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

63106 

Vol. 75, No. 198 

Thursday, October 14, 2010 

FEDERAL RETIREMENT THRIFT 

INVESTMENT BOARD 

5 CFR Part 1605 

Correction of Administrative Errors 

AGENCY: Federal Retirement Thrift 

Investment Board. 

ACTION: Proposed rule with request for 

comments. 

SUMMARY: The Federal Retirement Thrift 

Investment Board (Agency) proposes to 

use a constructed share price for retired 

Lifecycle funds in order to make error 

corrections after December 31st of the 

target year. 

DATES: Comments must be received on 

or before November 15, 2010. 

ADDRESSES: You may submit comments 

using one of the following methods: 

• Federal Rulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Office of General Counsel, 

Attn: Thomas Emswiler, Federal 

Retirement Thrift Investment Board, 

1250 H Street, NW., Washington, DC 

20005. 

• Hand Delivery/Courier: The address 

for sending comments by hand delivery 

or courier is the same as that for 

submitting comments by mail. 

• Facsimile: Comments may be 

submitted by facsimile at (202) 942– 

1676. 

The most helpful comments explain 

the reason for any recommended change 

and include data, information, and the 

authority that supports the 

recommended change. We will post all 

substantive comments (including any 

personal information provided) without 

change (with the exception of redaction 

of SSNs, profanities, et cetera) on 

http://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Laurissa Stokes at (202) 942–1645. 

SUPPLEMENTARY INFORMATION: The 

Agency 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 (26 U.S.C. 401(k)). 

Constructed Share Price 

The Agency currently offers five 

Lifecycle funds: L Income, L 2010, L 

2020, L 2030, and L 2040. The Agency 

will retire the L 2010 Fund when it 

reaches its target date of December 31, 

2010. Upon retiring the L 2010 Fund, 

the Agency will transfer all money 

invested in the L 2010 Fund to the L 

Income Fund. Participants will no 

longer be able to make contributions to 

the L 2010 Fund after December 31, 

2010. In effect, the L 2010 Fund will no 

longer exist. 

The Agency anticipates receiving late 

and makeup contributions that would 

have been invested in the L 2010 Fund 

had they been made on time. Likewise, 

the Agency anticipates needing to 

remove funds erroneously contributed 

to the L 2010 Fund prior to its 

retirement date, i.e., do a negative 

adjustment. The Agency uses the 

current share price of the applicable 

investment fund when calculating the 

value of late contributions, makeup 

contributions, and negative adjustments. 

Because the L 2010 fund will no longer 

exist, the Agency must construct an 

appropriate ‘‘current’’ share price in 

order to make error corrections 

involving the L 2010 Fund after 

December 31, 2010. 

The Agency proposes to calculate the 

constructed share price for the L 2010 

Fund as follows: The constructed share 

price is the L 2010 Fund share price on 

December 31, 2010, multiplied by the 

current L Income Fund share price, 

divided by the L Income Fund share 

price on December 31, 2010. This 

calculation reflects the impact of 

merging the assets of the L 2010 Fund 

into the L Income Fund on December 

31, 2010. The Agency will apply this 

calculation to retired Lifecycle funds in 

the future by substituting the L 2010 

Fund and December 31, 2010 retirement 

date as follows: The constructed share 

price is the retired Lifecycle fund share 

price on December 31 of the retirement 

year, multiplied by the current L Income 

Fund share price, divided by the L 

Income Fund share price on December 

31 of the retirement year. 

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 and members of the 

uniformed services who participate in 

the Thrift Savings Plan, which is a 

Federal defined contribution retirement 

savings plan created under the Federal 

Employees’ Retirement System Act of 

1986 (FERSA), Public Law 99–335, 100 

Stat. 514, and which is administered by 

the Agency. 

Paperwork Reduction Act 

I certify that these regulations do 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, 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 1605 

Claims, Government employees, 

Pensions, Retirement. 

Gregory T. Long, 

Executive Director, Federal Retirement Thrift 

Investment Board. 

For the reasons set forth in the 

preamble, the Agency 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, and 

8474(b)(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. 


jlentini on DSKJ8SOYB1PROD with PROPOSALS
Federal Register / Vol. 75, No. 198 / Thursday, October 14, 2010 / Proposed Rules 63107 

1Public Law 111–203, 124 Stat. 1376, section 

939A (July 21, 2010). 

2 Id. 

§ 1605.2 [Amended] 

2. Amend § 1605.2, by revising 

paragraph (b)(1)(iii) and adding 

paragraph (b)(1)(iv) to read as follows: 

* * * * * 

(b) * * * 

(1) * * * 

(iii) Determine the dollar value on the 

posting date of the number of shares the 

participant would have received had the 

contributions or loan payments been 

made on time. If the contributions or 

loan payments would have been 

invested in a Lifecycle fund that is 

retired on the posting date, the 

constructed share price shall equal the 

retired Lifecycle fund share price on 

December 31 of the retirement year, 

multiplied by the current L Income 

Fund share price, divided by the L 

Income Fund share price on December 

31 of the retirement year. The dollar 

value shall be the number of shares the 

participant would have received had the 

contributions or loan payments been 

made on time multiplied by the 

constructed share price. 

(iv) The difference between the dollar 

value of the contribution or loan 

payment on the posting date and the 

dollar value of the contribution or loan 

payment on the ‘‘as of’’ date is the 

breakage. 

* * * * * 

§ 1605.12 [Amended] 

3. Amend § 1605.12, by revising 

paragraph (c)(2)(ii) to read as follows: 

* * * * * 

(c) * * * 

(2) * * * 

(ii) Multiply the price per share on the 

date the adjustment is posted by the 

number of shares calculated in 

paragraph (c)(2)(i) of this section. If the 

contribution was erroneously 

contributed to a Lifecycle fund that is 

retired on the date the adjustment is 

posted, the price per share shall equal 

the retired Lifecycle fund share price on 

December 31 of the retirement year, 

multiplied by the current L Income 

Fund share price, divided by the L 

Income Fund share price on December 

31 of the retirement year. 

* * * * * 

[FR Doc. 2010–25855 Filed 10–13–10; 8:45 am] 

BILLING CODE 6760–01–P 

DEPARTMENT OF THE TREASURY 

Office of Thrift Supervision 

12 CFR Part 560 

[Docket ID OTS–2010–0029] 

RIN 1557–AC44 

Alternatives to the Use of External 

Credit Ratings in the Regulations of 

the OTS 

AGENCY: Office of Thrift Supervision 

(OTS), Treasury. 

ACTION: Advance notice of proposed 

rulemaking. 

SUMMARY: Section 939A of the DoddFrank Wall Street Reform and Consumer 

Protection Act (the Act) directs all 

Federal agencies to review, no later than 

one year after enactment, any regulation 

that requires the use of an assessment of 

credit-worthiness of a security or money 

market instrument and any references to 

or requirements in regulations regarding 

credit ratings. The agencies are also 

required under the Act to remove 

references or requirements of reliance 

on credit ratings and to substitute an 

alternative standard of creditworthiness. 

Through this ANPR, the OTS seeks 

comment on the implementation of 

section 939A with respect to its 

regulations (other than risk-based 

capital regulations, which are the 

subject of a separate ANPR issued 

jointly with the other Federal banking 

agencies), including alternative 

measures of credit-worthiness that may 

be used in lieu of credit ratings. 

DATES: Comments on this ANPR must be 

received by November 15, 2010. 

ADDRESSES: You may submit comments, 

identified by OTS–2010–0029, by any of 

the following methods: 

• Federal eRulemaking Portal: 

‘‘Regulations.gov’’: Go to http:// 

www.regulations.gov and follow the 

instructions for submitting comments. 

• Mail: Regulation Comments, Chief 

Counsel’s Office, Office of Thrift 

Supervision, 1700 G Street, NW., 

Washington, DC 20552, Attention: OTS– 

2010–0029. 

• Facsimile: (202) 906–6518. 

• Hand Delivery/Courier: Guard’s 

Desk, East Lobby Entrance, 1700 G 

Street, NW., from 9 a.m. to 4 p.m. on 

business days, Attention: Regulation 

Comments, Chief Counsel’s Office, 

Attention: OTS–2010–0029. 

• Instructions: All submissions 

received must include the agency name 

and docket number for this rulemaking. 

All comments received will be posted 

without change, including any personal 

information provided. Comments, 

including attachments and other 

supporting materials received are part of 

the public record and subject to public 

disclosure. Do not enclose any 

information in your comment or 

supporting materials that you consider 

confidential or inappropriate for public 

disclosure. 

• Viewing Comments Electronically: 

Go to http://www.regulations.gov and 

follow the instructions for reading 

comments. 

• Viewing Comments On-Site: You 

may inspect comments at the Public 

Reading Room, 1700 G Street, NW., by 

appointment. To make an appointment 

for access, call (202) 906–5922, send an 

e-mail to public.info@ots.treas.gov, or 

send a facsimile transmission to (202) 

906–6518. (Prior notice identifying the 

materials you will be requesting will 

assist us in serving you.) We schedule 

appointments on business days between 

10 a.m. and 4 p.m. In most cases, 

appointments will be available the next 

business day following the date we 

receive a request. 

FOR FURTHER INFORMATION CONTACT: 

William Magrini, Senior Project 

Manager, Risk Management Division, 

(202) 906–5744; or Marvin Shaw, Senior 

Attorney, Regulations and Legislation 

Division, Office of Chief Counsel, (202) 

906–6639, Office Thrift Supervision, 

1700 G Street, NW., Washington, DC 

20552. 

SUPPEMENTARY INFORMATION: 

I. Background 

Section 939A of the Act requires each 

Federal agency to review (1) any 

regulation issued by such agency that 

requires the use of an assessment of the 

credit-worthiness of a security or money 

market instrument; and (2) any 

references to or requirements in such 

regulations regarding credit ratings.1

Each Federal agency must then modify 

any such regulations identified by the 

review * * * to remove any reference to 

or requirement of reliance on credit 

ratings and to substitute in such 

regulations such standard of creditworthiness as each respective agency 

shall determine as appropriate for such 

regulations. In developing substitute 

standards of credit-worthiness, an 

agency shall seek to establish, to the 

extent feasible, uniform standards of 

credit-worthiness for use by the agency, 

taking into account the entities it 

regulates that would be subject to such 

standards.2


jlentini on DSKJ8SOYB1PROD with PROPOSALS