[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: 5CFR1606.13]

[Page 204-205]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1606--LOST EARNINGS ATTRIBUTABLE TO EMPLOYING AGENCY ERRORS--Table of Contents
 
               Subpart E--Processing Lost Earnings Records
 
Sec. 1606.13  Calculation and crediting of lost earnings.


    (a) Lost earnings records submitted or generated pursuant to this 
part shall be processed by the TSP recordkeeper during a mid-month 
processing cycle;
    (b) Lost earnings records received, edited, and accepted by the TSP 
recordkeeper by the next-to-last business day of a month shall be 
processed in the next month's mid-month processing cycle. Lost earnings 
records that are received, edited, and accepted on the last business day 
of a month shall be processed in the second mid-

[[Page 205]]

month processing cycle following acceptance;
    (c) In calculating lost earnings for a participant's account 
attributable to any lost earnings record, investment gains and losses 
calculated in different investment funds but within one source of 
contributions shall be offset against each other to obtain a net 
investment gain or loss for that source of contributions. Gains and 
losses for different sources of contributions shall not be offset 
against each other;
    (d) Where the de minimis rule of paragraph (d)(1) of Sec. 1606.3 of 
this part is met with regard to delayed contributions or loan 
allotments, the calculation of lost earnings shall commence with the pay 
date for the pay period for which the contributions would have been made 
had the employing agency error not occurred. With regard to lost 
earnings not related to delayed contributions or loan allotments, lost 
earnings shall commence with the month during which the employing agency 
error caused the failure to invest in the Thrift Savings Fund money that 
would have been invested had the employing agency error not occurred, or 
with the month that the money was invested in an incorrect investment 
fund. Lost earnings calculations shall conclude as of the end of the 
month prior to the month during which the lost earnings records are 
processed;
    (e) Negative lost earnings. Notwithstanding any other provision of 
this part, where the net lost earnings computed in accordance with this 
part on any lost earnings record are less than zero within a source of 
contributions, the employing agency account shall not be charged or 
credited with respect to that source of contributions. The amount of the 
negative lost earnings shall be removed from the participant's account 
and applied against TSP administrative expenses;
    (f) With respect to the period prior to December 31, 1990, in 
calculating lost earnings or determining the investment fund in which 
money would have been invested had an employing agency error not 
occurred, the TSP recordkeeper shall take into account the investment 
restrictions that were effective under 5 U.S.C. 8438 prior to the 
effective date of section 3 of the TSPTAA.
    (g) In calculating lost earnings or determining the investment fund 
in which money would have been invested had an employing agency error 
not occurred, the TSP recordkeeper shall take into account interfund 
transfers processed on or subsequent to the date the error affected the 
participant's account, and which were effective prior to the end of the 
month preceding the month during which the lost earnings record is 
processed.