# Public Law 111-31/Division B/Title I

TITLE I—PROVISIONS RELATING TO FEDERAL EMPLOYEES RETIREMENT

### Sec. 101. Short Title.

    This title may be cited as the ``Thrift Savings Plan Enhancement Act of 2009´´.

### Sec. 102. Automatic Enrollments and Immediate Employing Agency Contributions.

    (a) In general.—
       Section 8432(b) of title 5, United States Code, is amended by striking paragraphs (2) through (4) and inserting the following:
             “(2)(A) The Executive Director shall by regulation provide for an eligible individual to be automatically enrolled to make contributions under subsection (a) at the default percentage of basic pay.
                “(B) For purposes of this paragraph, the default percentage shall be equal to 3 percent or such other percentage, not less than 2 percent nor more than 5 percent, as the Board may prescribe.
                “(C) The regulations shall include provisions under which any individual who would otherwise be automatically enrolled in accordance with subparagraph (A) may—
                   “(i) modify the percentage or amount to be contributed pursuant to automatic enrollment, effective not later than the first full pay period following receipt of the election by the appropriate processing entity; or
                   “(ii) decline automatic enrollment altogether.
                “(D)(i) Except as provided in clause (ii), for purposes of this paragraph, the term ‘eligible individual’ means any individual who, after any regulations under subparagraph (A) first take effect, is appointed, transferred, or reappointed to a position in which that individual becomes eligible to contribute to the Thrift Savings Fund.
                   “(ii) Members of the uniformed services shall not be eligible individuals for purposes of this paragraph.
                “(E) Sections 8351(a)(1), 8440a(a)(1), 8440b(a)(1), 8440c(a)(1), 8440d(a)(1), and 8440e(a)(1) shall be applied in a manner consistent with the purposes of this paragraph.”.
    (b) Technical amendment.—
       Section 8432(b)(1) of title 5, United States Code, is amended by striking the parenthetical matter in subparagraph (B).

### Sec. 103. Qualified Roth Contribution Program.

    (a) In general.—
       Subchapter III of chapter 84 of title 5, United States Code, is amended by inserting after section 8432c the following:
          “§ 8432d. Qualified Roth contribution program
             “(a) Definitions.—For purposes of this section—
                “(1) the term ‘qualified Roth contribution program’ means a program described in paragraph (1) of section 402A(b) of the Internal Revenue Code of 1986 which meets the requirements of paragraph (2) of such section; and
                “(2) the terms ‘designated Roth contribution’ and ‘elective deferral’ have the meanings given such terms in section 402A of the Internal Revenue Code of 1986.
             “(b) Authority To establish.—The Executive Director shall by regulation provide for the inclusion in the Thrift Savings Plan of a qualified Roth contribution program, under such terms and conditions as the Board may prescribe.
             “(c) Required provisions.—The regulations under subsection (b) shall include—
                “(1) provisions under which an election to make designated Roth contributions may be made—
                   “(A) by any individual who is eligible to make contributions under section 8351, 8432(a), 8440a, 8440b, 8440c, 8440d, or 8440e; and
                   “(B) by any individual, not described in subparagraph (A), who is otherwise eligible to make elective deferrals under the Thrift Savings Plan;
                “(2) any provisions which may, as a result of enactment of this section, be necessary in order to clarify the meaning of any reference to an ‘account’ made in section 8432(f), 8433, 8434(d), 8435, 8437, or any other provision of law; and
                “(3) any other provisions which may be necessary to carry out this section.”.
    (b) Clerical amendment.—
       The analysis for chapter 84 of title 5, United States Code, is amended by inserting after the item relating to section 8432c the following:
             “8432d. Qualified Roth contribution program.”.

### Sec. 104. Authority to Establish Mutual Fund Window.

    (a) In general.—
       Section 8438(b)(1) of title 5, United States Code, is amended—
          (1) in subparagraph (D), by striking “and” at the end;
          (2) in subparagraph (E), by striking the period and inserting “; and”; and
          (3) by adding after subparagraph (E) the following:
                “(F) a service that enables participants to invest in mutual funds, if the Board authorizes the mutual fund window under paragraph (5).”.
    (b) Requirements.—
       Section 8438(b) of title 5, United States Code, is amended by adding at the end the following:
             “(5)(A) The Board may authorize the addition of a mutual fund window under the Thrift Savings Plan if the Board determines that such addition would be in the best interests of participants.
                “(B) The Board shall ensure that any expenses charged for use of the mutual fund window are borne solely by the participants who use such window.
                “(C) The Board may establish such other terms and conditions for the mutual fund window as the Board considers appropriate to protect the interests of participants, including requirements relating to risk disclosure.
                “(D) The Board shall consult with the Employee Thrift Advisory Council (established under section 8473) before authorizing the addition of a mutual fund window or establishing a service that enables participants to invest in mutual funds.”.
    (c) Technical and conforming amendment.—
       Section 8438(d)(1) of title 5, United States Code, is amended by inserting “and options” after “investment funds”.

### Sec. 105. Reporting Requirements.

    (a) Annual report.—
       The Board shall, not later than June 30 of each year, submit to Congress an annual report on the operations of the Thrift Savings Plan. Such report shall include, for the prior calendar year, information on the number of participants as of the last day of such prior calendar year, the median balance in participants' accounts as of such last day, demographic information on participants, the percentage allocation of amounts among investment funds or options, the status of the development and implementation of the mutual fund window, the diversity demographics of any company, investment adviser, or other entity retained to invest and manage the assets of the Thrift Savings Fund, and such other information as the Board considers appropriate. A copy of each annual report under this subsection shall be made available to the public through an Internet website.
    (b) Reporting of fees and other information.—
          (1) In general.—
             The Board shall include in the periodic statements provided to participants under section 8439(c) of title 5, United States Code, the amount of the investment management fees, administrative expenses, and any other fees or expenses paid with respect to each investment fund and option under the Thrift Savings Plan. Any such statement shall also provide a statement notifying participants as to how they may access the annual report described in subsection (a), as well as any other information concerning the Thrift Savings Plan that might be useful.
          (2) Use of estimates.—
             For purposes of providing the information required under this subsection, the Board may provide a reasonable and representative estimate of any fees or expenses described in paragraph (1) and shall indicate any such estimate as being such an estimate. Any such estimate shall be based on the previous year's experience.
    (c) Definitions.—
       For purposes of this section—
          (1) the term “Board” has the meaning given such term by 8401(5) of title 5, United States Code;
          (2) the term “participant” has the meaning given such term by section 8471(3) of title 5, United States Code; and
          (3) the term “account” means an account established under section 8439 of title 5, United States Code.

### Sec. 106. Acknowledgement of Risk.

    (a) In general.—
       Section 8439(d) of title 5, United States Code, is amended—
          (1) by striking the matter after “who elects to invest in” and before “shall sign an acknowledgment” and inserting “any investment fund or option under this chapter, other than the Government Securities Investment Fund,”; and
          (2) by striking “either such Fund” and inserting “any such fund or option”.
    (b) Coordination with provisions relating to fiduciary responsibilities, liabilities, and penalties.—
       Section 8477(e)(1)(C) of title 5, United States Code, is amended—
          (1) by redesignating subparagraph (C) as subparagraph (C)(i); and
          (2) by adding at the end the following:
                “(ii) A fiduciary shall not be liable under subparagraph (A), and no civil action may be brought against a fiduciary—
                   “(I) for providing for the automatic enrollment of a participant in accordance with section 8432(b)(2)(A);
                   “(II) for enrolling a participant in a default investment fund in accordance with section 8438(c)(2); or
                   “(III) for allowing a participant to invest through the mutual fund window or for establishing restrictions applicable to participants' ability to invest through the mutual fund window.”.

### Sec. 107. Subpoena Authority.

    (a) In general.—
       Chapter 84 of title 5, United States Code, is amended by inserting after section 8479 the following:
          “§ 8480. Subpoena authority
             “(a) In order to carry out the responsibilities specified in this subchapter and subchapter III of this chapter, the Executive Director may issue subpoenas commanding each person to whom the subpoena is directed to produce designated books, documents, records, electronically stored information, or tangible materials in the possession or control of that individual.
             “(b) Notwithstanding any Federal, State, or local law, any person, including officers, agents, and employees, receiving a subpoena under this section, who complies in good faith with the subpoena and thus produces the materials sought, shall not be liable in any court of any State or the United States to any individual, domestic or foreign corporation or upon a partnership or other unincorporated association for such production.
             “(c) When a person fails to obey a subpoena issued under this section, the district court of the United States for the district in which the investigation is conducted or in which the person failing to obey is found, shall on proper application issue an order directing that person to comply with the subpoena. The court may punish as contempt any disobedience of its order.
             “(d) The Executive Director shall prescribe regulations to carry out subsection (a).”.
    (b) Technical and conforming amendment.—
       The table of sections for chapter 84 of title 5, United States Code, is amended by inserting after the item relating to section 8479 the following:
                “8480. Subpoena authority.”.

### Sec. 108. Amounts in Trift Savings Funds Subject to Legal Proceedings.

    Section 8437(e)(3) of title 5, United States Code, is amended in the first sentence by striking “or relating to the enforcement of a judgment for the physically, sexually, or emotionally abusing a child as provided under section 8467(a)” and inserting “the enforcement of an order for restitution under section 3663A of title 18, forfeiture under section 8432(g)(5) of this title, or an obligation of the Executive Director to make a payment to another person under section 8467 of this title”.

### Sec. 109. Accounts for Surviving Spouses.

    Section 8433(e) of title 5, United States Code, is amended—
          (1) by inserting “(1)” after “(e)”; and
          (2) by adding at the end the following:
                “(2) Notwithstanding section 8424(d), if an employee, Member, former employee, or former Member dies and has designated as sole or partial beneficiary his or her spouse at the time of death, or, if an employee, Member, former employee, or former Member, dies with no designated beneficiary and is survived by a spouse, the spouse may maintain the portion of the employee's or Member's account to which the spouse is entitled in accordance with the following terms:
                   “(A) Subject to the limitations of subparagraph (B), the spouse shall have the same withdrawal options under subsection (b) as the employee or Member were the employee or Member living.
                   “(B) The spouse may not make withdrawals under subsection (g) or (h).
                   “(C) The spouse may not make contributions or transfers to the account.
                   “(D) The account shall be disbursed upon the death of the surviving spouse. A beneficiary or surviving spouse of a deceased spouse who has inherited an account is ineligible to maintain the inherited spousal account.
                “(3) The Executive Director shall prescribe regulations to carry out this subsection.”.

### Sec. 110. Treatment of Members of the Uniformed Services Under the Thrift Savings Plan.

    (a) Sense of Congress.—
       It is the sense of Congress that—
          (1) members of the uniformed services should have a retirement system that is at least as generous as the one which is available to Federal civilian employees; and
          (2) Federal civilian employees receive matching contributions from their employing agencies for their contributions to the Thrift Savings Fund, but the costs of requiring such a matching contribution from the Department of Defense could be significant.
    (b) Reporting requirement.—
       Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall report to Congress on—
          (1) the cost to the Department of Defense of providing a matching payment with respect to contributions made to the Thrift Savings Fund by members of the Armed Forces;
          (2) the effect that requiring such a matching payment would have on recruitment and retention; and
          (3) any other information that the Secretary of Defense considers appropriate.