Federal Retirement Thrift Investment Board.
This document contains temporary regulations that lift certain restrictions on financial hardship in-service withdrawals from Federal employees' and uniformed service members' Thrift Savings Plan (TSP) accounts. These temporary regulations are intended to assist TSP participants who were affected by Hurricane Katrina.
Effective Date: These regulations are effective October 1, 2005, through December 31, 2005.Start Further Info
FOR FURTHER INFORMATION CONTACT:
Office of Benefits Services, Federal Retirement Thrift Investment Board, 1250 H Street, NW., Washington, DC 20005, 202-942-1460.End Further Info End Preamble Start Supplemental Information
The Board administers the 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 have been 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)).
The TSP is managed by five part-time Presidentially-appointed Board members and an Executive Director. FERSA gives the Executive Director authority to prescribe regulations permitting participants to make limited withdrawals from their TSP accounts before they are separated from Government employment. 5 U.S.C. 8433(h)(4). This temporary regulation is based upon that authority and the provisions of 5 U.S.C. 553(d)(1) and (3).
Currently, the TSP's regulations prohibit participants from requesting a financial hardship in-service withdrawal from their accounts if they have received another financial hardship withdrawal within the last six months; the temporary regulation deletes that restriction for a financial need that results from Hurricane Katrina. In addition, a participant who obtains a financial hardship in-service withdrawal may not contribute to the TSP for a period of six months after the withdrawal is processed. The temporary regulation provides that the TSP will not extend this contribution suspension period if the participant's contributions have already been suspended due to a previous hardship distribution.
Regulatory Flexibility Act
I certify that these regulations will not have a significant economic impact on a substantial number of small entities. They will affect only employees of the Federal Government.
Paperwork Reduction Act
I certify that these regulations do not require additional reporting under the criteria of the Paperwork Reduction Act of 1980.
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.Start List of Subjects
List of Subjects in 5 CFR Part 1650
- Employee benefit plans
- Government employees
Gary A. Amelio,
Executive Director Federal Retirement Thrift Investment Board.
For the reasons set forth in the preamble, the Board proposes to amend 5 CFR chapter VI as follows:End Amendment Part Start Part
PART 1650—METHODS OF WITHDRAWING FUNDS FROM THE THRIFT SAVINGS PLANEnd Part Start Amendment Part
1. The authority citation for part 1650 continues to read as follows:End Amendment Part Start Amendment Part
2. Amend § 1650.33 by adding a new paragraph (c) to read as follows:End Amendment Part
(a) * * *
(b) * * *
(c) Notwithstanding the provisions of paragraph (b) of this section, a participant who obtains a financial hardship in-service withdrawal based upon a financial need caused by Hurricane Katrina and who is not, at the time of the second hardship withdrawal, making contributions because of a previous financial hardship withdrawal will not have his/her contribution suspension period further extended. The participant may submit a new TSP contribution election to resume contributions any time after expiration of the original six-month contribution suspension period.
3. Amend § 1650.42 by adding a new paragraph (c) to read as follows:End Amendment Part
(c) * * *
(d) * * *
(c) Notwithstanding the provisions of paragraph (b) of this section, the TSP will accept at any time a financial hardship withdrawal request that is based upon a financial need caused by Hurricane Katrina. The participant must certify on the application that the financial need is related to a hardship caused by Hurricane Katrina.
[FR Doc. 05-20483 Filed 10-12-05; 8:45 am]
BILLING CODE 6760-01-P