I 

108TH CONGRESS 

1ST SESSION H. R. 3101

To amend title 5, United States Code, to provide for the establishment 

of a precious metals investment option in the Thrift Savings Fund. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 16, 2003

Mr. PAUL (for himself, Mr. JONES of North Carolina, and Mrs. MUSGRAVE) 

introduced the following bill; which was referred to the Committee on 

Government Reform 

A BILL

To amend title 5, United States Code, to provide for the 

establishment of a precious metals investment option in 

the Thrift Savings Fund.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Thrift Savings Fund 

5 Improvement Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) In order to enhance stability in the oper9 ations of the legislative branch of the Government, 
2

•HR 3101 IH 

1 it is important to maintain a professional congres2 sional staff and to promote longevity of service. 

3 (2) Consistent with paragraph (1), Congress 

4 has recently enacted legislation authorizing new ben5 efits, such as a student loan forgiveness program, 

6 and taken other measures to improve staff com7 pensation and benefits. 

8 (3) The Thrift Savings Plan is an important 

9 benefit which is offered to congressional employees, 

10 and which furthers the goal of attracting and retain11 ing talented individuals to serve in the legislative 

12 branch of the Government. 

13 (4) The 3 stock index funds in the Thrift Sav14 ings Plan have not performed well recently, espe15 cially when measured against inflation. In 2002, for 

16 example, losses from those funds were greater than 

17 3, 4, and 5 percent, respectively, in the month of 

18 December alone, and more than 15, 18, and 22 per19 cent, respectively, for the entire year. 

20 (5) By contrast, during that same year, the 

21 Government securities and bond index funds in the 

22 Thrift Savings Plan had earnings of 5 and 10 per23 cent, respectively, and, in December of that year 

alone, slightly more than 1 24 ⁄2 of 1 percent and 2 per25 cent, respectively. 
3

•HR 3101 IH 

1 (6) By yet greater contrast, increases in gold 

2 spot prices more than offset the losses experienced 

3 by even the worst-performing stock index fund in the 

4 Thrift Savings Plan in 2002, with the price of gold 

5 increasing by nearly 25 percent in that year and by 

6 more than 9 percent in December of that year alone. 

7 SEC. 3. PRECIOUS METALS INVESTMENT FUND. 

8 (a) FUND DEFINED.—Section 8438(a) of title 5, 

9 United States Code, is amended—

10 (1) in paragraph (9), by striking ‘‘and’’ at the 

11 end; 

12 (2) in paragraph (10), by striking the period 

13 and inserting ‘‘; and’’; and 

14 (3) by adding at the end the following: 

15 ‘‘(11) the term ‘Precious Metals Investment 

16 Fund’ means the Precious Metals Investment Fund 

17 established under subsection (b)(1)(F).’’. 

18 (b) ESTABLISHMENT.—

19 (1) IN GENERAL.—Section 8438(b)(1) of title 

20 5, United States Code, is amended—

21 (A) in subparagraph (D), by striking 

22 ‘‘and’’ at the end; 

23 (B) in subparagraph (E), by striking the 

24 period and inserting ‘‘; and’’; and 

25 (C) by adding at the end the following: 
4

•HR 3101 IH 

1 ‘‘(F) a Precious Metals Investment Fund 

2 as provided in paragraph (5).’’. 

3 (2) FUND REQUIREMENTS.—Section 8438(b) of 

4 title 5, United States Code, is amended by adding 

5 at the end the following: 

6 ‘‘(5)(A) The Board shall establish a Precious Metals 

7 Investment Fund. 

8 ‘‘(B) Contributions to the Precious Metals Invest9 ment Fund shall be invested in physical gold, silver, or 

10 platinum bullion (rather than any mining company shares, 

11 certificates, derivatives, or futures options), and any bul12 lion so acquired shall constitute the assets of the Precious 

13 Metals Investment Fund and shall be stored in a vault 

14 in a Federally chartered or State chartered bank. Each 

15 share in the Precious Metals Investment Fund shall rep16 resent a direct investment in the precious metal itself.’’. 

17 (c) ACKNOWLEDGMENT OF RISK.—Section 8439(d) 

18 of title 5, United States Code, is amended—

19 (1) by striking ‘‘or the Small Capitalization 

20 Stock Index Investment Fund,’’ and inserting ‘‘the 

21 Small Capitalization Stock Index Investment Fund, 

22 or the Precious Metals Investment Fund,’’; and 

23 (2) by striking ‘‘and (10),’’ and inserting ‘‘(10), 

24 and (11),’’. 
5

•HR 3101 IH 

1 SEC. 4. EFFECTIVE DATE; DEFINITIONS. 

2 (a) EFFECTIVE DATE.—The Federal Retirement 

3 Thrift Investment Board—

4 (1) shall study the operation of existing pre5 cious metals funds to determine the best practices of 

6 those funds; and 

7 (2) not later than 1 year after the date of the 

8 enactment of this Act—

9 (A) shall establish the Precious Metals In10 vestment Fund, incorporating the best practices 

11 referred to in paragraph (1) to such extent and 

12 in such manner as the Board shall determine; 

13 and 

14 (B) shall make the Precious Metals Invest15 ment Fund available to individuals participating 

16 in the Thrift Savings Plan. 

17 (b) DEFINITIONS.—For purposes of this section—

18 (1) the term ‘‘Precious Metals Investment 

19 Fund’’ has the meaning given such term by section 

20 8438(a)(11) of title 5, United States Code (as 

21 amended by section 3(a)); and 

22 (2) the term ‘‘Thrift Savings Plan’’ refers to 

23 the plan described in subchapter III of chapter 84 

24 of such title 5.

Æ