[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR2589.1]

[Page 606]
 
                             TITLE 29--LABOR
 
 CHAPTER XXV--EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2589_RULES AND REGULATIONS FOR ADMINISTRATION AND ENFORCEMENT
--Table of Contents
 
Sec. 2589.1  Civil penalties under section 8477(e)(1)(B) of FERSA.




    Authority: 5 U.S.C. 8477(e)(1)(B) and (f); Secretary of Labor's 
Order 1-2003, 68 FR 5374 (Feb. 3, 2003).

    Source: 54 FR 32636, Aug. 9, 1989, unless otherwise noted.


    (a) Section 8477(e)(1)(B) of FERSA, 5 U.S.C. 8477(e)(1)(B), permits 
the Secretary of Labor to assess a civil penalty against a party in 
interest who engages in a prohibited transaction with respect to the 
Thrift Savings Fund. The initial penalty under section 8477(e)(1)(B) is 
five percent of the ``amount involved'' in each such transaction for 
each year or part thereof during which the prohibited transaction 
continues. However, if the prohibited transaction is not corrected 
during the ``correction period,'' the civil penalty may be in an amount 
not more than 100% of the ``amount involved.'' The Department of Labor 
will apply the definitions set out in Sec. 2560.502i-1(b) through (e) 
of this chapter of title 29 (civil penalties under section 502(i) of 
ERISA) in determining the ``amount involved,'' ``correction,'' 
``correction period,'' and for computation of the section 8477(e)(1)(B) 
penalty.
    (b) The rules of practice set forth in Sec. Sec. 2570.1-2570.12 of 
part 2570, subpart A of subchapter G of this chapter of title 29 
(procedures for the assessment of civil sanctions under ERISA section 
502(i)) are applicable to prohibited transaction penalty proceedings 
under FERSA section 8477(e)(1)(B).

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