80_FR_52340 80 FR 52173 - Default Investment Fund

80 FR 52173 - Default Investment Fund

FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

Federal Register Volume 80, Issue 167 (August 28, 2015)

Page Range52173-52174
FR Document2015-21302

The Federal Retirement Thrift Investment Board (Agency) is amending its regulations to change the default investment fund for certain participants in the Thrift Savings Plan (TSP).

Federal Register, Volume 80 Issue 167 (Friday, August 28, 2015) 
[Federal Register Volume 80, Number 167 (Friday, August 28, 2015)]
[Rules and Regulations]
[Pages 52173-52174]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21302]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
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Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Rules 
and Regulations

[[Page 52173]]



FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

5 CFR Parts 1600, 1601, and 1651


Default Investment Fund

AGENCY: Federal Retirement Thrift Investment Board.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Federal Retirement Thrift Investment Board (Agency) is 
amending its regulations to change the default investment fund for 
certain participants in the Thrift Savings Plan (TSP).

DATES: This rule is effective September 5, 2015.

FOR FURTHER INFORMATION CONTACT: Austen Townsend at (202) 864-8647.

SUPPLEMENTARY INFORMATION: The Agency administers the 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 civilian 
employees, members of the uniformed services, and spouse beneficiaries. 
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)).
    On July 13, 2015, the Agency published a proposed rule with request 
for comments in the Federal Register (80 FR 39974, July 13, 2015). The 
Agency received no comments and, therefore, is publishing the proposed 
rule as final without change.

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 civilian employees and spouse beneficiaries 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 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 
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.

Submission to Congress and the General Accounting Office

    Pursuant to 5 U.S.C. 810(a)(1)(A), the Agency submitted a report 
containing this rule and other required information to the U.S. Senate, 
the U.S. House of Representatives, and the Comptroller General of the 
United States before publication of this rule in the Federal Register. 
The rule is not a major rule as defined in 5 U.S.C. 804(2).

List of Subjects in 5 CFR Parts 1600, 1601, and 1651

    Government employees, Pensions, Retirement.

Gregory T. Long,
Executive Director, Federal Retirement Thrift Investment Board.

    For the reasons stated in the preamble, the Agency amends 5 CFR 
chapter VI as follows:

PART 1600--EMPLOYEE CONTRIBUTION ELECTIONS, CONTRIBUTION 
ALLOCATIONS, AND AUTOMATIC ENROLLMENT PROGRAM

0
1. The authority citation for part 1600 continues to read as follows:

    Authority: 5 U.S.C. 8351, 8432(a), 8432(b), 8432(c), 8432(j), 
8432d, 8474(b)(5) and (c)(1).


0
2. Amend Sec.  1600.37 by revising the heading, the introductory text, 
and paragraphs (c) and (d), and by adding paragraph (e) to read as 
follows:


Sec.  1600.37  Notice.

    The Board shall furnish all new employees and all rehired employees 
covered by the automatic enrollment program a notice that accurately 
describes:
* * * * *
    (c) The fund in which the default employee and agency contributions 
will be invested unless the employee makes a contribution allocation;
    (d) The employee's ability to request a refund of any default 
employee contributions (adjusted for allocable gains and losses) and 
the procedure to request such a refund; and
    (e) That an investment in any fund other than the G Fund is made at 
the employee's risk, that the employee is not protected by the United 
States Government or the Board against any loss on the investment, and 
that neither the United States Government nor the Board guarantees any 
return on the investment.

PART 1601--PARTICIPANTS' CHOICES OF TSP FUNDS

0
3. The authority citation for part 1601 continues to read as follows:

    Authority: 5 U.S.C. 8351, 8432d, 8438, 8474(b)(5) and (c)(1).


0
4. Amend Sec.  1601.13, by revising paragraphs (a)(3) and (4), 
redesignating paragraph (a)(5) as (a)(6) and revising it, and adding a 
new paragraph (a)(5) to read as follows:


Sec.  1601.13  Elections.

    (a) * * *
    (3) A uniformed services participant or a participant enrolled 
prior to September 5, 2015 who elects for the first time to invest in a 
TSP Fund other than the G Fund must execute an acknowledgement of risk 
in accordance with Sec.  1601.33;
    (4) All deposits made on behalf of a participant enrolled prior to 
September 5, 2015 or a uniformed services participant who does not have 
a contribution allocation in effect will be invested in the G Fund. A 
participant who is enrolled prior to September 5, 2015 and subsequently 
rehired on or after September 5, 2015 and has a

[[Page 52174]]

positive account balance will be considered enrolled prior to September 
5, 2015 for purposes of this paragraph;
    (5) All deposits made on behalf of a participant first enrolled on 
or after September 5, 2015 who does not have a contribution allocation 
in effect will be invested in the age-appropriate TSP Lifecycle Fund; 
and
    (6) Once a contribution allocation becomes effective, it remains in 
effect until it is superseded by a subsequent contribution allocation 
or the participant's account balance is reduced to zero. If a rehired 
participant has a positive account balance and a contribution 
allocation in effect, then the participant's contribution allocation 
will remain in effect until a new allocation is made. If, however, the 
participant has a zero account balance, then the participant's 
contributions will be allocated to the age-appropriate TSP Lifecycle 
Fund until a new allocation is made.
* * * * *


Sec.  1601.22  [Amended]

0
5. Amend Sec.  1601.22 by removing paragraph (a)(3).

0
6. Amend Sec.  1601.33 by revising the first sentence of paragraph (a), 
to read as follows:


Sec.  1601.33  Acknowledgement of risk.

    (a) A uniformed services participant or a participant enrolled 
prior to September 5, 2015 who wants to invest in a TSP Fund other than 
the G Fund must execute an acknowledgement of risk for that fund. * * *
* * * * *

PART 1651--DEATH BENEFITS

0
7. The authority citation for part 1651 continues to read as follows:

    Authority: 5 U.S.C. 8424(d), 8432d, 8432(j), 8433(e), 
8435(c)(2), 8474(b)(5) and 8474(c)(1).


0
8. Amend Sec.  1651.2 by revising the last sentence of paragraph (d) to 
read as follows:


Sec.  1651.2  Entitlement to funds in a deceased participant's account.

* * * * *
    (d) * * * The account will accrue earnings at the G Fund rate in 
accordance with 5 CFR part 1645 until it is paid out or a beneficiary 
participant account is established under this part.

0
3. Amend Sec.  1651.19, by revising the first sentence of paragraph (a) 
to read as follows:


Sec.  1651.19  Beneficiary participant accounts.

* * * * *
    (a) * * * Regardless of the allocation of the deceased 
participant's account balance at the time of his or her death, each 
beneficiary participant account, once established, will be allocated 
100 percent to the age-appropriate TSP Lifecycle Fund based on the 
beneficiary participant's date of birth. * * *
* * * * *
[FR Doc. 2015-21302 Filed 8-27-15; 8:45 am]
BILLING CODE 6760-01-P

52173 Rules and Regulations Federal Register Vol. 80, No. 167 Friday, August 28, 2015 This section of the FEDERAL REGISTER Thrift Savings Plan, which is a Federal ■ 2. Amend § 1600.37 by revising the contains regulatory documents having general defined contribution retirement savings heading, the introductory text, and applicability and legal effect, most of which plan created under the Federal paragraphs (c) and (d), and by adding are keyed to and codified in the Code of Employees’ Retirement System Act of paragraph (e) to read as follows: Federal Regulations, which is published under 1986 (FERSA), Public Law 99–335, 100 50 titles pursuant to 44 U.S.C. 1510. § 1600.37 Notice. Stat. 514, and which is administered by The Code of Federal Regulations is sold by the Agency. The Board shall furnish all new the Superintendent of Documents. Prices of employees and all rehired employees Paperwork Reduction Act covered by the automatic enrollment new books are listed in the first FEDERAL REGISTER issue of each week. I certify that these regulations do not program a notice that accurately require additional reporting under the describes: criteria of the Paperwork Reduction Act. * * * * * FEDERAL RETIREMENT THRIFT (c) The fund in which the default INVESTMENT BOARD Unfunded Mandates Reform Act of employee and agency contributions will 1995 be invested unless the employee makes 5 CFR Parts 1600, 1601, and 1651 Pursuant to the Unfunded Mandates a contribution allocation; Default Investment Fund Reform Act of 1995, 2 U.S.C. 602, 632, (d) The employee’s ability to request 653, 1501–1571, the effects of this a refund of any default employee AGENCY: Federal Retirement Thrift regulation on state, local, and tribal contributions (adjusted for allocable Investment Board. governments and the private sector have gains and losses) and the procedure to ACTION: Final rule. been assessed. This regulation will not request such a refund; and compel the expenditure in any one year (e) That an investment in any fund SUMMARY: The Federal Retirement Thrift of $100 million or more by state, local, other than the G Fund is made at the Investment Board (Agency) is amending and tribal governments, in the aggregate, employee’s risk, that the employee is its regulations to change the default or by the private sector. Therefore, a not protected by the United States investment fund for certain participants statement under section 1532 is not Government or the Board against any in the Thrift Savings Plan (TSP). required. loss on the investment, and that neither DATES: This rule is effective September the United States Government nor the 5, 2015. Submission to Congress and the Board guarantees any return on the General Accounting Office FOR FURTHER INFORMATION CONTACT: investment. Austen Townsend at (202) 864–8647. Pursuant to 5 U.S.C. 810(a)(1)(A), the SUPPLEMENTARY INFORMATION: The Agency submitted a report containing PART 1601—PARTICIPANTS’ Agency administers the TSP, which was this rule and other required information CHOICES OF TSP FUNDS established by the Federal Employees’ to the U.S. Senate, the U.S. House of ■ 3. The authority citation for part 1601 Retirement System Act of 1986 Representatives, and the Comptroller continues to read as follows: (FERSA), Public Law 99–335, 100 Stat. General of the United States before 514. The TSP provisions of FERSA are publication of this rule in the Federal Authority: 5 U.S.C. 8351, 8432d, 8438, codified, as amended, largely at 5 U.S.C. Register. The rule is not a major rule as 8474(b)(5) and (c)(1). 8351 and 8401–79. The TSP is a tax- defined in 5 U.S.C. 804(2). ■ 4. Amend § 1601.13, by revising deferred retirement savings plan for List of Subjects in 5 CFR Parts 1600, paragraphs (a)(3) and (4), redesignating Federal civilian employees, members of 1601, and 1651 paragraph (a)(5) as (a)(6) and revising it, the uniformed services, and spouse and adding a new paragraph (a)(5) to beneficiaries. The TSP is similar to cash Government employees, Pensions, read as follows: or deferred arrangements established for Retirement. private-sector employees under section § 1601.13 Elections. Gregory T. Long, 401(k) of the Internal Revenue Code (26 (a) * * * Executive Director, Federal Retirement Thrift (3) A uniformed services participant U.S.C. 401(k)). Investment Board. On July 13, 2015, the Agency or a participant enrolled prior to published a proposed rule with request For the reasons stated in the September 5, 2015 who elects for the for comments in the Federal Register preamble, the Agency amends 5 CFR first time to invest in a TSP Fund other (80 FR 39974, July 13, 2015). The chapter VI as follows: than the G Fund must execute an Agency received no comments and, acknowledgement of risk in accordance therefore, is publishing the proposed PART 1600—EMPLOYEE with § 1601.33; rule as final without change. CONTRIBUTION ELECTIONS, (4) All deposits made on behalf of a CONTRIBUTION ALLOCATIONS, AND participant enrolled prior to September Regulatory Flexibility Act AUTOMATIC ENROLLMENT 5, 2015 or a uniformed services Lhorne on DSK5TPTVN1PROD with RULES I certify that this regulation will not PROGRAM participant who does not have a have a significant economic impact on contribution allocation in effect will be a substantial number of small entities. ■ 1. The authority citation for part 1600 invested in the G Fund. A participant This regulation will affect Federal continues to read as follows: who is enrolled prior to September 5, civilian employees and spouse Authority: 5 U.S.C. 8351, 8432(a), 8432(b), 2015 and subsequently rehired on or beneficiaries who participate in the 8432(c), 8432(j), 8432d, 8474(b)(5) and (c)(1). after September 5, 2015 and has a VerDate Sep<11>2014 12:56 Aug 27, 2015 Jkt 235001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\28AUR1.SGM 28AUR1

52174 Federal Register / Vol. 80, No. 167 / Friday, August 28, 2015 / Rules and Regulations positive account balance will be PART 1651—DEATH BENEFITS ACTION:Establishment of FOIA Fee considered enrolled prior to September Schedule. 5, 2015 for purposes of this paragraph; ■ 7. The authority citation for part 1651 continues to read as follows: SUMMARY: The Defense Nuclear (5) All deposits made on behalf of a participant first enrolled on or after Authority: 5 U.S.C. 8424(d), 8432d, 8432(j), Facilities Safety Board is publishing its 8433(e), 8435(c)(2), 8474(b)(5) and 8474(c)(1). Freedom of Information Act (FOIA) Fee September 5, 2015 who does not have a contribution allocation in effect will ■ 8. Amend § 1651.2 by revising the last Schedule Update pursuant to the be invested in the age-appropriate TSP sentence of paragraph (d) to read as Board’s regulations. Lifecycle Fund; and follows: DATES: Effective September 1, 2015. (6) Once a contribution allocation § 1651.2 Entitlement to funds in a FOR FURTHER INFORMATION CONTACT: becomes effective, it remains in effect deceased participant’s account. Mark T. Welch, General Manager, until it is superseded by a subsequent * * * * * Defense Nuclear Facilities Safety Board, contribution allocation or the (d) * * * The account will accrue 625 Indiana Avenue NW., Suite 700, participant’s account balance is reduced earnings at the G Fund rate in Washington, DC 20004–2901, (202) 694– to zero. If a rehired participant has a accordance with 5 CFR part 1645 until 7060. positive account balance and a it is paid out or a beneficiary participant contribution allocation in effect, then account is established under this part. SUPPLEMENTARY INFORMATION: The FOIA the participant’s contribution allocation ■ 3. Amend § 1651.19, by revising the requires each Federal agency covered by will remain in effect until a new first sentence of paragraph (a) to read as the Act to specify a schedule of fees allocation is made. If, however, the follows: applicable to processing of requests for participant has a zero account balance, agency records. 5 U.S.C. 552(a)(4)(A)(i). § 1651.19 Beneficiary participant then the participant’s contributions will accounts. On July 9, 2015 the Board published for be allocated to the age-appropriate TSP comment in the Federal Register its * * * * * Lifecycle Fund until a new allocation is Proposed FOIA Fee Schedule, 80 FR (a) * * * Regardless of the allocation made. of the deceased participant’s account 39389. No comments were received in * * * * * balance at the time of his or her death, response to that notice, and the Board each beneficiary participant account, is now establishing the Fee Schedule. § 1601.22 [Amended] once established, will be allocated 100 Pursuant to 10 CFR 1703.107(b)(6) of ■ 5. Amend § 1601.22 by removing percent to the age-appropriate TSP the Board’s regulations, the Board’s paragraph (a)(3). Lifecycle Fund based on the beneficiary General Manager will update the FOIA participant’s date of birth. * * * Fee Schedule once every 12 months. ■ 6. Amend § 1601.33 by revising the * * * * * The previous Fee Schedule Update went first sentence of paragraph (a), to read as [FR Doc. 2015–21302 Filed 8–27–15; 8:45 am] into effect on June 1, 2014. 79 FR 31848. follows: BILLING CODE 6760–01–P Board Action § 1601.33 Acknowledgement of risk. Accordingly, the Board issues the (a) A uniformed services participant DEFENSE NUCLEAR FACILITIES following schedule of updated fees for or a participant enrolled prior to SAFETY BOARD services performed in response to FOIA September 5, 2015 who wants to invest requests: in a TSP Fund other than the G Fund 10 CFR Part 1703 must execute an acknowledgement of FOIA Fee Schedule Update risk for that fund. * * * * * * * * AGENCY: Defense Nuclear Facilities Safety Board. DEFENSE NUCLEAR FACILITIES SAFETY BOARD SCHEDULE OF FEES FOR FOIA SERVICES [Implementing 10 CFR 1703.107(b)(6)] Search or Review Charge ........................................................................ $85.00 per hour. Copy Charge (paper) ................................................................................ $.05 per page, if done in-house, or generally available commercial rate approximately $.10 per page). Electronic Media ....................................................................................... $5.00 per electronic media. Copy Charge (audio and video cassette) ................................................ Actual commercial rates. Duplication of DVD ................................................................................... $25.00 for each individual DVD; $16.50 for each duplicate DVD. Copy Charge for large documents (e.g., maps, diagrams) ..................... Actual commercial rates. Dated: August 21, 2015. Mark T. Welch, Lhorne on DSK5TPTVN1PROD with RULES General Manager. [FR Doc. 2015–21413 Filed 8–27–15; 8:45 am] BILLING CODE 3670–01–P VerDate Sep<11>2014 15:49 Aug 27, 2015 Jkt 235001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\28AUR1.SGM 28AUR1


Document Created: 2015-12-15 11:05:10
Document Modified: 2015-12-15 11:05:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective September 5, 2015.
ContactAusten Townsend at (202) 864-8647.
FR Citation80 FR 52173 
CFR Citation5 CFR 1600
5 CFR 1601
5 CFR 1651
CFR AssociatedGovernment Employees; Pensions and Retirement
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