H. R. 208
One Hundred Sixth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the twenty-fourth day of January, two thousand
An Act
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.
Be it enacted by the Senate and House of Representatives 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 that a qualified trust could accept
under the Internal Revenue Code of 1986. 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 transferred
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 at the earliest practicable date after September
30, 2000, as determined by the Executive Director in regulations.
SEC. 2. IMMEDIATE PARTICIPATION IN THE THRIFT SAVINGS 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 regulations
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 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
H. R. 208—2
administratively feasible, as determined by the Executive
Director.
‘‘(B) An employee or Member described in subparagraph
(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) begin-
ning on the date of commencing service pursuant to such
appointment or election or, if that is not administratively fea-
sible, beginning on the earliest date thereafter that such an
election becomes administratively feasible, as determined by
the Executive Director.
‘‘(C) Notwithstanding the preceding provisions of this para-
graph, 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
otherwise be allowable 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 con-
sistent with the purposes of subparagraphs (A) and (B), to
the extent those subparagraphs 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 pursuant to such an elec-
tion shall, with respect to each pay period for which such
election remains in effect, be made in accordance with a pro-
gram 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 para-
graph (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 dissemination 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 ‘‘subject to’’ and inserting
‘‘this chapter.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section
shall take effect at the earliest practicable date after September
30, 2000, as determined by the Executive Director in regula-
tions.
(2) SAVINGS PROVISION.—Notwithstanding any other provi-
sion of this section, until the amendments made by this section
H. R. 208—3
take effect, title 5, United States Code, shall be applied as
if this section had not been enacted.
SEC. 3. COURT ORDERS AFFECTING REFUNDS.
(a) CIVIL SERVICE RETIREMENT SYSTEM.—Section 8342( j)(1) of
title 5, United States Code, is amended to read as follows:
‘‘( j)(1)(A) Payment of the lump-sum credit under subsection
(a) may be made only if the spouse, if any, and any former spouse
of the employee or Member are notified of the employee or Member’s
application.
‘‘(B) The Office shall prescribe regulations under which the
lump-sum credit shall not be paid without the consent of a spouse
or former spouse of the employee or Member where the Office
has received such additional information and documentation as
the Office may require that—
‘‘(i) a court order bars payment of the lump-sum credit
in order to preserve the court’s ability to award an annuity
under section 8341(h) or section 8345( j); or
‘‘(ii) payment of the lump-sum credit would extinguish the
entitlement of the spouse or former spouse, under a court
order on file with the Office, to a survivor annuity under
section 8341(h) or to any portion of an annuity under section
8345( j).’’.
(b) 
FEDERAL
EMPLOYEES
RETIREMENT
SYSTEM.—Section
8424(b)(1) of title 5, United States Code, is amended to read as
follows:
‘‘(b)(1)(A) Payment of the lump-sum credit under subsection
(a) may be made only if the spouse, if any, and any former spouse
of the employee or Member are notified of the employee or Member’s
application.
‘‘(B) The Office shall prescribe regulations under which the
lump-sum credit shall not be paid without the consent of a spouse
or former spouse of the employee or Member where the Office
has received such additional information or documentation as the
Office may require that—
‘‘(i) a court order bars payment of the lump-sum credit
in order to preserve the court’s ability to award an annuity
under section 8445 or 8467; or
‘‘(ii) payment of the lump-sum credit would extinguish the
entitlement of the spouse or former spouse, under a court
order on file with the Office, to a survivor annuity under
H. R. 208—4
section 8445 or to any portion of an annuity under section
8467.’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.