Smart Savings Act

Bill: 113-s-2117
Sponsor: full_name: Sen. Warren, Elizabeth [D-MA]
Introduced: 2014-03-12
Policy area: Government Operations and Politics
Subjects: Financial services and investments

Government employee pay, benefits, personnel management

Government trust funds

Securities
Latest action: action_date: 2014-09-17
text: Held at the desk.

Summaries:
action_date: 2014-03-12
action_desc: Introduced in Senate
text: <p>Smart Savings Act - Makes the default investment in the Thrift Savings Plan (TSP) an age-appropriate target date asset allocation portfolio (L Fund), instead of the Government Securities Investment Fund (G Fund), if no election has been made for the investment of available funds. Retains the Government Securities Investment Fund as the default fund for members of the uniformed services. Requires TSP participants whose default fund is an age-appropriate L Fund to sign a risk acknowledgement before beginning TSP contributions. </p>

action_date: 2014-07-31
action_desc: Reported to Senate without amendment
text: <p><b>(This measure has not been amended since it was introduced. The summary of that version is repeated here.)</b></p> <p>Smart Savings Act - Makes the default investment in the Thrift Savings Plan (TSP) an age-appropriate target date asset allocation portfolio (L Fund), instead of the Government Securities Investment Fund (G Fund), if no election has been made for the investment of available funds. Retains the Government Securities Investment Fund as the default fund for members of the uniformed services. Requires TSP participants whose default fund is an age-appropriate L Fund to sign a risk acknowledgement before beginning TSP contributions. </p>

action_date: 2014-09-16
action_desc: Passed Senate amended
text: <p>Smart Savings Act - Makes the default investment in the Thrift Savings Plan (TSP) an age-appropriate target date asset allocation portfolio (L Fund), instead of the Government Securities Investment Fund (G Fund), if no election has been made for the investment of available funds. Retains the Government Securities Investment Fund as the default fund for members of the Uniformed Services. Requires TSP participants whose default fund is an age-appropriate L Fund to receive a risk acknowledgement before being enrolled to make TSP contributions. </p> <p>Makes this Act: (1) effective on the date the Executive Director of the Federal Retirement Thrift Investment Board issues guidance for implementing this Act, and (2) applicable to individuals who enroll in the Thrift Savings Plan on or after such date. </p> <p>Extends requirements relating to fiduciary protections to TSP beneficiaries.</p> <p>

tv_txt: II 113th CONGRESS 2d Session S. 2117 IN THE SENATE OF THE UNITED STATES March 12, 2014 Ms. Warren (for herself and Mr. Portman ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To amend title 5, United States Code, to change the default investment fund under the Thrift Savings Plan, and for other purposes.

1. Short title This Act may be cited as the Smart Savings Act . 2. Thrift Savings Plan default investment fund (a) In general Section 8438(c)(2) of title 5, United States Code, is amended to read as follows: (2) (A) Except as provided in subparagraph (B), if an election has not been made with respect to any sums available for investment in the Thrift Savings Fund, the Executive Director shall invest such sums in an age-appropriate target date asset allocation portfolio of the funds described in subsection (b), as determined by the Executive Director. (B) If an election has not been made by a member (as defined in section 211 of title 37) contributing to the Thrift Savings Fund under section 8440e with respect to any sums available for investment in such member’s Thrift Savings Fund account, the Executive Director shall invest such sums in the Government Securities Investment Fund. . (b) Acknowledgment of risk Section 8439(d) of title 5, United States Code, is amended— (1) by inserting (1) before Each employee ; and (2) by adding at the end the following: (2) Before the date on which an individual covered under section 8438(c)(2)(A) begins contributing to the Thrift Savings Fund, the individual shall sign a risk acknowledgment described under paragraph (1). . (c) Technical and conforming amendment Section 8472(g)(2) of title 5, United States Code, is amended by striking required by section 8438 of this title to be invested in securities of the Government and inserting under section 8438(c)(2)(B) . (d) Guidance Not later than 9 months after the date of enactment of this Act, the Executive Director (as that term is defined under section 8401(13) of title 5, United States Code) shall develop and issue guidance implementing the amendments made by this section. (e) Effective date and application The amendments made by this section shall— (1) take effect on the date on which the Executive Director issues guidance under subsection (d); and (2) apply to individuals contributing to the Thrift Savings Fund on or after such date.

tv_txt: II Calendar No. 522 113th CONGRESS 2d Session S. 2117 IN THE SENATE OF THE UNITED STATES March 12, 2014 Ms. Warren (for herself, Mr. Portman , Mr. Begich , Mr. Enzi , and Mr. Tester ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs July 31, 2014 Reported by Mr. Carper , without amendment A BILL To amend title 5, United States Code, to change the default investment fund under the Thrift Savings Plan, and for other purposes.

1. Short title This Act may be cited as the Smart Savings Act . 2. Thrift Savings Plan default investment fund (a) In general Section 8438(c)(2) of title 5, United States Code, is amended to read as follows: (2) (A) Except as provided in subparagraph (B), if an election has not been made with respect to any sums available for investment in the Thrift Savings Fund, the Executive Director shall invest such sums in an age-appropriate target date asset allocation portfolio of the funds described in subsection (b), as determined by the Executive Director. (B) If an election has not been made by a member (as defined in section 211 of title 37) contributing to the Thrift Savings Fund under section 8440e with respect to any sums available for investment in such member’s Thrift Savings Fund account, the Executive Director shall invest such sums in the Government Securities Investment Fund. . (b) Acknowledgment of risk Section 8439(d) of title 5, United States Code, is amended— (1) by inserting (1) before Each employee ; and (2) by adding at the end the following: (2) Before the date on which an individual covered under section 8438(c)(2)(A) begins contributing to the Thrift Savings Fund, the individual shall sign a risk acknowledgment described under paragraph (1). . (c) Technical and conforming amendment Section 8472(g)(2) of title 5, United States Code, is amended by striking required by section 8438 of this title to be invested in securities of the Government and inserting under section 8438(c)(2)(B) . (d) Guidance Not later than 9 months after the date of enactment of this Act, the Executive Director (as that term is defined under section 8401(13) of title 5, United States Code) shall develop and issue guidance implementing the amendments made by this section. (e) Effective date and application The amendments made by this section shall— (1) take effect on the date on which the Executive Director issues guidance under subsection (d); and (2) apply to individuals contributing to the Thrift Savings Fund on or after such date.

July 31, 2014 Reported without amendment

tv_txt: 113th CONGRESS 2d Session S. 2117 IN THE SENATE OF THE UNITED STATES AN ACT To amend title 5, United States Code, to change the default investment fund under the Thrift Savings Plan, and for other purposes.

1. Short title This Act may be cited as the Smart Savings Act . 2. Thrift Savings Plan default investment fund (a) In general Section 8438(c)(2) of title 5, United States Code, is amended to read as follows: (2) (A) Except as provided in subparagraph (B), if an election has not been made with respect to any sums available for investment in the Thrift Savings Fund, the Executive Director shall invest such sums in an age-appropriate target date asset allocation portfolio of the funds described in subsection (b), as determined by the Executive Director. (B) If an election has not been made by a member (as defined in section 211 of title 37) contributing to the Thrift Savings Fund under section 8440e with respect to any sums available for investment in such member’s Thrift Savings Fund account, the Executive Director shall invest such sums in the Government Securities Investment Fund. . (b) Acknowledgment of risk Section 8439(d) of title 5, United States Code, is amended— (1) by inserting (1) before Each employee ; and (2) by adding at the end the following: (2) Before the date on which an individual is enrolled to make contributions to the Thrift Savings Fund, or as soon as practical thereafter, an individual who is automatically enrolled under section 8432(b)(2) shall receive the risk acknowledgment information described in paragraph (1). . (c) Technical and conforming amendment Section 8472(g)(2) of title 5, United States Code, is amended by striking required by section 8438 of this title to be invested in securities of the Government and inserting under section 8438(c)(2)(B) . (d) Guidance Not later than 9 months after the date of enactment of this Act, the Executive Director (as that term is defined under section 8401(13) of title 5, United States Code) shall develop and issue guidance implementing the amendments made by this section. (e) Effective date and application The amendments made by this section shall— (1) take effect on the date on which the Executive Director issues guidance under subsection (d); and (2) apply to individuals who enroll in the Thrift Savings Plan on or after such date. 3. Clarification of fiduciary protections Section 8477(e)(1)(C)(ii) of title 5, United States Code, is amended— (1) in subclause (II)— (A) by inserting or beneficiary after participant ; and (B) by inserting or option after fund ; and (2) in subclause (III)— (A) by inserting or beneficiary after participant ; and (B) by inserting or beneficiaries'  after participants'  .

Passed the Senate September 16, 2014. Secretary