82 FR 15642 - Designation of Beneficiary

FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

Federal Register Volume 82, Issue 60 (March 30, 2017)

The Federal Retirement Thrift Investment Board (Agency) proposes to amend its death benefits regulations to modify the requirements necessary in order for a designation of beneficiary form to be valid.

[Federal Register Volume 82, Number 60 (Thursday, March 30, 2017)]
[Proposed Rules]
[Page 15642]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-06304]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 82, No. 60 / Thursday, March 30, 2017 / 
Proposed Rules

[[Page 15642]]



FEDERAL RETIREMENT THRIFT INVESTMENT BOARD

5 CFR Part 1651


Designation of Beneficiary

AGENCY: Federal Retirement Thrift Investment Board.

ACTION: Proposed rule.

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SUMMARY: The Federal Retirement Thrift Investment Board (Agency) 
proposes to amend its death benefits regulations to modify the 
requirements necessary in order for a designation of beneficiary form 
to be valid.

DATES: Submit comments on or before May 1, 2017.

ADDRESSES: You may submit comments using one of the following methods:
     Federal Rulemaking Portal: http://www.regulations.gov at 
Docket ID number FRTIB-2017-0003. Follow the instructions for 
submitting comments.
     Mail: Office of General Counsel, Attn: Megan G. Grumbine, 
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: Austen Townsend at (202) 864-8647.

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 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)).

Designation of Beneficiary Validity Requirements

    The Agency proposes to amend its regulations to modify the 
requirements necessary in order for a designation of beneficiary form 
to be valid. The Agency's guiding statute provides that a designation 
of beneficiary form need only be signed, witnessed, and received by the 
Agency on or before the participant's date of death in order to be 
valid. See 5 U.S.C. 8424(d). More detailed validity requirements are 
set forth in the Agency's regulations at 5 CFR 1651.3(c). Section 
1651.3(c) currently requires a TSP beneficiary designation form to be 
witnessed by two people and also requires each page of the form to be 
dated by the participant and both witnesses. The Agency proposes to 
amend section 1651.3(c) to require that all pages of a TSP beneficiary 
designation form be signed and dated by the participant and only one 
witness.
    The proposed amendment would reduce the number of witnesses 
required. The other validity requirements, including the requirement 
that the same witness sign and date all pages of the beneficiary 
designation form, remain unchanged.

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.

List of Subjects in 5 CFR Part 1651

    Claims, Government employees, Pensions, Retirement.

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 1651--DEATH BENEFITS

0
1. 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
2. Amend Sec.  1651.3 by revising paragraph (c)(3) to read as follows:


Sec.  1651.3  Designation of beneficiary.

* * * * *
    (c) * * *
    (3) Be signed and properly dated by the participant and signed and 
properly dated by one witness;
    (i) The participant must either sign the form in the presence of 
the witness or acknowledge his or her signature on the form to the 
witness;
    (ii) All submitted and attached pages of the form must be signed 
and dated by the participant;
    (iii) All submitted and attached pages of the form must be signed 
and dated by the same witness;
* * * * *
[FR Doc. 2017-06304 Filed 3-29-17; 8:45 am]
BILLING CODE 6760-01-P