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Union Calendar No. 47

106TH CONGRESS

1ST SESSION H. R. 208

[Report No. 106–87]

To amend title 5, United States Code, to allow for the contribution of

certain rollover distributions to accounts in the Thrift Savings Plan,

to eliminate certain waiting-period requirements for participating in the

Thrift Savings Plan, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 6, 1999

Mrs. MORELLA (for herself, Mr. FROST, Mr. HINCHEY, Mr. GOSS, Mr.

SKEEN, Mr. BISHOP, and Mr. SANDLIN) introduced the following bill;

which was referred to the Committee on Government Reform

APRIL 13, 1999

Additional sponsors: Mr. LAFALCE, Mrs. MEEK of Florida, Mr. CASTLE, Mr.

FILNER, Mr. DAVIS of Virginia, Mr. TOWNS, Mr. MANZULLO, Ms. NORTON, Mr. KUCINICH, Mr. STARK, Mr. WELDON of Florida, Ms. LEE, Mr.

UNDERWOOD, Mr. CLEMENT, Mr. KOLBE, Mr. CUMMINGS, Mr. SESSIONS, Mr. ENGEL, Mr. WYNN, Mr. FORBES, Mr. MOORE, Mr. PASTOR,

Mr. WOLF, and Mr. CAPUANO

APRIL 13, 1999

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on January 6, 1999]

A BILL

To amend title 5, United States Code, to allow for the
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contribution of certain rollover distributions to accounts

in the Thrift Savings Plan, to eliminate certain waitingperiod requirements for participating in the Thrift Savings Plan, 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. ELIGIBLE ROLLOVER DISTRIBUTIONS.

4 (a) IN GENERAL.—Section 8432 of title 5, United

5 States Code, is amended by adding at the end the following:

6 ‘‘(j)(1) For the purpose of this subsection—

7 ‘‘(A) the term ‘eligible rollover distribution’ has

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

9 the Internal Revenue Code of 1986; and

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

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

12 Revenue Code of 1986.

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

14 Thrift Savings Fund an eligible rollover distribution from

15 a qualified trust. A contribution made under this subsection

16 shall be made in the form described in section 401(a)(31)

17 of the Internal Revenue Code of 1986. In the case of an

18 eligible rollover distribution, the maximum amount trans19 ferred to the Thrift Savings Fund shall not exceed the

20 amount which would otherwise have been included in the

21 employee’s or Member’s gross income for Federal income tax

22 purposes.
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1 ‘‘(3) The Executive Director shall prescribe regulations

2 to carry out this subsection.’’.

3 (b) EFFECTIVE DATE.—The amendment made by this

4 section shall take effect on October 1, 2000, or such earlier

5 date as the Executive Director (as defined by section 8401

6 of title 5, United States Code) may by regulation prescribe,

7 but not before September 1, 2000.

8 SEC. 2. IMMEDIATE PARTICIPATION IN THE THRIFT SAV9 INGS PLAN.

10 (a) ELIMINATION OF CERTAIN WAITING PERIODS FOR

11 PURPOSES OF EMPLOYEE CONTRIBUTIONS.—Paragraph

12 (4) of section 8432(b) of title 5, United States Code, is

13 amended to read as follows:

14 ‘‘(4) The Executive Director shall prescribe such regu15 lations as may be necessary to carry out the following:

16 ‘‘(A) Notwithstanding subparagraph (A) of para17 graph (2), an employee or Member described in such

18 subparagraph shall be afforded a reasonable oppor19 tunity to first make an election under this subsection

20 beginning on the date of commencing service or, if

21 that is not administratively feasible, beginning on the

22 earliest date thereafter that such an election becomes

23 administratively feasible, as determined by the Execu24 tive 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 of

12 this paragraph, contributions under paragraphs (1)

13 and (2) of subsection (c) shall not be payable with re14 spect to any pay period before the earliest pay period

15 for which such contributions would otherwise be al16 lowable under this subsection if this paragraph had

17 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.—(1)

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

3 amended—

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

5 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 pay

9 period for which such election remains in effect, be

10 made in accordance with a program of regular con11 tributions provided in regulations prescribed by the

12 Executive Director.’’.

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

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

15 by virtue of paragraph (4))’’ after ‘‘subparagraph (A)’’.

16 (3) Section 8432(b)(3) of title 5, United States Code,

17 is amended by striking ‘‘Notwithstanding paragraph

18 (2)(A), an’’ and inserting ‘‘An’’.

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

20 is amended by inserting ‘‘who makes contributions or’’ after

21 ‘‘for each individual’’ and by striking ‘‘section 8432(c)(1)’’

22 and inserting ‘‘section 8432’’.

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

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

25 in this paragraph shall be considered to limit the dissemi-
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1 nation of information only to the times required under the

2 preceding sentence.’’.

3 (6) Sections 8440a(a)(2) and 8440d(a)(2) of title 5,

4 United States Code, are amended by striking all after ‘‘sub5 ject to’’ and inserting ‘‘this chapter.’’.

6 (c) EFFECTIVE DATE.—

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

8 this section shall take effect on October 1, 2000, or

9 such earlier date as the Executive Director (as defined

10 by section 8401 of title 5, United States Code) may

11 by regulation prescribe, but not before September 1,

12 2000.

13 (2) SAVINGS PROVISION.—Notwithstanding any

14 other provision of this section, until the amendments

15 made by this section take effect, title 5, United States

16 Code, shall be applied as if this section had not been

17 enacted.

18 SEC. 3. ADDITIONAL GOVERNMENT CONTRIBUTIONS FOR

19 RETIREMENT.

20 (a) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—

21 Section 8423(a) of title 5, United States Code, is amended

22 by adding at the end the following:

23 ‘‘(5) Notwithstanding any other provision of this chap24 ter, effective with respect to contributions for pay periods

25 beginning on or after October 1, 2000, the normal-cost per-
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1 centage used for purposes of any computation under this

2 subsection shall be equal to—

3 ‘‘(A) the percentage that would otherwise apply

4 if this paragraph had not been enacted, plus

5 ‘‘(B) .01 of 1 percentage point.’’.

6 (b) SUPPLEMENTAL LIABILITY.—For purposes of ap7 plying section 8423(b) of title 5, United States Code, and

8 section 857(b) of the Foreign Service Act of 1980 (22 U.S.C.

9 4071f(b)), all amounts shall be determined as if this section

10 had never been enacted.

11 (c) LIMITATION ON SOURCE OF ADDITIONAL CON12 TRIBUTIONS.—Notwithstanding section 8423(a)(3) of title

13 5, United States Code, or any other provision of law, the

14 additional Government contributions required to be made

15 by reason of the amendment made by subsection (a) shall

16 be made out of any amounts available to the employing

17 agency involved, other than any appropriation, fund, or

18 other amounts available for the payment of employee sala19 ries or benefits.

20 (d) CONFORMING AMENDMENT.—Section 307 of the

21 Federal Employees’ Retirement System Act of 1986 (Public

22 Law 99–335; 5 U.S.C. 8401 note) is amended by inserting

23 ‘‘, including the additional amount required under section

24 8423(a)(5)(B) of such title 5,’’ after ‘‘Federal Employees’

25 Retirement System’’.
Union Calendar No. 47

106TH CONGRESS

1ST SESSION H. R. 208

[Report No. 106–87]

A BILL

To amend title 5, United States Code, to allow for

other purposes.ticipating in the Thrift Savings Plan, and fornate certain waiting-period requirements for parto accounts in the Thrift Savings Plan, to elimithe contribution of certain rollover distributions

APRIL 13, 1999

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union,