I

104TH CONGRESS

1ST SESSION H. R. 2306

To amend title 5, United States Code, to provide additional investment

funds for the Thrift Savings Plan, and to make the percentage limitations

on individual contributions to such Plan more consistent with the dollar

amount limitation on elective deferrals.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 12, 1995

Mrs. MORELLA (for herself, Mr. MORAN, Mr. DAVIS, Mr. WOLF, Mr. FROST,

Mr. ACKERMAN, Mr. WELDON of Pennsylvania, Mr. PETRI, Ms. NORTON,

and Mr. MCCRERY) introduced the following bill; which was referred to

the Committee on Government Reform and Oversight

A BILL

To amend title 5, United States Code, to provide additional

investment funds for the Thrift Savings Plan, and to

make the percentage limitations on individual contributions to such Plan more consistent with the dollar

amount limitation on elective deferrals.

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 ‘‘Federal Thrift Savings

5 Plan Enhancement Act of 1995’’.
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1 SEC. 2. ADDITIONAL INVESTMENT FUNDS.

2 (a) DEFINITIONS.—Subsection (a) of section 8438 of

3 title 5, United States Code, is amended—

4 (1) by redesignating paragraphs (5) through

5 (8) as paragraphs (6) through (9), respectively;

6 (2) by inserting after paragraph (4) the follow7 ing:

8 ‘‘(5) the term ‘International Stock Index Invest9 ment Fund’ means the International Stock Index In10 vestment Fund established under subsection

11 (b)(1)(E);’’;

12 (3) by striking ‘‘and’’ at the end of paragraph

13 (8) (as so redesignated by paragraph (1));

14 (4) in paragraph (9) (as so redesignated by

15 paragraph (1))—

16 (A) by striking ‘‘paragraph (7)(D)’’ each

17 place it appears and inserting ‘‘paragraph

18 (8)(D)’’; and

19 (B) by striking the period and inserting ‘‘;

20 and’’; and

21 (5) by adding at the end the following:

22 ‘‘(10) the term ‘Small Capitalization Stock

23 Index Investment Fund’ means the Small Capitaliza24 tion Stock Index Investment Fund established under

25 subsection (b)(1)(D).’’.
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1 (b) ESTABLISHMENT OF NEW INVESTMENT

2 FUNDS.—

3 (1) IN GENERAL.—Paragraph (1) of section

4 8438(b) of such title is amended—

5 (A) by striking ‘‘and’’ at the end of sub6 paragraph (B);

7 (B) by striking the period at the end of

8 subparagraph (C) and inserting a semicolon;

9 and

10 (C) by adding at the end the following:

11 ‘‘(D) a Small Capitalization Stock Index Invest12 ment Fund as provided in paragraph (3); and

13 ‘‘(E) an International Stock Index Investment

14 Fund as provided in paragraph (4).’’.

15 (2) SPECIFIC REQUIREMENTS.—Subsection (b)

16 of section 8438 of such title is amended by adding

17 at the end the following:

18 ‘‘(3)(A) The Board shall select an index which is a

19 commonly recognized index comprised of common stock

20 the aggregate market value of which represents the United

21 States equity markets excluding the common stocks in22 cluded in the Common Stock Index Investment Fund.

23 ‘‘(B) The Small Capitalization Stock Index Invest24 ment Fund shall be invested in a portfolio designed to rep25 licate the performance of the index in subparagraph (A).
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1 The portfolio shall be designed such that, to the extent

2 practicable, the percentage of the Small Capitalization

3 Stock Index Investment Fund that is invested in each

4 stock is the same as the percentage determined by dividing

5 the aggregate market value of all shares of that stock by

6 the aggregate market value of all shares of all stocks in7 cluded in such index.

8 ‘‘(4)(A) The Board shall select an index which is a

9 commonly recognized index comprised of stock the aggre10 gate market value of which is a reasonably complete rep11 resentation of the international equity markets excluding

12 the United States equity markets.

13 ‘‘(B) The International Stock Index Investment Fund

14 shall be invested in a portfolio designed to replicate the

15 performance of the index in subparagraph (A). The port16 folio shall be designed such that, to the extent practicable,

17 the percentage of the International Stock Index Invest18 ment Fund that is invested in each stock is the same as

19 the percentage determined by dividing the aggregate mar20 ket value of all shares of that stock by the aggregate mar21 ket value of all shares of all stocks included in such

22 index.’’.

23 (c) ACKNOWLEDGEMENT OF INVESTMENT RISK.—

24 Subsection (d) of section 8439 of such title is amended—
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1 (1) by striking ‘‘the Common Stock Index In2 vestment Fund or the Fixed Income Investment

3 Fund described in paragraphs (1) and (3), respec4 tively, of section 8438(a) of this title’’ and inserting

5 ‘‘the Common Stock Index Investment Fund, the

6 Fixed Income Investment Fund, the International

7 Stock Index Investment Fund, or the Small Capital8 ization Stock Index Investment Fund’’; and

9 (2) by striking ‘‘either such Fund’’ and insert10 ing ‘‘any such Fund’’.

11 SEC. 3. PERCENTAGE LIMITATIONS ON CONTRIBUTIONS.

12 (a) AMENDMENTS RELATING TO FERS.—

13 (1) IN GENERAL.—Subsection (a) of section

14 8432 of such title is amended by striking ‘‘10 per15 cent of’’.

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

17 section 8440a of such title is amended—

18 (A) by striking paragraph (2) and by re19 designating paragraphs (3) through (7) as

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

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

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

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

24 (4)’’.
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1 (3) BANKRUPTCY JUDGES AND MAG2 ISTRATES.—Subsection (b) of section 8440b of such

3 title is amended—

4 (A) by striking paragraph (2) and by re5 designating paragraphs (3) through (8) as

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

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

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

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

10 (3)(A), (B), or (C)’’; and

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

12 by subparagraph (A)) by striking ‘‘Notwith13 standing paragraph (4),’’ and inserting ‘‘Not14 withstanding paragraph (3),’’.

15 (4) COURT OF FEDERAL CLAIMS JUDGES.—

16 Subsection (b) of section 8440c of such title is

17 amended—

18 (A) by striking paragraph (2) and by re19 designating paragraphs (3) through (8) as

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

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

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

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

24 or (B)’’; and
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1 (C) in paragraph (7) (as so redesignated

2 by subparagraph (A)) by striking ‘‘Notwith3 standing paragraph (4),’’ and inserting ‘‘Not4 withstanding paragraph (3),’’.

5 (5) JUDGES OF THE UNITED STATES COURT OF

6 VETERANS APPEALS.—Paragraph (2) of section

7 8440d(b) of such title is amended to read as follows:

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

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

10 paid pursuant to section 7296 of title 38.’’.

11 (b) AMENDMENTS RELATING TO CSRS.—Paragraph

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

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

14 SEC. 4. EFFECTIVE DATE.

15 (a) IN GENERAL.—The amendments made by this

16 Act shall take effect on the date of the enactment of this

17 Act.

18 (b) COORDINATION WITH ELECTION PERIODS.—The

19 Executive Director shall by regulation determine—

20 (1) the first election period in which elections

21 may be made with respect to the new investment

22 funds established pursuant to the amendments made

23 by section 2; and
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1 (2) the first election period in which elections

2 may be made consistent with the amendments made

3 by section 3.

4 (c) DEFINITIONS.—For purposes of this section—

5 (1) the term ‘‘election period’’ means a period

6 afforded under section 8432(b) of title 5, United

7 States Code; and

8 (2) the term ‘‘Executive Director’’ has the

9 meaning given such term by section 8401(13) of

10 title 5, United States Code.

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