[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR1653.4]

[Page 281-282]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1653_COURT ORDERS AND LEGAL PROCESSES AFFECTING THRIFT SAVINGS PLAN 
 
               Subpart A_Retirement Benefits Court Orders
 
Sec.  1653.4  Calculating entitlements.

    (a) For purposes of computing the amount of a payee's entitlement 
under this section, a participant's TSP account balance will include any 
loan balance outstanding as of the date used for calculating the payee's 
entitlement, unless the court order provides otherwise.
    (b) If the court order awards a percentage or fraction of an account 
as of a specific date, the payee's entitlement will be calculated based 
on the account balance as of that date. If the date specified in the 
order is not a business day, the TSP will use the participant's account 
balance as of the last preceding business day.
    (c) If the court order awards a percentage or fraction of an account 
but does not contain a specific date as of which to apply that 
percentage or fraction, the TSP will use the effective date of the 
order.
    (d) If the court order awards a specific dollar amount, the payee's 
entitlement will be the lesser of:
    (1) The dollar amount stated in the court order; or
    (2) The vested account balance on the date of disbursement.
    (e) If a court order describes a payee's entitlement in terms of a 
fixed dollar amount and a percentage or fraction of the account, the TSP 
will pay the fixed dollar amount, even if the percentage or fraction, 
when applied to the account balance, would yield a different result.
    (f) The payee's entitlement will be credited with TSP investment 
earnings as described:
    (1) The entitlement calculated under this section will not be 
credited with TSP investment earnings unless the court order 
specifically provides otherwise.
    (2) If earnings are awarded and a rate is specified, the rate must 
be expressed as an annual percentage rate or as a per diem dollar amount 
added to the payee's entitlement.
    (3) If earnings are awarded and the rate is not specified, the TSP 
will credit the payee's entitlement with the rate of return for the G 
Fund.
    (4) Earnings at the G Fund rate will accrue on a monthly basis 
through May 31, 2003, beginning with the month following the entitlement 
date; thereafter, G Fund earnings will accrue on a daily basis, 
beginning with the business day following the date used for calculating 
the payee's entitlement (or beginning June 1, 2003, if interest or 
earnings commence before June 1, 2003) and ending 2 business days before 
payment is made.
    (g) The TSP will estimate the amount of a payee's entitlement when 
it prepares the court order decision letter and will recalculate the 
entitlement at the time of payment. The recalculation may differ from 
the initial estimation because:
    (1) The estimation of the payee's entitlement includes both vested 
and nonvested amounts in the participant's account. If, at the time of 
payment, the nonvested portion of the account has not become vested, the 
recalculated entitlement will apply only to the participant's vested 
account balance;
    (2) After the estimate of the payee's entitlement is prepared, the 
TSP may

[[Page 282]]

process account transactions that have an effective date on or before 
the date used to compute the payee's entitlement. Those transactions 
will be included when the payee's entitlement is recalculated at the 
time of payment; and
    (3) The amount available for payment from the account may be reduced 
due to changes in share price (i.e., investment losses).