[Congressional Record Volume 150, Number 134 (Friday, November 19, 2004)]
[House]
[Pages H10033-H10034]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
THRIFT SAVINGS PLAN OPEN ELECTIONS ACT OF 2004
Mr. TOM DAVIS of Virginia. Mr. Speaker, I move to suspend the rules
and pass the bill (H.R. 4324) to amend title 5, United States Code, to
eliminate the provisions limiting certain election opportunities
available to individuals participating in the Thrift Savings Plan, and
for other purposes, as amended.
The Clerk read as follows:
H.R. 4324
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. ELECTIONS FOR THRIFT SAVINGS PLAN CONTRIBUTIONS.
(a) Short Title.--This Act may be cited as the ``Thrift
Savings Plan Open Elections Act of 2004''.
(b) In General.--Section 8432(b)(1)(A) of title 5, United
States Code, is amended--
(1) in the first sentence--
(A) by inserting ``(i)'' before ``The Executive Director'';
and
(B) by striking ``shall be afforded a reasonable period
every 6 months to elect to'' and inserting ``may'';
(2) by striking the second sentence; and
(3) by adding at the end the following:
``(ii) An election to make contributions under this
paragraph--
``(I) may be made at any time;
``(II) shall take effect on the earliest date after the
election that is administratively feasible; and
``(III) shall remain in effect until modified or
terminated.''.
(c) Continuation of not Making Immediate Agency
Contributions.--Section 8432(b)(4)(C) of title 5, United
States Code, is amended--
(1) by inserting ``(i)'' after ``(C)''; and
(2) by adding at the end the following:
``(ii) Notwithstanding subparagraph (A) or (B),
contributions under paragraphs (1) and (2) of subsection (c)
shall not begin to be made with respect to an employee or
Member described under paragraph (2)(A) or (B) until the date
that such contributions would have begun to be made in
accordance with this paragraph as administered on the date
preceding the date of enactment of the Thrift Savings Plan
Open Elections Act of 2004.''.
(d) Technical and Conforming Amendments.--
(1) Civil service retirement system participation.--Section
8351(a)(2) of title 5, United States Code, is amended by
striking ``only during a period'' and inserting ``as''.
(2) Contributions by previously ineligible employees.--
Section 8432(b)(2) of title 5, United States Code, is
amended--
(A) in subparagraph (A), by striking ``second period'' and
inserting ``date'';
(B) in subparagraph (C), by striking ``second period'' and
inserting ``date''; and
(C) in subparagraph (D) by striking ``other than during a
period afforded'' and inserting ``as provided''.
(3) Provision of information.--Section 8439(c)(2) of title
5, United States Code, is amended by striking ``at least 30
calendar days before the beginning of each election period
under section 8432(b)(1)(A) of this title'' and inserting
``on a regular basis''.
(4) Justices and judges.--Section 8440a(a)(2) of title 5,
United States Code, is amended by striking ``only during a
period'' and inserting ``as''.
(5) Bankruptcy judges and magistrate judges.--Section
8440b(a)(2) of title 5, United States Code, is amended by
striking ``only during a period'' and inserting ``as''.
(6) Court of federal claims judges.--Section 8440c(a)(2) of
title 5, United States Code, is amended by striking ``only
during a period'' and inserting ``as''.
(7) Judges of the united states court of appeals for
veterans claims.--Section 8440d(a)(2) of title 5, United
States Code, is amended by striking ``only during a period''
and inserting ``as''.
(8) Members of the uniformed services.--Section
8440e(b)(2)(A) of title 5, United States Code, is amended--
(A) by striking ``only during a period'' and inserting
``as''; and
(B) by striking all after section ``8432(b)'' and inserting
a period.
SEC. 2. ENHANCING FINANCIAL LITERACY.
(a) In General.--The Federal Retirement Thrift Investment
Board (in this section referred to as the ``Board'') shall
periodically evaluate whether the tools available to
participants provide the information needed to understand,
evaluate, and compare financial products, services, and
opportunities offered through the Thrift Savings Plan. The
Board shall use these evaluations to improve its existing
education program for Thrift Savings Plan participants.
(b) Report on Financial Literacy Efforts.--The Board shall
annually report to the Committee on Governmental Affairs of
the Senate and the Committee on Government Reform of the
House of Representatives on its Thrift Savings Plan education
efforts on behalf of plan participants.
(c) Strategy.--As part of the retirement training offered
by Office of Personnel Management under section 8350 of title
5, United States Code, the Office, in consultation with the
Board, shall--
(1) not later than 6 months after the date of enactment of
this Act, develop and implement a retirement financial
literacy and education strategy for Federal employees that--
(A) shall educate Federal employees on the need for
retirement savings and investment; and
(B) provide information related to how Federal employees
can receive additional information on how to plan for
retirement and calculate what their retirement investment
should be in order to meet their retirement goals; and
(2) submit a report to the Committee on Governmental
Affairs of the Senate and the Committee on Government Reform
of the House of Representatives on the strategy described
under paragraph (1).
SEC. 3. TECHNICAL CORRECTIONS.
Subchapter III of chapter 84 of title 5, United States
Code, is amended--
(1) in section 8433(d)(1), by striking ``paragraph (3)''
and inserting ``paragraph (2)''; and
(2) in section 8440b(b)--
(A) in paragraph (2), by striking ``bankruptcy judge's or
magistrate's'' and inserting ``bankruptcy judge's or
magistrate judge's''; and
(B) in paragraphs (4)(B) and (8), by striking ``bankruptcy
judge or magistrate'' each place it appears and inserting
``bankruptcy judge or magistrate judge''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Virginia (Mr. Tom Davis) and the gentleman from Illinois (Mr. Davis)
each will control 20 minutes.
The Chair recognizes the gentleman from Virginia (Mr. Tom Davis).
General Leave
Mr. TOM DAVIS of Virginia. Mr. Speaker, I ask unanimous consent that
all Members may have 5 legislative days within which to revise and
extend their remarks and include extraneous material on H.R. 4324.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Virginia?
[[Page H10034]]
There was no objection.
Mr. TOM DAVIS of Virginia. Mr. Speaker, I yield myself such time as I
may consume.
I rise today in support of H.R. 4324, a bill that eliminates the open
season for employee contributions to the Thrift Savings Plan. This
legislation was reported from the Committee on Government Reform by a
voice vote on July 31, and I am pleased to see it considered by the
whole House today.
Mr. Speaker, as my colleagues know, the TSP offers Federal employees
the same retirement savings opportunities that private companies afford
their employees under traditional 401(k) plans.
The TSP is the largest defined contribution retirement plan in the
world, with nearly three and a half million participants and over $143
billion in assets.
This legislation will allow TSP participants to make or modify their
salary contributions at any time. Currently, Federal employees and
members of the uniformed services who participate in the TSP are only
provided two biannual periods to begin, adjust or end their
contributions. This bill will give much-needed flexibility to
participants of the Federal Government's retirement plan.
Every day, Federal employees across the Nation and around the globe
perform critical duties to keep this Nation running smoothly.
Away from work, they experience all of life's events, births and
deaths in the family, new homes, new jobs, salary adjustments and so
on. With enactment of H.R. 4324, TSP participants can adopt their
retirement savings to meet their changing circumstances.
Next year, I intend to offer additional legislation that will abolish
the TSP open seasons entirely, but today, during the second open season
after beginning Federal service, participants can earn matching funds
up to 5 percent of their salary from their employing agencies. I
believe allowing participants to secure these matching funds
immediately is an important and deserved incentive for Federal
employees to save. The Federal Retirement Thrift Investment Board,
which administers the TSP, supports that change, and the Board supports
H.R. 4324 as well.
The Committee on Government Reform, the committee of jurisdiction for
Federal employee issues, was limited by budget constraints this
Congress from moving a bill that would totally eliminate open seasons.
Nevertheless, I am pleased to see H.R. 4324 advancing today.
I want to recognize the efforts of my distinguished counterpart in
the other body, the gentlewoman from Maine, chairman of the
Governmental Affairs Committee. She has worked very closely with me on
today's bill to ensure that Federal employees will have the same
retirement savings flexibilities enjoyed by many in the private sector.
Mr. Speaker, I reserve the balance of my time.
{time} 1300
Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, the Thrift Savings Plan, TSP, is a retirement savings
and investment plan for Federal employees that is governed by the
Federal Retirement Thrift Investment Board. The TSP has approximately 3
million participants. It is the largest retirement savings and
investment program in the Nation.
H.R. 4324 would make two significant changes to the rules that govern
participation in the TSP. First, it would allow Federal employees to
alter their TSP contributions at any time instead of limiting such
changes to biannual open-season periods.
Secondly, the bill would require the Federal Retirement Thrift
Investment Board, the agency that administers the TSP, to evaluate and
report on efforts to increase education programs for TSP participants.
Overall, H.R. 4324 would allow TSP enrollees to have more control
over their investments and financial future. With better education
initiatives, participants would be better informed when changing
contributions to their TSP.
With these changes designed to be helpful to those who would
participate, I am pleased to join the chairman, the gentleman from
Virginia (Mr. Tom Davis), and the gentlewoman from Virginia (Mrs. Jo
Ann Davis) in supporting this legislation and urge its passage.
Mr. Speaker, I yield back the balance of my time.
Mr. TOM DAVIS of Virginia. Mr. Speaker, I urge my colleagues to
support this important legislation, and I yield back the balance of my
time.
The SPEAKER pro tempore (Mr. Shimkus). The question is on the motion
offered by the gentleman from Virginia (Mr. Tom Davis) that the House
suspend the rules and pass the bill, H.R. 4324, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
The title of the bill was amended so as to read: ``A bill to amend
chapter 84 of title 5, United States Code, to provide for Federal
employees to make elections to make, modify, and terminate
contributions to the Thrift Savings Fund at any time, and for other
purposes.''.
A motion to reconsider was laid on the table.
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