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.

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 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) beginning on the date of 
    commencing service pursuant to such appointment or election or, if 
    that is not administratively feasible, 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 
    paragraph, 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 
    consistent 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 election 
    shall, with respect to each pay period for which such election 
    remains in effect, be made in accordance with a program 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 
paragraph (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 regulations.
        (2) Savings provision.--Notwithstanding any other provision of 
    this section, until the amendments made by this section 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 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.

Summary: Requires the Office of Personnel Management (OPM) to prescribe regulations under which a lump-sum credit for an employee's or Member's retirement contributions shall not be paid without the consent of the employee's or Member's spouse and former spouse where OPM has received information or documentation that a court order bars payment of the credit in order to preserve the court's ability to award a survivor or former spouse's annuity, or that payment of the credit would extinguish the spouse's or former spouse's entitlement, under a court order on file, to such an annuity.