[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1624 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1624

To standardize withdrawal options for Thrift Savings Plan participants, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             November 4 (legislative day, November 2), 1993

Mr. Stevens  (for himself and Mr. Pryor) introduced the following bill; 
  which was read twice and referred to the Committee on Governmental 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
To standardize withdrawal options for Thrift Savings Plan participants, 
                        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. STANDARDIZATION OF WITHDRAWAL OPTIONS FOR THRIFT SAVINGS 
              PLAN PARTICIPANTS.

    (a) Participation in the Thrift Savings Plan.--Section 8351(b) of 
title 5, United States Code, is amended--
            (1) by amending paragraph (4) to read as follows:
            ``(4) Section 8433(b) of this title applies to any employee 
        or Member who elects to make contributions to the Thrift 
        Savings Fund under subsection (a) of this section and separates 
        from Government employment.'';
            (2) by striking out paragraphs (5), (6), and (8);
            (3) by redesignating paragraphs (7), (9), and (10) as 
        paragraphs (5), (6), and (7), respectively;
            (4) in paragraph (5)(C) (as redesignated under paragraph 
        (3) of this subsection) by striking out ``or former spouse'' in 
        both places it appears;
            (5) by amending paragraph (6) (as redesignated under 
        paragraph (3) of this subsection) to read as follows:
            ``(6) Notwithstanding paragraph (4), if an employee or 
        Member separates from Government employment and such employee's 
        or Member's nonforfeitable account balance is $3,500 or less, 
        the Executive Director shall pay the nonforfeitable account 
        balance to the participant in a single payment unless the 
        employee or Member elects, at such time and otherwise in such 
        manner as the Executive Director prescribes, one of the options 
        available under subsection (b).''; and
            (6) in paragraph (7) (as redesignated under paragraph (3) 
        of this subsection) by striking out ``nonforfeiture'' and 
        inserting in lieu thereof ``nonforfeitable''.
    (b) Benefits and Election of Benefits.--Section 8433 of title 5, 
United States Code, is amended--
            (1) in subsection (b) by striking out the matter before 
        paragraph (1) and inserting in lieu thereof ``Subject to 
        section 8435 of this title, any employee or Member who 
        separates from Government employment entitled to an annuity 
        under subchapter II of this chapter or any employee or Member 
        who separates from Government employment is entitled and may 
        elect--'';
            (2) by striking out subsections (c) and (d) and 
        redesignating subsections (e), (f), (g), (h), and (i) as 
        subsections (c), (d), (e), (f), and (g), respectively;
            (3) in subsection (c)(1) (as redesignated under paragraph 
        (2) of this subsection) by striking out ``or (c)(4) or required 
        under subsection (d) directly to an eligible retirement plan or 
        plans) (as defined in section 402(a)(5)(E) of the Internal 
        Revenue Code of 1954)'' and inserting in lieu thereof 
        ``directly to an eligible retirement plan or plans (as defined 
        in section 402(c)(8) of the Internal Revenue Code of 1986)'';
            (4) in subsection (d)(2) (as redesignated under paragraph 
        (2) of this subsection) by striking out ``or (c)(2)''; and
            (5) in subsection (f) (as redesignated under paragraph (2) 
        of this subsection)--
                    (A) by striking out paragraph (1) and redesignating 
                paragraphs (2) and (3) as paragraphs (1) and (2), 
                respectively; and
                    (B) in paragraph (1) (as redesignated under 
                subparagraph (A) of this paragraph)--
                            (i) by striking out ``Notwithstanding 
                        subsections (b) and (c), if an employee or 
                        Member separates from Government employment 
                        under circumstances making such an employee or 
                        Member eligible to make an election under 
                        either of those subsections, and such 
                        employee's or Member's'' and inserting in lieu 
                        thereof ``Notwithstanding subsection (b), if an 
                        employee or Member separates from Government 
                        employment, and such employee's or Member's''; 
                        and
                            (ii) by striking out ``or (c), as 
                        applicable''; and
                    (C) in paragraph (2) (as redesignated under 
                subparagraph (A) of this paragraph) by striking out 
                ``paragraphs (1) and (2)'' and inserting in lieu 
                thereof ``paragraph (1)''.
    (c) Annuities: Methods of Payment; Election; Purchase.--Section 
8434(c) of title 5, United States Code, is amended to read as follows:
    ``(c) Notwithstanding an elimination of a method of payment by the 
Board an employee, Member, former employee, or former Member may elect 
the eliminated method if the elimination of such method became 
effective less than 5 years before the date on which annuity 
commences.''.
    (d) Protections for Spouses and Former Spouses.--Section 8435 of 
title 5, United States Code, is amended--
            (1) in subsection (a)(1)(A) by striking out ``subsection 
        (b)(3), (b)(4), (c)(3), or (c)(4) of section 8433 of this title 
        or change an election previously made under subsection (b)(1), 
        (b)(2), (c)(1), or (c)(2)'' and inserting in lieu thereof 
        ``subsection (b)(3) or (b)(4) of section 8433 of this title or 
        change an election previously made under subsection (b)(1) or 
        (b)(2)'';
            (2) by striking out subsection (b);
            (3) by redesignating subsections (c), (d), (e), (f), (g), 
        (h), and (i) as subsections (b), (c), (d), (e), (f), (g), and 
        (h), respectively;
            (4) in subsection (b) (as redesignated under paragraph (3) 
        of this subsection) by amending paragraph (2) to read as 
        follows:
            ``(2) Paragraph (1) shall not apply, if--
                    ``(A) a joint waiver of such method is made, in 
                writing, by the employee or Member and the spouse; or
                    ``(B) the employee or Member waives such method, in 
                writing, after establishing to the satisfaction of the 
                Executive Director that circumstances described under 
                subsection (a)(2) (A) or (B) make the requirement of a 
                joint waiver inappropriate.''; and
            (5) in subsection (c)(1) (as redesignated under paragraph 
        (3) of this subsection) by striking out ``and a transfer may 
        not be made under section 8433(d) of this title''.
    (e) Justices and Judges.--Section 8440a(b) of title 5, United 
States Code, is amended--
            (1) in paragraph (5) by striking out ``Section 8433(d)'' 
        and inserting in lieu thereof ``Section 8433(b)''; and
            (2) by striking out paragraphs (7) and (8) and inserting in 
        lieu thereof the following:
            ``(7) Notwithstanding paragraphs (4) and (5), if any 
        justice or judge retires under subsection (a) or (b) of section 
        371 or section 372(a) of title 28, or resigns without having 
        met the age and service requirements set forth under section 
        371(c) of title 28, and such justice's or judge's 
        nonforfeitable account balance is $3,500 or less, the Executive 
        Director shall pay the nonforfeitable account balance to the 
        participant in a single payment unless the justice or judge 
        elects, at such time and otherwise in such manner as the 
        Executive Director prescribes, one of the options available 
        under section 8433(b).''.
    (f) Bankruptcy Judges and Magistrates.--Section 8440b of title 5, 
United States Code, is amended--
            (1) in subsection (b)(4) by amending subparagraph (B) to 
        read as follows:
                    ``(B) Section 8433(b) of this title applies to any 
                bankruptcy judge or magistrate who elects to make 
                contributions to the Thrift Savings Fund under 
                subsection (a) of this section and who retires before 
                attaining age 65 but is entitled, upon attaining age 
                65, to an annuity under section 377 of title 28 or 
                section 2(c) of the Retirement and Survivors Annuities 
                for Bankruptcy Judges and Magistrates Act of 1988.'';
            (2) in subsection (b)(4)(C) by striking out ``Section 
        8433(d)'' and inserting in lieu thereof ``Section 8433(b)'';
            (3) in subsection (b)(5) by striking out ``retirement under 
        section 377 of title 28 is'' and inserting in lieu thereof 
        ``any of the actions described under paragraph (4) (A), (B), or 
        (C) shall be considered'';
            (4) in subsection (b) by striking out paragraph (8) and 
        redesignating paragraph (9) as paragraph (8); and
            (5) in paragraph (8) of subsection (b) (as redesignated 
        under paragraph (4) of this subsection)--
                    (A) by striking out ``Notwithstanding subparagraphs 
                (A) and (B) of paragraph (4), if any bankruptcy judge 
                or magistrate retires under circumstances making such 
                bankruptcy judge or magistrate eligible to make an 
                election under subsection (b) or (c)'' and inserting in 
                lieu thereof ``Notwithstanding paragraph (4), if any 
                bankruptcy judge or magistrate retires under 
                circumstances making such bankruptcy judge or 
                magistrate eligible to make an election under 
                subsection (b)''; and
                    (B) by striking out ``and (c), as applicable''.
    (g) Claims Court Judges.--Section 8440c of title 5, United States 
Code, is amended--
            (1) in subsection (b)(4)(B) by striking out ``Section 
        8433(d)'' and inserting in lieu thereof ``Section 8433(b)'';
            (2) in subsection (b)(5) by striking out ``retirement under 
        section 178 of title 28, is'' and inserting in lieu thereof 
        ``any of the actions described in paragraph (4) (A) or (B) 
        shall be considered'';
            (3) in subsection (b) by striking out paragraph (8) and 
        redesignating paragraph (9) as paragraph (8); and
            (4) in paragraph (8) (as redesignated under paragraph (3) 
        of this subsection) by striking out ``Notwithstanding paragraph 
        (4)(A)'' and inserting in lieu thereof ``Notwithstanding 
        paragraph (4)''.
    (h) Judges of the United States Court of Veterans Appeals.--Section 
8440d(b)(5) of title 5, United States Code, is amended by striking out 
``A transfer shall be made as provided under section 8433(d) of this 
title'' and inserting in lieu thereof ``Section 8433(b) of this title 
applies''.
    (i) Technical and Conforming Amendments.--Chapters 83 and 84 of 
title 5, United States Code, are amended--
            (1) in section 8351(b)(5)(B) (as redesignated under 
        subsection (a)(3) of this section) by striking out ``section 
        8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
            (2) in section 8351(b)(5)(D) (as redesignated under 
        subsection (a)(3) of this section) by striking out ``section 
        8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
            (3) in section 8433(b)(4) by striking out ``subsection 
        (e)'' and inserting in lieu thereof ``subsection (c)'';
            (4) in section 8433(d)(1) (as redesignated under subsection 
        (b)(2) of this section) by striking out ``(d) of section 8435'' 
        and inserting in lieu thereof ``(c) of section 8435'';
            (5) in section 8433(d)(2) (as redesignated under subsection 
        (b)(2) of this section) by striking out ``section 8435(d)'' and 
        inserting in lieu thereof ``section 8435(c)'';
            (6) in section 8433(e) (as redesignated under subsection 
        (b)(2) of this section) by striking out ``section 8435(d)(2)'' 
        and inserting in lieu thereof ``section 8435(c)(2)'';
            (7) in section 8433(g)(5) (as redesignated under subsection 
        (b)(2) of this section) by striking out ``section 8435(f)'' and 
        inserting in lieu thereof ``section 8435(e)'';
            (8) in section 8434(b) by striking out ``section 8435(c)'' 
        and inserting in lieu thereof ``section 8435(b)'';
            (9) in section 8435(a)(1)(B) by striking out ``subsection 
        (c)'' and inserting in lieu thereof ``subsection (b)'';
            (10) in section 8435(d)(1)(B) (as redesignated under 
        subsection (d)(3) of this section) by striking out ``subsection 
        (d)(2)'' and inserting in lieu thereof ``subsection (c)(2)'';
            (11) in section 8435(d)(3)(A) (as redesignated under 
        subsection (d)(3) of this section) by striking out ``subsection 
        (c)(1)'' and inserting in lieu thereof ``subsection (b)(1)'';
            (12) in section 8435(d)(6) (as redesignated under 
        subsection (d)(3) of this section) by striking out ``or 
        (c)(2)'' and inserting in lieu thereof ``or (b)(2)'';
            (13) in section 8435(e)(1)(A) (as redesignated under 
        subsection (d)(3) of this section) by striking out ``section 
        8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
            (14) in section 8435(e)(2) (as redesignated under 
        subsection (d)(3) of this section) by striking out ``section 
        8433(i) of this title shall not be approved if approval would 
        have the result described in subsection (d)(1)'' and inserting 
        in lieu thereof ``section 8433(g) of this title shall not be 
        approved if approval would have the result described under 
        subsection (c)(1)'';
            (15) in section 8435(g) (as redesignated under subsection 
        (d)(3) of this section) by striking out ``section 8433(i)'' and 
        inserting in lieu thereof ``section 8433(g)'';
            (16) in section 8437(c)(5) by striking out ``section 
        8433(i)'' and inserting in lieu thereof ``section 8433(g)''; 
        and
            (17) in section 8440a(b)(6) by striking out ``section 
        8351(b)(7)'' and inserting in lieu thereof ``section 
        8351(b)(5)''.
    (j) Interim Provision.--Section 8433(d) of title 5, United States 
Code, is amended by striking out ``shall transfer the amount of the 
balance'' and inserting in lieu thereof ``may transfer the amount of 
the balance''.
    (k) Effective Dates.--(1) Except as provided in paragraph (2), the 
provisions of this section shall take effect 1 year after the date of 
enactment of this Act or upon such other date as the Executive Director 
of the Federal Retirement Thrift Investment Board shall provide in 
regulation.
    (2) The provisions of subsection (j) of this section shall take 
effect upon the date of the enactment of this Act.

                                 <all>