II

104TH CONGRESS

2D SESSION S. 1820

To amend title 5 of the United States Code to provide for retirement savings

and security.

IN THE SENATE OF THE UNITED STATES

MAY 23, 1996

Mr. DASCHLE (by request) (for himself, Mr. BRYAN, Mr. DODD, Mr. KENNEDY, Mr. LEAHY, Ms. MIKULSKI, Ms. MOSELY-BRAUN, Mr. ROCKEFELLER, and Mr. SIMON) introduced the following bill; which was read

twice and referred to the Committee on Governmental Affairs

A BILL

To amend title 5 of the United States Code to provide

for retirement savings and security.

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

3 TITLE I—SHORT TITLE; TABLE

4 OF CONTENTS

5 SEC. 1000. SHORT TITLE; TABLE OF CONTENTS.

6 (a) SHORT TITLE.—This Act may be cited as the

7 ‘‘Retirement Savings and Security Act’’.

8 (b) TABLE OF CONTENTS.—

TITLE I—SHORT TITLE; TABLE OF CONTENTS

Sec. 1000. Short title; table of contents.
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TITLE II—ADDITIONAL RETIREMENT PARTICIPATION AND

PAYMENT OPTIONS FOR FEDERAL EMPLOYEES

Sec. 2001. Immediate participation in the Thrift Savings Plan for Federal employees.

Sec. 2002. Deferred annuities for surviving spouses of Federal employees.

Sec. 2003. Payment of lump-sum credit for former spouses of Federal employees.

1 TITLE II—ADDITIONAL RETIRE2 MENT PARTICIPATION AND

3 PAYMENT OPTIONS FOR FED4 ERAL EMPLOYEES

5 SEC. 2001. IMMEDIATE PARTICIPATION IN THE THRIFT SAV6 INGS PLAN FOR FEDERAL EMPLOYEES.

7 (a) ELIMINATION OF CERTAIN WAITING PERIODS

8 FOR PURPOSES OF EMPLOYEE CONTRIBUTIONS.—Para9 graph (4) of section 8432(b) of title 5, United States

10 Code, is amended to read as follows:

11 ‘‘(4) The Executive Director shall prescribe such reg12 ulations as may be necessary to carry out the following:

13 ‘‘(A) Notwithstanding subparagraph (A) of

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

15 such subparagraph shall be afforded a reasonable

16 opportunity to first make an election under this sub17 section beginning on the date of commencing service

18 or, if that is not administratively feasible, beginning

19 on the earliest date thereafter that such an election

20 becomes administratively feasible, as determined by

21 the Executive Director.
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1 ‘‘(B) An employee or Member described in sub2 paragraph (B) of paragraph (2) shall be afforded a

3 reasonable opportunity to first make an election

4 under this subsection (based on the appointment or

5 election described in such subparagraph) beginning

6 on the date of commencing service pursuant to such

7 appointment or election or, if that is not administra8 tively feasible, beginning on the earliest date there9 after that such an election becomes administratively

10 feasible, as determined by the Executive Director.

11 ‘‘(C) Notwithstanding the preceding provisions

12 of this paragraph, contributions under paragraphs

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

14 with respect to any pay period before the earliest

15 pay period for which such contributions would other16 wise be allowable under this subsection if this para17 graph had not been enacted.

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

19 8440b(a)(2), 8440c(a)(2), and 8440d(a)(2) shall be

20 applied in a manner consistent with the purposes of

21 subparagraphs (A) and (B), to the extent those sub22 paragraphs can be applied with respect thereto.

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

24 paragraph (3).’’.
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1 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

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

3 amended—

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

5 and inserting ‘‘(b)’’; and

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

7 follows: ‘‘Contributions under this subsection pursu8 ant to such an election shall, with respect to each

9 pay period for which such election remains in effect,

10 be made in accordance with a program of regular

11 contributions provided in regulations prescribed by

12 the Executive Director.’’.

13 (2) Section 8432(b)(1)(B) of such title is amended

14 by inserting ‘‘(or any election allowable by virtue of para15 graph (4))’’ after ‘‘subparagraph (A)’’.

16 (3) Section 8432(b)(3) of such title is amended by

17 striking ‘‘Notwithstanding paragraph (2)(A), an’’ and in18 serting ‘‘An’’.

19 (4) Section 8432(i)(1)(B)(ii) of such title is amended

20 by striking ‘‘either elected to terminate individual con21 tributions to the Thrift Savings Fund within 2 months

22 before commencing military service or’’.

23 (5) Section 8439(a)(1) of such title is amended by

24 inserting ‘‘who makes contributions or’’ after ‘‘for each
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1 individual’’ and by striking ‘‘section 8432(c)(1)’’ and in2 serting ‘‘section 8432’’.

3 (6) Section 8439(c)(2) of such title is amended by

4 adding at the end the following: ‘‘Nothing in this para5 graph shall be considered to limit the dissemination of in6 formation only to the times required under the preceding

7 sentence.’’.

8 (7) Sections 8440a(a)(2) and 8440d(a)(2) of such

9 title are amended by striking all after ‘‘subject to’’ and

10 inserting ‘‘subject to this chapter.’’.

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

12 6 months after the date of the enactment of this Act or

13 such earlier date as the Executive Director may by regula14 tion prescribe.

15 SEC. 2002. DEFERRED ANNUITIES FOR SURVIVING SPOUSES

16 OF FEDERAL EMPLOYEES.

17 (a) IN GENERAL.—Section 8341 of title 5, United

18 States Code, is amended—

19 (1) in subsection (h)(1) by striking ‘‘section

20 8338(b) of this title’’ and inserting ‘‘section

21 8338(b), and a former spouse of a deceased former

22 employee who separated from the service with title

23 to a deferred annuity under section 8338 (if they

24 were married to one another prior to the date of sep25 aration),’’; and
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1 (2) by adding at the end the following:

2 ‘‘(j)(1) If a former employee dies after having sepa3 rated from the service with title to a deferred annuity

4 under section 8338 but before having established a valid

5 claim for annuity, and is survived by a spouse to whom

6 married on the date of separation, the surviving spouse

7 may elect to receive—

8 ‘‘(A) an annuity, commencing on what would

9 have been the former employee’s 62d birthday, equal

10 to 55 percent of the former employee’s deferred an11 nuity;

12 ‘‘(B) an annuity, commencing on the day after

13 the date of death of the former employee, such that,

14 to the extent practicable, the present value of the fu15 ture payments of the annuity would be actuarially

16 equivalent to the present value of the future pay17 ments under subparagraph (A) as of the day after

18 the former employee’s death; or

19 ‘‘(C) the lump-sum credit, if the surviving

20 spouse is the individual who would be entitled to the

21 lump-sum credit and if such surviving spouse files

22 application therefor.

23 ‘‘(2) An annuity under this subsection and the right

24 thereto terminate on the last day of the month before the
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1 surviving spouse remarries before becoming 55 years of

2 age, or dies.’’.

3 (b) CORRESPONDING AMENDMENT FOR FERS.—

4 Section 8445(a) of title 5, United States Code, is amend5 ed—

6 (1) by striking ‘‘(or of a former employee or’’

7 and inserting ‘‘(or of a former’’; and

8 (2) by striking ‘‘annuity)’’ and inserting ‘‘annu9 ity, or of a former employee who dies after having

10 separated from the service with title to a deferred

11 annuity under section 8413 but before having estab12 lished a valid claim for annuity (if such former

13 spouse was married to such former employee prior

14 to the date of separation))’’.

15 (c) EFFECTIVE DATE.—The amendments made by

16 this section shall apply with respect to surviving spouses

17 and former spouses (whose marriage, in the case of the

18 amendments made by subsection (a), terminated after

19 May 6, 1985) of former employees who die after the date

20 of the enactment of this Act.

21 SEC. 2003. PAYMENT OF LUMP-SUM CREDIT FOR FORMER

22 SPOUSES OF FEDERAL EMPLOYEES.

23 (a) IN GENERAL.—Title 5, United States Code, is

24 amended—
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1 (1) in section 8342(c) by striking ‘‘Lump-sum’’

2 and inserting ‘‘Except as provided in section

3 8345(j), lump-sum’’;

4 (2) in section 8345(j)—

5 (A) in paragraph (1) by inserting after

6 ‘‘that individual’’ the following: ‘‘, or be made

7 under section 8342(d) through (f) to an individ8 ual entitled under section 8342(c),’’; and

9 (B) by adding at the end the following:

10 ‘‘(4) Any payment under this subsection to a person

11 bars recovery by any other person.’’;

12 (3) in section 8424(d) by striking ‘‘Lump-sum’’

13 and inserting ‘‘Except as provided in section

14 8467(a), lump-sum’’; and

15 (4) in section 8467—

16 (A) in subsection (a) by inserting after

17 ‘‘that individual’’ the following: ‘‘, or be made

18 under section 8424(e) through (g) to an indi19 vidual entitled under section 8424(d),’’; and

20 (B) by adding at the end the following:

21 ‘‘(d) Any payment under this section to a person bars

22 recovery by any other person.’’.

23 (b) EFFECTIVE DATE.—The amendments made by

24 this section shall apply with respect to any death occurring
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1 after the 90th day after the date of the enactment of this

2 Act.

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