I 
108TH CONGRESS 
1ST SESSION H. R. 3101
To amend title 5, United States Code, to provide for the establishment 
of a precious metals investment option in the Thrift Savings Fund. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 16, 2003
Mr. PAUL (for himself, Mr. JONES of North Carolina, and Mrs. MUSGRAVE) 
introduced the following bill; which was referred to the Committee on 
Government Reform 
A BILL 
To amend title 5, United States Code, to provide for the 
establishment of a precious metals investment option in 
the Thrift Savings Fund.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Thrift Savings Fund 
Improvement Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) In order to enhance stability in the oper-
ations of the legislative branch of the Government,
it is important to maintain a professional congres-
sional staff and to promote longevity of service. 
(2) Consistent with paragraph (1), Congress 
has recently enacted legislation authorizing new ben-
efits, such as a student loan forgiveness program, 
and taken other measures to improve staff com-
pensation and benefits. 
(3) The Thrift Savings Plan is an important 
benefit which is offered to congressional employees, 
and which furthers the goal of attracting and retain-
ing talented individuals to serve in the legislative 
branch of the Government. 
(4) The 3 stock index funds in the Thrift Sav-
ings Plan have not performed well recently, espe-
cially when measured against inflation. In 2002, for 
example, losses from those funds were greater than 
3, 4, and 5 percent, respectively, in the month of 
December alone, and more than 15, 18, and 22 per-
cent, respectively, for the entire year. 
(5) By contrast, during that same year, the 
Government securities and bond index funds in the 
Thrift Savings Plan had earnings of 5 and 10 per-
cent, respectively, and, in December of that year 
alone, slightly more than 1⁄2 of 1 percent and 2 per-
cent, respectively.
(6) By yet greater contrast, increases in gold 
spot prices more than offset the losses experienced 
by even the worst-performing stock index fund in the 
Thrift Savings Plan in 2002, with the price of gold 
increasing by nearly 25 percent in that year and by 
more than 9 percent in December of that year alone. 
SEC. 3. PRECIOUS METALS INVESTMENT FUND. 
(a) FUND DEFINED.—Section 8438(a) of title 5, 
United States Code, is amended—
(1) in paragraph (9), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (10), by striking the period 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(11) the term ‘Precious Metals Investment 
Fund’ means the Precious Metals Investment Fund 
established under subsection (b)(1)(F).’’. 
(b) ESTABLISHMENT.—
(1) IN GENERAL.—Section 8438(b)(1) of title 
5, United States Code, is amended—
(A) in subparagraph (D), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (E), by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following:
‘‘(F) a Precious Metals Investment Fund 
as provided in paragraph (5).’’. 
(2) FUND REQUIREMENTS.—Section 8438(b) of 
title 5, United States Code, is amended by adding 
at the end the following: 
‘‘(5)(A) The Board shall establish a Precious Metals 
Investment Fund. 
‘‘(B) Contributions to the Precious Metals Invest-
ment Fund shall be invested in physical gold, silver, or 
platinum bullion (rather than any mining company shares, 
certificates, derivatives, or futures options), and any bul-
lion so acquired shall constitute the assets of the Precious 
Metals Investment Fund and shall be stored in a vault 
in a Federally chartered or State chartered bank. Each 
share in the Precious Metals Investment Fund shall rep-
resent a direct investment in the precious metal itself.’’. 
(c) ACKNOWLEDGMENT OF RISK.—Section 8439(d) 
of title 5, United States Code, is amended—
(1) by striking ‘‘or the Small Capitalization 
Stock Index Investment Fund,’’ and inserting ‘‘the 
Small Capitalization Stock Index Investment Fund, 
or the Precious Metals Investment Fund,’’; and 
(2) by striking ‘‘and (10),’’ and inserting ‘‘(10), 
and (11),’’.