[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR1605.5]

[Page 194]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1605--CORRECTION OF ADMINISTRATIVE ERRORS--Table of Contents
 
                   Subpart B--Employing Agency Errors
 
Sec. 1605.5  Misclassification of retirement coverage.

    (a) If a CSRS participant is misclassified by an employing agency as 
a FERS participant, when the mis-classification is corrected--
    (1) The employing agency must, under Sec. 1605.3, remove all 
employee contributions that exceeded 5% of basic pay for the pay 
period(s) involved, and refund to the participant the amount 
contributed. In addition, the employing agency must submit negative 
adjustment records to remove all employer contributions made to the 
participant's account during the period of misclassification that have 
been in the account for less than one year. The participant may choose 
whether or not he or she wishes to have the remainder of the employee 
contributions made during the period of misclassification removed from 
his or her account and refunded to the participant; and
    (2) If the participant's account at any time contains no employer 
contributions that have been in the account for less than one year, the 
TSP recordkeeper will remove from the account any employer contributions 
that have been in the account for one year or more (and associated 
earnings), and will use such amounts to offset TSP administrative 
expenses.
    (b) If a FERS participant is misclassified as a CSRS participant, 
when the misclassification is corrected he or she may not elect to have 
the contributions made while classified as CSRS removed from his or her 
account. The employing agency must make in a lump sum payment, pursuant 
to Sec. 1605.2(b)(1), the appropriate agency automatic (1%) 
contributions and agency matching contributions on the employee 
contributions that were made while the participant was misclassified as 
CSRS. The participant may also elect to make, under Sec. 1605.2(c), 
additional contributions that he or she would have been eligible to make 
as a FERS participant during the period of misclassification. If such 
contributions are made, the employing agency must also submit any 
associated agency matching contributions and any lost earnings records 
required under 5 CFR Part 1606.