[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 483 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 483

     To amend title 5, United States Code, to make the percentage 
limitations on individual contributions to the Thrift Savings Plan more 
consistent with the dollar amount limitation on elective deferrals, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 1999

Mrs. Morella (for herself, Mr. Underwood, Mr. Kennedy of Rhode Island, 
  Mr. Filner, Ms. Kilpatrick, Mr. Davis of Virginia, Mr. Hinchey, Mr. 
  Fattah, and Mr. Cummings) introduced the following bill; which was 
             referred to the Committee on Government Reform

_______________________________________________________________________

                                 A BILL


 
     To amend title 5, United States Code, to make the percentage 
limitations on individual contributions to the Thrift Savings Plan more 
consistent with the dollar amount limitation on elective deferrals, 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. PERCENTAGE LIMITATIONS ON CONTRIBUTIONS.

    (a) Amendments Relating to FERS.--
            (1) In general.--Subsection (a) of section 8432 of title 5, 
        United States Code, is amended by striking ``10 percent of''.
            (2) Justices and judges.--Subsection (b) of section 8440a 
        of title 5, United States Code, is amended--
                    (A) by striking paragraph (2) and by redesignating 
                paragraphs (3) through (7) as paragraphs (2) through 
                (6), respectively; and
                    (B) in paragraph (6) (as so redesignated by 
                subparagraph (A)) by striking ``paragraphs (4) and 
                (5)'' and inserting ``paragraphs (3) and (4)''.
            (3) Bankruptcy judges and magistrates.--Subsection (b) of 
        section 8440b of title 5, United States Code, is amended--
                    (A) by striking paragraph (2) and by redesignating 
                paragraphs (3) through (8) as paragraphs (2) through 
                (7), respectively;
                    (B) in paragraph (4) (as so redesignated by 
                subparagraph (A)) by striking ``paragraph (4)(A), (B), 
                or (C)'' and inserting ``paragraph (3)(A), (B), or 
                (C)''; and
                    (C) in paragraph (7) (as so redesignated by 
                subparagraph (A)) by striking ``Notwithstanding 
                paragraph (4),'' and inserting ``Notwithstanding 
                paragraph (3),''.
            (4) Court of federal claims judges.--Subsection (b) of 
        section 8440c of title 5, United States Code, is amended--
                    (A) by striking paragraph (2) and by redesignating 
                paragraphs (3) through (8) as paragraphs (2) through 
                (7), respectively;
                    (B) in paragraph (4) (as so redesignated by 
                subparagraph (A)) by striking ``paragraph (4)(A) or 
                (B)'' and inserting ``paragraph (3)(A) or (B)''; and
                    (C) in paragraph (7) (as so redesignated by 
                subparagraph (A)) by striking ``Notwithstanding 
                paragraph (4),'' and inserting ``Notwithstanding 
                paragraph (3),''.
            (5) Judges of the united states court of veterans 
        appeals.--Paragraph (2) of section 8440d(b) of title 5, United 
        States Code, is amended to read as follows:
    ``(2) For purposes of contributions made to the Thrift Savings 
Fund, basic pay does not include any retired pay paid pursuant to 
section 7296 of title 38.''.
    (b) Amendments Relating to CSRS.--Paragraph (2) of section 8351(b) 
of title 5, United States Code, is amended by striking ``5 percent 
of''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of enactment of this Act.
            (2) Coordination with election periods.--The Executive 
        Director shall by regulation determine the first election 
        period in which elections may be made consistent with the 
        amendments made by this section.
            (3) Definitions.--For purposes of this section--
                    (A) the term ``election period'' means a period 
                afforded under section 8432(b) of title 5, United 
                States Code; and
                    (B) the term ``Executive Director'' has the meaning 
                given such term by section 8401(13) of title 5, United 
                States Code.

SEC. 2. ELIGIBLE ROLLOVER DISTRIBUTIONS.

    Section 8432 of title 5, United States Code, is amended by adding 
at the end the following:
    ``(j)(1) For the purpose of this subsection--
            ``(A) the term `eligible rollover distribution' has the 
        meaning given such term by section 402(c)(4) of the Internal 
        Revenue Code of 1986; and
            ``(B) the term `qualified trust' has the meaning given such 
        term by section 402(c)(8) of the Internal Revenue Code of 1986.
    ``(2) An employee or Member may contribute to the Thrift Savings 
Fund an eligible rollover distribution from a qualified trust. A 
contribution made under this subsection shall be made in the form 
described in section 401(a)(31) of the Internal Revenue Code of 1986. 
In the case of an eligible rollover distribution, the maximum amount 
transferred to the Thrift Savings Fund shall not exceed the amount 
which would otherwise have been included in the employee's or Member's 
gross income for Federal income tax purposes.
    ``(3) The Executive Director shall prescribe regulations to carry 
out this subsection.''.

SEC. 3. IMMEDIATE PARTICIPATION IN THE THRIFT SAVINGS PLAN.

    (a) Elimination of Certain Waiting Periods for Purposes of Employee 
Contributions.--Paragraph (4) of section 8432(b) of title 5, United 
States Code, is amended to read as follows:
    ``(4) The Executive Director shall prescribe such regulations as 
may be necessary to carry out the following:
            ``(A) Notwithstanding subparagraph (A) of paragraph (2), an 
        employee or Member described in such subparagraph shall be 
        afforded a reasonable opportunity to first make an election 
        under this subsection beginning on the date of commencing 
        service or, if that is not administratively feasible, beginning 
        on the earliest date thereafter that such an election becomes 
        administratively feasible, as determined by the Executive 
        Director.
            ``(B) An employee or Member described in subparagraph (B) 
        of paragraph (2) shall be afforded a reasonable opportunity to 
        first make an election under this subsection (based on the 
        appointment or election described in such subparagraph) 
        beginning on the date of commencing service pursuant to such 
        appointment or election or, if that is not administratively 
        feasible, beginning on the earliest date thereafter that such 
        an election becomes administratively feasible, as determined by 
        the Executive Director.
            ``(C) Notwithstanding the preceding provisions of this 
        paragraph, contributions under paragraphs (1) and (2) of 
        subsection (c) shall not be payable with respect to any pay 
        period before the earliest pay period for which such 
        contributions would otherwise be allowable under this 
        subsection if this paragraph had not been enacted.
            ``(D) Sections 8351(a)(2), 8440a(a)(2), 8440b(a)(2), 
        8440c(a)(2), and 8440d(a)(2) shall be applied in a manner 
        consistent with the purposes of subparagraphs (A) and (B), to 
        the extent those subparagraphs can be applied with respect 
        thereto.
            ``(E) Nothing in this paragraph shall affect paragraph 
        (3).''.
    (b) Technical and Conforming Amendments.--(1) Section 8432(a) of 
title 5, United States Code, is amended--
            (A) in the first sentence by striking ``(b)(1)'' and 
        inserting ``(b)''; and
            (B) by amending the second sentence to read as follows: 
        ``Contributions under this subsection pursuant to such an 
        election shall, with respect to each pay period for which such 
        election remains in effect, be made in accordance with a 
        program of regular contributions provided in regulations 
        prescribed by the Executive Director.''.
    (2) Section 8432(b)(1)(B) of title 5, United States Code, is 
amended by inserting ``(or any election allowable by virtue of 
paragraph (4))'' after ``subparagraph (A)''.
    (3) Section 8432(b)(3) of title 5, United States Code, is amended 
by striking ``Notwithstanding paragraph (2)(A), an'' and inserting 
``An''.
    (4) Section 8432(i)(1)(B)(ii) of title 5, United States Code, is 
amended by striking ``either elected to terminate individual 
contributions to the Thrift Savings Fund within 2 months before 
commencing military service or''.
    (5) Section 8439(a)(1) of title 5, United States Code, is amended 
by inserting ``who makes contributions or'' after ``for each 
individual'' and by striking ``section 8432(c)(1)'' and inserting 
``section 8432''.
    (6) Section 8439(c)(2) of title 5, United States Code, is amended 
by adding at the end the following: ``Nothing in this paragraph shall 
be considered to limit the dissemination of information only to the 
times required under the preceding sentence.''.
    (7) Sections 8440a(a)(2) and 8440d(a)(2) of title 5, United States 
Code, are amended by striking all after ``subject to'' and inserting 
``this chapter.''.
    (c) Effective Date.--This section shall take effect 6 months after 
the date of enactment of this Act or such earlier date as the Executive 
Director (within the meaning of section 8401(13) of title 5, United 
States Code) may by regulation prescribe.
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