IB
Union Calendar No. 47
106TH CONGRESS
1ST SESSION
H. R. 208
[Report No. 106–87]
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 waiting-period requirements for participating in the
Thrift Savings Plan, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 6, 1999
Mrs. MORELLA (for herself, Mr. FROST, Mr. HINCHEY, Mr. GOSS, Mr.
SKEEN, Mr. BISHOP, and Mr. SANDLIN) introduced the following bill;
which was referred to the Committee on Government Reform
APRIL 13, 1999
Additional sponsors: Mr. LAFALCE, Mrs. MEEK of Florida, Mr. CASTLE, Mr.
FILNER, Mr. DAVIS of Virginia, Mr. TOWNS, Mr. MANZULLO, Ms. NOR-
TON, Mr. KUCINICH, Mr. STARK, Mr. WELDON of Florida, Ms. LEE, Mr.
UNDERWOOD, Mr. CLEMENT, Mr. KOLBE, Mr. CUMMINGS, Mr. SES-
SIONS, Mr. ENGEL, Mr. WYNN, Mr. FORBES, Mr. MOORE, Mr. PASTOR,
Mr. WOLF, and Mr. CAPUANO
APRIL 13, 1999
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on January 6, 1999]
A BILL
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 waiting-
period requirements for participating in the Thrift Sav-
ings Plan, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. ELIGIBLE ROLLOVER DISTRIBUTIONS.
(a) IN GENERAL.—Section 8432 of title 5, United
States Code, is amended by adding at the end the following:
‘‘(j)(1) For the purpose of this subsection—
‘‘(A) the term ‘eligible rollover distribution’ has
the meaning given such term by section 402(c)(4) of
the Internal Revenue Code of 1986; and
‘‘(B) the term ‘qualified trust’ has the meaning
given such term by section 402(c)(8) of the Internal
Revenue Code of 1986.
‘‘(2) An employee or Member may contribute to the
Thrift Savings Fund an eligible rollover distribution from
a qualified trust. A contribution made under this subsection
shall be made in the form described in section 401(a)(31)
of the Internal Revenue Code of 1986. In the case of an
eligible rollover distribution, the maximum amount trans-
ferred to the Thrift Savings Fund shall not exceed the
amount which would otherwise have been included in the
employee’s or Member’s gross income for Federal income tax
purposes.
‘‘(3) The Executive Director shall prescribe regulations
to carry out this subsection.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall take effect on October 1, 2000, or such earlier
date as the Executive Director (as defined by section 8401
of title 5, United States Code) may by regulation prescribe,
but not before September 1, 2000.
SEC. 2. IMMEDIATE PARTICIPATION IN THE THRIFT SAV-
INGS PLAN.
(a) ELIMINATION OF CERTAIN WAITING PERIODS FOR
PURPOSES
OF EMPLOYEE CONTRIBUTIONS.—Paragraph
(4) of section 8432(b) of title 5, United States Code, is
amended to read as follows:
‘‘(4) The Executive Director shall prescribe such regu-
lations as may be necessary to carry out the following:
‘‘(A) Notwithstanding subparagraph (A) of para-
graph (2), an employee or Member described in such
subparagraph shall be afforded a reasonable oppor-
tunity to first make an election under this subsection
beginning on the date of commencing service or, if
that is not administratively feasible, beginning on the
earliest date thereafter that such an election becomes
administratively feasible, as determined by the Execu-
tive Director.
‘‘(B) An employee or Member described in sub-
paragraph (B) of paragraph (2) shall be afforded a
reasonable opportunity to first make an election
under this subsection (based on the appointment or
election described in such subparagraph) beginning
on the date of commencing service pursuant to such
appointment or election or, if that is not administra-
tively feasible, beginning on the earliest date there-
after that such an election becomes administratively
feasible, as determined by the Executive Director.
‘‘(C) Notwithstanding the preceding provisions of
this paragraph, contributions under paragraphs (1)
and (2) of subsection (c) shall not be payable with re-
spect to any pay period before the earliest pay period
for which such contributions would otherwise be al-
lowable under this subsection if this paragraph had
not been enacted.
‘‘(D) 
Sections 
8351(a)(2), 
8440a(a)(2),
8440b(a)(2), 8440c(a)(2), and 8440d(a)(2) shall be
applied in a manner consistent with the purposes of
subparagraphs (A) and (B), to the extent those sub-
paragraphs can be applied with respect thereto.
‘‘(E) Nothing in this paragraph shall affect
paragraph (3).’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—(1)
Section 8432(a) of title 5, United States Code, is
amended—
(A) in the first sentence by striking ‘‘(b)(1)’’ and
inserting ‘‘(b)’’; and
(B) by amending the second sentence to read as
follows: ‘‘Contributions under this subsection pursu-
ant to such an election shall, with respect to each pay
period for which such election remains in effect, be
made in accordance with a program of regular con-
tributions provided in regulations prescribed by the
Executive Director.’’.
(2) Section 8432(b)(1)(B) of title 5, United States
Code, is amended by inserting ‘‘(or any election allowable
by virtue of paragraph (4))’’ after ‘‘subparagraph (A)’’.
(3) Section 8432(b)(3) of title 5, United States Code,
is amended by striking ‘‘Notwithstanding paragraph
(2)(A), an’’ and inserting ‘‘An’’.
(4) Section 8439(a)(1) of title 5, United States Code,
is amended by inserting ‘‘who makes contributions or’’ after
‘‘for each individual’’ and by striking ‘‘section 8432(c)(1)’’
and inserting ‘‘section 8432’’.
(5) Section 8439(c)(2) of title 5, United States Code,
is amended by adding at the end the following: ‘‘Nothing
in this paragraph shall be considered to limit the dissemi-
nation of information only to the times required under the
preceding sentence.’’.
(6) Sections 8440a(a)(2) and 8440d(a)(2) of title 5,
United States Code, are amended by striking all after ‘‘sub-
ject to’’ and inserting ‘‘this chapter.’’.
(c) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by
this section shall take effect on October 1, 2000, or
such earlier date as the Executive Director (as defined
by section 8401 of title 5, United States Code) may
by regulation prescribe, but not before September 1,
2000.
(2) SAVINGS PROVISION.—Notwithstanding any
other provision of this section, until the amendments
made by this section take effect, title 5, United States
Code, shall be applied as if this section had not been
enacted.
SEC. 3. ADDITIONAL GOVERNMENT CONTRIBUTIONS FOR
RETIREMENT.
(a) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—
Section 8423(a) of title 5, United States Code, is amended
by adding at the end the following:
‘‘(5) Notwithstanding any other provision of this chap-
ter, effective with respect to contributions for pay periods
beginning on or after October 1, 2000, the normal-cost per-