PART 1620—EXPANDED AND CONTINUING ELIGIBILITY Authority: 5 U.S.C. 8474(b)(5) and (c)(1). Subpart C also issued under 5 U.S.C. 8440a(b)(7), 8440b(b)(8), and 8440c(b)(8). Subpart D also issued under sec. 1043(b) of Pub. L. 104-106, 110 Stat. 186, and sec. 7202(m)(2) of Pub. L. 101-508, 104 Stat. 1388. Subpart E also issued under 5 U.S.C. 8432b(1) and 8440e. Source: 64 FR 31057, June 9, 1999, unless otherwise noted. Subpart A—General § 1620.1 Application. The Federal Employees' Retirement System Act of 1986 (codified as amended largely at 5 U.S.C. 8351 and 8401 through 8479) originally limited TSP eligibility to specifically named groups of employees. On various occasions, Congress has since expanded TSP eligibility to other groups. Depending on the circumstances, that subsequent legislation requires retroactive contributions or provides other special features. Where necessary, this part describes those special features. The employees and employing agencies covered by this part are also governed by the other regulations in 5 CFR chapter VI to the extent that they do not conflict with the regulations of this part. [64 FR 31057, June 9, 1999, as amended at 70 FR 32213, June 1, 2005] § 1620.2 Definitions. The definitions generally applicable to the Thrift Savings Plan are set forth at 5 CFR 1690.1. [70 FR 32213, June 1, 2005] § 1620.3 Contributions. The employing agency is responsible for transmitting to the TSP record keeper, in accordance with the TSP record keeper's procedures, any employee and employer contributions that are required by this part. [87 FR 31679, May 24, 2022] § 1620.4 Notices. An employing agency must notify affected employees of the application of this part as soon as practicable. Subpart B—Cooperative Extension Service, Union, and Intergovernmental Personnel Act Employees § 1620.10 Definition. As used in this subpart, employing authority § 1620.11 Scope. This subpart applies to any individual participating in CSRS or FERS who: (a) Has been appointed or otherwise assigned to one of the cooperative extension services, as defined in 7 U.S.C. 3103(5); (b) Has entered on approved leave without pay to serve as a full-time officer or employee of an organization composed primarily of employees as defined by 5 U.S.C. 8331(1) and 8401(11); or (c) Has been assigned, on an approved leave-without-pay basis, from a Federal agency to a state or local government under 5 U.S.C. chapter 33, subchapter VI. § 1620.12 Employing authority contributions. The employing authority, at its sole discretion, may choose to make employer contributions under 5 U.S.C. 8432(c) for employees who are covered under FERS. Such contributions may be made for any period of eligible service after January 1, 1984, provided that the employing agency must treat all its employees who are eligible to receive employer contributions in the same manner. The employing authority can commence or terminate employer contributions at any time after providing all affected employees with notice of a decision to commence or terminate such contributions at least 45 days before the beginning of the applicable election period. The employing authority may not contribute to the TSP on behalf of CSRS employees. [64 FR 31057, June 9, 1999, as amended at 70 FR 32213, June 1, 2005] § 1620.13 Retroactive contributions. (a) An employing authority can make retroactive employer contributions on behalf of FERS employees described in this subpart, but cannot duplicate employer contributions already made to the TSP. (b) An employing authority making retroactive employing agency contributions on behalf of a FERS employee described in § 1620.12 must continue those contributions (but only to the extent they relate to service with the employing authority) if the employee returns to his or her agency of record or is transferred to another Federal agency without a break in service. (c) CSRS and FERS employees covered by this subpart can make retroactive employee contributions relating to periods of service described in § 1620.12, unless they already have been given the opportunity to make contributions for these periods of service. § 1620.14 Payment to the TSP record keeper. (a) The employing authority of a cooperative extension service employee (described at § 1620.11(a)) is responsible for transmitting employer and employee contributions to the TSP record keeper. (b) The employing authority of a union employee or an Intergovernmental Personnel Act employee (described at § 1620.11(b) and (c), respectively) is responsible for transmitting employer and employee contributions to the employee's Federal agency of record. Employee contributions will be deducted from the employee's actual pay. The employee's agency of record is responsible for transmitting the employer and employee's contributions to the TSP record keeper in accordance with its procedures. The employee's election form (TSP-1) will be filed in the employee's official personnel folder or other similar file maintained by the employing authority. [64 FR 31057, June 9, 1999, as amended at 87 FR 31679, May 24, 2022] Subpart C—Justices and Judges § 1620.20 Scope. (a) This subpart applies to: (1) A justice or judge of the United States as defined in 28 U.S.C. 451; (2) A bankruptcy judge appointed under 28 U.S.C. 152 or a United States magistrate judge appointed under 28 U.S.C. 631 who has chosen to receive a judges' annuity described at 28 U.S.C. 377 or section 2(c) of the Retirement and Survivors' Annuities for Bankruptcy Judges and Magistrates Act of 1988, Public Law 100-659, 102 Stat. 3910-3921; (3) A judge of the United States Court of Federal Claims appointed under 28 U.S.C. 171 whose retirement is covered by 28 U.S.C. 178; and (4) A judge of the Court of Veterans Appeals appointed under 38 U.S.C. 7253. (b) This subpart does not apply to a bankruptcy judge or a United States magistrate judge who has not chosen a judges' annuity, or to a judge of the United States Court of Federal Claims who is not covered by 28 U.S.C. 178. Those individuals may participate in the TSP only if they are otherwise covered by CSRS or FERS. [64 FR 31057, June 9, 1999, as amended at 70 FR 32213, June 1, 2005] § 1620.21 Contributions. (a) An individual covered under this subpart can make contributions to the TSP from basic pay in the amount described at 5 CFR 1600.22(a)(1). Unless stated otherwise in this subpart, he or she is covered by the same rules that apply to a CSRS participant in the TSP. (b) The following amounts are not basic pay and no TSP contributions can be made from them: (1) An annuity or salary received by a justice or judge of the United States (as defined in 28 U.S.C. 451) who is retired under 28 U.S.C. 371(a) or (b), or 372(a); (2) Amounts received by a bankruptcy judge or a United States magistrate judge under a judges' annuity described at 28 U.S.C. 377; (3) An annuity or salary received by a judge of the United States Court of Federal Claims under 28 U.S.C. 178; and (4) Retired pay received by a judge of the United States Court of Veterans Appeals under 38 U.S.C. 7296. [64 FR 31057, June 9, 1999, as amended at 70 FR 32213, June 1, 2005] § 1620.22 Withdrawals. (a) Post-employment distribution. (1) Upon separation from Government employment. (2) In addition to the circumstance described in paragraph (a)(1) of this section, a post-employment distribution election can be made by: (i) A justice or judge of the United States (as defined in 28 U.S.C. 451) who retires under 28 U.S.C. 317(a) or (b) or 372(a); (ii) A bankruptcy judge or a United States magistrate judge receiving a judges' annuity under 28 U.S.C. 377; (iii) A judge of the United States Court of Federal Claims receiving an annuity or salary under 28 U.S.C. 178; and (iv) A judge of the United States Court of Veterans Appeals receiving retired pay under 38 U.S.C. 7296. (b) In-service withdrawals. (1) Has not separated from Government employment; and (2) Is not receiving retired pay as described in paragraph (a)(2) of this section. [64 FR 31057, June 9, 1999, as amended at 70 FR 32213, June 1, 2005; 87 FR 31679, May 24, 2022] § 1620.23 Spousal rights. (a) The current spouse of a justice or judge of the United States (as defined in 28 U.S.C. 451), or of a Court of Veterans Appeals judge, possesses the rights described at 5 U.S.C. 8351(b)(5). (b) A current or former spouse of a bankruptcy judge, a United States magistrate judge, or a judge of the United States Court of Federal Claims, possesses the rights described at 5 U.S.C. 8435 and 8467 if the judge is covered under this subpart. [64 FR 31057, June 9, 1999, as amended at 70 FR 32213, June 1, 2005] Subpart D—Nonappropriated Fund Employees § 1620.30 Scope. This subpart applies to any employee of a Nonappropriated Fund (NAF) instrumentality of the Department of Defense (DOD) or the U.S. Coast Guard who elects to be covered by CSRS or FERS and to any employee in a CSRS- or FERS-covered position who elects to be covered by a retirement plan established for employees of a NAF instrumentality pursuant to the Portability of Benefits for Nonappropriated Fund Employees Act of 1990, Public Law 101-508, 104 Stat. 1388, 1388-335 to 1388-341, as amended (codified largely at 5 U.S.C. 8347(q) and 8461(n)). § 1620.31 Definition. As used in this subpart, move vice versa, § 1620.32 Employees who move to a NAF instrumentality on or after August 10, 1996. Any employee who moves from a CSRS- or FERS-covered position to a NAF instrumentality on or after August 10, 1996, and who elects to continue to be covered by CSRS or FERS, will be eligible to contribute to the TSP as determined in accordance with 5 CFR part 1600. § 1620.33 [Reserved] § 1620.34 Employees who move from a NAF instrumentality to a Federal Government agency. (a) An employee of a NAF instrumentality who moves from a NAF instrumentality to a Federal Government agency and who elects to be covered by a NAF retirement system is not eligible to participate in the TSP. Any TSP contributions relating to a period for which an employee elects retroactive NAF retirement coverage must be removed from the TSP as required by the regulations at 5 CFR part 1605. (b) An employee of a NAF instrumentality who moves from a NAF instrumentality to a Federal Government agency and who elects to be covered by CSRS or FERS will become eligible to participate in the TSP as determined in accordance with 5 CFR part 1600. § 1620.35 Loan payments. NAF instrumentalities must deduct and transmit TSP loan payments for employees who elect to be covered by CSRS or FERS to the TSP record keeper in accordance with 5 CFR part 1655 and the TSP record keeper's procedures. Loan payments may not be deducted and transmitted for employees who elect to be covered by the NAF retirement system. Such employees will be considered to have separated from Government service and may continue making loan repayments in accordance with 5 CFR part 1655 and the TSP record keeper's procedures. [87 FR 31679, May 24, 2022] § 1620.36 Transmission of information. Any employee who moves to a NAF instrumentality must be reported by the losing Federal Government agency to the TSP record keeper as having transferred to a NAF instrumentality of the DOD or Coast Guard rather than as having separated from Government service. If the employee subsequently elects not to be covered by CSRS or FERS, the NAF instrumentality must submit an Employee Data Record to report the employee as having separated from Federal Government service as of the date of the move. Subpart E—Uniformed Services Employment and Reemployment Rights Act (USERRA)—Covered Military Service § 1620.40 Scope. To be covered by this subpart, an employee must have: (a) Separated from Federal civilian service or entered leave-without-pay status in order to perform military service; and (b) Become eligible to seek reemployment or restoration to duty by virtue of a release from military service, discharge from hospitalization, or other similar event that occurred on or after August 2, 1990; and (c) Been reemployed in, or restored to, a position covered by CSRS or FERS pursuant to the provisions of 38 U.S.C. chapter 43. § 1620.41 Definitions. As used in this subpart: Current contributions Nonpay status Reemployed or returned to pay status Retroactive period Separate from civilian service [67 FR 49525, July 30, 2002] § 1620.42 Processing TSP contribution elections. (a) Current contribution election. (b) Makeup contribution election. (c) Makeup contributions. (1) If the employee had a valid contribution election on file when he or she separated or entered nonpay status to perform military service, that election will be reinstated for purposes of determining the makeup contributions, unless the employee submits a new contribution election which he or she could otherwise have made but for the performance of military service. (2) An employee who terminated contributions within two months of entering military service will also be eligible to make a retroactive contribution election to be effective on the date the contributions were terminated. [70 FR 32213, June 1, 2005, as amended at 87 FR 31679, May 24, 2022] § 1620.43 Agency payments to TSP record keeper; agency ultimately responsible. (a) Agency making payments to TSP record keeper. (b) Agency ultimately chargeable with expense. (c) Reimbursement by agency ultimately chargeable with expense. [70 FR 32213, June 1, 2005; as amended at 87 FR 31679, May 24, 2022] § 1620.44 Restoring forfeited agency automatic (1%) contributions. If an employee's agency automatic (1%) contributions were forfeited because the employee was not vested when he or she separated to perform military service, the employee must notify the employing agency that a forfeiture occurred. The employing agency will follow the procedure described in § 1620.46(e) to have those funds restored. [64 FR 31057, June 9, 1999, as amended at 67 FR 49526, July 30, 2002] § 1620.45 Suspending TSP loans, restoring post-employment distributions, and reversing loan foreclosures.. (a) Suspending TSP loans during nonpay status. (1) Interest will accrue on the loan balance during the period of suspension. When the employee returns to civilian pay status, the employing agency will resume deducting loan payments from the participant's basic pay and the TSP record keeper will reamortize the loan (which will include interest accrued during the period of military service). The maximum loan repayment term will be extended by the employee's period of military service. Consequently, when the employee returns to pay status, the TSP record keeper must receive documentation to show the beginning and ending dates of military service. (2) The TSP record keeper may close the loan account and declare it to be a loan foreclosure if the TSP record keeper does not receive documentation that the employee entered into nonpay status. However, this can be reversed in accordance with paragraph (c) of this section. (b) Restoring post-employment distributions. (c) Reversing loan foreclosures. (1) An employee who received a post-employment distribution when he or she separated to perform military service can have a loan foreclosure reversed only if the distributed amount is returned as described in paragraph (b) of this section; (2) A loan foreclosure can be reversed either by reinstating the loan or by repaying it in full. The TSP loan can be reinstated only if the employee agrees to repay the loan within the maximum loan repayment term plus the length of military service, and if, after reinstatement of the loan, the employee will have no more than two outstanding loans, only one of which is a residential loan; and (3) The employee must notify the TSP record keeper of his or her intent to reverse a loan foreclosure within 90 days of the date the employee returns to civilian service or pay status; if the employee is eligible to reverse a loan foreclosure, the TSP record keeper will then inform the employee of the actions that must be taken to reverse the distribution. (d) Breakage. [87 FR 31679, May 24, 2022] § 1620.46 Agency responsibilities. (a) General. (b) Agency records; procedure for reimbursement. (c) Payment schedule; matching contributions report. (d) Agency automatic (1%) contributions. (e) Forfeiture restoration. (f) Thrift Savings Plan Service Computation Date. [64 FR 31057, June 9, 1999, as amended at 70 FR 32214, June 1, 2005; 87 FR 31680, May 24, 2022]