II

Calendar No. 682

106TH CONGRESS

2D SESSION H. R. 208

[Report No. 106–343]

IN THE SENATE OF THE UNITED STATES

APRIL 21, 1999

Received; read twice and referred to the Committee on Governmental Affairs

JULY 13, 2000

Reported by Mr. THOMPSON, with amendments

[Omit the part struck through and insert the part printed in italic]

AN ACT

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 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 fol6 lowing:
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1 ‘‘(j)(1) For the purpose of this subsection—

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

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

4 the Internal Revenue Code of 1986; and

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

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

7 Revenue Code of 1986.

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

9 Thrift Savings Fund an eligible rollover distribution from

10 a qualified trust. that a qualified trust could accept under

11 the Internal Revenue Code of 1986. A contribution made

12 under this subsection shall be made in the form described

13 in section 401(a)(31) of the Internal Revenue Code of

14 1986. In the case of an eligible rollover distribution, the

15 maximum amount transferred to the Thrift Savings Fund

16 shall not exceed the amount which would otherwise have

17 been included in the employee’s or Member’s gross income

18 for Federal income tax purposes.

19 ‘‘(3) The Executive Director shall prescribe regula20 tions to carry out this subsection.’’.

21 (b) EFFECTIVE DATE.—The amendment made by

22 this section shall take effect on October 1, 2000, or such

23 earlier date as the Executive Director (as defined by sec24 tion 8401 of title 5, United States Code) may by regula25 tion prescribe, but not before September 1, 2000.
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1 (b) EFFECTIVE DATE.—The amendment made by this

2 section shall take effect at the earliest practicable date after

3 September 30, 2000, as determined by the Executive Direc4 tor in regulations.

5 SEC. 2. IMMEDIATE PARTICIPATION IN THE THRIFT SAV6 INGS PLAN.

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.

22 ‘‘(B) An employee or Member described in sub23 paragraph (B) of paragraph (2) shall be afforded a

24 reasonable opportunity to first make an election

25 under this subsection (based on the appointment or
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1 election described in such subparagraph) beginning

2 on the date of commencing service pursuant to such

3 appointment or election or, if that is not administra4 tively feasible, beginning on the earliest date there5 after that such an election becomes administratively

6 feasible, as determined by the Executive Director.

7 ‘‘(C) Notwithstanding the preceding provisions

8 of this paragraph, contributions under paragraphs

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

10 with respect to any pay period before the earliest

11 pay period for which such contributions would other12 wise be allowable under this subsection if this para13 graph had not been enacted.

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

15 8440b(a)(2), 8440c(a)(2), and 8440d(a)(2) shall be

16 applied in a manner consistent with the purposes of

17 subparagraphs (A) and (B), to the extent those sub18 paragraphs can be applied with respect thereto.

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

20 paragraph (3).’’.

21 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

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

23 amended—

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

25 and inserting ‘‘(b)’’; and
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1 (B) by amending the second sentence to read as

2 follows: ‘‘Contributions under this subsection pursu3 ant to such an election shall, with respect to each

4 pay period for which such election remains in effect,

5 be made in accordance with a program of regular

6 contributions provided in regulations prescribed by

7 the Executive Director.’’.

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

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

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

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

12 is amended by striking ‘‘Notwithstanding paragraph

13 (2)(A), an’’ and inserting ‘‘An’’.

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

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

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

17 8432(c)(1)’’ and inserting ‘‘section 8432’’.

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

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

20 in this paragraph shall be considered to limit the dissemi21 nation of information only to the times required under the

22 preceding sentence.’’.

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

24 United States Code, are amended by striking all after

25 ‘‘subject to’’ and inserting ‘‘this chapter.’’.
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1 (c) EFFECTIVE DATE.—

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

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

4 such earlier date as the Executive Director (as de5 fined by section 8401 of title 5, United States Code)

6 may by regulation prescribe, but not before Sep7 tember 1, 2000.

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

9 this section shall take effect at the earliest practicable

10 date after September 30, 2000, as determined by the

11 Executive Director in regulations.

12 (2) SAVINGS PROVISION.—Notwithstanding any

13 other provision of this section, until the amendments

14 made by this section take effect, title 5, United

15 States Code, shall be applied as if this section had

16 not been enacted.

17 SEC. 3. ADDITIONAL GOVERNMENT CONTRIBUTIONS FOR

18 RETIREMENT.

19 (a) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—

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

21 by adding at the end the following:

22 ‘‘(5) Notwithstanding any other provision of this

23 chapter, effective with respect to contributions for pay pe24 riods beginning on or after October 1, 2000, the normal-
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1 cost percentage used for purposes of any computation

2 under this 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

9 U.S.C. 4071f(b)), all amounts shall be determined as if

10 this section 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 (Pub22 lic Law 99–335; 5 U.S.C. 8401 note) is amended by in23 serting ‘‘, including the additional amount required under

24 section 8423(a)(5)(B) of such title 5,’’ after ‘‘Federal Em25 ployees’ Retirement System’’.
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1 SEC. 3. COURT ORDERS AFFECTING REFUNDS.

2 (a) CIVIL SERVICE RETIREMENT SYSTEM.—Section

3 8342(j)(1) of title 5, United States Code, is amended to read

4 as follows:

5 ‘‘(j)(1)(A) Payment of the lump-sum credit under sub6 section (a) may be made only if the spouse, if any, and

7 any former spouse of the employee or Member are notified

8 of the employee or Member’s application.

9 ‘‘(B) The Office shall prescribe regulations under

10 which the lump-sum credit shall not be paid without the

11 consent of a spouse or former spouse of the employee or

12 Member where the Office has received such additional infor13 mation and documentation as the Office may require

14 that—

15 ‘‘(i) a court order bars payment of the lump-sum

16 credit in order to preserve the court’s ability to award

17 an annuity under section 8341(h) or section 8345(j);

18 or

19 ‘‘(ii) payment of the lump-sum credit would ex20 tinguish the entitlement of the spouse or former

21 spouse, under a court order on file with the Office, to

22 a survivor annuity under section 8341(h) or to any

23 portion of an annuity under section 8345(j).’’.

24 (b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.—

25 Section 8424(b)(1) of title 5, United States Code, is amend26 ed to read as follows:
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1 ‘‘(b)(1)(A) Payment of the lump-sum credit under sub2 section (a) may be made only if the spouse, if any, and

3 any former spouse of the employee or Member are notified

4 of the employee or Member’s application.

5 ‘‘(B) The Office shall prescribe regulations under

6 which the lump-sum credit shall not be paid without the

7 consent of a spouse or former spouse of the employee or

8 Member where the Office has received such additional infor9 mation or documentation as the Office may require that—

10 ‘‘(i) a court order bars payment of the lump-sum

11 credit in order to preserve the court’s ability to award

12 an annuity under section 8445 or 8467; or

13 ‘‘(ii) payment of the lump-sum credit would ex14 tinguish the entitlement of the spouse or former

15 spouse, under a court order on file with the Office, to

16 a survivor annuity under section 8445 or to any por17 tion of an annuity under section 8467.’’.

Passed the House of Representatives April 20, 1999.

Attest: JEFF TRANDAHL,

Clerk.
Calendar No. 682

106TH CONGRESS

2D SESSION H. R. 208

[Report No. 106–343]

AN ACT

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

the contribution of certain rollover distributionsto accounts in the Thrift Savings Plan, to eliminate certain waiting-period requirements for participating in the Thrift Savings Plan, and forother purposes.

JULY 13, 2000

Reported with amendments