(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).
SUBCHAPTER L_GROUP HEALTH PLANS