[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1804 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1804

To amend title 5, United States Code, to make certain modifications in 
 the Thrift Savings Plan, the Civil Service Retirement System, and the 
     Federal Employees' Retirement System, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 31, 2009

 Mr. Towns (for himself, Mr. Skelton, Mr. Waxman, Mr. Lynch, and Mrs. 
Davis of California) introduced the following bill; which was referred 
to the Committee on Oversight and Government Reform, and in addition to 
   the Committee on Armed Services, 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 amend title 5, United States Code, to make certain modifications in 
 the Thrift Savings Plan, the Civil Service Retirement System, and the 
     Federal Employees' Retirement System, 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. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Retirement 
Reform Act of 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
      TITLE I--PROVISIONS RELATING TO FEDERAL EMPLOYEES RETIREMENT

              Subtitle A--Thrift Savings Plan Enhancement

Sec. 101. Short title.
Sec. 102. Automatic enrollments.
Sec. 103. Qualified Roth contribution program.
Sec. 104. Authority to establish self-directed investment window.
Sec. 105. Reporting requirements.
Sec. 106. Acknowledgement of risk.
            Subtitle B--Other Retirement-Related Provisions

Sec. 111. Credit for unused sick leave.
Sec. 112. Exemption of certain CSRS repayments from the requirement 
                            that they be made with interest.
Sec. 113. Computation of certain annuities based on part-time service.
Sec. 114. Treatment of members of the uniformed services under the 
                            Thrift Savings Plan.
Sec. 115. Authority to deposit refunds under FERS.
Sec. 116. Retirement credit for service of certain employees 
                            transferred from District of Columbia 
                            service to Federal service.
TITLE II--SPECIAL SURVIVOR INDEMNITY ALLOWANCE FOR SURVIVING SPOUSES OF 
                          ARMED FORCES MEMBERS

Sec. 201. Increase in monthly amount of special survivor indemnity 
                            allowance for widows and widowers of 
                            deceased members of the Armed Forces 
                            affected by required Survivor Benefit Plan 
                            annuity offset for dependency and indemnity 
                            compensation.

      TITLE I--PROVISIONS RELATING TO FEDERAL EMPLOYEES RETIREMENT

              Subtitle A--Thrift Savings Plan Enhancement

SEC. 101. SHORT TITLE.

    This subtitle may be cited as the ``Thrift Savings Plan Enhancement 
Act of 2009''.

SEC. 102. AUTOMATIC ENROLLMENTS.

    (a) In General.--Section 8432(b) of title 5, United States Code, is 
amended by striking paragraphs (2) through (4) and inserting the 
following:
    ``(2)(A) The Board shall by regulation provide for an eligible 
individual to be automatically enrolled to make contributions under 
subsection (a) at the default percentage of basic pay.
    ``(B) For purposes of this paragraph, the default percentage shall 
be equal to 3 percent or such other percentage, not less than 2 percent 
nor more than 5 percent, as the Board may by regulation prescribe.
    ``(C) The regulations shall include provisions under which any 
individual who would otherwise be automatically enrolled in accordance 
with subparagraph (A) may--
            ``(i) modify the percentage or amount to be contributed 
        pursuant to automatic enrollment, effective from the start of 
        such enrollment; or
            ``(ii) decline automatic enrollment altogether.
    ``(D) For purposes of this paragraph, the term `eligible 
individual' means any individual who, after any regulations under 
subparagraph (A) first take effect, is appointed, transferred, or 
reappointed to a position in which that individual is eligible to 
contribute to the Thrift Savings Fund.
    ``(E)(i) Subject to clause (ii), sections 8351(a)(1), 8440a(a)(1), 
8440b(a)(1), 8440c(a)(1), 8440d(a)(1), and 8440e(a)(1) shall be applied 
in a manner consistent with the purposes of this paragraph.
    ``(ii) The Secretary concerned may, with respect to members of the 
uniformed services under the authority of such Secretary, establish 
such special rules as such Secretary considers necessary for the 
administration of this subparagraph, including rules in accordance with 
which such Secretary may--
            ``(I) provide for delayed automatic enrollment; or
            ``(II) preclude or suspend the application of automatic 
        enrollment.''.
    (b) Technical Amendment.--Section 8432(b)(1) of title 5, United 
States Code, is amended by striking the parenthetical matter in 
subparagraph (B).

SEC. 103. QUALIFIED ROTH CONTRIBUTION PROGRAM.

    (a) In General.--Subchapter III of chapter 84 of title 5, United 
States Code, is amended by inserting after section 8432c the following:
``Sec. 8432d. Qualified Roth contribution program
    ``(a) Definitions.--For purposes of this section--
            ``(1) the term `qualified Roth contribution program' means 
        a program described in paragraph (1) of section 402A(b) of the 
        Internal Revenue Code of 1986 which meets the requirements of 
        paragraph (2) of such section; and
            ``(2) the terms `designated Roth contribution' and 
        `elective deferral' have the meanings given such terms in 
        section 402A of the Internal Revenue Code of 1986.
    ``(b) Authority To Establish.--The Board shall by regulation 
provide for the inclusion in the Thrift Savings Plan of a qualified 
Roth contribution program, under such terms and conditions as the Board 
may prescribe.
    ``(c) Required Provisions.--The regulations under subsection (b) 
shall include--
            ``(1) provisions under which an election to make designated 
        Roth contributions may be made--
                    ``(A) by any individual who is eligible to make 
                contributions under section 8351, 8432(a), 8440a, 
                8440b, 8440c, 8440d, or 8440e; and
                    ``(B) by any individual, not described in 
                subparagraph (A), who is otherwise eligible to make 
                elective deferrals under the Thrift Savings Plan;
            ``(2) any provisions which may, as a result of enactment of 
        this section, be necessary in order to clarify the meaning of 
        any reference to an `account' made in section 8432(f), 8433, 
        8434(d), 8435, 8437, or any other provision of law; and
            ``(3) any other provisions which may be necessary to carry 
        out this section.''.
    (b) Clerical Amendment.--The analysis for chapter 84 of title 5, 
United States Code, is amended by inserting after the item relating to 
section 8432c the following:

``8432d. Qualified Roth contribution program.''.

SEC. 104. AUTHORITY TO ESTABLISH SELF-DIRECTED INVESTMENT WINDOW.

    (a) In General.--Section 8438(b)(1) of title 5, United States Code, 
is amended--
            (1) in subparagraph (D), by striking ``and'' at the end;
            (2) in subparagraph (E), by striking the period and 
        inserting ``; and''; and
            (3) by adding after subparagraph (E) the following:
                    ``(F) a self-directed investment window, if the 
                Board authorizes such window under paragraph (5).''.
    (b) Requirements.--Section 8438(b) of title 5, United States Code, 
is amended by adding at the end the following:
    ``(5)(A) The Board may authorize the addition of a self-directed 
investment window under the Thrift Savings Plan if the Board determines 
that such addition would be in the best interests of participants.
    ``(B) The self-directed investment window shall be limited to--
            ``(i) low-cost, passively-managed index funds that offer 
        diversification benefits; and
            ``(ii) other investment options, if the Board determines 
        the options to be appropriate retirement investment vehicles 
        for participants.
    ``(C) The Board shall ensure that any administrative expenses 
related to use of the self-directed investment window are borne solely 
by the participants who use such window.
    ``(D) The Board may establish such other terms and conditions for 
the self-directed investment window as the Board considers appropriate 
to protect the interests of participants, including requirements 
relating to risk disclosure.
    ``(E) The Board shall consult with the Employee Thrift Advisory 
Council (established under section 8473) before establishing any self-
directed investment window.''.

SEC. 105. REPORTING REQUIREMENTS.

    (a) Annual Report.--The Board shall, not later than June 30 of each 
year, submit to Congress an annual report on the operations of the 
Thrift Savings Plan. Such report shall include, for the prior calendar 
year, information on the number of participants as of the last day of 
such prior calendar year, the median balance in participants' accounts 
as of such last day, demographic information on participants, the 
percentage allocation of amounts among investment funds or options, the 
status of the development and implementation of the self-directed 
investment window, the diversity demographics of any company, 
investment adviser, or other entity retained to invest and manage the 
assets of the Thrift Savings Fund, and such other information as the 
Board considers appropriate. A copy of each annual report under this 
subsection shall be made available to the public through an Internet 
website.
    (b) Reporting of Fees and Other Information.--
            (1) In general.--The Board shall include in the periodic 
        statements provided to participants under section 8439(c) of 
        title 5, United States Code, the amount of the investment 
        management fees, administrative expenses, and any other fees or 
        expenses paid with respect to each investment fund and option 
        under the Thrift Savings Plan. Any such statement shall also 
        provide a statement notifying participants as to how they may 
        access the annual report described in subsection (a), as well 
        as any other information concerning the Thrift Savings Plan 
        that might be useful.
            (2) Use of estimates.--For purposes of providing the 
        information required under this subsection, the Executive 
        Director may provide a reasonable and representative estimate 
        of any fees or expenses described in paragraph (1) and shall 
        indicate any such estimate as being such an estimate. Any such 
        estimate shall be based on the previous year's experience.
    (c) Definitions.--For purposes of this section--
            (1) the term ``Board'' has the meaning given such term by 
        8401(5) of title 5, United States Code;
            (2) the term ``participant'' has the meaning given such 
        term by section 8471(3) of title 5, United States Code; and
            (3) the term ``account'' means an account established under 
        section 8439 of title 5, United States Code.

SEC. 106. ACKNOWLEDGEMENT OF RISK.

    (a) In General.--Section 8439(d) of title 5, United States Code, is 
amended--
            (1) by striking the matter after ``who elects to invest 
        in'' and before ``shall sign an acknowledgement'' and inserting 
        ``any investment fund or option under this chapter, other than 
        the Government Securities Investment Fund,''; and
            (2) by striking ``either such Fund'' and inserting ``any 
        such fund or option''.
    (b) Coordination With Provisions Relating to Fiduciary 
Responsibilities, Liabilities, and Penalties.--Section 8477(e)(1)(C) of 
title 5, United States Code, is amended--
            (1) by redesignating subparagraph (C) as subparagraph 
        (C)(i); and
            (2) by adding at the end the following:
    ``(ii) A fiduciary shall not be liable under subparagraph (A), and 
no civil action may be brought against a fiduciary--
            ``(I) for providing for the automatic enrollment of a 
        participant in accordance with section 8432(b)(2)(A);
            ``(II) for enrolling a participant in a default investment 
        fund in accordance with section 8438(c)(2); or
            ``(III) for allowing a participant to invest through the 
        self-directed investment window or for establishing 
        restrictions applicable to participants' ability to invest 
        through the self-directed investment window.''.

            Subtitle B--Other Retirement-Related Provisions

SEC. 111. CREDIT FOR UNUSED SICK LEAVE.

    (a) In General.--Section 8415 of title 5, United States Code, is 
amended--
            (1) by redesignating the second subsection (k) and 
        subsection (l) as subsections (l) and (m), respectively; and
            (2) in subsection (l) (as so redesignated by paragraph 
        (1))--
                    (A) by striking ``(l) In computing'' and inserting 
                ``(l)(1) In computing''; and
                    (B) by adding at the end the following:
    ``(2) Except as provided in paragraph (1), in computing an annuity 
under this subchapter, the total service of an employee who retires on 
an immediate annuity or who dies leaving a survivor or survivors 
entitled to annuity includes the days of unused sick leave to his 
credit under a formal leave system, except that these days will not be 
counted in determining average pay or annuity eligibility under this 
subchapter. For purposes of this subsection, in the case of any such 
employee who is excepted from subchapter I of chapter 63 under section 
6301(2)(x)-(xiii), the days of unused sick leave to his credit include 
any unused sick leave standing to his credit when he was excepted from 
such subchapter.''.
    (b) Exception From Deposit Requirement.--Section 8422(d)(2) of 
title 5, United States Code, is amended by striking ``section 8415(k)'' 
and inserting ``paragraph (1) or (2) of section 8415(l)''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to annuities computed based on separations occurring 
on or after the date of enactment of this Act.

SEC. 112. EXEMPTION OF CERTAIN CSRS REPAYMENTS FROM THE REQUIREMENT 
              THAT THEY BE MADE WITH INTEREST.

    (a) In General.--Section 8334(d)(1) of title 5, United States Code, 
is amended--
            (1) by striking ``(d)(1)'' and inserting ``(d)(1)(A)''; and
            (2) by adding at the end the following:
    ``(B) No interest under subparagraph (A) shall be required in the 
case of any deposit to the extent that it represents the amount of any 
refund that was made to an employee or Member during the period 
beginning on October 1, 1990, and ending on February 28, 1991.''.
    (b) Applicability.--The amendments made by subsection (a) shall be 
effective with respect to any annuity, entitlement to which is based on 
a separation from service occurring on or after the date of enactment 
of this Act.

SEC. 113. COMPUTATION OF CERTAIN ANNUITIES BASED ON PART-TIME SERVICE.

    (a) In General.--Section 8339(p) of title 5, United States Code, is 
amended by adding at the end the following:
    ``(3) In the administration of paragraph (1)--
            ``(A) subparagraph (A) of such paragraph shall apply with 
        respect to service performed before, on, or after April 7, 
        1986; and
            ``(B) subparagraph (B) of such paragraph--
                    ``(i) shall apply with respect to that portion of 
                any annuity which is attributable to service performed 
                on or after April 7, 1986; and
                    ``(ii) shall not apply with respect to that portion 
                of any annuity which is attributable to service 
                performed before April 7, 1986.''.
    (b) Applicability.--The amendment made by subsection (a) shall be 
effective with respect to any annuity, entitlement to which is based on 
a separation from service occurring on or after the date of enactment 
of this Act.

SEC. 114. TREATMENT OF MEMBERS OF THE UNIFORMED SERVICES UNDER THE 
              THRIFT SAVINGS PLAN.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) members of the uniformed services should have a 
        retirement system that is at least as generous as the one which 
        is available to Federal civilian employees; and
            (2) Federal civilian employees receive matching 
        contributions from their employing agencies for their 
        contributions to the Thrift Savings Fund, but the costs of 
        requiring such a matching contribution from the Department of 
        Defense could be significant.
    (b) Reporting Requirement.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall report to 
Congress on--
            (1) the cost to the Department of Defense of providing a 
        matching payment with respect to contributions made to the 
        Thrift Savings Fund by members of the Armed Forces;
            (2) the effect that requiring such a matching payment would 
        have on recruitment and retention; and
            (3) any other information that the Secretary of Defense 
        considers appropriate.

SEC. 115. AUTHORITY TO DEPOSIT REFUNDS UNDER FERS.

    (a) Deposit Authority.--Section 8422 of title 5, United States 
Code, is amended by adding at the end the following:
    ``(i)(1) Each employee or Member who has received a refund of 
retirement deductions under this or any other retirement system 
established for employees of the Government covering service for which 
such employee or Member may be allowed credit under this chapter may 
deposit the amount received, with interest. Credit may not be allowed 
for the service covered by the refund until the deposit is made.
    ``(2) Interest under this subsection shall be computed in 
accordance with paragraphs (2) and (3) of section 8334(e) and 
regulations prescribed by the Office. The option under the third 
sentence of section 8334(e)(2) to make a deposit in one or more 
installments shall apply to deposits under this subsection.
    ``(3) For the purpose of survivor annuities, deposits authorized by 
this subsection may also be made by a survivor of an employee or 
Member.''.
    (b) Technical and Conforming Amendments.--
            (1) Definitional amendment.--Section 8401(19)(C) of title 
        5, United States Code, is amended by striking ``8411(f);'' and 
        inserting ``8411(f) or 8422(i);''.
            (2) Crediting of deposits.--Section 8422(c) of title 5, 
        United States Code, is amended by adding at the end the 
        following: ``Deposits made by an employee, Member, or survivor 
        also shall be credited to the Fund.''.
            (3) Section heading.--(A) The heading for section 8422 of 
        title 5, United States Code, is amended to read as follows:
``Sec. 8422. Deductions from pay; contributions for other service; 
              deposits''.
            (B) The analysis for chapter 84 of title 5, United States 
        Code, is amended by striking the item relating to section 8422 
        and inserting the following:

``8422. Deductions from pay; contributions for other service; 
                            deposits.''.
            (4) Restoration of annuity rights.--The last sentence of 
        section 8424(a) of title 5, United States Code, is amended by 
        striking ``based.'' and inserting ``based, until the employee 
        or Member is reemployed in the service subject to this 
        chapter.''.

SEC. 116. RETIREMENT CREDIT FOR SERVICE OF CERTAIN EMPLOYEES 
              TRANSFERRED FROM DISTRICT OF COLUMBIA SERVICE TO FEDERAL 
              SERVICE.

    (a) Retirement Credit.--
            (1) In general.--Any individual who is treated as an 
        employee of the Federal Government for purposes of chapter 83 
        or chapter 84 of title 5, United States Code, on or after the 
        date of enactment of this Act who performed qualifying District 
        of Columbia service shall be entitled to have such service 
        included in calculating the individual's creditable service 
        under sections 8332 or 8411 of title 5, United States Code, but 
        only for purposes of the following provisions of such title:
                    (A) Sections 8333 and 8410 (relating to eligibility 
                for annuity).
                    (B) Sections 8336 (other than subsections (d), (h), 
                and (p) thereof) and 8412 (relating to immediate 
                retirement).
                    (C) Sections 8338 and 8413 (relating to deferred 
                retirement).
                    (D) Sections 8336(d), 8336(h), 8336(p), and 8414 
                (relating to early retirement).
                    (E) Section 8341 and subchapter IV of chapter 84 
                (relating to survivor annuities).
                    (F) Section 8337 and subchapter V of chapter 84 
                (relating to disability benefits).
            (2) Treatment of detention officer service as law 
        enforcement officer service.--Any portion of an individual's 
        qualifying District of Columbia service which consisted of 
        service as a detention officer under section 2604(2) of the 
        District of Columbia Government Comprehensive Merit Personnel 
        Act of 1978 (sec. 1-626.04(2), D.C. Official Code) shall be 
        treated as service as a law enforcement officer under sections 
        8331(20) or 8401(17) of title 5, United States Code, for 
        purposes of applying paragraph (1) with respect to the 
        individual.
            (3) Service not included in computing amount of any 
        annuity.--Qualifying District of Columbia service shall not be 
        taken into account for purposes of computing the amount of any 
        benefit payable out of the Civil Service Retirement and 
        Disability Fund.
    (b) Qualifying District of Columbia Service Defined.--In this 
section, ``qualifying District of Columbia service'' means any of the 
following:
            (1) Service performed by an individual as a nonjudicial 
        employee of the District of Columbia courts--
                    (A) which was performed prior to the effective date 
                of the amendments made by section 11246(b) of the 
                Balanced Budget Act of 1997; and
                    (B) for which the individual did not ever receive 
                credit under the provisions of subchapter III of 
                chapter 83 or chapter 84 of title 5, United States Code 
                (other than by virtue of section 8331(1)(iv) of such 
                title).
            (2) Service performed by an individual as an employee of an 
        entity of the District of Columbia government whose functions 
        were transferred to the Pretrial Services, Parole, Adult 
        Supervision, and Offender Supervision Trustee under section 
        11232 of the Balanced Budget Act of 1997--
                    (A) which was performed prior to the effective date 
                of the individual's coverage as an employee of the 
                Federal Government under section 11232(f) of such Act; 
                and
                    (B) for which the individual did not ever receive 
                credit under the provisions of subchapter III of 
                chapter 83 or chapter 84 of title 5, United States Code 
                (other than by virtue of section 8331(1)(iv) of such 
                title).
            (3) Service performed by an individual as an employee of 
        the District of Columbia Public Defender Service--
                    (A) which was performed prior to the effective date 
                of the amendments made by section 7(e) of the District 
                of Columbia Courts and Justice Technical Corrections 
                Act of 1998; and
                    (B) for which the individual did not ever receive 
                credit under the provisions of subchapter III of 
                chapter 83 or chapter 84 of title 5, United States Code 
                (other than by virtue of section 8331(1)(iv) of such 
                title).
            (4) In the case of an individual who was an employee of the 
        District of Columbia Department of Corrections who was 
        separated from service as a result of the closing of the Lorton 
        Correctional Complex and who was appointed to a position with 
        the Bureau of Prisons, the District of Columbia courts, the 
        Pretrial Services, Parole, Adult Supervision, and Offender 
        Supervision Trustee, the United States Parole Commission, or 
        the District of Columbia Public Defender Service, service 
        performed by the individual as an employee of the District of 
        Columbia Department of Corrections--
                    (A) which was performed prior to the effective date 
                of the individual's coverage as an employee of the 
                Federal Government; and
                    (B) for which the individual did not ever receive 
                credit under the provisions of subchapter III of 
                chapter 83 or chapter 84 of title 5, United States Code 
                (other than by virtue of section 8331(1)(iv) of such 
                title).
    (c) Certification of Service.--The Office of Personnel Management 
shall accept the certification of the appropriate personnel official of 
the government of the District of Columbia or other independent 
employing entity concerning whether an individual performed qualifying 
District of Columbia service and the length of the period of such 
service the individual performed.

TITLE II--SPECIAL SURVIVOR INDEMNITY ALLOWANCE FOR SURVIVING SPOUSES OF 
                          ARMED FORCES MEMBERS

SEC. 201. INCREASE IN MONTHLY AMOUNT OF SPECIAL SURVIVOR INDEMNITY 
              ALLOWANCE FOR WIDOWS AND WIDOWERS OF DECEASED MEMBERS OF 
              THE ARMED FORCES AFFECTED BY REQUIRED SURVIVOR BENEFIT 
              PLAN ANNUITY OFFSET FOR DEPENDENCY AND INDEMNITY 
              COMPENSATION.

    Section 1450(m)(2) of title 10, United States Code, is amended--
            (1) in subparagraph (B), by striking ``$60'' and inserting 
        ``$95'';
            (2) in subparagraph (C), by striking ``$70'' and inserting 
        ``$105'';
            (3) in subparagraph (D), by striking ``$80'' and inserting 
        ``$120'';
            (4) in subparagraph (E), by striking ``$90; and'' and 
        inserting ``$130;'' and
            (5) by striking subparagraph (F) and inserting the 
        following new subparagraphs:
                    ``(F) for months during fiscal year 2014, $330;
                    ``(G) for months during fiscal year 2015, $335; and
                    ``(H) for months during fiscal year 2016 ending 
                before the termination date specified in paragraph (6), 
                $345.''.
                                 <all>