Federal Daily - June 22, 2010

Rule Would Require More Info on TSP Beneficiary Forms

The Federal Retirement Thrift Investment Board has proposed changes to how enrollees designate beneficiaries for their Thrift Savings Plan death benefits. The proposed changes were published in the June 18 Federal Register.

Currently, FRTIB requires that a designation of beneficiary form need only be signed, witnessed and received by the agency on or before the participant’s date of death to be valid. However, many of these forms omit critical information on the participant or the beneficiaries. To reduce processing errors, FRTIB has decided to expand the information required on such forms, the notice said.

Specifically, FRTIB proposes to require that designation of beneficiary forms include additional identifying information, such as the participant’s full name and date of birth, TSP account number, or Social Security number. Forms also would have to include more specific information on primary and contingent beneficiaries so that the agency can more easily identify them.

Under the proposed rule, TSP participants holding both a uniformed services and civilian account would need to submit only one designation of beneficiary form, which can be used to designate beneficiaries for both accounts. The new rule would also allow a participant to designate a custodian under the Uniform Transfers to Minors Act as the beneficiary of a TSP account. Custodianship would be established under the laws of the District of Columbia.

The public comment deadline for the changes is July 19.

To see more, go to: http://edocket.access.gpo.gov/2010/2010-14741.htm.

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Gates Wrestling With Popular Career Program

The popular Military Spouse Career Advancement Account program—which provides tuition assistance to military spouses—has proven to be just a little too popular.

The program, which offers spouses assistance with training, job readiness and employment and career services, was suspended earlier this year when enrollment in MyCAA skyrocketed, overwhelming the system and causing the program to nearly reach its budget threshold. DoD partially reopened the program in March to the 136,000 military spouses who already were enrolled, but halted new sign-ups.

Three months later, DoD Secretary Robert Gates continues to wrestle with developing a strategy to bring aboard new enrollees, according to a June 18 posting on the American Forces Press Service Web site. The problem is that the program has grown beyond its original intent, said DoD Press Secretary Geoff Morrell.

MyCAA was designed to provide military spouses with portable career skills that would help them find jobs after making permanent change-of-station moves. The program was aimed at helping spouses to quickly obtain educational credentials like real estate licenses or home health-care provider accreditations. However, the MyCAA program has become an avenue for military spouses to pursue four-year degrees or other longer-term educational opportunities—which are now available under the Post-9/11 GI Bill, Morrell said.

“That is not what MyCAA was designed for,” Morrell said. Gates is expected to make a decision soon on how to reopen the program, Morrell said.

To see more, go to: www.af.mil/news/story.asp?id=123210017.

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