[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: 5CFR1653.24]

[Page 285-286]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1653--DOMESTIC RELATIONS ORDERS AFFECTING THRIFT SAVINGS PLAN ACCOUNTS--Table of Contents
 
 Subpart B--Legal Process for the Enforcement of a Participant's Legal 
      Obligations To Provide Child Support or Make Alimony Payments
 
Sec. 1653.24  Processing legal process.

    (a) Upon receipt of a document which purports to be qualifying legal 
process, the participant's account will be frozen. After an account is 
frozen, no withdrawal or loans will be allowed until the account is 
unfrozen. All other account activity, including contributions, 
adjustments, and interfund transfers, will be permitted.
    (b) The following documents will not be treated as purporting to be 
qualifying legal process. Therefore, accounts of participants to whom 
such orders relate will not be frozen and these documents will not be 
reviewed by the Board:
    (1) A document that pertains to a TSP account that has been closed.
    (2) A document that does not indicate that it relates either to the 
TSP or to the participant's retirement benefits.

[[Page 286]]

    (3) A document that does not appear to have been issued by a proper 
authority as described in Sec. 1653.23(b)(1).
    (c) The Board will review a document that purports to be qualifying 
legal process to determine whether it is complete.
    (d) If the Board determines that the document is incomplete, it will 
request a complete copy of the document from the party that submitted 
the document. If a complete copy is not received by the Board within 30 
days of the Board's request, the participant's account will be unfrozen 
and no further action will be taken by the Board with respect to the 
document.
    (e) Upon receipt of a complete document, the Board will review it to 
determine whether it is qualifying legal process.
    (f) The Board will advise the submitting party and the TSP 
participant of the determination. The Board's decision letter will 
contain the following information:
    (1) A statement of the applicable statute and regulations.
    (2) A decision regarding whether the document is qualifying legal 
process, as defined in Sec. 1653.23 (b) and (c).
    (3) If the document is determined to be qualifying legal process, 
the effect that compliance with the terms of the document will have on 
the participant's account.
    (4) If the order requires payment, the amount that will be paid 
pursuant to the qualifying legal process; and to whom the payment will 
be made.
    (5) If the order requires payment, tax reporting and withholding 
information will be sent to the party as to whom the payment will be 
reported to the Internal Revenue Service as income.
    (g) The Board's decision constitutes the final administrative action 
by the Board. There is no appeal right within the Board.
    (h) An account frozen under this section will be unfrozen:
    (1) If a complete document has not been received within 30 days from 
the date of a request described in paragraph (d) of this section, upon 
the expiration of the 30-day period;
    (2) If the account was frozen pursuant to legal process requiring 
the Board to Freeze the participant's account in anticipation of an 
order to pay over the account, the account will be unfrozen upon the 
occurrence of any one of the following events:
    (i) As soon as practicable after receipt of a complete copy of an 
order vacating or superseding such order (unless the order vacating or 
superseding the preliminary order itself warrants placing a freeze on 
the account); or
    (ii) Upon payment pursuant to the order to pay over the account, if 
the Board determines that the order is qualifying; or
    (iii) As soon as practicable after the Board issues a decision 
letter informing the parties that the order to pay over the account is 
not qualifying legal process requiring payment from the participant's 
account; or
    (3) If the account was frozen upon receipt of a document that 
purports to be legal process requiring payment from the participant's 
account, the account will be unfrozen upon the occurrence of any one of 
the following events:
    (i) Upon payment pursuant to the document, if the Board determines 
that the document is qualifying legal process requiring payment from the 
participant's account; or
    (ii) As soon as practicable after the Board issues its decision 
letter informing the parties that the document is not qualifying legal 
process requiring payment from the participant's account.