[Congressional Record (Bound Edition), Volume 150 (2004), Part 18]
[House]
[Pages 24318-24320]
[From the U.S. 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.''.

[[Page 24319]]

       (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?
  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.

[[Page 24320]]

  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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