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contains regulatory documents having general

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are keyed to and codified in the Code of

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Rules and Regulations Federal Register

59621 

Vol. 70, No. 197 

Thursday, October 13, 2005 

FEDERAL RETIREMENT THRIFT 

INVESTMENT BOARD 

5 CFR Part 1650 

In-Service Hardship Withdrawals From 

the Thrift Savings Plan 

AGENCY: Federal Retirement Thrift 

Investment Board. 

ACTION: Temporary rule. 

SUMMARY: This document contains 

temporary regulations that lift certain 

restrictions on financial hardship inservice withdrawals from Federal 

employees’ and uniformed service 

members’ Thrift Savings Plan (TSP) 

accounts. These temporary regulations 

are intended to assist TSP participants 

who were affected by Hurricane Katrina. 

DATES: Effective Date: These regulations 

are effective October 1, 2005, through 

December 31, 2005. 

FOR FURTHER INFORMATION CONTACT: 

Office of Benefits Services, Federal 

Retirement Thrift Investment Board, 

1250 H Street, NW., Washington, DC 

20005, 202–942–1460. 

SUPPLEMENTARY INFORMATION: The Board 

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 provisions of FERSA have 

been 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 privatesector employees under section 401(k) 

of the Internal Revenue Code (26 U.S.C. 

401(k)). 

The TSP is managed by five part-time 

Presidentially-appointed Board 

members and an Executive Director. 

FERSA gives the Executive Director 

authority to prescribe regulations 

permitting participants to make limited 

withdrawals from their TSP accounts 

before they are separated from 

Government employment. 5 U.S.C. 

8433(h)(4). This temporary regulation is 

based upon that authority and the 

provisions of 5 U.S.C. 553(d)(1) and (3). 

Currently, the TSP’s regulations 

prohibit participants from requesting a 

financial hardship in-service 

withdrawal from their accounts if they 

have received another financial 

hardship withdrawal within the last six 

months; the temporary regulation 

deletes that restriction for a financial 

need that results from Hurricane 

Katrina. In addition, a participant who 

obtains a financial hardship in-service 

withdrawal may not contribute to the 

TSP for a period of six months after the 

withdrawal is processed. The temporary 

regulation provides that the TSP will 

not extend this contribution suspension 

period if the participant’s contributions 

have already been suspended due to a 

previous hardship distribution. 

Regulatory Flexibility Act 

I certify that these regulations will not 

have a significant economic impact on 

a substantial number of small entities. 

They will affect only employees of the 

Federal 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, 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. 

List of Subjects in 5 CFR Part 1650 

Employee benefit plans, Government 

employees, Pensions, Retirement. 

Gary A. Amelio, 

Executive Director Federal Retirement Thrift 

Investment Board. 

■ For the reasons set forth in the 

preamble, the Board proposes to amend 

5 CFR chapter VI as follows: 

PART 1650—METHODS OF 

WITHDRAWING FUNDS FROM THE 

THRIFT SAVINGS PLAN 

■ 1. The authority citation for part 1650 

continues to read as follows: 

Authority: 5 U.S.C. 8351, 8433, 8434, 8435, 

8474(b)(5), and 8474(c)(1). 

■ 2. Amend § 1650.33 by adding a new 

paragraph (c) to read as follows: 

§ 1650.33 Contributing to the TSP after an 

in-service withdrawal. 

(a) * * * 

(b) * * * 

(c) Notwithstanding the provisions of 

paragraph (b) of this section, a 

participant who obtains a financial 

hardship in-service withdrawal based 

upon a financial need caused by 

Hurricane Katrina and who is not, at the 

time of the second hardship withdrawal, 

making contributions because of a 

previous financial hardship withdrawal 

will not have his/her contribution 

suspension period further extended. 

The participant may submit a new TSP 

contribution election to resume 

contributions any time after expiration 

of the original six-month contribution 

suspension period. 

■ 3. Amend § 1650.42 by adding a new 

paragraph (c) to read as follows: 

§ 1650.42 How to obtain a financial 

hardship withdrawal. 

(c) * * * 

(d) * * * 

(c) Notwithstanding the provisions of 

paragraph (b) of this section, the TSP 

will accept at any time a financial 

hardship withdrawal request that is 

based upon a financial need caused by 

Hurricane Katrina. The participant must 

certify on the application that the 

financial need is related to a hardship 

caused by Hurricane Katrina. 

[FR Doc. 05–20483 Filed 10–12–05; 8:45 am] 

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