103D CONGRESS

1ST SESSION S. 1624

AN ACT

To standardize withdrawal options for Thrift

Savings Plan participants, and for other purposes.
103D CONGRESS

1ST SESSION S. 1624

AN ACT

To standardize withdrawal options for Thrift Savings Plan

participants, 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,
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1 SECTION 1. STANDARDIZATION OF WITHDRAWAL OPTIONS

2 FOR THRIFT SAVINGS PLAN PARTICIPANTS.

3 (a) PARTICIPATION IN THE THRIFT SAVINGS

4 PLAN.—Section 8351(b) of title 5, United States Code,

5 is amended—

6 (1) by amending paragraph (4) to read as fol7 lows:

8 ‘‘(4) Section 8433(b) of this title applies to any

9 employee or Member who elects to make contribu10 tions to the Thrift Savings Fund under subsection

11 (a) of this section and separates from Government

12 employment.’’;

13 (2) by striking out paragraphs (5), (6), and (8);

14 (3) by redesignating paragraphs (7), (9), and

15 (10) as paragraphs (5), (6), and (7), respectively;

16 (4) in paragraph (5)(C) (as redesignated under

17 paragraph (3) of this subsection) by striking out ‘‘or

18 former spouse’’ in both places it appears;

19 (5) by amending paragraph (6) (as redesig20 nated under paragraph (3) of this subsection) to

21 read as follows:

22 ‘‘(6) Notwithstanding paragraph (4), if an em23 ployee or Member separates from Government em24 ployment and such employee’s or Member’s non25 forfeitable account balance is $3,500 or less, the Ex26 ecutive Director shall pay the nonforfeitable account
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1 balance to the participant in a single payment unless

2 the employee or Member elects, at such time and

3 otherwise in such manner as the Executive Director

4 prescribes, one of the options available under section

5 8433(b) of this title.’’; and

6 (6) in paragraph (7) (as redesignated under

7 paragraph (3) of this subsection) by striking out

8 ‘‘nonforfeiture’’ and inserting in lieu thereof ‘‘non9 forfeitable’’.

10 (b) BENEFITS AND ELECTION OF BENEFITS.—Sec11 tion 8433 of title 5, United States Code, is amended—

12 (1) in subsection (b) by striking out the matter

13 before paragraph (1) and inserting in lieu thereof

14 ‘‘Subject to section 8435 of this title, any employee

15 or Member who separates from Government employ16 ment entitled to an annuity under subchapter II of

17 this chapter or any employee or Member who sepa18 rates from Government employment is entitled and

19 may elect—’’;

20 (2) by striking out subsections (c) and (d) and

21 redesignating subsections (e), (f), (g), (h), and (i) as

22 subsections (c), (d), (e), (f), and (g), respectively;

23 (3) in subsection (c)(1) (as redesignated under

24 paragraph (2) of this subsection) by striking out ‘‘or

25 (c)(4) or required under subsection (d) directly to an
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1 eligible retirement plan or plans) (as defined in sec2 tion 402(a)(5)(E) of the Internal Revenue Code of

3 1954)’’ and inserting in lieu thereof ‘‘directly to an

4 eligible retirement plan or plans (as defined in sec5 tion 402(c)(8) of the Internal Revenue Code of

6 1986)’’;

7 (4) in subsection (d)(2) (as redesignated under

8 paragraph (2) of this subsection) by striking out ‘‘or

9 (c)(2)’’; and

10 (5) in subsection (f) (as redesignated under

11 paragraph (2) of this subsection)—

12 (A) by striking out paragraph (1) and re13 designating paragraphs (2) and (3) as para14 graphs (1) and (2), respectively; and

15 (B) in paragraph (1) (as redesignated

16 under subparagraph (A) of this paragraph)—

17 (i) by striking out ‘‘Notwithstanding

18 subsections (b) and (c), if an employee or

19 Member separates from Government em20 ployment under circumstances making

21 such an employee or Member eligible to

22 make an election under either of those sub23 sections, and such employee’s or Mem24 ber’s’’ and inserting in lieu thereof ‘‘Not25 withstanding subsection (b), if an employee
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1 or Member separates from Government

2 employment, and such employee’s or Mem3 ber’s’’; and

4 (ii) by striking out ‘‘or (c), as applica5 ble’’; and

6 (C) in paragraph (2) (as redesignated

7 under subparagraph (A) of this paragraph) by

8 striking out ‘‘paragraphs (1) and (2)’’ and in9 serting in lieu thereof ‘‘paragraph (1)’’.

10 (c) ANNUITIES: METHODS OF PAYMENT; ELECTION;

11 PURCHASE.—Section 8434(c) of title 5, United States

12 Code, is amended to read as follows:

13 ‘‘(c) Notwithstanding an elimination of a method of

14 payment by the Board an employee, Member, former em15 ployee, or former Member may elect the eliminated method

16 if the elimination of such method became effective less

17 than 5 years before the date on which the annuity com18 mences.’’.

19 (d) PROTECTIONS FOR SPOUSES AND FORMER

20 SPOUSES.—Section 8435 of title 5, United States Code,

21 is amended—

22 (1) in subsection (a)(1)(A) by striking out

23 ‘‘subsection (b)(3), (b)(4), (c)(3), or (c)(4) of section

24 8433 of this title or change an election previously

25 made under subsection (b)(1), (b)(2), (c)(1), or
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1 (c)(2)’’ and inserting in lieu thereof ‘‘subsection

2 (b)(3) or (b)(4) of section 8433 of this title or

3 change an election previously made under subsection

4 (b)(1) or (b)(2)’’;

5 (2) by striking out subsection (b);

6 (3) by redesignating subsections (c), (d), (e),

7 (f), (g), (h), and (i) as subsections (b), (c), (d), (e),

8 (f), (g), and (h), respectively;

9 (4) in subsection (b) (as redesignated under

10 paragraph (3) of this subsection) by amending para11 graph (2) to read as follows:

12 ‘‘(2) Paragraph (1) shall not apply, if—

13 ‘‘(A) a joint waiver of such method is

14 made, in writing, by the employee or Member

15 and the spouse; or

16 ‘‘(B) the employee or Member waives such

17 method, in writing, after establishing to the sat18 isfaction of the Executive Director that cir19 cumstances described under subsection (a)(2)

20 (A) or (B) make the requirement of a joint

21 waiver inappropriate.’’; and

22 (5) in subsection (c)(1) (as redesignated under

23 paragraph (3) of this subsection) by striking out

24 ‘‘and a transfer may not be made under section

25 8433(d) of this title’’.
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1 (e) JUSTICES AND JUDGES.—Section 8440a(b) of

2 title 5, United States Code, is amended—

3 (1) in paragraph (5) by striking out ‘‘Section

4 8433(d)’’ and inserting in lieu thereof ‘‘Section

5 8433(b)’’; and

6 (2) by striking out paragraphs (7) and (8) and

7 inserting in lieu thereof the following:

8 ‘‘(7) Notwithstanding paragraphs (4) and (5),

9 if any justice or judge retires under subsection (a)

10 or (b) of section 371 or section 372(a) of title 28,

11 or resigns without having met the age and service

12 requirements set forth under section 371(c) of title

13 28, and such justice’s or judge’s nonforfeitable ac14 count balance is $3,500 or less, the Executive Direc15 tor shall pay the nonforfeitable account balance to

16 the participant in a single payment unless the justice

17 or judge elects, at such time and otherwise in such

18 manner as the Executive Director prescribes, one of

19 the options available under section 8433(b).’’.

20 (f) BANKRUPTCY JUDGES AND MAGISTRATES.—Sec21 tion 8440b of title 5, United States Code, is amended—

22 (1) in subsection (b)(4) by amending subpara23 graph (B) to read as follows:

24 ‘‘(B) Section 8433(b) of this title applies

25 to any bankruptcy judge or magistrate who
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1 elects to make contributions to the Thrift Sav2 ings Fund under subsection (a) of this section

3 and who retires before attaining age 65 but is

4 entitled, upon attaining age 65, to an annuity

5 under section 377 of title 28 or section 2(c) of

6 the Retirement and Survivors Annuities for

7 Bankruptcy Judges and Magistrates Act of

8 1988.’’;

9 (2) in subsection (b)(4)(C) by striking out

10 ‘‘Section 8433(d)’’ and inserting in lieu thereof

11 ‘‘Section 8433(b)’’;

12 (3) in subsection (b)(5) by striking out ‘‘retire13 ment under section 377 of title 28 is’’ and inserting

14 in lieu thereof ‘‘any of the actions described under

15 paragraph (4) (A), (B), or (C) shall be considered’’;

16 (4) in subsection (b) by striking out paragraph

17 (8) and redesignating paragraph (9) as paragraph

18 (8); and

19 (5) in paragraph (8) of subsection (b) (as re20 designated under paragraph (4) of this sub21 section)—

22 (A) by striking out ‘‘Notwithstanding sub23 paragraphs (A) and (B) of paragraph (4), if

24 any bankruptcy judge or magistrate retires

25 under circumstances making such bankruptcy
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1 judge or magistrate eligible to make an election

2 under subsection (b) or (c)’’ and inserting in

3 lieu thereof ‘‘Notwithstanding paragraph (4), if

4 any bankruptcy judge or magistrate retires

5 under circumstances making such bankruptcy

6 judge or magistrate eligible to make an election

7 under subsection (b)’’; and

8 (B) by striking out ‘‘and (c), as applica9 ble’’.

10 (g) CLAIMS COURT JUDGES.—Section 8440c of title

11 5, United States Code, is amended—

12 (1) in subsection (b)(4)(B) by striking out

13 ‘‘Section 8433(d)’’ and inserting in lieu thereof

14 ‘‘Section 8433(b)’’;

15 (2) in subsection (b)(5) by striking out ‘‘retire16 ment under section 178 of title 28, is’’ and inserting

17 in lieu thereof ‘‘any of the actions described in para18 graph (4) (A) or (B) shall be considered’’;

19 (3) in subsection (b) by striking out paragraph

20 (8) and redesignating paragraph (9) as paragraph

21 (8); and

22 (4) in paragraph (8) (as redesignated under

23 paragraph (3) of this subsection) by striking out

24 ‘‘Notwithstanding paragraph (4)(A)’’ and inserting

25 in lieu thereof ‘‘Notwithstanding paragraph (4)’’.
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1 (h) JUDGES OF THE UNITED STATES COURT OF

2 VETERANS APPEALS.—Section 8440d(b)(5) of title 5,

3 United States Code, is amended by striking out ‘‘A trans4 fer shall be made as provided under section 8433(d) of

5 this title’’ and inserting in lieu thereof ‘‘Section 8433(b)

6 of this title applies’’.

7 (i) TECHNICAL AND CONFORMING AMENDMENTS.—

8 Chapters 83 and 84 of title 5, United States Code, are

9 amended—

10 (1) in section 8351(b)(5)(B) (as redesignated

11 under subsection (a)(3) of this section) by striking

12 out ‘‘section 8433(i)’’ and inserting in lieu thereof

13 ‘‘section 8433(g)’’;

14 (2) in section 8351(b)(5)(D) (as redesignated

15 under subsection (a)(3) of this section) by striking

16 out ‘‘section 8433(i)’’ and inserting in lieu thereof

17 ‘‘section 8433(g)’’;

18 (3) in section 8433(b)(4) by striking out ‘‘sub19 section (e)’’ and inserting in lieu thereof ‘‘subsection

20 (c)’’;

21 (4) in section 8433(d)(1) (as redesignated

22 under subsection (b)(2) of this section) by striking

23 out ‘‘(d) of section 8435’’ and inserting in lieu

24 thereof ‘‘(c) of section 8435’’;
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1 (5) in section 8433(d)(2) (as redesignated

2 under subsection (b)(2) of this section) by striking

3 out ‘‘section 8435(d)’’ and inserting in lieu thereof

4 ‘‘section 8435(c)’’;

5 (6) in section 8433(e) (as redesignated under

6 subsection (b)(2) of this section) by striking out

7 ‘‘section 8435(d)(2)’’ and inserting in lieu thereof

8 ‘‘section 8435(c)(2)’’;

9 (7) in section 8433(g)(5) (as redesignated

10 under subsection (b)(2) of this section) by striking

11 out ‘‘section 8435(f)’’ and inserting in lieu thereof

12 ‘‘section 8435(e)’’;

13 (8) in section 8434(b) by striking out ‘‘section

14 8435(c)’’ and inserting in lieu thereof ‘‘section

15 8435(b)’’;

16 (9) in section 8435(a)(1)(B) by striking out

17 ‘‘subsection (c)’’ and inserting in lieu thereof ‘‘sub18 section (b)’’;

19 (10) in section 8435(d)(1)(B) (as redesignated

20 under subsection (d)(3) of this section) by striking

21 out ‘‘subsection (d)(2)’’ and inserting in lieu thereof

22 ‘‘subsection (c)(2)’’;

23 (11) in section 8435(d)(3)(A) (as redesignated

24 under subsection (d)(3) of this section) by striking
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1 out ‘‘subsection (c)(1)’’ and inserting in lieu thereof

2 ‘‘subsection (b)(1)’’;

3 (12) in section 8435(d)(6) (as redesignated

4 under subsection (d)(3) of this section) by striking

5 out ‘‘or (c)(2)’’ and inserting in lieu thereof ‘‘or

6 (b)(2)’’;

7 (13) in section 8435(e)(1)(A) (as redesignated

8 under subsection (d)(3) of this section) by striking

9 out ‘‘section 8433(i)’’ and inserting in lieu thereof

10 ‘‘section 8433(g)’’;

11 (14) in section 8435(e)(2) (as redesignated

12 under subsection (d)(3) of this section) by striking

13 out ‘‘section 8433(i) of this title shall not be ap14 proved if approval would have the result described in

15 subsection (d)(1)’’ and inserting in lieu thereof ‘‘sec16 tion 8433(g) of this title shall not be approved if ap17 proval would have the result described under sub18 section (c)(1)’’;

19 (15) in section 8435(g) (as redesignated under

20 subsection (d)(3) of this section) by striking out

21 ‘‘section 8433(i)’’ and inserting in lieu thereof ‘‘sec22 tion 8433(g)’’;

23 (16) in section 8437(c)(5) by striking out ‘‘sec24 tion 8433(i)’’ and inserting in lieu thereof ‘‘section

25 8433(g)’’; and
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1 (17) in section 8440a(b)(6) by striking out

2 ‘‘section 8351(b)(7)’’ and inserting in lieu thereof

3 ‘‘section 8351(b)(5)’’.

4 (j) INTERIM PROVISION.—Section 8433(d) of title 5,

5 United States Code, is amended by striking out ‘‘shall

6 transfer the amount of the balance’’ and inserting in lieu

7 thereof ‘‘may transfer the amount of the balance’’.

8 (k) EFFECTIVE DATES.—(1) Except as provided in

9 paragraph (2), the provisions of this section shall take ef10 fect 1 year after the date of enactment of this Act or upon

11 such other date as the Executive Director of the Federal

12 Retirement Thrift Investment Board shall provide in regu13 lation.

14 (2) The provisions of subsection (j) of this section

15 shall take effect upon the date of the enactment of this

16 Act.

Passed the Senate November 24 (legislative day, November 23), 1993.

Attest:

Secretary.
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