paragraph (a) by removing the term ‘‘3 percent’’ and adding the term ‘‘5 percent’’ in its place. ■ BILLING CODE 1301–00–D DEPARTMENT OF TRANSPORTATION PART 1650—METHODS OF WITHDRAWING FUNDS FROM THE THRIFT SAVINGS PLAN Federal Aviation Administration 14 CFR Part 39 4. The authority citation continues to read as follows: ■ Authority: 5 U.S.C. 8351, 8432d, 8433, 8434, 8435, 8474(b)(5) and 8474(c)(1). RIN 2120–AA64 5. Amend § 1650.13 by revising paragraph (a)(2) to read as follows: ■ jbell on DSKJLSW7X2PROD with RULES § 1650.13 Airworthiness Directives; General Electric Company Turbofan Engines Installment payments. (a) * * * (2) An installment payment amount calculated based on life expectancy. Payments based on life expectancy are determined using the factors set forth in the Internal Revenue Service life expectancy tables codified at 26 CFR 1.401(a)(9)–9, Q&A 1 and 2. The installment payment amount is calculated by dividing the account balance by the factor from the IRS life expectancy tables based upon the participant’s age as of his or her birthday in the year payments are to begin. This amount is then divided by the number of installment payments to be made per calendar year to yield the installment payment amount. In subsequent years, the installment payment amount is recalculated on the first installment payment date of the year by dividing the prior December 31 account balance by the factor in the IRS life expectancy tables based upon the participant’s age as of his or her birthday in the year payments will be made. There is no minimum amount for an installment payment calculated based on this method. * * * * * [FR Doc. 2020–17811 Filed 9–15–20; 8:45 am] BILLING CODE 6760–01–P VerDate Sep<11>2014 16:31 Sep 15, 2020 Jkt 250001 [Docket No. FAA–2020–0494; Project Identifier AD–2020–00324–E; Amendment 39–21235; AD 2020–18–14] Federal Aviation Administration (FAA), DOT. ACTION: Final rule. AGENCY: The FAA is adopting a new airworthiness directive (AD) for all General Electric Company (GE) GE90– 110B1 and GE90–115B model turbofan engines with a certain high-pressure turbine (HPT) rotor stage 2 disk installed. This AD was prompted by a report from the manufacturer that a subsurface anomaly was found on a HPT rotor stage 2 disk. This AD requires an ultrasonic inspection (USI) of the HPT rotor stage 2 disk and, depending on the result of the inspection, replacement of the HPT rotor stage 2 disk with a part eligible for installation. The FAA is issuing this AD to address the unsafe condition on these products. DATES: This AD is effective October 21, 2020. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of October 21, 2020. ADDRESSES: For service information identified in this final rule, contact General Electric Company, 1 Neumann Way, Cincinnati, OH 45215; phone: 513–552–3272; email: aviation.fleetsupport@ae.ge.com. You SUMMARY: PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 may view this service information at the FAA, Airworthiness Products Section, Operational Safety Branch, 1200 District Avenue, Burlington, MA 01803. For information on the availability of this material at the FAA, call 781–238–7759. It is also available on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA–2020–0494. Examining the AD Docket You may examine the AD docket on the internet at https:// www.regulations.gov by searching for and locating Docket No. FAA–2020– 0494; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this final rule, any comments received, and other information. The address for Docket Operations is U.S. Department of Transportation, Docket Operations, M– 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE, Washington, DC 20590. FOR FURTHER INFORMATION CONTACT: Stephen Elwin, Aerospace Engineer, ECO Branch, FAA, 1200 District Avenue, Burlington, MA 01803; phone: 781–238–7236; fax: 781–238–7199; email: stephen.l.elwin@faa.gov. SUPPLEMENTARY INFORMATION: Background The FAA issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to all GE GE90–110B1 and GE90– 115B model turbofan engines with a certain HPT rotor stage 2 disk installed. The NPRM published in the Federal Register on May 18, 2020 (85 FR 29676). The NPRM was prompted by a report from the manufacturer that a subsurface anomaly was found on a HPT rotor stage 2 disk. The NPRM proposed to require a USI of the HPT rotor stage 2 disk and, depending on the result of the inspection, replacement of the HPT rotor stage 2 disk with a part eligible for installation. The FAA is issuing this AD to address the unsafe condition on these products. Comments The FAA gave the public the opportunity to participate in developing this final rule. The FAA has considered the comments received. The Boeing Company, FedEx Express, United Airlines, and the Air Line Pilots Association, International, supported the NPRM. Conclusion The FAA reviewed the relevant data, considered the comments received, and E:\FR\FM\16SER1.SGM 16SER1

Agencies

[Federal Register Volume 85, Number 180 (Wednesday, September 16, 2020)]
[Rules and Regulations]
[Pages 57665-57666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17811]



========================================================================
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. 

========================================================================


Federal Register / Vol. 85, No. 180 / Wednesday, September 16, 2020 / 
Rules and Regulations

[[Page 57665]]



FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

5 CFR Parts 1600 and 1650


Automatic Enrollment Program

AGENCY: Federal Retirement Thrift Investment Board.

ACTION: Final rule.

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

SUMMARY: The Federal Retirement Thrift Investment Board (``FRTIB'') is 
amending its regulations to increase the automatic enrollment 
percentage from 3 percent to 5 percent of basic pay for all 
participants who are automatically enrolled in the Thrift Savings Plan 
(TSP) on or after October 1, 2020 and for Blended Retirement Service 
(BRS) participants who are automatically re-enrolled in the TSP on or 
after January 1, 2021. In addition, the FRTIB is making a non-
substantive clarification regarding installment payments calculated 
based on life expectancy.

DATES: The change to the automatic enrollment percentage is effective 
October 1, 2020, for participants who are automatically enrolled in the 
TSP on or after that date, and January 1, 2021, for BRS participants 
who are automatically re-enrolled in the TSP on or after that date. The 
clarification regarding installment payments calculated based on life 
expectancy is effective immediately.

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

SUPPLEMENTARY INFORMATION: The FRTIB 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)).
    On February 18, 2020, pursuant to its authority under the Thrift 
Savings Plan Enhancement Act of 2009 and National Defense Authorization 
Act for Fiscal Year 2016,\1\ the FRTIB published a proposed rule with 
request for comments in the Federal Register (85 FR 8767) to increase 
the automatic enrollment rate and the automatic re-enrollment rate to 5 
percent, effective October 1, 2020 and January 1, 2021, respectively. 
In addition, the FRTIB proposed to amend its rule regarding installment 
payments calculated based on life expectancy to clarify that, for each 
year following the year in which the installment payments begin, the 
installment payment amount for the year will be calculated on the first 
installment payment date of that year.
---------------------------------------------------------------------------

    \1\ The Thrift Savings Plan Enhancement Act of 2009 authorized 
the FRTIB to add an automatic enrollment program for all Federal 
employees eligible to participate in the TSP. The National Defense 
Authorization Act for Fiscal Year 2016 extended the automatic 
enrollment program, with an additional automatic re-enrollment 
feature, to certain members of the uniformed services. Under the 
automatic enrollment program, the Executive Director has the 
statutory authority to select a default contribution rate for 
automatically enrolled participants that is no less than 2 percent 
and no more than 5 percent of basic pay.
---------------------------------------------------------------------------

    The FRTIB received three comments on the proposed rule. Two 
comments expressed strong support for the automatic enrollment and re-
enrollment rate change noting, in particular, the importance of 
ensuring that a participant receives the full amount of Agency/Service 
Matching Contributions he or she is entitled to. The third comment did 
not address the substance of the regulation. Therefore, the FRTIB is 
publishing the proposed rule as final without change.
    As noted in the preamble to the proposed rule, participants who are 
automatically enrolled in the TSP as of September 30, 2020 will not be 
affected by the automatic enrollment rate increase. However, BRS 
participants who are automatically enrolled in the TSP as of September 
30, 2020 and subsequently terminate their TSP contributions will be 
affected by the automatic re-enrollment rate increase unless they elect 
to resume TSP contributions by the last full pay period of the year. 
All participants may elect to change their contribution rates at any 
time by contacting their respective agencies.

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 TSP, and beneficiary participants.

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, and 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 2 U.S.C. 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 1650

    Alimony, Claims, Government employees, Pensions, Retirement.

Ravindra Deo,
Executive Director, Federal Retirement Thrift Investment Board.

    For the reasons stated in the preamble, the FRTIB amends 5 CFR 
Chapter VI as follows:

[[Page 57666]]

PART 1600--EMPLOYEE CONTRIBUTION ELECTIONS, CONTRIBUTION 
ALLOCATIONS, AND AUTOMATIC ENROLLMENT PROGRAM

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

    Authority:  5 U.S.C. 8351, 8432(a), 8432(b), 8432(c), 8432(j), 
8432d, 8474(b)(5) and (c)(1), and 8440e.


Sec.  1600.34   [Amended]

0
2. In Sec.  1600.34, amend paragraphs (a), (b), and (c) by removing the 
term ``3%'' and adding the term ``5%'' in its place.


Sec.  1600.37   [Amended]

0
3. In Sec.  1600.37, amend paragraph (a) by removing the term ``3 
percent'' and adding the term ``5 percent'' in its place.

PART 1650--METHODS OF WITHDRAWING FUNDS FROM THE THRIFT SAVINGS 
PLAN

0
4. The authority citation continues to read as follows:

    Authority: 5 U.S.C. 8351, 8432d, 8433, 8434, 8435, 8474(b)(5) 
and 8474(c)(1).


0
5. Amend Sec.  1650.13 by revising paragraph (a)(2) to read as follows:


Sec.  1650.13   Installment payments.

    (a) * * *
    (2) An installment payment amount calculated based on life 
expectancy. Payments based on life expectancy are determined using the 
factors set forth in the Internal Revenue Service life expectancy 
tables codified at 26 CFR 1.401(a)(9)-9, Q&A 1 and 2. The installment 
payment amount is calculated by dividing the account balance by the 
factor from the IRS life expectancy tables based upon the participant's 
age as of his or her birthday in the year payments are to begin. This 
amount is then divided by the number of installment payments to be made 
per calendar year to yield the installment payment amount. In 
subsequent years, the installment payment amount is recalculated on the 
first installment payment date of the year by dividing the prior 
December 31 account balance by the factor in the IRS life expectancy 
tables based upon the participant's age as of his or her birthday in 
the year payments will be made. There is no minimum amount for an 
installment payment calculated based on this method.
* * * * *
[FR Doc. 2020-17811 Filed 9-15-20; 8:45 am]
BILLING CODE 6760-01-P
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