113TH CONGRESS 

2D SESSION H. R. 4193 

AN ACT 

To amend title 5, United States Code, to change the default 

investment fund under 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, 
2 

•HR 4193 EH

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Smart Savings Act’’. 

3 SEC. 2. THRIFT SAVINGS PLAN DEFAULT INVESTMENT 

4 FUND. 

5 (a) IN GENERAL.—Section 8438(c)(2) of title 5, 

6 United States Code, is amended to read as follows: 

7 ‘‘(2)(A) Consistent with the requirements of subpara8 graph (B), if an election has not been made with respect 

9 to any sums available for investment in the Thrift Savings 

10 Fund, the Executive Director shall invest such sums in 

11 an age-appropriate target date asset allocation investment 

12 fund, as determined by the Executive Director. Such in13 vestment fund shall consist of any of the funds described 

14 in subsection (b). 

15 ‘‘(B) If an election has not been made by an eligible 

16 member under section 8440e with respect to any sums 

17 available for investment in such member’s Thrift Savings 

18 Fund account, the Executive Director shall invest such 

19 sums in the Government Securities Investment Fund.’’. 

20 (b) ACKNOWLEDGMENT OF RISK.—Section 8439(d) 

21 of title 5, United States Code, is amended— 

22 (1) by inserting ‘‘(1)’’ before ‘‘Each employee’’; 

23 and 

24 (2) by adding at the end the following new 

25 paragraph: 
3 

•HR 4193 EH

1 ‘‘(2) Prior to enrollment in the Thrift Savings Fund, 

2 or as soon as practicable thereafter, an individual who is 

3 automatically enrolled pursuant to section 8432(b)(2) 

4 shall receive the risk acknowledgment information de5 scribed under paragraph (1).’’. 

6 (c) TECHNICAL AND CONFORMING AMENDMENT.— 

7 Section 8472(g)(2) of title 5, United States Code, is 

8 amended by striking ‘‘required by section 8438 of this title 

9 to be invested in securities of the Government’’ and insert10 ing ‘‘under section 8438(c)(2)(B)’’. 

11 (d) GUIDANCE.—Not later than 9 months after the 

12 date of enactment of this Act, the Executive Director (as 

13 that term is defined under section 8401(13) of title 5, 

14 United States Code) shall develop and issue guidance im15 plementing the requirements of this Act. 

16 (e) EFFECTIVE DATE AND APPLICATION.—The 

17 amendments made by subsections (a) and (b) shall— 

18 (1) take effect on the date that the Executive 

19 Director issues guidance under subsection (d); and 

20 (2) apply to individuals enrolled in the Thrift 

21 Savings Plan on or after such date. 

22 SEC. 3. CLARIFICATION OF FIDUCIARY PROTECTIONS. 

23 Section 8477(e)(1)(C)(ii) of title 5, United States 

24 Code, is amended— 

25 (1) in subclause (II)— 
4 

•HR 4193 EH

1 (A) by inserting ‘‘or beneficiary’’ after 

2 ‘‘participant’’; and 

3 (B) by inserting ‘‘or option’’ after ‘‘fund’’; 

4 and 

5 (2) in subclause (III)— 

6 (A) by inserting ‘‘or beneficiary’’ after 

7 ‘‘participant’’; and 

8 (B) by inserting ‘‘or beneficiaries’ ’’ after 

9 ‘‘participants’ ’’. 

Passed the House of Representatives July 14, 2014. 

Attest: 

Clerk. 

113TH CONGRESS 

2D SESSION H. R. 4193 

AN ACT 

To amend title 5, United States Code, to change 

Savings Plan, and for other purposes. the default investment fund under the Thrift