II 

Calendar No. 522 

113TH CONGRESS 

2D SESSION S. 2117 

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

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

IN THE SENATE OF THE UNITED STATES 

MARCH 12, 2014 

Ms. WARREN (for herself, Mr. PORTMAN, Mr. BEGICH, Mr. ENZI, and Mr. 

TESTER) introduced the following bill; which was read twice and referred 

to the Committee on Homeland Security and Governmental Affairs 

JULY 31, 2014 

Reported by Mr. CARPER, without amendment 

A BILL 

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, 

3 SECTION 1. SHORT TITLE. 

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


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1 SEC. 2. THRIFT SAVINGS PLAN DEFAULT INVESTMENT 

2 FUND. 

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

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

5 ‘‘(2)(A) Except as provided in subparagraph (B), if 

6 an election has not been made with respect to any sums 

7 available for investment in the Thrift Savings Fund, the 

8 Executive Director shall invest such sums in an age-appro9 priate target date asset allocation portfolio of the funds 

10 described in subsection (b), as determined by the Execu11 tive Director. 

12 ‘‘(B) If an election has not been made by a member 

13 (as defined in section 211 of title 37) contributing to the 

14 Thrift Savings Fund under section 8440e with respect to 

15 any sums available for investment in such member’s Thrift 

16 Savings Fund account, the Executive Director shall invest 

17 such sums in the Government Securities Investment 

18 Fund.’’. 

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

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

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

22 and 

23 (2) by adding at the end the following: 

24 ‘‘(2) Before the date on which an individual covered 

25 under section 8438(c)(2)(A) begins contributing to the 


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1 Thrift Savings Fund, the individual shall sign a risk ac2 knowledgment described under paragraph (1).’’. 

3 (c) TECHNICAL AND CONFORMING AMENDMENT.— 

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

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

6 to be invested in securities of the Government’’ and insert7 ing ‘‘under section 8438(c)(2)(B)’’. 

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

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

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

11 United States Code) shall develop and issue guidance im12 plementing the amendments made by this section. 

13 (e) EFFECTIVE DATE AND APPLICATION.—The 

14 amendments made by this section shall— 

15 (1) take effect on the date on which the Execu16 tive Director issues guidance under subsection (d); 

17 and 

18 (2) apply to individuals contributing to the 

19 Thrift Savings Fund on or after such date. 


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Calendar No. 522 

113TH CONGRESS 

2D SESSION S. 2117 

A BILL 

To amend title 5, United States Code, to change 

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

JULY 31, 2014 

Reported without amendment 


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