TSP Modernization Act of 2017

Bill: 115-s-873
Sponsor: full_name: Sen. Portman, Rob [R-OH]
Introduced: 2017-04-06
Policy area: Government Operations and Politics
Subjects: Employee benefits and pensions

Government employee pay, benefits, personnel management
Latest action: action_date: 2017-11-08
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 260.

Summaries:
action_date: 2017-04-06
action_desc: Introduced in Senate
text: <p> <b>TSP Modernization Act of 2017</b></p>     <p>This bill modifies the rules relating to withdrawals from the Thrift Saving Plan (TSP) 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.</p> <p>The bill also eliminates: (1) the withdrawal election deadline (i.e., by April 1 of the year after the year in which the plan participant turns 70-1/2 or is separated from service); and (2) the limitation on age-based in-service withdrawals.</p>

tv_txt: II 115th CONGRESS 1st Session S. 873 IN THE SENATE OF THE UNITED STATES April 6 (legislative day, April 4), 2017 Mr. Portman (for himself and Mr. Carper ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To amend section 8433 of title 5, United States Code, to provide for flexibility in making withdrawals from the Thrift Savings Fund.

1. Short title This Act may be cited as the TSP Modernization Act of 2017 . 2. Withdrawal flexibility (a) Post-Separation partial withdrawals Section 8433(c) of title 5, United States Code, is amended— (1) in paragraph (1), by striking and who has not made a withdrawal under subsection (h)(1)(A) may make one withdrawal and inserting may make 1 or more withdrawals ; and (2) by adding at the end the following: (5) Withdrawals under this subsection shall be subject to such other conditions as the Executive Director may prescribe by regulation. . (b) Stopping periodic payments Section 8433(d)(2) of title 5, United States Code, is amended— (1) by striking change an and inserting return a payment that was made under ; and (2) by striking a payment and inserting such payment . (c) Elimination of withdrawal election deadline Section 8433(f) of title 5, United States Code, is amended— (1) by striking (1) Notwithstanding and inserting Notwithstanding ; and (2) by striking paragraph (2). (d) Age-Based in-Service withdrawals Section 8433(h) of title 5, United States Code, is amended— (1) by striking paragraph (2); and (2) by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively. (e) Technical and conforming 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 administratively feasible, as determined by the Executive Director of the Federal Retirement Thrift Investment Board, the Executive Director shall prescribe regulations to carry out the amendments made by this section. (g) Effective date; applicability The amendments made by this section shall— (1) take effect on the date of enactment of this Act; and (2) apply on and after the effective date of the regulations prescribed under subsection (f).

tv_txt: II Calendar No. 260 115th CONGRESS 1st Session S. 873 [Report No. 115–183] IN THE SENATE OF THE UNITED STATES April 6 (legislative day, April 4), 2017 Mr. Portman (for himself, Mr. Carper , Ms. Duckworth , Mr. Rounds , and Mr. Kaine ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs November 8, 2017 Reported by Mr. Johnson , with an amendment Insert the part printed in italic A BILL To amend section 8433 of title 5, United States Code, to provide for flexibility in making withdrawals from the Thrift Savings Fund.

1. Short title This Act may be cited as the TSP Modernization Act of 2017 . 2. Withdrawal flexibility (a) Post-Separation partial withdrawals Section 8433(c) of title 5, United States Code, is amended— (1) in paragraph (1), by striking and who has not made a withdrawal under subsection (h)(1)(A) may make one withdrawal and inserting may make 1 or more withdrawals ; and (2) by adding at the end the following: (5) Withdrawals under this subsection shall be subject to such other conditions as the Executive Director may prescribe by regulation. . (b) Stopping periodic payments Section 8433(d)(2) of title 5, United States Code, is amended— (1) by striking change an and inserting return a payment that was made under an ; and (2) by striking a payment and inserting such payment . (c) Elimination of withdrawal election deadline Section 8433(f) of title 5, United States Code, is amended— (1) by striking (1) Notwithstanding and inserting Notwithstanding ; and (2) by striking paragraph (2). (d) Age-Based in-Service withdrawals Section 8433(h) of title 5, United States Code, is amended— (1) by striking paragraph (2); and (2) by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively. (e) Technical and conforming 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 administratively feasible, as determined by the Executive Director of the Federal Retirement Thrift Investment Board, the Executive Director shall prescribe regulations to carry out the amendments made by this section. (g) Effective date; applicability The amendments made by this section shall— (1) take effect on the date of enactment of this Act; and (2) apply on and after the effective date of the regulations prescribed under subsection (f).

November 8, 2017 Reported with an amendment