Union Calendar No. 453
105TH CONGRESS
2D SESSION
H. R. 2526
[Report No. 105–809]
A BILL
To amend title 5, United States Code, to make the
percentage limitations on individual contributions
to the Thrift Savings Plan more consistent with
the dollar amount limitation on elective deferrals,
and for other purposes.
OCTOBER 10, 1998
Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PERCENTAGE LIMITATIONS ON CONTRIBU-
TIONS.
(a) AMENDMENTS RELATING TO FERS.—
(1) IN
GENERAL.—Subsection (a) of section
8432 of such title is amended by striking ‘‘10 per-
cent of ’’.
(2) JUSTICES AND JUDGES.—Subsection (b) of
section 8440a of such title is amended—
(A) by striking paragraph (2) and by re-
designating paragraphs (3) through (7) as
paragraphs (2) through (6), respectively; and
(B) in paragraph (6) (as so redesignated
by subparagraph (A)) by striking ‘‘paragraphs
(4) and (5)’’ and inserting ‘‘paragraphs (3) and
(4)’’.
(3) 
BANKRUPTCY
JUDGES
AND
MAG-
ISTRATES.—Subsection (b) of section 8440b of such
title is amended—
(A) by striking paragraph (2) and by re-
designating paragraphs (3) through (8) as
paragraphs (2) through (7), respectively;
(B) in paragraph (4) (as so redesignated
by subparagraph (A)) by striking ‘‘paragraph
(4)(A), (B), or (C)’’ and inserting ‘‘paragraph
(3)(A), (B), or (C)’’; and
(C) in paragraph (7) (as so redesignated
by subparagraph (A)) by striking ‘‘Notwith-
standing paragraph (4),’’ and inserting ‘‘Not-
withstanding paragraph (3),’’.
(4) COURT
OF
FEDERAL
CLAIMS
JUDGES.—
Subsection (b) of section 8440c of such title is
amended—
(A) by striking paragraph (2) and by re-
designating paragraphs (3) through (8) as
paragraphs (2) through (7), respectively;
(B) in paragraph (4) (as so redesignated
by subparagraph (A)) by striking ‘‘paragraph
(4)(A) or (B)’’ and inserting ‘‘paragraph (3)(A)
or (B)’’; and
(C) in paragraph (7) (as so redesignated
by subparagraph (A)) by striking ‘‘Notwith-
standing paragraph (4),’’ and inserting ‘‘Not-
withstanding paragraph (3),’’.
(5) JUDGES OF THE UNITED STATES COURT OF
VETERANS
APPEALS.—Paragraph (2) of section
8440d(b) of such title is amended to read as follows:
‘‘(2) For purposes of contributions made to the Thrift
Savings Fund, basic pay does not include any retired pay
paid pursuant to section 7296 of title 38.’’.
(b) AMENDMENTS RELATING TO CSRS.—Paragraph
(2) of section 8351(b) of title 5, United States Code, is
amended by striking ‘‘5 percent of ’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall take effect on the date of the en-
actment of this Act.
(2) COORDINATION
WITH
ELECTION
PERI-
ODS.—The Executive Director shall by regulation
determine the first election period in which elections
may be made consistent with the amendments made
by this section.
(3) DEFINITIONS.—For purposes of this sec-
tion—
(A) the term ‘‘election period’’ means a pe-
riod afforded under section 8432(b) of title 5,
United States Code; and
(B) the term ‘‘Executive Director’’ has the
meaning given such term by section 8401(13)
of title 5, United States Code.
SEC. 2. ELIGIBLE ROLLOVER DISTRIBUTIONS.
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 sub-
section 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 transferred to the Thrift Savings Fund shall not
exceed the amount which would otherwise have been in-
cluded in the employee’s or Member’s gross income for
Federal income tax purposes.
‘‘(3) The Executive Director shall prescribe regula-
tions to carry out this subsection.’’.
SEC. 3. IMMEDIATE PARTICIPATION IN THE THRIFT SAV-
INGS PLAN.
(a) ELIMINATION OF CERTAIN WAITING PERIODS
FOR PURPOSES OF EMPLOYEE CONTRIBUTIONS.—Para-
graph (4) of section 8432(b) of title 5, United States
Code, is amended to read as follows:
‘‘(4) The Executive Director shall prescribe such reg-
ulations as may be necessary to carry out the following:
‘‘(A) Notwithstanding subparagraph (A) of
paragraph (2), an employee or Member described in
such subparagraph shall be afforded a reasonable
opportunity to first make an election under this sub-
section 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 Executive 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 respect to any pay period before the earliest
pay period for which such contributions would other-
wise be allowable under this subsection if this para-
graph 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
contributions provided in regulations prescribed by
the Executive Director.’’.
(2) Section 8432(b)(1)(B) of such title is amended
by inserting ‘‘(or any election allowable by virtue of para-
graph (4))’’ after ‘‘subparagraph (A)’’.
(3) Section 8432(b)(3) of such title is amended by
striking ‘‘Notwithstanding paragraph (2)(A), an’’ and in-
serting ‘‘An’’.
(4) Section 8432(i)(1)(B)(ii) of such title is amended
by striking ‘‘either elected to terminate individual con-
tributions to the Thrift Savings Fund within 2 months
before commencing military service or’’.
(5) Section 8439(a)(1) of such title is amended by
inserting ‘‘who makes contributions or’’ after ‘‘for each
individual’’ and by striking ‘‘section 8432(c)(1)’’ and in-
serting ‘‘section 8432’’.
(6) Section 8439(c)(2) of such title is amended by
adding at the end the following: ‘‘Nothing in this para-
graph shall be considered to limit the dissemination of in-
formation only to the times required under the preceding
sentence.’’.
(7) Sections 8440a(a)(2) and 8440d(a)(2) of such
title are amended by striking all after ‘‘subject to’’ and
inserting ‘‘this chapter.’’.
(c) EFFECTIVE DATE.—This section shall take effect
6 months after the date of the enactment of this Act or
such earlier date as the Executive Director (within the
meaning of section 8401(13) of title 5, United States
Code) may by regulation prescribe.