I 
110TH CONGRESS 
2D SESSION 
H. R. 6500 
To amend title 5, United States Code, to provide for the automatic enrollment 
of new participants in the Thrift Savings Plan, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 15, 2008 
Mr. WAXMAN (for himself, Mr. TOM DAVIS of Virginia, and Mr. DAVIS of Illi-
nois) introduced the following bill; which was referred to the Committee 
on Oversight and Government Reform 
A BILL 
To amend title 5, United States Code, to provide for the 
automatic enrollment of new participants in the Thrift 
Savings Plan, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Thrift Savings Plan Enhancement Act of 2008’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Automatic enrollments. 
Sec. 3. Qualified Roth contribution program. 
Sec. 4. Authority to establish self-directed investment options. 
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Sec. 5. Reporting requirements. 
Sec. 6. Acknowledgement of risk. 
SEC. 2. AUTOMATIC ENROLLMENTS. 
(a) AUTOMATIC ENROLLMENT
OF NEW PARTICI-
PANTS.— 
(1) IN GENERAL.—Section 8432(b) of title 5, 
United States Code, is amended by striking para-
graphs (2) through (4) and inserting the following: 
‘‘(2)(A) The Board shall by regulation provide for 
new participants to be automatically enrolled to make con-
tributions under subsection (a) at the default percentage 
of basic pay. 
‘‘(B) For purposes of this paragraph, the default per-
centage shall be equal to 3 percent or such other percent-
age, not less than 2 percent nor more than 5 percent, as 
the Board may by regulation prescribe. 
‘‘(C) The regulations shall include provisions under 
which any individual who would otherwise be automatically 
enrolled in accordance with subparagraph (A) may— 
‘‘(i) modify the percentage or amount to be con-
tributed pursuant to automatic enrollment, effective 
from the start of such enrollment; or 
‘‘(ii) decline automatic enrollment altogether. 
‘‘(D) For purposes of this paragraph, the term ‘new 
participant’ means any individual participating in the 
Thrift Savings Plan pursuant to an appointment or elec-
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tion which occurs after any regulations under subpara-
graph (A) first take effect. 
‘‘(E) Sections 8351(a)(1), 8440a(a)(1), 8440b(a)(1), 
8440c(a)(1), 8440d(a)(1), and 8440e(a)(1) shall be ap-
plied in a manner consistent with the purposes of this 
paragraph.’’. 
(2) 
TECHNICAL
AMENDMENT.—Section 
8432(b)(1) of title 5, United States Code, is amend-
ed by striking the parenthetical matter in subpara-
graph (B). 
(b) DEFAULT INVESTMENTS.—Section 8438(c)(2) of 
title 5, United States Code, is amended to read as follows: 
‘‘(2) If an election has not been made with respect 
to any sums in the Thrift Savings Fund which are avail-
able for investment, the Executive Director shall invest 
such sums in— 
‘‘(A) the Government Securities Investment 
Fund; or 
‘‘(B) such alternative fund or funds (in lieu of 
the fund under subparagraph (A)) as the Board may 
designate in regulations. 
The designation of an alternative fund by regulations 
under subparagraph (B) may be made only if, in the judg-
ment of the Board, such designation would be in the best 
interests of participants. Any decision under the preceding 
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sentence shall be made after consultation with the Em-
ployee Thrift Advisory Council (established under section 
8473).’’. 
SEC. 3. QUALIFIED ROTH CONTRIBUTION PROGRAM. 
(a) IN GENERAL.—Subchapter III of chapter 84 of 
title 5, United States Code, is amended by inserting after 
section 8432c the following: 
‘‘§ 8432d. Qualified Roth contribution program 
‘‘(a) DEFINITIONS.—For purposes of this section— 
‘‘(1) the term ‘qualified Roth contribution pro-
gram’ means a program described in paragraph (1) 
of section 402A(b) of the Internal Revenue Code of 
1986 which meets the requirements of paragraph (2) 
of such section; and 
‘‘(2) the terms ‘designated Roth contribution’ 
and ‘elective deferral’ have the meanings given such 
terms in section 402A of the Internal Revenue Code 
of 1986. 
‘‘(b) AUTHORITY TO ESTABLISH.—The Board shall 
by regulation provide for the inclusion in the Thrift Sav-
ings Plan of a qualified Roth contribution program, under 
such terms and conditions as the Board may prescribe. 
‘‘(c) REQUIRED PROVISIONS.—The regulations under 
subsection (b) shall include— 
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‘‘(1) provisions under which an election to make 
designated Roth contributions may be made— 
‘‘(A) by any individual who is eligible to 
make 
contributions 
under 
section 
8351, 
8432(a), 8440a, 8440b, 8440c, 8440d, or 
8440e; and 
‘‘(B) by any individual, not described in 
subparagraph (A), who is otherwise eligible to 
make elective deferrals under the Thrift Sav-
ings Plan; 
‘‘(2) any provisions which may, as a result of 
the enactment of this section, be necessary in order 
to clarify the meaning of any reference to an ‘ac-
count’ made in section 8432(f), 8433, 8434(d), 
8435, 8437, or any other provision of law; and 
‘‘(3) any other provisions which may be nec-
essary to carry out this section.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 84 of title 5, United States Code, is amended by insert-
ing after the item relating to section 8432c the following: 
‘‘8432d. Qualified Roth contribution program.’’. 
SEC. 4. AUTHORITY TO ESTABLISH SELF-DIRECTED IN-
VESTMENT OPTIONS. 
(a) IN GENERAL.—Section 8438(b)(1) of title 5, 
United States Code, is amended— 
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(1) in subparagraph (D), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (E), by striking the period 
and inserting ‘‘; and’’; and 
(3) by adding after subparagraph (E) the fol-
lowing: 
‘‘(F) self-directed investment options, if 
the Board authorizes such options under para-
graph (5).’’. 
(b) REQUIREMENTS.—Section 8438(b) of title 5, 
United States Code, is amended by adding at the end the 
following: 
‘‘(5)(A) The Board may authorize the addition of 
self-directed investment options under the Thrift Savings 
Plan if the Board determines that the addition of such 
options would be in the best interests of participants. 
‘‘(B) The self-directed investment options shall be 
limited to— 
‘‘(i) low-cost, passively-managed index funds 
that offer diversification benefits; and 
‘‘(ii) other investment options, if the Board de-
termines the options to be appropriate retirement in-
vestment vehicles for participants. 
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‘‘(C) The Board shall ensure that any administrative 
expenses related to self-directed investment options are 
borne solely by the participants who use such options. 
‘‘(D) The Board may establish such other terms and 
conditions for self-directed investment options as the 
Board considers appropriate to protect the interests of 
participants, including requirements relating to risk dis-
closure. 
‘‘(E) The Board shall consult with the Employee 
Thrift Advisory Council (established under section 8473) 
before establishing any self-directed investment option.’’. 
SEC. 5. REPORTING REQUIREMENTS. 
(a) ANNUAL REPORT.—The Board shall, not later 
than March 31 of each year, submit to Congress an annual 
report on the operations of the Thrift Savings Plan. Such 
report shall include, for the prior calendar year, informa-
tion on the number of participants as of the last day of 
such prior calendar year, the median balance in partici-
pants’ accounts as of such last day, demographic informa-
tion on participants, the percentage allocation of amounts 
among investment funds or options, the status of the de-
velopment and implementation of self-directed investment 
options, and such other information as the Board con-
siders appropriate. A copy of each annual report under 
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this subsection shall be made available to the public 
through an Internet website. 
(b) REPORTING
OF FEES
AND OTHER INFORMA-
TION.— 
(1) IN GENERAL.—The Board shall include in 
the periodic statements provided to participants 
under section 8439(c) the amount of the investment 
management fees, administrative expenses, and any 
other fees or expenses paid with respect to each in-
vestment fund and option under the Thrift Savings 
Plan. Any such statement shall also provide— 
(A) information on the employee’s esti-
mated income replacement rate, as determined 
by the Executive Director based on the employ-
ee’s most recent account balance and rates of 
contributions; and 
(B) a statement notifying participants as 
to how they may access the annual report de-
scribed in subsection (a) as well as any other 
information concerning the Thrift Savings Plan 
that might be useful. 
(2) USE OF ESTIMATES.—For purposes of pro-
viding the information required under this sub-
section, the Executive Director may provide a rea-
sonable and representative estimate of any fees or 
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expenses described in paragraph (1) and shall indi-
cate any such estimate as being such an estimate. 
Any such estimate shall be based on the previous 
year’s experience. 
(c) DEFINITIONS.—For purposes of this section— 
(1) the term ‘‘Board’’ has the meaning given 
such term by 8401(5) of title 5, United States Code; 
(2) the term ‘‘participant’’ has the meaning 
given such term by section 8471(3) of title 5, United 
States Code; and 
(3) the term ‘‘account’’ means an account es-
tablished under section 8439 of title 5, United 
States Code. 
SEC. 6. ACKNOWLEDGEMENT OF RISK. 
(a) IN GENERAL.—Section 8439(d) of title 5, United 
States Code, is amended— 
(1) by striking the matter after ‘‘who elects to 
invest in’’ and before ‘‘shall sign an acknowledge-
ment’’ and inserting ‘‘any investment fund or option 
under this chapter, other than the Government Se-
curities Investment Fund,’’; and 
(2) by striking ‘‘either such Fund’’ and insert-
ing ‘‘any such fund or option’’. 
(b) COORDINATION WITH PROVISIONS RELATING TO 
INVESTMENTS IN THE ABSENCE OF AN ELECTION.—Sub-
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section (d) of section 8439 of title 5, United States Code 
(as amended by subsection (a)) is further amended— 
(1) by redesignating subsection (d) as sub-
section (d)(1); and 
(2) by adding at the end the following: 
‘‘(2)(A) In the case of an investment made under sec-
tion 8438(c)(2) in any fund or option to which paragraph 
(1) would otherwise apply, the participant involved shall, 
for purposes of this subsection, be deemed— 
‘‘(i) to have elected to invest in such fund or 
option; and 
‘‘(ii) to have executed the acknowledgement re-
quired under paragraph (1). 
‘‘(B)(i) The Executive Director shall prescribe regu-
lations under which written notice shall be provided to a 
participant whenever an investment is made under section 
8438(c)(2)(B) on behalf of such particpant in the absence 
of an affirmative election described in section 8438(c)(1). 
‘‘(ii) The regulations shall ensure that any such no-
tice shall be provided to the participant within 7 calendar 
days after the effective date of the default election. 
‘‘(C) For purposes of this paragraph, the term ‘par-
ticipant’ has the meaning given such term by section 
8471(3).’’. 
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(c) COORDINATION WITH PROVISIONS RELATING TO 
FIDUCIARY RESPONSIBILITIES, LIABILITIES, AND PEN-
ALTIES.—Section 8477(e)(1)(C) is amended— 
(1) by redesignating subparagraph (C) as sub-
paragraph (C)(i); and 
(2) by adding at the end the following: 
‘‘(ii) A fiduciary shall not be liable under subpara-
graph (A), and no civil action may be brought against a 
fiduciary— 
‘‘(I) for providing for the automatic enrollment 
of 
a 
participant 
in 
accordance 
with 
section 
8432(b)(2)(A); or 
‘‘(II) for enrolling a participant in a default in-
vestment 
fund 
in 
accordance 
with 
section 
8438(c)(2)(B).’’. 
Æ 
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