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.

Proposed Rules Federal Register

102840 

Vol. 89, No. 243 

Wednesday, December 18, 2024 

FEDERAL RETIREMENT THRIFT 

INVESTMENT BOARD 

5 CFR Part 1605 

Breakage on Late Contributions, 

Makeup Contributions, and Loan 

Payments 

AGENCY: Federal Retirement Thrift 

Investment Board. 

ACTION: Proposed rule. 

SUMMARY: The Federal Retirement Thrift 

Investment Board (FRTIB) proposes to 

permit the TSP record keeper to 

calculate gains and losses on late 

contributions, makeup contributions, 

loan payments even when the total 

amount on a late payment record or 

total agency contributions on a current 

payment record is less than $1.00. 

DATES: Comments must be received on 

or before February 18, 2025. 

ADDRESSES: You may submit comments 

using one of the following methods: 

• Federal eRulemaking 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. 

Comments will be made available to 

the public online at https://

www.regulations.gov. Do not include 

any personally identifiable or 

confidential information that you do not 

want publicly disclosed. Anonymous 

comments are acceptable. 

FOR FURTHER INFORMATION CONTACT: For 

press inquiries: James Kaplan at (202) 

864–7150. For information about how to 

comment on this proposed rule: 

Elizabeth Harris at (202) 913–5300. 

SUPPLEMENTARY INFORMATION: The 

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)). The 

provisions of FERSA that govern the 

TSP are codified, as amended, largely at 

5 U.S.C. 8351 and 8401–79. 

Under 5 U.S.C. 8432, the Executive 

Director of the FRTIB is directed to 

prescribe regulations to establish an 

error correction procedure for lost 

earnings that result from employing 

agencies’ errors. 

Employing agencies submit agency 

matching contributions, deduct 

employee contributions from 

participants’ basic pay, and deduct loan 

payments from participants’ basic pay. 

Employing agencies also submit makeup 

contributions to the TSP. 

Contribution and loan payment 

information is submitted by employing 

agencies to the TSP record keeper using 

a payment record. Occasionally, a 

payment record is not submitted timely 

or contains an error. As a result, the 

participant’s funds are unavailable for 

investment by the TSP record keeper 

and do not experience gains realized or 

losses incurred that they would have 

otherwise. These missed gains or losses 

are referred to as breakage. 

Currently, § 1605.2(a)(1) says that the 

TSP does not calculate breakage if the 

total amount on a late payment record 

or total agency contributions on a 

current payment record is less than 

$1.00. We believe this rule exists due to 

technological and administrative 

limitations that no longer exist and is, 

therefore, obsolete. This proposed rule 

would permit the TSP record keeper to 

calculate breakage even when the total 

amount on a late payment record or 

total agency contributions on a current 

payment record is less than $1.00. 

Regulatory Flexibility Act 

This proposed 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 TSP, and 

beneficiary participants. 

Paperwork Reduction Act 

This proposed regulation does 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, and 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 2 U.S.C. 

1532 is not required. 

List of Subjects in 5 CFR Part 1605 

Claims, Government employees, 

Pensions, Retirement. 

Suzanne Tosini, 

Acting Executive Director, Federal Retirement 

Thrift Investment Board. 

For the reasons stated in the 

preamble, the FRTIB proposes to amend 

5 CFR part 1605 as follows: 

PART 1605—CORRECTION OF 

ADMINISTRATIVE ERRORS 

■ 1. The authority citation for part 1605 

continues to read as follows: 

Authority: 5 U.S.C. 8351, 8432a, 8432d, 

8474(b)(5) and (c)(1). Subpart B also issued 

under section 1043(b) of Public Law 104– 

106, 110 Stat. 186 and § 7202(m)(2) of Public 

Law 101–508, 104 Stat. 1388. 

■ 2. Amend § 1605.2 by revising 

paragraph (a)(1) to read as follows: 

§ 1605.2 Calculating, posting, and 

charging breakage on late contributions 

and loan payments. 

* * * * * 

(a) * * * 

(1) The TSP record keeper will not 

calculate breakage if contributions or 

loan payments are posted within 30 

days of the ‘‘as of’’ date; and 

* * * * * 

[FR Doc. 2024–29827 Filed 12–17–24; 8:45 am] 

BILLING CODE 6760–01–P 


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