Simplification of Catch-Up Contribution Process

Cited as:85 FR 72913
Court:Federal Retirement Thrift Investment Board
Publication Date:16 Nov 2020
Record Number:2020-24203
72913
Federal Register / Vol. 85, No. 221 / Monday, November 16, 2020 / Rules and Regulations
(6)’’ both times it appears and adding
the citation ‘‘2 CFR 200.101(f)(4)
through (6)’’ in its place.
b. In paragraph (b), by removing the
citations ‘‘2 CFR 200.101(e)(4) through
(6)’’ and ‘‘2 CFR 200.319(b)’’ and adding
the citations ‘‘2 CFR 200.101(f)(4)
through (6)’’ and ‘‘2 CFR 200.319(c)’’ in
their places, respectively.
Title 7—[Amended]
PART 1780—WATER AND WASTE
LOANS AND GRANTS
6. The authority citation for part 1780
continues to read as follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16
U.S.C. 1005.
§ 1780.3 [Amended]
7. In § 1780.3(a), the definition of
Simplified acquisition threshold is
amended by removing the citation ‘‘2
CFR 200.88’’ and adding the citation ‘‘2
CFR 200.1’’ in its place.
PART 3430—COMPETITIVE AND
NONCOMPETITIVE NON-FORMULA
FEDERAL ASSISTANCE PROGRAMS—
GENERAL AWARD ADMINISTRATIVE
PROVISIONS
8. The authority citation for part 3430
continues to read as follows:
Authority: 7 U.S.C. 3316; Pub. L. 106–107
(31 U.S.C. 6101 note).
§ 3430.41 [Amended]
9. In § 3430.41, paragraph (b) is
amended by removing the citation
‘‘section 210 of 2 CFR Part 200’’ and
adding the citation ‘‘2 CFR 200.211’’ in
its place.
Stephen Censky,
Deputy Secretary, U.S. Department of
Agriculture.
[FR Doc. 2020–24502 Filed 11–13–20; 8:45 am]
BILLING CODE 3410–90–P
FEDERAL RETIREMENT THRIFT
INVESTMENT BOARD
5 CFR Parts 1600 and 1605
Simplification of Catch-Up
Contribution Process
AGENCY
: Federal Retirement Thrift
Investment Board.
ACTION
: Final rule.
SUMMARY
: The Federal Retirement Thrift
Investment Board (‘‘FRTIB’’) is reducing
paperwork burdens on participants who
are eligible to make catch-up
contributions by removing the
regulation that requires them to submit
two different contribution election
forms.
DATES
: This rule is effective January 1,
2021.
FOR FURTHER INFORMATION CONTACT
:
Austen Townsend, (202) 864–8647.
SUPPLEMENTARY INFORMATION
: The
FRTIB 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 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 (IRC)(26 U.S.C. 401(k)).
Normally, a TSP participant’s
contributions to his or her account
cannot exceed the statutory limits set
forth in IRC section 402(g) (limiting the
amount of traditional and Roth
contributions to $19,500 for calendar
year 2021) and IRC section 415(c)
(limiting the total amount of traditional,
Roth, tax-exempt, matching, and
automatic 1% contributions to the lesser
of 100% of the participant’s
compensation or $58,000 for calendar
year 2021). However, a TSP participant
who is age 50 or older is permitted to
make catch-up contributions to his or
her TSP account beyond these statutory
limits up to the dollar limit in IRC
section 414(v), which is $6,500 for
calendar year 2021.
On January 23, 2020, the FRTIB
published a proposed rule with request
for comments in the Federal Register
(85 FR 3857) to simplify the catch-up
contribution process by no longer
requiring participants to submit separate
catch-up contribution election forms.
The FRTIB received five comments on
the proposed rule. Three comments
expressed strong support for reducing
the burden on participants by
eliminating the separate catch-up
contribution election forms. Two of the
comments did not address the substance
of the regulations. Therefore the FRTIB,
is publishing the proposed rule as final
without change.
Although the regulatory text is being
published without change, in order to
avoid confusion, the FRTIB wishes to
clarify the effect of the simplified catch-
up contribution process on the rules set
forth at 5 CFR 1605.13 regarding back
pay awards and other retroactive pay
adjustments. If a TSP participant was
age 50 or older during the year(s) to
which a back pay award or other
retroactive pay adjustment is
attributable and the corrective
contributions or make-up contributions
exceed the IRC section 402(g) or 415(c)
limit, then corrective contributions or
make-up contributions will spill over
toward the catch-up limit for those
years, even if the contributions are
attributable to years before 2021.
However, catch-up contributions
attributable to years before 2021 are not
eligible for matching.
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, members of the uniformed
services who participate in the Thrift
Savings Plan, and their beneficiaries.
The TSP is a federal defined
contribution retirement savings plan
created by FERSA and is administered
by the FRTIB.
Paperwork Reduction Act
I certify that these regulations do not
require additional reporting under 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 1532 is not required.
List of Subjects
5 CFR Part 1600
Taxes, Claims, Government
employees, Pensions, Retirement.
5 CFR Part 1605
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
chapter VI as follows:
PART 1600—EMPLOYEE
CONTRIBUTION ELECTIONS,
CONTRIBUTION ALLOCATIONS, AND
AUTOMATIC ENROLLMENT
PROGRAM
1. The authority citation for part 1600
continues to read as follows:
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72914
Federal Register / Vol. 85, No. 221 / Monday, November 16, 2020 / Rules and Regulations
Authority: 5 U.S.C. 8351, 8432(a), 8432(b),
8432(c), 8432(j), 8432d, 8474(b)(5) and (c)(1),
and 8440e.
§ 1600.23 [Amended]
2. Amend § 1600.23 by removing and
reserving paragraphs (b) and (h).
PART 1605—CORRECTION OF
ADMINISTRATIVE ERRORS
3. The authority citation for part 1605
continues to read as follows:
Authority: 5 U.S.C. 8351, 8432a, 8432d,
8474(b)(5)(5) and (c)(1). Subpart B also issued
under section 1043(b) of Public Law 104–
106, 110 Stat. 186 and sec. 7202(m)(2) of
Public Law 101–508, 104 Stat. 1388.
4. Amend § 1605.13 by revising
paragraph (c)(2) to read as follows:
§ 1605.13 Back pay awards and other
retroactive pay adjustments.
* * * * *
(c) * * *
(2) Must not cause the participant to
exceed the annual contribution limit(s)
contained in sections 402(g), 415(c), or
414(v) of the I.R.C. (26 U.S.C. 402(g),
415(c), 414(v)) for the year(s) with
respect to which the contributions are
being made, taking into consideration
the TSP contributions already made in
(or with respect to) that year; and
* * * * *
[FR Doc. 2020–24203 Filed 11–13–20; 8:45 am]
BILLING CODE 6760–01–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Doc. No.: AMS–SC–19–0068; SC19–966–3]
Tomatoes Grown in Florida;
Amendments to the Marketing Order
No. 966
AGENCY
: Agricultural Marketing Service,
USDA.
ACTION
: Final rule.
SUMMARY
: This final rule amends
Marketing Order No. 966, which
regulates the handling of Florida
Tomatoes. The amendments will change
the Florida Tomato Committee’s
(Committee) size, length of the terms of
office, and quorum requirements.
DATES
: This rule is effective December
16, 2020.
FOR FURTHER INFORMATION CONTACT
:
Geronimo Quinones, Marketing
Specialist, Rulemaking Services Branch,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW, Stop 0237, Washington, DC
20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Geronimo.Quinones@usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Richard Lower,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW, STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Richard.Lower@usda.gov.
SUPPLEMENTARY INFORMATION
: This
action, pursuant to 5 U.S.C. 553,
finalizes amendments to regulations
issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This rule is
issued under Marketing Order No. 966,
as amended (7 CFR part 966), regulating
the handling of tomatoes grown in
Florida. Part 966 (referred to as the
‘‘Order’’) is effective under the
Agricultural Marketing Agreement Act
of 1937, as amended (7 U.S.C. 601–674),
hereinafter referred to as the ‘‘Act.’’ The
Committee locally administers the
Order and is comprised of tomato
producers operating within the area of
production. The applicable rules of
practice and procedure governing the
formulation of Marketing Agreements
and Orders (7 CFR part 900) authorize
amendment of the Order through this
informal rulemaking action.
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Orders
13563 and 13175. This action falls
within a category of regulatory actions
that the Office of Management and
Budget (OMB) exempted from Executive
Order 12866 review. Additionally,
because this rule does not meet the
definition of a significant regulatory
action, it does not trigger the
requirements contained in Executive
Order 13771. See OMB’s Memorandum
titled ‘‘Interim Guidance Implementing
Section 2 of the Executive Order of
January 30, 2017, titled ‘Reducing
Regulation and Controlling Regulatory
Costs’ ’’ (February 2, 2017).
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. This rule is not intended to
have retroactive effect. This rule shall
not be deemed to preclude, preempt, or
supersede any State program covering
tomatoes grown in Florida.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 8c(15)(A) of the Act (7 U.S.C.
608 (15)(A)), any handler subject to an
order may file with USDA a petition
stating that the order, any provision of
the order, or any obligation imposed in
connection with the order is not in
accordance with law and request a
modification of the order or to be
exempted therefrom. A handler is
afforded the opportunity for a hearing
on the petition. After the hearing, USDA
would rule on the petition. The Act
provides that the district court of the
United States in any district in which
the handler is an inhabitant, or has his
or her principal place of business, has
jurisdiction to review USDA’s ruling on
the petition, provided an action is filed
no later than 20 days after the date of
entry of the ruling.
Section 1504 of the Food,
Conservation, and Energy Act of 2008
(2008 Farm Bill) (Pub. L. 110–246)
amended section 8c(17) of the Act,
which in turn required the addition of
supplemental rules of practice to 7 CFR
part 900 (73 FR 49307; August 21,
2008). The amendment of section 8c(17)
of the Act and the supplemental rules of
practice authorize the use of informal
rulemaking (5 U.S.C. 553) to amend
Federal fruit, vegetable, and nut
marketing agreements and orders. USDA
may use informal rulemaking to amend
marketing orders depending upon the
nature and complexity of the proposed
amendments, the potential regulatory
and economic impacts on affected
entities, and any other relevant matters.
The Agricultural Marketing Service
(USDA–AMS) considered the nature
and complexity of the proposed
amendments, the potential regulatory
and economic impacts on affected
entities, and other relevant matters, and
determined that amending the Order as
proposed by the Committee could
appropriately be accomplished through
informal rulemaking.
The Committee unanimously
recommended the amendments
following deliberations at two public
meetings held on November 1, 2018,
and February 27, 2019. This final rule
will amend the Order by changing the
Committee’s size, the length of term of
office, and quorum requirements.
A proposed rule and referendum
order was issued on February 14, 2020,
and published in the Federal Register
on February 21, 2020 (85 FR 10096).
That document also directed that a
referendum among Florida tomato
growers be conducted May 11, 2020,
through June 1, 2020, to determine
whether they favored the proposals. To
become effective, the amendments had
to be approved by either two-thirds of
the growers voting in the referendum or
by those representing at least two-thirds
of the volume of tomatoes produced by
those voting in the referendum.
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