80 FR 39975 - Criminal Restitution Orders
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD Federal Register Volume 80, Issue 133 (July 13, 2015)
Federal Register Volume 80, Issue 133 (July 13, 2015)
| Page Range | 39975-39977 | |
| FR Document | 2015-16868 |
[Federal Register Volume 80, Number 133 (Monday, July 13, 2015)] [Proposed Rules] [Pages 39975-39977] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-16868] ----------------------------------------------------------------------- FEDERAL RETIREMENT THRIFT INVESTMENT BOARD 5 CFR Part 1653 Criminal Restitution Orders AGENCY: Federal Retirement Thrift Investment Board. ACTION: Proposed rule with request for comments. ----------------------------------------------------------------------- SUMMARY: The Federal Retirement Thrift Investment Board (Agency) proposes to amend its procedures for processing criminal restitution orders to: (1) Require an enforcement letter from the Department of Justice stating that restitution has been ordered under the Mandatory Victims Restitution Act; and (2) provide that the Agency will treat a judgment ordering restitution under the Mandatory Victims Restitution Act as a final judgment. The Agency also proposes to make two technical corrections. DATES: Submit comments on or before August 12, 2015. ADDRESSES: You may submit comments using one of the following methods:Federal Rulemaking Portal: http://www.regulations.gov at Docket ID number FRTIB-2015-0001. Follow the instructions for submitting comments. Mail: Office of General Counsel, Attn: James Petrick, Federal Retirement Thrift Investment Board, 77 K Street NE., Suite 1000, Washington, DC 20002. Hand Delivery/Courier: The address for sending comments by hand delivery or courier is the same as that for submitting comments by mail. Facsimile: Comments may be submitted by facsimile at (202) 942-1676. The most helpful comments explain the reason for any recommended change and include data, information, and the authority that supports the recommended change. FOR FURTHER INFORMATION CONTACT: Laurissa Stokes at (202) 942-1645. SUPPLEMENTARY INFORMATION: The Agency administers the Thrift Savings Plan (TSP), which was established by the Federal Employees' Retirement System Act of 1986 (FERSA), Public Law 99-335, 100 Stat. 514. The TSP provisions of FERSA are codified, as amended, largely at 5 U.S.C. 8351 and 8401-79. The TSP is a tax-deferred retirement savings plan for Federal [[Page 39976]] civilian employees and members of the uniformed services. The TSP is similar to cash or deferred arrangements established for private-sector employees under section 401(k) of the Internal Revenue Code (26 U.S.C. 401(k)). The Agency's governing statute includes an anti-alienation provision that generally protects TSP funds from execution, levy, attachment, garnishment, or other legal process. 5 U.S.C. 8437(c)(2). However, there are exceptions for certain court orders such as criminal restitution orders under the Mandatory Victims Restitution Act (MVRA) of 1996. The Department of Justice (DOJ) may request a payment from a participant's TSP account to enforce a judgment that orders restitution under the MVRA. On September 10, 2014, the Agency published regulations explaining the Agency's procedures for processing payments for the enforcement of criminal restitution orders. 79 FR 53603 (September 10, 2014). Requirement To Provide an Enforcement Letter Various statutes grant courts the authority to order, or compel them to order, convicted offenders to pay restitution to victims as part of their sentences. Only orders for restitution under 18 U.S.C. 3663A can be enforced against a TSP account. Judgments ordering restitution often do not reference the statutory authority or statutory mandate under which the court ordered restitution. This leaves the Agency to determine the authority or mandate under which the court ordered restitution. The Agency believes the DOJ is better positioned to determine the authority or mandate under which the court ordered restitution. Therefore, the Agency proposes to amend 5 CFR part 1653 to require an enforcement letter from the DOJ stating that the court ordered restitution under 18 U.S.C. 3663A. The Agency will rely on the DOJ's assertion that the court ordered restitution under 18 U.S.C. 3663A. Treatment of a Judgment Ordering Restitution Under 18 U.S.C. 3663A as a Final Judgment The Agency has received requests from several participants to stay payment from their TSP accounts pending the outcome of an appeal of a judgment ordering restitution under 18 U.S.C. 3663A or the underlying conviction. The Agency's policy is to deny such requests and treat the judgment as a final judgment. This policy is consistent with 18 U.S.C. 3664(o), which says that a sentence that imposes an order of restitution is a final judgment notwithstanding the fact that it may be corrected, amended, or appealed. The Agency proposes to amend 5 CFR part 1653 to codify this policy. Technical Corrections Paragraph (c)(5) of Sec. 1653.33 provides that the TSP will not honor a criminal restitution order that requires a series of payments. The Agency proposes to amend paragraph (c)(5) to provide that the TSP will not honor a criminal restitution order that requires ``the TSP to make'' a series of payments. The Agency also proposes to replace certain references to a ``restitution order'' in 5 CFR part 1653, subpart D with the defined term ``criminal restitution order'' to avoid any ambiguity with respect to whether the regulations refer to the underlying judgment itself or the documents necessary to enforce the judgment against a TSP account. For consistency, the Agency also proposes to replace certain references to a ``levy'' with the defined term ``tax levy.'' Regulatory Flexibility Act I certify that this regulation will not have a significant economic impact on a substantial number of small entities. This regulation will affect Federal employees and members of the uniformed services who participate in the Thrift Savings Plan, which is a Federal defined contribution retirement savings plan created under the Federal Employees' Retirement System Act of 1986 (FERSA), Public Law 99-335, 100 Stat. 514, and which is administered by the Agency. Paperwork Reduction Act I certify that these proposed regulations do not require additional reporting under the criteria of the Paperwork Reduction Act. Unfunded Mandates Reform Act of 1995 Pursuant to the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 602, 632, 653, 1501-1571, the effects of this regulation on state, local, and tribal governments and the private sector have been assessed. This proposed regulation will not compel the expenditure in any one year of $100 million or more by state, local, and tribal governments, in the aggregate, or by the private sector. Therefore, a statement under section 1532 is not required. List of Subjects in 5 CFR Part 1653 Claims, Government employees, Pensions, Retirement, Taxes. Gregory T. Long, Executive Director, Federal Retirement Thrift Investment Board. For the reasons stated in the preamble, the Agency proposes to amend 5 CFR chapter VI as follows: PART 1653--COURT ORDERS AND LEGAL PROCESSES AFFECTING THRIFT SAVINGS PLAN ACCOUNTS 0 1. The authority citation for part 1653 continues to read as follows: Authority: 5 U.S.C. 8432d, 8435, 8436(b), 8437(e), 8439(a)(3), 8467, 8474(b)(5), and 8474(c)(1). 0 2. Amend Sec. 1653.31(b), by revising the definition for ``criminal restitution order'' and adding a definition for ``enforcement letter'' in alphabetical order to read as follows: Sec. 1653.31 Definitions. * * * * * (b) * * * Criminal restitution order means a complete copy of a judgment in a criminal case issued by a federal court ordering restitution for a crime under 18 U.S.C. 3663A. Enforcement letter means a letter received from the Department of Justice requesting a payment from a participant's TSP account to enforce a criminal restitution order. * * * * * 0 3. Amend Sec. 1653.33 by: 0 a. Revising paragraph (b)(2) and adding paragraph (b)(3), 0 b. Replacing the words ``restitution order'' wherever they appear not preceded by the word ``criminal'' with the words ``criminal restitution order'' in paragraphs (c)(1) and (2); and 0 c. Revising paragraphs (c)(3), (c)(5), and (c)(6). The revisions read as follows: Sec. 1653.33 Qualifying criminal restitution order. * * * * * (b) * * * (2) The criminal restitution order must require the participant to pay a stated dollar amount as restitution. (3) The criminal restitution order must be accompanied by an enforcement letter that states the restitution is ordered under 18 U.S.C. 3663A. The enforcement letter must expressly refer to the ``Thrift Savings Plan'' or describe the TSP in such a way that it cannot be confused with other Federal Government retirement benefits or non-Federal retirement benefits. [[Page 39977]] (c) * * * (3) A criminal restitution order accompanied by an enforcement letter that requires the TSP to make a payment in the future; * * * * * (5) A criminal restitution order accompanied by an enforcement letter that requires TSP to make a series of payments; (6) A criminal restitution order accompanied by an enforcement letter that designates the specific TSP Fund, source of contributions, or balance from which the payment or portions of the payment shall be made. 0 4. Amend Sec. 1653.34 by revising the last sentence of paragraph (b) introductory text to read as follows: Sec. 1653.34 Processing Federal tax levies and criminal restitution orders. * * * * * (b) * * * To be complete, a tax levy or criminal restitution order must meet all the requirements of Sec. 1653.32 or Sec. 1653.33; it must also provide (or be accompanied by a document or enforcement letter that provides): * * * * * 0 5. Amend Sec. 1653.35, by revising the first sentence of the introductory text and revising paragraph (a) to read as follows: Sec. 1653.35 Calculating entitlement. A tax levy or criminal restitution order can only require the payment of a stated dollar amount from the TSP. The payee's entitlement will be the lesser of: (a) The dollar amount stated in the tax levy or enforcement letter; or * * * * * 0 6. Amend Sec. 1653.36 by: 0 a. Replacing the word ``levy'' wherever it appears not preceded by the word ``tax'' with the words ``tax levy'' in paragraph (a); 0 b. Replacing the words ``restitution order'' wherever they appear not preceded by the word ``criminal'' with the words ``criminal restitution order'' and by replacing the word ``levy'' wherever it appears not preceded by the word ``tax'' with the words ``tax levy'' in paragraph (c); 0 c. Revising paragraph (d) introductory text; 0 d. Replacing the word ``levy'' wherever it appears not preceded by the word ``tax'' with the words ``tax levy'' in paragraph (g); and 0 e. Adding paragraph (h). The revisions and additions read as follows: Sec. 1653.36 Payment. * * * * * (d) If a participant has funds in more than one type of account, payment will be made from each account in the following order, until the amount required by the tax levy or stated in the enforcement letter is reached: * * * * * (h) The TSP will not hold a payment pending appeal of a criminal restitution order or the underlying conviction. The TSP will treat the criminal restitution order as a final judgment pursuant to 18 U.S.C. 3664(o) and process payment as provided by this subpart. [FR Doc. 2015-16868 Filed 7-10-15; 8:45 am] BILLING CODE 6760-01-P
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program a notice that accurately (6) Once a contribution allocation Lifecycle Fund based on the beneficiary
describes: becomes effective, it remains in effect participant’s date of birth. * * *
* * * * * until it is superseded by a subsequent * * * * *
(c) The fund in which the default contribution allocation or the [FR Doc. 2015–16867 Filed 7–10–15; 8:45 am]
employee and agency contributions will participant’s account balance is reduced BILLING CODE 6760–01–P
be invested unless the employee makes to zero. If a rehired participant has a
a contribution allocation; positive account balance and a
(d) The employee’s ability to request contribution allocation in effect, then FEDERAL RETIREMENT THRIFT
a refund of any default employee the participant’s contribution allocation INVESTMENT BOARD
contributions (adjusted for allocable will remain in effect until a new
gains and losses) and the procedure to allocation is made. If, however, the 5 CFR Part 1653
request such a refund; and participant has a zero account balance,
then the participant’s contributions will Criminal Restitution Orders
(e) That an investment in any fund
other than the G Fund is made at the be allocated to the age-appropriate TSP AGENCY: Federal Retirement Thrift
employee’s risk, that the employee is Lifecycle Fund until a new allocation is Investment Board.
not protected by the United States made. ACTION: Proposed rule with request for
Government or the Board against any * * * * * comments.
loss on the investment, and that neither
§ 1601.22 [Amended] SUMMARY: The Federal Retirement Thrift
the United States Government nor the
Board guarantees any return on the ■ 5. Amend § 1601.22 by removing Investment Board (Agency) proposes to
investment. paragraph (a)(3). amend its procedures for processing
criminal restitution orders to: (1)
■ 6. Amend § 1601.33 by revising the
PART 1601—PARTICIPANTS’ Require an enforcement letter from the
first sentence of paragraph (a), to read as Department of Justice stating that
CHOICES OF TSP FUNDS follows: restitution has been ordered under the
■ 3. The authority citation for part 1601 § 1601.33 Acknowledgement of risk. Mandatory Victims Restitution Act; and
continues to read as follows: (2) provide that the Agency will treat a
(a) A uniformed services participant judgment ordering restitution under the
Authority: 5 U.S.C. 8351, 8432d, 8438,
8474(b)(5) and (c)(1). or a participant enrolled prior to Mandatory Victims Restitution Act as a
[EFFECTIVE DATE OF FINAL final judgment. The Agency also
■ 4. Amend § 1601.13, by revising REGULATION] who wants to invest in
paragraphs (a)(3) and (4), redesignating proposes to make two technical
a TSP Fund other than the G Fund must corrections.
paragraph (a)(5) as (a)(6) and revising it, execute an acknowledgement of risk for
and adding a new paragraph (a)(5) to that fund. * * * DATES: Submit comments on or before
read as follows: August 12, 2015.
* * * * *
ADDRESSES: You may submit comments
§ 1601.13 Elections.
PART 1651—DEATH BENEFITS using one of the following methods:
(a) * * * • Federal Rulemaking Portal: http://
(3) A uniformed services participant ■ 7. The authority citation for part 1651 www.regulations.gov at Docket ID
or a participant enrolled prior to continues to read as follows: number FRTIB–2015–0001. Follow the
[EFFECTIVE DATE OF FINAL instructions for submitting comments.
Authority: 5 U.S.C. 8424(d), 8432d,
REGULATION] who elects for the first 8432(j), 8433(e), 8435(c)(2), 8474(b)(5) and • Mail: Office of General Counsel,
time to invest in a TSP Fund other than 8474(c)(1). Attn: James Petrick, Federal Retirement
the G Fund must execute an Thrift Investment Board, 77 K Street
acknowledgement of risk in accordance ■ 8. Amend § 1651.2, by revising the NE., Suite 1000, Washington, DC 20002.
with § 1601.33; last sentence of paragraph (d) to read as • Hand Delivery/Courier: The address
(4) All deposits made on behalf of a follows: for sending comments by hand delivery
participant enrolled prior to or courier is the same as that for
§ 1651.2 Entitlement to funds in a
[EFFECTIVE DATE OF FINAL submitting comments by mail.
deceased participant’s account.
REGULATION] or a uniformed services • Facsimile: Comments may be
participant who does not have a * * * * * submitted by facsimile at (202) 942–
contribution allocation in effect will be (d) * * * The account will accrue 1676.
invested in the G Fund. A participant earnings at the G Fund rate in The most helpful comments explain
who is enrolled prior to [EFFECTIVE accordance with 5 CFR part 1645 until the reason for any recommended change
DATE OF FINAL REGULATION] and it is paid out or a beneficiary participant and include data, information, and the
subsequently rehired after [EFFECTIVE account is established under this part. authority that supports the
DATE OF FINAL REGULATION] and ■ 3. Amend § 1651.19, by revising the recommended change.
has a positive account balance will be first sentence of paragraph (a) to read as FOR FURTHER INFORMATION CONTACT:
considered enrolled prior to follows: Laurissa Stokes at (202) 942–1645.
[EFFECTIVE DATE OF FINAL SUPPLEMENTARY INFORMATION: The
REGULATION] for purposes of this § 1651.19 Beneficiary participant Agency administers the Thrift Savings
srobinson on DSK5SPTVN1PROD with PROPOSALS
accounts.
paragraph; Plan (TSP), which was established by
(5) All deposits made on behalf of a * * * * * the Federal Employees’ Retirement
participant first enrolled on or after (a) * * * Regardless of the allocation System Act of 1986 (FERSA), Public
[EFFECTIVE DATE OF FINAL of the deceased participant’s account Law 99–335, 100 Stat. 514. The TSP
REGULATION] who does not have a balance at the time of his or her death, provisions of FERSA are codified, as
contribution allocation in effect will be each beneficiary participant account, amended, largely at 5 U.S.C. 8351 and
invested in the age-appropriate TSP once established, will be allocated 100 8401–79. The TSP is a tax-deferred
Lifecycle Fund; and percent to the age-appropriate TSP retirement savings plan for Federal
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![Federal Register / Vol. 80, No. 133 / Monday, July 13, 2015 / Proposed Rules 39977
(c) * * * (d) If a participant has funds in more and submit a comment, ensures timely
(3) A criminal restitution order than one type of account, payment will receipt, and enables the Department to
accompanied by an enforcement letter be made from each account in the make them available to the public.
that requires the TSP to make a payment following order, until the amount Comments submitted electronically
in the future; required by the tax levy or stated in the through the http://www.regulations.gov
* * * * * enforcement letter is reached: Web site can be viewed by other
(5) A criminal restitution order * * * * * commenters and interested members of
accompanied by an enforcement letter (h) The TSP will not hold a payment the public. Commenters should follow
that requires TSP to make a series of pending appeal of a criminal restitution the instructions provided on that site to
payments; order or the underlying conviction. The submit comments electronically.
(6) A criminal restitution order TSP will treat the criminal restitution Mail: Send comments to Mariam G.
accompanied by an enforcement letter order as a final judgment pursuant to 18 Harvey, Director, Office of Civil Rights
that designates the specific TSP Fund, U.S.C. 3664(o) and process payment as and Diversity, 1500 Pennsylvania
source of contributions, or balance from provided by this subpart. Avenue NW., Washington, DC 20220;
which the payment or portions of the [FR Doc. 2015–16868 Filed 7–10–15; 8:45 am]
facsimile (202) 622–0367.
payment shall be made. BILLING CODE 6760–01–P Note: To receive consideration as public
■ 4. Amend § 1653.34 by revising the comments, comments must be submitted
last sentence of paragraph (b) through a method specified.
introductory text to read as follows: Public Inspection of Public
DEPARTMENT OF THE TREASURY
§ 1653.34 Processing Federal tax levies Comments: All properly submitted
and criminal restitution orders. 31 CFR Part 22 comments will be available for
inspection and downloading at
* * * * * RIN 1505–AC45
(b) * * * To be complete, a tax levy http://www.regulations.gov.
Nondiscrimination on the Basis of Additional Instructions: In general
or criminal restitution order must meet
Race, Color, or National Origin in comments received, including
all the requirements of § 1653.32 or
Programs or Activities Receiving attachments and other supporting
§ 1653.33; it must also provide (or be
Federal Financial Assistance materials, are part of the public record
accompanied by a document or
and are available to the public. Do not
enforcement letter that provides): AGENCY: Department of the Treasury. submit any information in your
* * * * * ACTION: Notice of proposed rulemaking. comment or supporting materials that
■ 5. Amend § 1653.35, by revising the
you consider confidential or
first sentence of the introductory text SUMMARY: This proposed regulation inappropriate for public disclosure.
and revising paragraph (a) to read as provides for the enforcement of Title VI FOR FURTHER INFORMATION CONTACT:
follows: of the Civil Rights Act of 1964, as Mariam G. Harvey, Director, Office of
amended (‘‘Title VI’’) to the end that no Civil Rights and Diversity, Department
§ 1653.35 Calculating entitlement.
person in the United States shall on the of the Treasury, (202) 622–0316 (voice),
A tax levy or criminal restitution grounds of race, color, or national origin
order can only require the payment of and (202) 622–7104 (TTY). All
be denied participation in, be denied responses to this notice should be
a stated dollar amount from the TSP. the benefits of, or be otherwise
The payee’s entitlement will be the submitted via http://
subjected to discrimination under any www.regulations.gov or by mail to
lesser of: program or activity that receives federal
(a) The dollar amount stated in the tax ensure consideration.
financial assistance from the
levy or enforcement letter; or SUPPLEMENTARY INFORMATION:
Department of the Treasury. The
* * * * * promulgation of this proposed I. Background
■ 6. Amend § 1653.36 by: regulation will provide guidance to the
■ a. Replacing the word ‘‘levy’’
The purpose of this proposed rule is
Department’s recipients of federal to provide for the enforcement of Title
wherever it appears not preceded by the financial assistance in complying with
word ‘‘tax’’ with the words ‘‘tax levy’’ VI of the Civil Rights Act of 1964, as
the provisions of Title VI and will also amended (42 U.S.C. 2000d, et seq.), as
in paragraph (a); promote consistent and appropriate
■ b. Replacing the words ‘‘restitution
it applies to programs or activities
enforcement of Title VI by the receiving assistance from the
order’’ wherever they appear not Department’s components.
preceded by the word ‘‘criminal’’ with Department of the Treasury.
DATES: Written comments must be Specifically, the statute states that ‘‘[n]o
the words ‘‘criminal restitution order’’ received on or before September 11,
and by replacing the word ‘‘levy’’ person in the United States shall, on the
2015. grounds of race, color, or national origin
wherever it appears not preceded by the
word ‘‘tax’’ with the words ‘‘tax levy’’ ADDRESSES: Interested persons are be denied participation in, be denied
in paragraph (c); invited to submit comments regarding the benefits of, or be otherwise
■ c. Revising paragraph (d) introductory this notice of proposed rulemaking subjected to discrimination under any
text; according to the instructions below. All program or activity that receives federal
■ d. Replacing the word ‘‘levy’’ submissions must refer to the document financial assistance.’’ 42 U.S.C. 2000d.
title. The Department encourages the Each federal agency subject to Title VI
srobinson on DSK5SPTVN1PROD with PROPOSALS
wherever it appears not preceded by the
word ‘‘tax’’ with the words ‘‘tax levy’’ early submission of comments. is required to issue regulations
in paragraph (g); and Electronic Submission of Comments: implementing Title VI. 28 CFR 42.403.
■ e. Adding paragraph (h). Interested persons may submit The Department of the Treasury will be
The revisions and additions read as comments electronically through the issuing Title VI regulations for the first
follows: Federal eRulemaking Portal at http:// time. The Department proposes
www.regulations.gov. Electronic regulations as Title VI of the Civil Rights
§ 1653.36 Payment. submission of comments allows the Act of 1964, as amended, 42 U.S.C.
* * * * * commenter maximum time to prepare 2000d to 2000d-7 (‘‘Title VI’’), requires.
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Document Created: 2018-02-23 09:17:40
Document Modified: 2018-02-23 09:17:40
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Proposed rule with request for comments. | |
| Dates | Submit comments on or before August 12, 2015. | |
| Contact | Laurissa Stokes at (202) 942-1645. | |
| FR Citation | 80 FR 39975 | |
| CFR Associated | Claims; Government Employees; Pensions; Retirement and Taxes |
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