[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4603 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4603

To establish a portable retirement option for political appointees and 
                        congressional employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 1998

 Mr. Sessions introduced the following bill; which was referred to the 
 Committee on Government Reform and Oversight, and in addition to the 
     Committee on House Oversight, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To establish a portable retirement option for political appointees and 
                        congressional employees.

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

SECTION 1. PORTABLE RETIREMENT OPTION FOR POLITICAL APPOINTEES AND 
              CONGRESSIONAL EMPLOYEES.

    Subchapter III of chapter 84 of title 5, United States Code, is 
amended by adding at the end the following new section:
``Sec. 8440e. Portable retirement option for political appointees and 
              congressional employees
    ``(a) There is established under this section a portable retirement 
option for political appointees and congressional employees. A 
political appointee or congressional employee who elects to participate 
in the portable retirement option under this section shall not be 
eligible to receive any other benefit under this chapter.
    ``(b)(1) A political appointee eligible under this section is an 
individual who is appointed to a position--
            ``(A) by the President with the advice and consent of the 
        Senate;
            ``(B) by the President;
            ``(C) excepted from the competitive service because of its 
        confidential, policy-determining, policy-making, or policy-
        advocacy character; or
            ``(D) as a noncareer appointee (as defined in section 
        3132(a)(7)).
    ``(2) A political appointee or congressional employee may elect to 
participate in the portable retirement option under subsection (a) 
after the 90-day period following the commencement of the appointment 
or employment of the appointee or employee, respectively. The election 
to participate in the portable retirement option under subsection (a) 
shall be irrevocable.
    ``(3) Benefits shall not vest under the portable retirement option 
established under subsection (a) until a political appointee or 
congressional employee has completed one year of service with the 
employing agency.
    ``(4) The retirement option under this section shall be composed of 
a defined contribution component, with respect to which the following 
contributions shall apply:
            ``(A) A mandatory contribution by the employing agency of 
        six percent of the basic pay of the political appointee or 
        congressional employee.
            ``(B) A voluntary contribution by the political appointee 
        or congressional employee of up to seven percent of the basic 
        pay of the appointee or employee, which shall be matched in 
        full by a contribution by the employing agency.
    ``(5) Contributions under paragraph (4) shall be deposited into a 
Defined Contribution System Account from which tax-free, penalty-free 
distributions may be made for the purpose of purchasing life insurance, 
disability insurance, and long-term care insurance. Funds from the 
account shall be invested in the Thrift Savings Fund.
    ``(6) Except as otherwise provided in this section, payment of 
benefits shall be in accordance with the provisions in sections 8433 
through 8436 of this title. The tax treatment of contributions and 
distributions under this section shall be in accordance with the 
provisions in section 8440 of this title.
    ``(7) Appointees and employees eligible under this subsection may 
transfer funds from the Thrift Savings Fund into other eligible 
retirement plans.''.
    (b) Conforming Amendments.--(1) Chapter 84 of title 5, United 
States Code, is amended in section 8437 by striking ``section 8432'' 
and inserting ``sections 8432 or 8440e''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``8440e. Portable retirement option for political appointees and 
                            congressional employees.''.
    (c) Applicability.--Section 8440e of title 5, United States Code 
(as added by subsection (a)), shall apply with respect to--
            (1) a political appointee whose appointment begins after 
        the date of the enactment of this Act; and
            (2) a congressional employee who begins employment after 
        the date of the enactment of this Act.
                                 <all>