I

106TH CONGRESS

1ST SESSION H. R. 483

To amend title 5, United States Code, to make the percentage limitations

on individual contributions to the Thrift Savings Plan more consistent

with the dollar amount limitation on elective deferrals, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 2, 1999

Mrs. MORELLA (for herself, Mr. UNDERWOOD, Mr. KENNEDY of Rhode Island, Mr. FILNER, Ms. KILPATRICK, Mr. DAVIS of Virginia, Mr. HINCHEY, Mr. FATTAH, and Mr. CUMMINGS) introduced the following bill;

which was referred to the Committee on Government Reform

A BILL

To amend title 5, United States Code, to make the percentage limitations on individual contributions to the Thrift

Savings Plan more consistent with the dollar amount

limitation on elective deferrals, and for other purposes.

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

3 SECTION 1. PERCENTAGE LIMITATIONS ON CONTRIBU4 TIONS.

5 (a) AMENDMENTS RELATING TO FERS.—
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1 (1) IN GENERAL.—Subsection (a) of section

2 8432 of title 5, United States Code, is amended by

3 striking ‘‘10 percent of ’’.

4 (2) JUSTICES AND JUDGES.—Subsection (b) of

5 section 8440a of title 5, United States Code, is

6 amended—

7 (A) by striking paragraph (2) and by re8 designating paragraphs (3) through (7) as

9 paragraphs (2) through (6), respectively; and

10 (B) in paragraph (6) (as so redesignated

11 by subparagraph (A)) by striking ‘‘paragraphs

12 (4) and (5)’’ and inserting ‘‘paragraphs (3) and

13 (4)’’.

14 (3) BANKRUPTCY JUDGES AND MAG15 ISTRATES.—Subsection (b) of section 8440b of title

16 5, United States Code, is amended—

17 (A) by striking paragraph (2) and by re18 designating paragraphs (3) through (8) as

19 paragraphs (2) through (7), respectively;

20 (B) in paragraph (4) (as so redesignated

21 by subparagraph (A)) by striking ‘‘paragraph

22 (4)(A), (B), or (C)’’ and inserting ‘‘paragraph

23 (3)(A), (B), or (C)’’; and

24 (C) in paragraph (7) (as so redesignated

25 by subparagraph (A)) by striking ‘‘Notwith-
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1 standing paragraph (4),’’ and inserting ‘‘Not2 withstanding paragraph (3),’’.

3 (4) COURT OF FEDERAL CLAIMS JUDGES.—

4 Subsection (b) of section 8440c of title 5, United

5 States Code, is amended—

6 (A) by striking paragraph (2) and by re7 designating paragraphs (3) through (8) as

8 paragraphs (2) through (7), respectively;

9 (B) in paragraph (4) (as so redesignated

10 by subparagraph (A)) by striking ‘‘paragraph

11 (4)(A) or (B)’’ and inserting ‘‘paragraph (3)(A)

12 or (B)’’; and

13 (C) in paragraph (7) (as so redesignated

14 by subparagraph (A)) by striking ‘‘Notwith15 standing paragraph (4),’’ and inserting ‘‘Not16 withstanding paragraph (3),’’.

17 (5) JUDGES OF THE UNITED STATES COURT OF

18 VETERANS APPEALS.—Paragraph (2) of section

19 8440d(b) of title 5, United States Code, is amended

20 to read as follows:

21 ‘‘(2) For purposes of contributions made to the Thrift

22 Savings Fund, basic pay does not include any retired pay

23 paid pursuant to section 7296 of title 38.’’.
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1 (b) AMENDMENTS RELATING TO CSRS.—Paragraph

2 (2) of section 8351(b) of title 5, United States Code, is

3 amended by striking ‘‘5 percent of ’’.

4 (c) EFFECTIVE DATE.—

5 (1) IN GENERAL.—The amendments made by

6 this section shall take effect on the date of enact7 ment of this Act.

8 (2) COORDINATION WITH ELECTION PERI9 ODS.—The Executive Director shall by regulation

10 determine the first election period in which elections

11 may be made consistent with the amendments made

12 by this section.

13 (3) DEFINITIONS.—For purposes of this

14 section—

15 (A) the term ‘‘election period’’ means a pe16 riod afforded under section 8432(b) of title 5,

17 United States Code; and

18 (B) the term ‘‘Executive Director’’ has the

19 meaning given such term by section 8401(13)

20 of title 5, United States Code.

21 SEC. 2. ELIGIBLE ROLLOVER DISTRIBUTIONS.

22 Section 8432 of title 5, United States Code, is

23 amended by adding at the end the following:

24 ‘‘(j)(1) For the purpose of this subsection—
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1 ‘‘(A) the term ‘eligible rollover distribution’ has

2 the meaning given such term by section 402(c)(4) of

3 the Internal Revenue Code of 1986; and

4 ‘‘(B) the term ‘qualified trust’ has the meaning

5 given such term by section 402(c)(8) of the Internal

6 Revenue Code of 1986.

7 ‘‘(2) An employee or Member may contribute to the

8 Thrift Savings Fund an eligible rollover distribution from

9 a qualified trust. A contribution made under this sub10 section shall be made in the form described in section

11 401(a)(31) of the Internal Revenue Code of 1986. In the

12 case of an eligible rollover distribution, the maximum

13 amount transferred to the Thrift Savings Fund shall not

14 exceed the amount which would otherwise have been in15 cluded in the employee’s or Member’s gross income for

16 Federal income tax purposes.

17 ‘‘(3) The Executive Director shall prescribe regula18 tions to carry out this subsection.’’.

19 SEC. 3. IMMEDIATE PARTICIPATION IN THE THRIFT SAV20 INGS PLAN.

21 (a) ELIMINATION OF CERTAIN WAITING PERIODS

22 FOR PURPOSES OF EMPLOYEE CONTRIBUTIONS.—Para23 graph (4) of section 8432(b) of title 5, United States

24 Code, is amended to read as follows:
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1 ‘‘(4) The Executive Director shall prescribe such reg2 ulations as may be necessary to carry out the following:

3 ‘‘(A) Notwithstanding subparagraph (A) of

4 paragraph (2), an employee or Member described in

5 such subparagraph shall be afforded a reasonable

6 opportunity to first make an election under this sub7 section beginning on the date of commencing service

8 or, if that is not administratively feasible, beginning

9 on the earliest date thereafter that such an election

10 becomes administratively feasible, as determined by

11 the Executive Director.

12 ‘‘(B) An employee or Member described in sub13 paragraph (B) of paragraph (2) shall be afforded a

14 reasonable opportunity to first make an election

15 under this subsection (based on the appointment or

16 election described in such subparagraph) beginning

17 on the date of commencing service pursuant to such

18 appointment or election or, if that is not administra19 tively feasible, beginning on the earliest date there20 after that such an election becomes administratively

21 feasible, as determined by the Executive Director.

22 ‘‘(C) Notwithstanding the preceding provisions

23 of this paragraph, contributions under paragraphs

24 (1) and (2) of subsection (c) shall not be payable

25 with respect to any pay period before the earliest
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1 pay period for which such contributions would other2 wise be allowable under this subsection if this para3 graph had not been enacted.

4 ‘‘(D) Sections 8351(a)(2), 8440a(a)(2),

5 8440b(a)(2), 8440c(a)(2), and 8440d(a)(2) shall be

6 applied in a manner consistent with the purposes of

7 subparagraphs (A) and (B), to the extent those sub8 paragraphs can be applied with respect thereto.

9 ‘‘(E) Nothing in this paragraph shall affect

10 paragraph (3).’’.

11 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

12 (1) Section 8432(a) of title 5, United States Code, is

13 amended—

14 (A) in the first sentence by striking ‘‘(b)(1)’’

15 and inserting ‘‘(b)’’; and

16 (B) by amending the second sentence to read as

17 follows: ‘‘Contributions under this subsection pursu18 ant to such an election shall, with respect to each

19 pay period for which such election remains in effect,

20 be made in accordance with a program of regular

21 contributions provided in regulations prescribed by

22 the Executive Director.’’.

23 (2) Section 8432(b)(1)(B) of title 5, United States

24 Code, is amended by inserting ‘‘(or any election allowable

25 by virtue of paragraph (4))’’ after ‘‘subparagraph (A)’’.
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1 (3) Section 8432(b)(3) of title 5, United States Code,

2 is amended by striking ‘‘Notwithstanding paragraph

3 (2)(A), an’’ and inserting ‘‘An’’.

4 (4) Section 8432(i)(1)(B)(ii) of title 5, United States

5 Code, is amended by striking ‘‘either elected to terminate

6 individual contributions to the Thrift Savings Fund within

7 2 months before commencing military service or’’.

8 (5) Section 8439(a)(1) of title 5, United States Code,

9 is amended by inserting ‘‘who makes contributions or’’

10 after ‘‘for each individual’’ and by striking ‘‘section

11 8432(c)(1)’’ and inserting ‘‘section 8432’’.

12 (6) Section 8439(c)(2) of title 5, United States Code,

13 is amended by adding at the end the following: ‘‘Nothing

14 in this paragraph shall be considered to limit the dissemi15 nation of information only to the times required under the

16 preceding sentence.’’.

17 (7) Sections 8440a(a)(2) and 8440d(a)(2) of title 5,

18 United States Code, are amended by striking all after

19 ‘‘subject to’’ and inserting ‘‘this chapter.’’.

20 (c) EFFECTIVE DATE.—This section shall take effect

21 6 months after the date of enactment of this Act or such

22 earlier date as the Executive Director (within the meaning

23 of section 8401(13) of title 5, United States Code) may

24 by regulation prescribe.

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