This bulletin explains an upcoming change in the way the Federal Retirement Thrift Investment Board (FRTIB) collects and reconciles funds it receives from Federal Agencies for TSP contributions and loan payments.
The change only applies to departments and agencies that prepare and submit the monthly FMS 224, Statement of Transactions, to Treasury’s Financial Management Service (FMS). Those entities will be referred to as “224-agencies” elsewhere in this bulletin.
Please note that the new process will only affect the cash collection process. It will NOT affect the records and reports used to submit individual participant transactions to the TSP.
In January 2011 the Department of Treasury’s FMS Commissioner issued a letter to CFOs informing agencies that FMS has undertaken a number of modernization efforts. These efforts will modernize payment operations and consolidate more than 30 legacy applications into a single application that will process agency payment requests in a more efficient and cost effective manner.
The Department of Treasury Intra Governmental Payment & Collections (IPAC) system was developed to provide a standardized interagency fund transfer mechanism for Federal Program Agencies (FPAs). Utilizing IPAC will facilitate the intra-governmental transfer of funds, with descriptive data from one FPA to another, and will greatly enhance FRTIB’s ability to adhere to FMS’s payment modernization initiative.
II. FRTIB Actions
The current agency payroll collections, done via the monthly 224 process, will be replaced by the bi-weekly IPAC collections process. These IPAC collections will process according to each agency’s bi-weekly pay date. FRTIB Office of Financial Management (OFM) uses the IPAC system for other Governmental payments and collections and will now incorporate the 224-agencies’ payroll deposits into this IPAC process.
OFM is currently in the process of setting up the required new IPAC system for collecting TSP contributions and loan payments on a bi-weekly basis. This process includes writing the policy and subsequent procedures for collecting payments bi-weekly. OFM will be communicating with payroll offices on an individual basis to assist with their conversion to the IPAC process.
We will report the new IPAC contributions data to agencies via a new 1607 Report (224 Account Statement), IPAC Report. The 1607 Report will be provided to payroll agencies bi-weekly as their payroll data is transmitted to the TSP and funds are collected and credited against their cumulative balances via the new automated IPAC posting process.
III. Agency Responsibilities
Effective October 1, 2014, all Federal Agencies using Department of Treasury disbursing services will be required to submit payment data in a Treasury Account Symbol/Business Event Type Code (TAS/BETC) along with their payment files. This is required to satisfy new FMS reporting requirements.