Title: TSP Modernization Act of 2017
Policy area: Government Operations and Politics

Summary:
TSP Modernization Act of 2017
This bill modifies the rules relating to withdrawals from the Thrift Savings Plan accounts of former federal employees and Members of Congress. Under current law, such employees and Members may make only one partial withdrawal upon reaching age 59-1/2 while employed or one withdrawal after retirement. The bill permits an unlimited number of such withdrawals.
The bill also eliminates: (1) the automatic annuity as a default option if the plan participant does not make an election to establish an annuity, and (2) the limitation on age-based in-service withdrawals.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3031 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 3031

  To amend title 5, United States Code, to provide for flexibility in 
 making withdrawals from a Thrift Savings Plan account, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 23, 2017

  Mr. Cummings (for himself and Mr. Meadows) 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 flexibility in 
 making withdrawals from a Thrift Savings Plan account, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``TSP Modernization Act of 2017''.

SEC. 2. THRIFT SAVINGS PLAN ACCOUNT WITHDRAWAL FLEXIBILITY.

    (a) Post-Separation Partial Withdrawals.--Section 8433(c) of title 
5, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``and who has not made a withdrawal 
                under subsection (h)(1)(A) may make one withdrawal'' 
                and inserting ``may make one or more withdrawals''; and
                    (B) by striking ``as a single payment'' and 
                inserting ``in the same manner as a single payment is 
                made''; and
            (2) by adding at the end the following:
    ``(5) Withdrawals under this subsection shall be subject to such 
other limitations or conditions as the Executive Director may prescribe 
by regulation.''.
    (b) Limitation on Return of Payment Relating to a Change in 
Election.--Section 8433(d) of title 5, United States Code, is amended--
            (1) in paragraph (1), by inserting ``, except that in the 
        case of an election to receive an annuity, a former employee or 
        Member may not change an election under this section on or 
        after the date on which an annuity contract is purchased to 
        provide for the annuity elected by the former employee or 
        Member'' after ``this subchapter''; and
            (2) in paragraph (2)--
                    (A) by striking ``change an'' and inserting 
                ``return a payment that was made pursuant to an''; and
                    (B) by striking ``on or after'' and all that 
                follows through ``the former employee or Member''.
    (c) Elimination of Automatic Annuity in Absence of Election.--
Section 8433(f) of title 5, United States Code, is amended--
            (1) by striking ``(1) Notwithstanding'' and inserting 
        ``Notwithstanding'';
            (2) by striking ``this paragraph'' and inserting ``this 
        subsection''; and
            (3) by striking paragraph (2).
    (d) Allowance of Multiple Age-Based In-Service Withdrawals.--
Section 8433(h) of title 5, United States Code, is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (2), (3), and (4), respectively; and
            (3) in paragraph (3), as so redesignated, by inserting 
        ``limitations or'' before ``conditions''.
    (e) Technical Amendment.--Section 8432b(h)(2)(A) of title 5, United 
States Code, is amended by striking ``section 8433(d), or paragraph (1) 
or (2) of section 8433(h)'' and inserting ``subsection (d) or (f) of 
section 8433''.
    (f) Regulations.--As soon as is practicable, as determined by the 
Executive Director of the Federal Retirement Thrift Investment Board, 
the Executive Director shall prescribe such regulations as are 
necessary to carry out the amendments made by this section.
    (g) Effective Date.--The amendments made by this section shall take 
effect on the date on which the regulations prescribed under subsection 
(f) take effect.
                                 <all>