(a) Section 8477(e)(1)(B) of FERSA, 5 U.S.C. 8477(e)(1)(B), permits
the Secretary of Labor to assess a civil penalty against a party in
interest who engages in a prohibited transaction with respect to the
Thrift Savings Fund. The initial penalty under section 8477(e)(1)(B) is
five percent of the ``amount involved'' in each such transaction for
each year or part thereof during which the prohibited transaction
continues. However, if the prohibited transaction is not corrected
during the ``correction period,'' the civil penalty may be in an amount
not more than 100% of the ``amount involved.'' The Department of Labor
will apply the definitions set out in Sec. 2560.502i-1(b) through (e) of
this chapter of title 29 (civil penalties under section 502(i) of ERISA)
in determining the ``amount involved,'' ``correction,'' ``correction
period,'' and for computation of the section 8477(e)(1)(B) penalty.
(b) The rules of practice set forth in Secs. 2570.1-2570.12 of part
2570, subpart A of subchapter G of this chapter of title 29 (procedures
for the assessment of civil sanctions under ERISA section 502(i)) are
applicable to prohibited transaction penalty proceedings under FERSA
section 8477(e)(1)(B).
