Removal of 30-Calendar-Day Waiting Period Between Withdrawals
| Published date | 14 March 2024 |
| Record Number | 2024-05346 |
| Citation | 89 FR 18533 |
| Court | Federal Retirement Thrift Investment Board |
| Section | Rules and Regulations |
Federal Register, Volume 89 Issue 51 (Thursday, March 14, 2024)
[Federal Register Volume 89, Number 51 (Thursday, March 14, 2024)]
[Rules and Regulations]
[Pages 18533-18534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05346]
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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.
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Federal Register / Vol. 89 , No. 51 / Thursday, March 14, 2024 /
Rules and Regulations
[[Page 18533]]
FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Part 1650
Removal of 30-Calendar-Day Waiting Period Between Withdrawals
AGENCY: Federal Retirement Thrift Investment Board.
ACTION: Direct final rule.
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SUMMARY: This direct final rule removes the Thrift Savings Plan (TSP)'s
restriction on a participant's ability to request more than one
withdrawal within a thirty-calendar-day period.
DATES: The effective date of this final rule is May 15, 2024 unless
significant adverse comment is received by April 15, 2024.
ADDRESSES: You may submit comments using one of the following methods:
Federal Rulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Mail: Office of General Counsel, Attn: Dharmesh Vashee,
Federal Retirement Thrift Investment Board, 77 K Street NE, Suite 1000,
Washington, DC 20002.
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: For press inquiries: contact Kim
Weaver at (202) 942-1641. For information about commenting on this
rule: contact Elizabeth Harris at (202) 913-5300.
SUPPLEMENTARY INFORMATION: The Federal Retirement Thrift Investment
Board (FRTIB) 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 is a tax-deferred retirement savings plan for
Federal 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)).
Background
On November 17, 2017, the President signed the TSP Modernization
Act of 2017 (the ``Act''), Public Law 115-84 (131 Stat. 1272), which
permitted the TSP to offer participants the ability to take withdrawals
more frequently than they could under prior law. Accordingly, the FRTIB
amended 5 CFR 1650 to allow participants to take up to four age-based
withdrawals per calendar year and as many partial post-separation
withdrawals as they desire--subject only to a 30-calendar-day waiting
period between withdrawals. The waiting period was a practical
necessity to avoid inadvertently processing duplicate withdrawal
requests. Duplicate processing sometimes occurred, for example, when a
participant faxed a withdrawal request form to the TSP and then
immediately mailed the same withdrawal request form to the TSP. Our
prior recordkeeping system was designed to reject withdrawal request
forms that were received within 30 days of the date on which another
withdrawal request form was processed. The 30-calendar-day waiting
period ensured that, when multiple copies of a single withdrawal
request form were received by the TSP recordkeeper, the withdrawal was
only processed once.
The TSP transitioned to a new recordkeeping system in June of 2022.
In conjunction with the transition, the TSP moved to electronic
processing of withdrawal requests and no longer relies primarily on
paper-based processes. The 30-calendar-day waiting period is an
obsolete requirement implemented to facilitate a primarily paper-based
process no longer in use by the Thrift Savings Plan (TSP). Today,
participants can complete most withdrawal requests entirely online
instead of using paper forms. Accordingly, this direct final rule will
remove the 30-calendar-day waiting period.
Direct Final Rulemaking
A direct final rule is a final rule that does not go through
proposed rulemaking first. We use direct final rulemaking when we
expect that the rule will generate no significant adverse comments. We
are issuing a direct final rule because we expect this regulatory
change to be entirely non-controversial. However, to be certain that we
are correct, we set the comment period to end before the effective
date. If we receive a significant adverse comment, we will withdraw the
direct final rule before it becomes effective.
For purposes of this rulemaking, a significant adverse comment is
one that explains (1) why the rule is inappropriate, including
challenges to the rule's underlying premise or approach; or (2) why the
rule will be ineffective or unacceptable without a change. In
determining whether a significant adverse comment necessitates
withdrawal of this direct final rule, the FRTIB will consider whether
the comment raises an issue serious enough to warrant a substantive
response had it been submitted in a standard notice-and-comment
process. A comment recommending an addition to the rule will not be
considered significant and adverse unless the comment explains how this
direct final rule would be ineffective or unacceptable without the
addition.
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 FRTIB.
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.
[[Page 18534]]
Submission to Congress and the General Accounting Office
Pursuant to 5 U.S.C. 810(a)(1)(A), the FRTIB 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.
This rule is not a major rule as defined at 5 U.S.C. 804(2).
List of Subjects in 5 CFR Part 1650
Alimony, Claims, Government employees, Pensions, Retirement.
Ravindra Deo,
Executive Director, Federal Retirement Thrift Investment Board.
For the reasons stated in the preamble, the FRTIB amends 5 CFR part
1650 as follows:
PART 1650--METHODS OF WITHDRAWING FUNDS FROM THE THRIFT SAVINGS
PLAN
0
1. The authority citation for Part 1650 continues to read as follows:
Authority: 5 U.S.C. 8351, 8432d, 8433, 8434, 8435, 8474(b)(5)
and 8474(c)(1).
Sec. 1650.11 [Amended]
0
2. Amend Sec. 1650.11 by removing paragraph (d).
0
3. Amend Sec. 1650.31 by revising paragraph (c) to read as follows:
Sec. 1650.31 Age-based withdrawals.
* * * * *
(c) A participant is permitted four age-based withdrawals per
calendar year for an account.
[FR Doc. 2024-05346 Filed 3-13-24; 8:45 am]
BILLING CODE 6760-01-P
