18234 Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations

FEDERAL RETIREMENT THRIFT

INVESTMENT BOARD

5 CFR Part 1620

Thrift Savings Plan; Continuation of

Eligibility

AGENCY: Federal Retirement Thrift

Investment Board.

ACTION: Final rule.

SUMMARY: The Executive Director of the

Federal Retirement Thrift Investment

Board (Board) is publishing final

regulations concerning the eligibility of

certain individuals to have make-up

contributions credited to their Thrift

Savings Plan (TSP) accounts and, in

certain cases, restore withdrawn funds

and reestablish loan accounts. Section

four of the Uniformed Services

Employment and Reemployment Rights

Act amends Title 5 of the United States

Code to add a new section 8432b that

addresses TSP benefits that apply to any

Federal employee whose release from

military service, discharge from

hospitalization related to that service, or

other similar event making the

individual eligible to seek restoration

from leave-without-pay status or

reemployment under 38 U.S.C. Chapter

43, occurring on or after August 2, 1990.

This final rule governs retroactive

participation in the TSP by these

employees.

EFFECTIVE DATE: The final rule is

effective April 14, 1997.

FOR FURTHER INFORMATION CONTACT: John

J. O’Meara, Federal Retirement Thrift

Investment Board, 1250 H Street, NW,

Washington, DC 20005. Telephone:

(202) 942–1660.

SUPPLEMENTARY INFORMATION: Interim

regulations governing retroactive TSP

contributions by certain reemployed

veterans were published in the Federal

Register on April 21, 1995 (60 FR

19990). The Board received no

comments on those interim regulations.

Section four of the Uniformed Services

Employment and Reemployment Rights

Act of 1994 (USERRA), Pub. L. 103–353,

108 Stat. 3149, amended 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 (1994), to permit veterans

returning to a Federal civilian job from

qualified military service to make

retroactively any employee

contributions to the TSP which might

have been made if the veteran had

remained continuously employed.

Taxes on these retroactive

contributions were deferred only within

certain overall limits. On August 20,

1996, Congress passed the Small

Business Job Protection Act of 1996 (the

Small Business Act), Pub. L. 104–188,

110 Stat. 1755. The Small Business Act

added section 414(u) to the Internal

Revenue Code to provide that

contributions made by a reemployed

veteran pursuant to USERRA are not

subject to the limits on elective deferrals

that are otherwise applicable to TSP

contributions. Section 1620.102(b)(3) of

the Board’s interim regulations stated

that employees may not make any

retroactive contributions that would

cause them to exceed the Internal

Revenue Code’s elective deferral limit.

The final rule removes paragraph (b)(3)

of § 1620.102 to conform with the

Internal Revenue Code as amended by

the Small Business Act. The final rule

adopts the interim rule as final in all

other respects.

These regulations are being given

retroactive effect to August 2, 1990, in

order to provide eligible employees an

opportunity to seek and obtain TSP

benefits from the effective date of

USERRA.

Regulatory Flexibility Act

I certify that these regulations will not

have a significant economic impact on

a substantial number of small entities

because the regulations will affect only

employees of the United States

Government.

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, Pub. L. 104–4,

section 201, 109 Stat. 48, 64, the effect

of this regulation 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, or

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 the

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 1620

Employee benefit plans, Government

employees, Pensions, Retirement.

Federal Retirement Thrift Investment Board.

Roger W. Mehle,

Executive Director.

Accordingly, the interim rule

amending 5 CFR part 1620 which was

published at 60 FR 1990 on April 21,

1995, is adopted as a final rule with the

following change:

PART 1620—CONTINUATION OF

ELIGIBILITY

1. The authority citation for Part 1620

is revised to read as follows:

Authority: 5 U.S.C. 8474 and 8432b; Pub.

L. 99–591, 100 Stat. 3341; Pub. L. 100–238,

101 Stat. 1744; Pub. L. 100–659, 102 Stat.

3910; Pub. L. 104–188, 110 Stat. 1755.

§ 1620.102 [Amended]

2. Section 1620.102 is amended by

removing paragraph (b)(3).

[FR Doc. 97–9532 Filed 4–11–97; 8:45 am]

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