[Federal Register Volume 79, Number 131 (Wednesday, July 9, 2014)]
[Rules and Regulations]
[Pages 38747-38748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16043]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 79, No. 131 / Wednesday, July 9, 2014 / Rules
and Regulations
[[Page 38747]]
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Part 1651
Aged Beneficiary Designation Forms
AGENCY: Federal Retirement Thrift Investment Board.
ACTION: Final rule.
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SUMMARY: The Federal Retirement Thrift Investment Board (Agency) amends
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 the date of the participant's signature.
DATES: This rule is effective on July 14, 2014.
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, the Agency must honor these aged
forms if they are otherwise valid. 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 may not reflect the participant's current
intent.
On September 20, 2013, the Agency published a proposal 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. 78 FR 57807 (September 20, 2013). The Agency received no
comments. Therefore, the Agency is publishing the proposed rule as
final without change except for a minor clarification. The Agency is
clarifying that, in the event that a beneficiary designation form
contains multiple participant signatures with different dates, the TSP
will rely on the most recently dated signature to determine whether 365
days have passed since the participant signed 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 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 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 amends 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. 8351, 8433, 8434, 8435, 8474(b)(5),
8474(c)(1), and Sec. 109,
[[Page 38748]]
Pub. L. 11-31,123 Stat. 1176 (5 U.S.C. 8433(e)).
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2. Amend Sec. 1651.3 by:
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a. Amending paragraph (c)(6) to remove ``and'';
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b. Amending paragraph (c)(7) to remove the period and add ``; and'';
and
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c. Adding paragraph (c)(8) to read as follows:
Sec. 1651.3 Designation of beneficiary.
* * * * *
(c) * * *
(8) Be received by the TSP record-keeper not more than 365 calendar
days after the date of the participant's most recent signature.
* * * * *
[FR Doc. 2014-16043 Filed 7-8-14; 8:45 am]
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