[Federal Register: January 9, 2006 (Volume 71, Number 5)]
[Rules and Regulations]
[Page 1389]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ja06-1]
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Rules and Regulations
Federal Register
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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.
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[[Page 1389]]
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Part 1650
In-Service Hardship Withdrawals From the Thrift Savings Plan
AGENCY: Federal Retirement Thrift Investment Board.
ACTION: Temporary rule.
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SUMMARY: This document contains temporary regulations that lift certain
restrictions on financial hardship inservice withdrawals from Federal
employees' and uniformed service members' Thrift Savings Plan (TSP)
accounts. These temporary regulations are intended to assist TSP
participants affected by Hurricanes Katrina, Rita, and Wilma.
EFFECTIVE DATE: These regulations are effective January 1, 2006,
through March 31, 2006.
FOR FURTHER INFORMATION CONTACT: Office of Benefits Services, Federal
Retirement Thrift Investment Board, 1250 H Street, NW., Washington, DC
20005, 202-942-1460.
SUPPLEMENTARY 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).
The TSP's permanent 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. 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.
On October 13, 2005, the TSP published a temporary regulation, 70
FR 59621, deleting these restrictions if the financial need resulted
from Hurricane Katrina. The temporary regulation was effective through
December 31, 2005. Congress and the Internal Revenue Service have since
expanded the tax relief available to hurricane victims to Hurricanes
Rita and Wilma. This temporary regulation extends the effective date of
the temporary change to TSP regulations from December 31, 2005, to
March 31, 2006, and extends its effect to victims of Hurricanes
Katrina, Rita, and Wilma.
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 Sec.
1532 is not required.
List of Subjects in 5 CFR Part 1650
Employee benefit plans, Government employees, Pensions, Retirement.
Gary A. Amelio,
Executive Director, Federal Retirement Thrift Investment Board.
0
For the reasons set forth in the preamble, the Board temporarily amends
5 CFR chapter VI as follows:
PART 1650--METHODS OF WITHDRAWING FUNDS FROM THE THRIFT SAVINGS
PLAN
0
1. The authority citation for part 1650 continues to read as follows:
Authority: 5 U.S.C. 8351, 8433, 8434, 8435, 8474(b)(5), and
8474(c)(1).
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2. Amend section 1650.33 by adding a new paragraph (c) to read as
follows:
Sec. 1650.33 Contributing to the TSP after an in-service withdrawal.
* * * * *
(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,
Hurricane Rita, or Hurricane Wilma, 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.
0
3. Amend section 1650.42 by adding a new paragraph (c) to read as
follows:
Sec. 1650.42 How to obtain a financial hardship withdrawal.
* * * * *
(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, Hurricane Rita, or Hurricane Wilma. The participant
must certify on the application that the financial need is related to a
hardship caused by one of the hurricanes: Katrina, Rita, or Wilma.
[FR Doc. 06-120 Filed 1-6-06; 8:45 am]
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