106TH CONGRESS

1ST SESSION H. R. 208

AN ACT

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
106TH CONGRESS

1ST SESSION H. R. 208

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.
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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:

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

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

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

10 the Internal Revenue Code of 1986; and

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

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

13 Revenue Code of 1986.

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

15 Thrift Savings Fund an eligible rollover distribution from

16 a qualified trust. A contribution made under this sub17 section shall be made in the form described in section

18 401(a)(31) of the Internal Revenue Code of 1986. In the

19 case of an eligible rollover distribution, the maximum

20 amount transferred to the Thrift Savings Fund shall not

21 exceed the amount which would otherwise have been in22 cluded in the employee’s or Member’s gross income for

23 Federal income tax purposes.

24 ‘‘(3) The Executive Director shall prescribe regula25 tions to carry out this subsection.’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

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

3 earlier date as the Executive Director (as defined by sec4 tion 8401 of title 5, United States Code) may by regula5 tion prescribe, but not before September 1, 2000.

6 SEC. 2. IMMEDIATE PARTICIPATION IN THE THRIFT SAV7 INGS PLAN.

8 (a) ELIMINATION OF CERTAIN WAITING PERIODS

9 FOR PURPOSES OF EMPLOYEE CONTRIBUTIONS.—Para10 graph (4) of section 8432(b) of title 5, United States

11 Code, is amended to read as follows:

12 ‘‘(4) The Executive Director shall prescribe such reg13 ulations as may be necessary to carry out the following:

14 ‘‘(A) Notwithstanding subparagraph (A) of

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

16 such subparagraph shall be afforded a reasonable

17 opportunity to first make an election under this sub18 section beginning on the date of commencing service

19 or, if that is not administratively feasible, beginning

20 on the earliest date thereafter that such an election

21 becomes administratively feasible, as determined by

22 the Executive Director.

23 ‘‘(B) An employee or Member described in sub24 paragraph (B) of paragraph (2) shall be afforded a

25 reasonable opportunity to first make an election
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1 under this subsection (based on the appointment or

2 election described in such subparagraph) beginning

3 on the date of commencing service pursuant to such

4 appointment or election or, if that is not administra5 tively feasible, beginning on the earliest date there6 after that such an election becomes administratively

7 feasible, as determined by the Executive Director.

8 ‘‘(C) Notwithstanding the preceding provisions

9 of this paragraph, contributions under paragraphs

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

11 with respect to any pay period before the earliest

12 pay period for which such contributions would other13 wise be allowable under this subsection if this para14 graph had not been enacted.

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

16 8440b(a)(2), 8440c(a)(2), and 8440d(a)(2) shall be

17 applied in a manner consistent with the purposes of

18 subparagraphs (A) and (B), to the extent those sub19 paragraphs can be applied with respect thereto.

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

21 paragraph (3).’’.

22 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

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

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

2 and inserting ‘‘(b)’’; and

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

4 follows: ‘‘Contributions under this subsection pursu5 ant to such an election shall, with respect to each

6 pay period for which such election remains in effect,

7 be made in accordance with a program of regular

8 contributions provided in regulations prescribed by

9 the Executive Director.’’.

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

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

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

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

14 is amended by striking ‘‘Notwithstanding paragraph

15 (2)(A), an’’ and inserting ‘‘An’’.

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

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

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

19 8432(c)(1)’’ and inserting ‘‘section 8432’’.

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

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

22 in this paragraph shall be considered to limit the dissemi23 nation of information only to the times required under the

24 preceding sentence.’’.
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1 (6) Sections 8440a(a)(2) and 8440d(a)(2) of title 5,

2 United States Code, are amended by striking all after

3 ‘‘subject to’’ and inserting ‘‘this chapter.’’.

4 (c) EFFECTIVE DATE.—

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

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

7 such earlier date as the Executive Director (as de8 fined by section 8401 of title 5, United States Code)

9 may by regulation prescribe, but not before Sep10 tember 1, 2000.

11 (2) SAVINGS PROVISION.—Notwithstanding any

12 other provision of this section, until the amendments

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

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

15 not been enacted.

16 SEC. 3. ADDITIONAL GOVERNMENT CONTRIBUTIONS FOR

17 RETIREMENT.

18 (a) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—

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

20 by adding at the end the following:

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

22 chapter, effective with respect to contributions for pay pe23 riods beginning on or after October 1, 2000, the normal24 cost percentage used for purposes of any computation

25 under this subsection shall be equal to—
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1 ‘‘(A) the percentage that would otherwise apply

2 if this paragraph had not been enacted, plus

3 ‘‘(B) .01 of 1 percentage point.’’.

4 (b) SUPPLEMENTAL LIABILITY.—For purposes of ap5 plying section 8423(b) of title 5, United States Code, and

6 section 857(b) of the Foreign Service Act of 1980 (22

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

8 this section had never been enacted.

9 (c) LIMITATION ON SOURCE OF ADDITIONAL CON10 TRIBUTIONS.—Notwithstanding section 8423(a)(3) of title

11 5, United States Code, or any other provision of law, the

12 additional Government contributions required to be made

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

14 be made out of any amounts available to the employing

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

16 other amounts available for the payment of employee sala17 ries or benefits.

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

19 Federal Employees’ Retirement System Act of 1986 (Pub20 lic Law 99–335; 5 U.S.C. 8401 note) is amended by in21 serting ‘‘, including the additional amount required under
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1 section 8423(a)(5)(B) of such title 5,’’ after ‘‘Federal Em2 ployees’ Retirement System’’.

Passed the House of Representatives April 20, 1999.

Attest:

Clerk.