NTEU Chapter 46
1100 Commerce Street, MC 1700 DAL
Dallas, TX 75242-1027
Office: 214-413-5555
Fax 214-413-5560
The Federal Retirement Thrift Investment Board has addressed NTEU's concerns in final regulations on various issues relating to the administration of the Thrift Savings Plan.
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July 28, 2010
M E M O R A N D U M
TO: Chapter Presidents
RE: Final Regulations Issued on Thrift Savings Plan Issues
SUMMARY: The Federal Retirement Thrift Investment Board has addressed NTEU's concerns in final regulations on various issues relating to the administration of the Thrift Savings Plan.
On July 27 and July 28, 2010, the Federal Retirement Thrift Investment Board (Board) issued final regulations addressing certain aspects of its administration of the Thrift Savings Plan (TSP). In both instances, the Board responded positively to comments that NTEU had submitted earlier. See chapter presidents’ memorandum dated July 13, 2010.
One issue relates to the Board's implementation of an automatic TSP enrollment program for new hires. NTEU supported this change but expressed concern that employing agencies might not provide clear and timely notice to new employees concerning their rights and obligations. The Board responded to NTEU’s concern by providing employing agencies with a sample notice to send to new employees. It also stated that it would directly notify new employees of their right to opt out of the automatic enrollment program and to request a refund of default employee contributions.
The other issue addressed by the new regulations relates to the designation of beneficiaries to TSP accounts. The Board has designed a new form to be used by this purpose. In NTEU’s comments, I pointed out that the complexity of the form will likely lead to errors in its completion. In response, the Board committed to assigning sufficient staff to review forms and to notify participants quickly of the need to correct errors or omissions.
In NTEU’s comments, I also addressed the need for further instructions to assist participants in designating a custodian under the Uniform Transfers to Minors Act (UTMA) as the beneficiary of their TSP accounts. The Board agreed and stated that it has created a special form for designating a UTMA custodian. This form will include instructions to ensure that the designation is valid.
I am very pleased that the Board has responded so quickly to NTEU’s suggestions. The changes that it agreed to make resolve all of the concerns that NTEU had identified.
Colleen M. Kelley
National President