113TH CONGRESS 

2D SESSION S. 2117 

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 

†S 2117 ES

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) Except as provided in subparagraph (B), if 

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

9 available for investment in the Thrift Savings Fund, the 

10 Executive Director shall invest such sums in an age-appro11 priate target date asset allocation portfolio of the funds 

12 described in subsection (b), as determined by the Execu13 tive Director. 

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

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

16 Thrift Savings Fund under section 8440e with respect to 

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

18 Savings Fund account, the Executive Director shall invest 

19 such sums in the Government Securities Investment 

20 Fund.’’. 

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

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

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

24 and 

25 (2) by adding at the end the following: 
3 

†S 2117 ES

1 ‘‘(2) Before the date on which an individual is en2 rolled to make contributions to the Thrift Savings Fund, 

3 or as soon as practical thereafter, an individual who is 

4 automatically enrolled under section 8432(b)(2) shall re5 ceive the risk acknowledgment information described in 

6 paragraph (1).’’. 

7 (c) TECHNICAL AND CONFORMING AMENDMENT.— 

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

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

10 to be invested in securities of the Government’’ and insert11 ing ‘‘under section 8438(c)(2)(B)’’. 

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

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

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

15 United States Code) shall develop and issue guidance im16 plementing the amendments made by this section. 

17 (e) EFFECTIVE DATE AND APPLICATION.—The 

18 amendments made by this section shall— 

19 (1) take effect on the date on which the Execu20 tive Director issues guidance under subsection (d); 

21 and 

22 (2) apply to individuals who enroll in the Thrift 

23 Savings Plan on or after such date. 
4 

†S 2117 ES

1 SEC. 3. CLARIFICATION OF FIDUCIARY PROTECTIONS. 

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

3 Code, is amended— 

4 (1) in subclause (II)— 

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

6 ‘‘participant’’; and 

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

8 and 

9 (2) in subclause (III)— 

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

11 ‘‘participant’’; and 

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

13 ‘‘participants’ ’’. 

Passed the Senate September 16, 2014. 

Attest: 

Secretary. 

113TH CONGRESS 

2D SESSION S. 2117 

AN ACT 

To amend title 5, United States Code, to change 

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