I
105TH CONGRESS
2D SESSION
H. R. 4603
To establish a portable retirement option for political appointees and
congressional employees.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 18, 1998
Mr. SESSIONS introduced the following bill; which was referred to the Commit-
tee on Government Reform and Oversight, and in addition to the Com-
mittee on House Oversight, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
A BILL
To establish a portable retirement option for political
appointees and congressional employees.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PORTABLE RETIREMENT OPTION FOR POLITI-
CAL APPOINTEES AND CONGRESSIONAL EM-
PLOYEES.
Subchapter III of chapter 84 of title 5, United States
Code, is amended by adding at the end the following new
section:
‘‘§ 8440e. Portable retirement option for political ap-
pointees and congressional employees
‘‘(a) There is established under this section a portable
retirement option for political appointees and congres-
sional employees. A political appointee or congressional
employee who elects to participate in the portable retire-
ment option under this section shall not be eligible to re-
ceive any other benefit under this chapter.
‘‘(b)(1) A political appointee eligible under this sec-
tion is an individual who is appointed to a position—
‘‘(A) by the President with the advice and con-
sent of the Senate;
‘‘(B) by the President;
‘‘(C) excepted from the competitive service be-
cause of its confidential, policy-determining, policy-
making, or policy-advocacy character; or
‘‘(D) as a noncareer appointee (as defined in
section 3132(a)(7)).
‘‘(2) A political appointee or congressional employee
may elect to participate in the portable retirement option
under subsection (a) after the 90-day period following the
commencement of the appointment or employment of the
appointee or employee, respectively. The election to par-
ticipate in the portable retirement option under subsection
(a) shall be irrevocable.
‘‘(3) Benefits shall not vest under the portable retire-
ment option established under subsection (a) until a politi-
cal appointee or congressional employee has completed one
year of service with the employing agency.
‘‘(4) The retirement option under this section shall
be composed of a defined contribution component, with re-
spect to which the following contributions shall apply:
‘‘(A) A mandatory contribution by the employ-
ing agency of six percent of the basic pay of the po-
litical appointee or congressional employee.
‘‘(B) A voluntary contribution by the political
appointee or congressional employee of up to seven
percent of the basic pay of the appointee or em-
ployee, which shall be matched in full by a contribu-
tion by the employing agency.
‘‘(5) Contributions under paragraph (4) shall be de-
posited into a Defined Contribution System Account from
which tax-free, penalty-free distributions may be made for
the purpose of purchasing life insurance, disability insur-
ance, and long-term care insurance. Funds from the ac-
count shall be invested in the Thrift Savings Fund.
‘‘(6) Except as otherwise provided in this section,
payment of benefits shall be in accordance with the provi-
sions in sections 8433 through 8436 of this title. The tax
treatment of contributions and distributions under this