[Federal Register Volume 78, Number 183 (Friday, September 20, 2013)]
[Proposed Rules]
[Pages 57807-57808]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-22894]
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Proposed Rules
Federal Register
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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.
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Federal Register / Vol. 78, No. 183 / Friday, September 20, 2013 /
Proposed Rules
[[Page 57807]]
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Part 1651
Aged Beneficiary Designation Forms
AGENCY: Federal Retirement Thrift Investment Board.
ACTION: Proposed rule with request for comments.
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SUMMARY: The Federal Retirement Thrift Investment Board (Agency)
proposes to amend its regulations to provide that a beneficiary
designation form is valid only if it is received by the TSP record-
keeper not more than one year after date of the participant's
signature.
DATES: Comments must be received on or before October 21, 2013.
ADDRESSES: You may submit comments using one of the following methods:
Mail: Office of General Counsel, James B. Petrick, Federal
Retirement Thrift Investment Board, 77 K Street NE., 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.
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)).
Background
Prior to 1995, active Federal employees submitted TSP beneficiary
designation forms to the personnel office at their employing agency.
Upon a participant's death or separation from service, the employing
agency would forward the participant's beneficiary designation form to
the TSP record-keeper.
Beginning on January 1, 1995, the Agency required all TSP
participants to mail or fax beneficiary designation forms directly to
the TSP record-keeper. In addition to requiring all participants to
submit beneficiary designation forms directly to the TSP record-keeper,
the new policy of direct receipt by the TSP record-keeper required
employing agencies to search their personnel records and forward all
beneficiary designation forms then in their possession to the TSP
record-keeper immediately. The TSP communicated the new policy in two
bulletins sent to agency representatives and in three separate mailings
sent directly to participants.
The TSP codified the policy of direct receipt by the TSP record-
keeper in regulations on June 13, 1997 (62 FR 32426). All beneficiary
designation forms in an employing agency's possession should have been
forwarded to the TSP record-keeper before June 13, 1997. Nevertheless,
employing agencies continue to forward to the TSP record-keeper
beneficiary designation forms that are sometimes decades old.
These aged forms often do not reflect the participant's current
intent. Under the current regulations, if otherwise valid, the Agency
must honor these aged forms, and when the Agency processes these forms,
participants often become confused and believe their accounts have been
accessed fraudulently. Further, if a participant passes away after the
Agency has received an aged beneficiary designation form but prior to
clarifying his/her current intent, the Agency must honor the old form
even though it does not reflect the participant's intent.
The Agency, therefore, proposes to amend its regulations to provide
that a beneficiary designation form is valid only if it is received by
the TSP record-keeper not more than 365 calendar days after the date of
the participant's signature on the form.
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.
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 1651
Claims, 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 1651--DEATH BENEFITS
0
1. The authority citation for part 1651 continues to read as follows:
Authority: 5 U.S.C. 8424(d), 8432d, 8432(j), 8433(e),
8435(c)(2), 8474(b)(5) and 8474(c)(1).
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2. Amend Sec. 1651.3 by amending paragraph (c)(6) to remove ``and'',
by amending paragraph (c)(7) to remove the period and add ``; and'', by
amending paragraph (c)(8) to remove the period and add ``; and'', and
by adding paragraph (c)(9) to read as follows:
Sec. 1651.3 Designation of beneficiary.
* * * * *
(c) * * *
[[Page 57808]]
(9) Be received by the TSP record-keeper not more than 365 calendar
days after the date of the participant's signature.
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[FR Doc. 2013-22894 Filed 9-19-13; 8:45 am]
BILLING CODE 6760-01-P