Thrift savings plan: Loan program; submission of false information; written allegation investigation process,
[Federal Register: August 26, 1998 (Volume 63, Number 165)]
[Rules and Regulations]
[Page 45391-45392]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26au98-1]
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FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
5 CFR Part 1655
Thrift Savings Plan Loans
AGENCY: Federal Retirement Thrift Investment Board.
ACTION: Final rule.
SUMMARY: The Executive Director of the Federal Retirement Thrift Investment Board (Board) is adopting as final an amendment to the Board's Thrift Savings Plan (TSP) loan regulations without change. The amendment affects participants who are alleged to have submitted false information in support of their request for a TSP loan.
DATES: This final rule is effective August 26, 1998.
FOR FURTHER INFORMATION CONTACT: Elizabeth S. Woodruff, Federal Retirement Thrift Investment Board, 1250 H Street, NW, Washington, DC 20005; (202) 942-1661.
SUPPLEMENTARY INFORMATION: The Board administers the Thrift Savings Plan (TSP), a defined contribution plan for Federal employees established by the Federal Employees' Retirement System Act of 1986, Pub. L. 99-335, 100 Stat 514, codified, as amended, largely at 5 U.S.C. 8401-8479.
On April 14, 1997, the Board published a final rule governing TSP loans in the Federal Register (62 FR 18019). On June 1, 1998, the Board published a proposed rule with request for comments in the Federal Register (63 FR 29674) which amended the final loan regulations by adding paragraph (f) to Sec. 1655.18. The amendment provides that, if the Board receives a written allegation from the spouse stating that a participant misrepresented his/her marital status or the address of the spouse of a CSRS participant, or that the participant submitted a Loan Agreement/Promissory Note with a forged signature of the spouse of a FERS participant, the Board will give the participant an opportunity to repay the loan within a 60-day period. If the participant does not repay the loan in full within the 60 days provided, the Board will conduct an investigation into the allegation. Where the Board finds evidence to suggest that the participant submitted false information, it will refer the case to the Department of Justice for criminal prosecution and, where the participant is still employed, to the Inspector General or other appropriate authority in the participant's employing agency for administrative action.
Regulatory Flexibility Act
I certify that this amendment will not have a significant economic impact on a substantial number of small entities. It will only affect TSP participants.
Paperwork Reduction Act
I certify that these regulations do not require additional reporting under the criteria of the Paperwork Reduction Act of 1980.
Unfunded Mandates Reform Act of 1995
Pursuant to the Unfunded Mandates Reform Act of 1995, section 201, Pub.L. 104-4, 109 Stat. 48, 64, the effect of these regulations on State, local, and tribal governments and on the private sector has been assessed. This regulation will not compel the expenditure in any one year of $100 million or more by any State, local, and tribal governments in the aggregate, or by the private sector. Therefore, a statement under section 202, 109 Stat. 48, 64-65, is not required.
Submission to Congress and the General Accounting Office
Under 5 U.S.C. 801(a)(1)(A), the Board 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 prior to publication of this rule in today's 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 1655
Credit, Government employees, Pensions, Retirement.
Federal Retirement Thrift Investment Board. Roger W. Mehle, Executive Director.
For the reasons set forth in the preamble, part 1655 of chapter VI of title 5 of the Code of Federal Regulations is amended as follows:
PART 1655--LOAN PROGRAMS
-
The authority citation for part 1655 continues to read as follows:
Authority: 5 U.S.C. 8433(g) and 8474.
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Section 1655.18 is amended by adding paragraph (f) to read as follows:
Sec. 1655.18 Spousal rights.
* * * * *
(f)(1) By signing the Loan Application and the Loan Agreement/ Promissory Note, the participant represents that all information provided to the TSP during the loan process is true and correct, including statements concerning the participant's marital status and spouse's address at the time the application is filedand documentation that the current spouse has consented to the loan.
(2) If the Board receives a written allegation from the spouse that the participant may have misrepresented his/her marital status or the spouse's address (in the case of a CSRS participant), or that the signature of the spouse of a FERS participant was forged, the Board will submit the questioned document to the spouse and request that he or she state in writing that the information is false or that the spouse's signature has been forged. In the event of an alleged forgery, the Board will also request the spouse to provide at least three signature samples.
(3) If the spouse affirms the allegation in accordance with the procedure set forth in paragraph (f)(2) of this section and the loan has been disbursed, the Board will give the participant an opportunity to repay, within 60 days, the unpaid loan principal, plus unpaid interest. If the loan is repaid, the Board will not investigate the spouse's allegation.
(4) Paragraph (f)(3) of this section will not apply where the participant has received a final divorce decree before the funds are received by the Thrift Savings Plan.
(5) If the unpaid loan principal, plus unpaid interest, is not repaid to the Plan
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in full within the time period provided in paragraph (f)(3) of this section, the Board will conduct an investigation into the allegation. If the participant has received a final divorce decree before the funds are received by the Thrift Savings Plan, the Board will begin its investigation immediately.
(6) If, during its investigation, the Board finds evidence to suggest that the participant misrepresented his/her marital status or spouse's address (in the case of a CSRS participant), or submitted the Loan Agreement/Promissory Note with a forged signature, the Board will refer the case to the Department of Justice for criminal prosecution and, if the participant is still employed, to the Inspector General or other appropriate authority in the participant's employing agency for administrative action.
(7) Upon receipt of an allegation described in paragraph (f)(2) of this section, the participant's account will be frozen and no withdrawal or loan will be permitted until after:
(i) 30 days have elapsed since the participant's spouse was sent a copy of the questioned document and no written affirmation of the alleged false information or forgery (together with signature samples in the case of an alleged forgery) has been received by the Board;
(ii) The loan is repaid pursuant to paragraph (f)(3) of this section;
(iii) The Executive Director concludes that the Board's investigation did not yield persuasive evidence that supports the spouse's allegation;
(iv) The Executive Director has been assured in writing by the spouse that any future request for a loan or withdrawal comports with the applicable requirement of notice or consent; or
(v) The participant is divorced.
[FR Doc. 98-22806Filed8-25-98; 8:45 am]
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