Rule2025-06407
Breakage on Late Contributions, Makeup Contributions, and Loan Payments
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 16, 2025
Effective
April 16, 2025
Issuing agencies
Federal Retirement Thrift Investment Board
Abstract
The Federal Retirement Thrift Investment Board (FRTIB) adopts as final, without changes, the proposed rule permitting 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.
Full Text
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<title>Federal Register, Volume 90 Issue 72 (Wednesday, April 16, 2025)</title>
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[Federal Register Volume 90, Number 72 (Wednesday, April 16, 2025)]
[Rules and Regulations]
[Page 15923]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-06407]
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Rules and Regulations
Federal Register
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having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 90, No. 72 / Wednesday, April 16, 2025 /
Rules and Regulations
[[Page 15923]]
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: Final rule.
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SUMMARY: The Federal Retirement Thrift Investment Board (FRTIB) adopts
as final, without changes, the proposed rule permitting 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: The effective date is April 16, 2025.
FOR FURTHER INFORMATION CONTACT:
For press inquiries: James Kaplan, Office of External Affairs,
(202) 864-7150.
For information about this final rule: Laurissa Stokes, Office of
General Counsel, (202) 308-7707.
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 retirement
savings plan for Federal civilian employees and members of the
uniformed services. It 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 are 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.
Previously, section 1605.2(a)(1) said 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 existed due to technological and administrative
limitations that no longer exist and is, therefore, obsolete. This
final rule will direct 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.
On December 18, 2024, the FRTIB published a proposed rule with
request for public comments in the Federal Register (89 FR 102840,
December 18, 2024). The period for public comments closed on February
18, 2025, and we received no comments. For the reasons explained above,
the FRTIB is adopting the proposed rule as final, without any
substantive changes.
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
FRTIB.
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.
Submission to Congress and the General Accountability Office:
Pursuant to 5 U.S.C. 801(a)(1)(A), the FRTIB submitted a report
containing this rule and other required information to the U.S. Senate,
the U.S. House of Representatives, and the Government Accountability
Office before publication of this rule in the 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 1605
Claims, Government employees, Pensions, Retirement.
Ravindra Deo,
Executive Director, Federal Retirement Thrift Investment Board.
For the reasons stated in the preamble, the FRTIB amends 5 CFR part
1605 as follows:
PART 1605--CORRECTION OF ADMINISTRATIVE ERRORS
0
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 Sec. 7202(m)(2) of Public Law 101-508, 104 Stat.
1388.
0
2. Amend Sec. 1605.2 by revising paragraph (a)(1) to read as follows:
Sec. 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. 2025-06407 Filed 4-15-25; 8:45 am]
BILLING CODE 6760-01-P
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