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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 fol-
lowing:
‘‘(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.’’.
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(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 sec-
tion 8401 of title 5, United States Code) may by regula-
tion 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.—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
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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—
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(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 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.’’.
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(6) Sections 8440a(a)(2) and 8440d(a)(2) of title 5,
United States Code, are amended by striking all after
‘‘subject 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 de-
fined by section 8401 of title 5, United States Code)
may by regulation prescribe, but not before Sep-
tember 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
chapter, effective with respect to contributions for pay pe-
riods beginning on or after October 1, 2000, the normal-
cost percentage used for purposes of any computation
under this subsection shall be equal to—
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‘‘(A) the percentage that would otherwise apply
if this paragraph had not been enacted, plus
‘‘(B) .01 of 1 percentage point.’’.
(b) SUPPLEMENTAL LIABILITY.—For purposes of ap-
plying section 8423(b) of title 5, United States Code, and
section 857(b) of the Foreign Service Act of 1980 (22
U.S.C. 4071f(b)), all amounts shall be determined as if
this section had never been enacted.
(c) LIMITATION ON SOURCE OF ADDITIONAL CON-
TRIBUTIONS.—Notwithstanding section 8423(a)(3) of title
5, United States Code, or any other provision of law, the
additional Government contributions required to be made
by reason of the amendment made by subsection (a) shall
be made out of any amounts available to the employing
agency involved, other than any appropriation, fund, or
other amounts available for the payment of employee sala-
ries or benefits.
(d) CONFORMING AMENDMENT.—Section 307 of the
Federal Employees’ Retirement System Act of 1986 (Pub-
lic Law 99–335; 5 U.S.C. 8401 note) is amended by in-
serting ‘‘, including the additional amount required under
section 8423(a)(5)(B) of such title 5,’’ after ‘‘Federal Em-
ployees’ Retirement System’’.
Passed the House of Representatives April 20, 1999.
Attest:
JEFF TRANDAHL,
Clerk.