I
104TH CONGRESS
1ST SESSION
H. R. 2306
To amend title 5, United States Code, to provide additional investment
funds for the Thrift Savings Plan, and to make the percentage limitations
on individual contributions to such Plan more consistent with the dollar
amount limitation on elective deferrals.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 12, 1995
Mrs. MORELLA (for herself, Mr. MORAN, Mr. DAVIS, Mr. WOLF, Mr. FROST,
Mr. ACKERMAN, Mr. WELDON of Pennsylvania, Mr. PETRI, Ms. NORTON,
and Mr. MCCRERY) introduced the following bill; which was referred to
the Committee on Government Reform and Oversight
A BILL
To amend title 5, United States Code, to provide additional
investment funds for the Thrift Savings Plan, and to
make the percentage limitations on individual contribu-
tions to such Plan more consistent with the dollar
amount limitation on elective deferrals.
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 ‘‘Federal Thrift Savings
Plan Enhancement Act of 1995’’.
SEC. 2. ADDITIONAL INVESTMENT FUNDS.
(a) DEFINITIONS.—Subsection (a) of section 8438 of
title 5, United States Code, is amended—
(1) by redesignating paragraphs (5) through
(8) as paragraphs (6) through (9), respectively;
(2) by inserting after paragraph (4) the follow-
ing:
‘‘(5) the term ‘International Stock Index Invest-
ment Fund’ means the International Stock Index In-
vestment 
Fund 
established 
under 
subsection
(b)(1)(E);’’;
(3) by striking ‘‘and’’ at the end of paragraph
(8) (as so redesignated by paragraph (1));
(4) in paragraph (9) (as so redesignated by
paragraph (1))—
(A) by striking ‘‘paragraph (7)(D)’’ each
place it appears and inserting ‘‘paragraph
(8)(D)’’; and
(B) by striking the period and inserting ‘‘;
and’’; and
(5) by adding at the end the following:
‘‘(10) the term ‘Small Capitalization Stock
Index Investment Fund’ means the Small Capitaliza-
tion Stock Index Investment Fund established under
subsection (b)(1)(D).’’.
(b) 
ESTABLISHMENT
OF
NEW
INVESTMENT
FUNDS.—
(1) IN
GENERAL.—Paragraph (1) of section
8438(b) of such title is amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (B);
(B) by striking the period at the end of
subparagraph (C) and inserting a semicolon;
and
(C) by adding at the end the following:
‘‘(D) a Small Capitalization Stock Index Invest-
ment Fund as provided in paragraph (3); and
‘‘(E) an International Stock Index Investment
Fund as provided in paragraph (4).’’.
(2) SPECIFIC REQUIREMENTS.—Subsection (b)
of section 8438 of such title is amended by adding
at the end the following:
‘‘(3)(A) The Board shall select an index which is a
commonly recognized index comprised of common stock
the aggregate market value of which represents the United
States equity markets excluding the common stocks in-
cluded in the Common Stock Index Investment Fund.
‘‘(B) The Small Capitalization Stock Index Invest-
ment Fund shall be invested in a portfolio designed to rep-
licate the performance of the index in subparagraph (A).
The portfolio shall be designed such that, to the extent
practicable, the percentage of the Small Capitalization
Stock Index Investment Fund that is invested in each
stock is the same as the percentage determined by dividing
the aggregate market value of all shares of that stock by
the aggregate market value of all shares of all stocks in-
cluded in such index.
‘‘(4)(A) The Board shall select an index which is a
commonly recognized index comprised of stock the aggre-
gate market value of which is a reasonably complete rep-
resentation of the international equity markets excluding
the United States equity markets.
‘‘(B) The International Stock Index Investment Fund
shall be invested in a portfolio designed to replicate the
performance of the index in subparagraph (A). The port-
folio shall be designed such that, to the extent practicable,
the percentage of the International Stock Index Invest-
ment Fund that is invested in each stock is the same as
the percentage determined by dividing the aggregate mar-
ket value of all shares of that stock by the aggregate mar-
ket value of all shares of all stocks included in such
index.’’.
(c) ACKNOWLEDGEMENT OF INVESTMENT RISK.—
Subsection (d) of section 8439 of such title is amended—
(1) by striking ‘‘the Common Stock Index In-
vestment Fund or the Fixed Income Investment
Fund described in paragraphs (1) and (3), respec-
tively, of section 8438(a) of this title’’ and inserting
‘‘the Common Stock Index Investment Fund, the
Fixed Income Investment Fund, the International
Stock Index Investment Fund, or the Small Capital-
ization Stock Index Investment Fund’’; and
(2) by striking ‘‘either such Fund’’ and insert-
ing ‘‘any such Fund’’.
SEC. 3. PERCENTAGE LIMITATIONS ON CONTRIBUTIONS.
(a) AMENDMENTS RELATING TO FERS.—
(1) IN
GENERAL.—Subsection (a) of section
8432 of such title is amended by striking ‘‘10 per-
cent of’’.
(2) JUSTICES AND JUDGES.—Subsection (b) of
section 8440a of such title is amended—
(A) by striking paragraph (2) and by re-
designating paragraphs (3) through (7) as
paragraphs (2) through (6), respectively; and
(B) in paragraph (6) (as so redesignated
by subparagraph (A)) by striking ‘‘paragraphs
(4) and (5)’’ and inserting ‘‘paragraphs (3) and
(4)’’.
(3) 
BANKRUPTCY
JUDGES
AND
MAG-
ISTRATES.—Subsection (b) of section 8440b of such
title is amended—
(A) by striking paragraph (2) and by re-
designating paragraphs (3) through (8) as
paragraphs (2) through (7), respectively;
(B) in paragraph (4) (as so redesignated
by subparagraph (A)) by striking ‘‘paragraph
(4)(A), (B), or (C)’’ and inserting ‘‘paragraph
(3)(A), (B), or (C)’’; and
(C) in paragraph (7) (as so redesignated
by subparagraph (A)) by striking ‘‘Notwith-
standing paragraph (4),’’ and inserting ‘‘Not-
withstanding paragraph (3),’’.
(4) COURT
OF
FEDERAL
CLAIMS
JUDGES.—
Subsection (b) of section 8440c of such title is
amended—
(A) by striking paragraph (2) and by re-
designating paragraphs (3) through (8) as
paragraphs (2) through (7), respectively;
(B) in paragraph (4) (as so redesignated
by subparagraph (A)) by striking ‘‘paragraph
(4)(A) or (B)’’ and inserting ‘‘paragraph (3)(A)
or (B)’’; and
(C) in paragraph (7) (as so redesignated
by subparagraph (A)) by striking ‘‘Notwith-
standing paragraph (4),’’ and inserting ‘‘Not-
withstanding paragraph (3),’’.
(5) JUDGES OF THE UNITED STATES COURT OF
VETERANS
APPEALS.—Paragraph (2) of section
8440d(b) of such title is amended to read as follows:
‘‘(2) For purposes of contributions made to the Thrift
Savings Fund, basic pay does not include any retired pay
paid pursuant to section 7296 of title 38.’’.
(b) AMENDMENTS RELATING TO CSRS.—Paragraph
(2) of section 8351(b) of title 5, United States Code, is
amended by striking ‘‘5 percent of’’.
SEC. 4. EFFECTIVE DATE.
(a) IN GENERAL.—The amendments made by this
Act shall take effect on the date of the enactment of this
Act.
(b) COORDINATION WITH ELECTION PERIODS.—The
Executive Director shall by regulation determine—
(1) the first election period in which elections
may be made with respect to the new investment
funds established pursuant to the amendments made
by section 2; and
(2) the first election period in which elections
may be made consistent with the amendments made
by section 3.
(c) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘election period’’ means a period
afforded under section 8432(b) of title 5, United
States Code; and
(2) the term ‘‘Executive Director’’ has the
meaning given such term by section 8401(13) of
title 5, United States Code.
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