[House Report 106-87]
[From the U.S. Government Publishing Office]
106th Congress Report
1st Session HOUSE OF REPRESENTATIVES 106-87
=======================================================================
ROLLOVER DISTRIBUTIONS TO ACCOUNTS IN THE THRIFT SAVINGS PLAN
_______
April 13, 1999.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Burton of Indiana, from the Committee on Government Reform,
submitted the following
R E P O R T
[To accompany H.R. 208]
[Including cost estimate of the Congressional Budget Office]
The Committee on Government Reform, to whom was referred the
bill (H.R. 208) to amend title 5, United States Code, to allow
for the contribution of certain rollover distributions to
accounts in the Thrift Savings Plan, to eliminate certain
waiting-period requirements for participating in the Thrift
Savings Plan, and for other purposes, having considered the
same, report favorably thereon with an amendment and recommend
that the bill as amended do pass.
CONTENTS
Page
I. Summary of Legislation........................................ 3
II. Background and Need for the Legislation....................... 3
III. Legislative Hearings and Committee Actions.................... 4
IV. Committee Hearings and Written Testimony...................... 4
V. Explanation of the Bill....................................... 5
VI. Compliance with Rule XIII..................................... 5
VII. Budget Analysis and Projections............................... 5
VIII. Cost Estimate of the Congressional Budget Office.............. 6
IX. Specific Constitutional Authority for this Legislation........ 8
X. Committee Recommendation...................................... 8
XI. Congressional Accountability Act; Public Law 104-1............ 8
XII. Unfunded Mandates Reform Act; Public Law 104-4, Sect. 423..... 8
XIII. Federal Advisory Committee Act (5 U.S.C. App.) Section 5(b)... 9
XIV. Changes in Existing Law....................................... 9
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. ELIGIBLE ROLLOVER DISTRIBUTIONS.
(a) In General.--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
whichwould 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.''.
(b) Effective Date.--The amendment made by this section shall take
effect on October 1, 2000, or such earlier date as the Executive
Director (as defined by section 8401 of title 5, United States Code)
may by regulation prescribe, but not before September 1, 2000.
SEC. 2. 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 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''.
(5) 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.''.
(6) 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.--
(1) In general.--The amendments made by this section shall
take effect on October 1, 2000, or such earlier date as the
Executive Director (as defined by section 8401 of title 5,
United States Code) may by regulation prescribe, but not before
September 1, 2000.
(2) Savings provision.--Notwithstanding any other provision
of this section, until the amendments made by this section take
effect, title 5, United States Code, shall be applied as if
this section had not been enacted.
SEC. 3. ADDITIONAL GOVERNMENT CONTRIBUTIONS FOR RETIREMENT.
(a) Federal Employees' Retirement System.--Section 8423(a) of title
5, United States Code, is amended by adding at the end the following:
``(5) Notwithstanding any other provision of this chapter, effective
with respect to contributions for pay periods beginning on or after
October 1, 2000, the normal-cost percentage used for purposes of any
computation under this subsection shall be equal to--
``(A) the percentage that would otherwise apply if this
paragraph had not been enacted, plus
``(B) .01 of 1 percentage point.''.
(b) Supplemental Liability.--For purposes of applying section 8423(b)
of title 5, United States Code, and section 857(b) of the Foreign
Service Act of 1980 (22 U.S.C. 4071f(b)), all amounts shall be
determined as if this section had never been enacted.
(c) Limitation on Source of Additional Contributions.--
Notwithstanding section 8423(a)(3) of title 5, United States Code, or
any other provision of law, the additional Government contributions
required to be made by reason of the amendment made by subsection (a)
shall be made out of any amounts available to the employing agency
involved, other than any appropriation, fund, or other amounts
available for the payment of employee salaries or benefits.
(d) Conforming Amendment.--Section 307 of the Federal Employees'
Retirement System Act of 1986 (Public Law 99-335; 5 U.S.C. 8401 note)
is amended by inserting ``, including the additional amount required
under section 8423(a)(5)(B) of such title 5,'' after ``Federal
Employees' Retirement System''.
I. Short Summary of Legislation
This bill authorizes Federal employees to begin
participation in the Thrift Savings Plan immediately upon being
hired rather than waiting six months to a year as is required
by current law. This legislation also authorizes new Federal
hires to contribute eligible rollover distributions from
qualified trusts, including private sector 401(k) accounts, to
the Thrift Savings Fund.
II. Background and Need for the Legislation
H.R. 208 would bolster a critical component of Federal
employee retirement benefits, the Thrift Savings Plan. The
Thrift Savings Plan (TSP) is a retirement saving and investment
plan for Federal and postal employees. The TSP is a critical
part of the Federal employee benefits package, and particularly
important for those employees hired in the last decade who,
under the Federal Employees Retirement System (FERS), receive
smaller defined benefits and need to invest greater amounts in
order to enhance their retirement income. H.R. 208 improves the
current TSP in two distinct ways. First, it permits newly hired
Federal employees to begin making tax-advantaged contributions
toward their own retirement earlier than allowed under current
law. Under current law, new hires must wait until the second
open season after they begin working for the government. Many
new employees have to wait as long as a year. Second, employees
are allowed to contribute ``rollover'' distributions from
certain qualified trusts, such as 401(k) plans. These
contributions are not permitted under current law.
Too few Americans adequately save for their retirement.
Data published on the Internet by the American Savings
Education Council show that since 1992, personal savings as a
percentage of disposable personal income has dropped steadily
from 5.7% to 0.5% in 1998.1 Half of all families
headed by someone between 55 and 64 years old possess less than
$5,000 in net financial assets.2 With the retirement
of America's baby-boomers approaching, and in light of all the
uncertainties surrounding Social Security, Congress should
encourage everyone, including Federal employees, to assume more
responsibility for their own retirement.
---------------------------------------------------------------------------
\1\ American Savings Education Council, www.asec.org/
perssav.htm#def.
\2\ Joseph M. Anderson, The Wealth of U.S. Families in 1995
(Capital Research Associates 1998), p. 3. Net financial assets are
gross financial assets minus unsecured debt.
---------------------------------------------------------------------------
H.R. 208 provides a partial solution. Employees will be
able to make contributions as much as one year earlier than
they otherwise would have. Agencies will not make government
contributions during this period. Nevertheless, the opportunity
to participate in this tax-deferred savings program for this
additional period should be particularly helpful to employees
who are beginning their careers. Because of the effects of
compounding, even modest contributions in the early years of a
savings plan can yield substantial benefits over time.
According to the Congressional Research Service, employees will
add almost $19,000 more to their TSP accounts after a 30 year
career for each $1,000 they contribute during their first year,
assuming a 10% rate of return. That is an excellent incentive
to save. H.R. 208 will also make it more convenient for
employees to manage their retirement investments by permitting
them to roll the amounts in their private 401(k) plans and
other qualified trusts into the TSP.
III. Legislative Hearings and Committee Actions
The Committee held no legislative hearings on H.R. 208.
Rep. Constance A. Morella introduced H.R. 208 on January 6,
1999. The bill was referred to the Committee on Government
Reform on January 6, 1999, and, on January 25, 1999, to the
Subcommittee on the Civil Service. On February 25, 1999, the
Subcommittee considered the bill, and forwarded the bill to the
Committee on Government Reform by voice vote. The Committee on
Government Reform considered the bill on March 17, 1999. Mrs.
Morella offered an amendment in the nature of a substitute,
which offset the loss of tax revenues that accompanies earlier
participation in the TSP by increasing agency contributions to
the Civil Service Retirement and Disability Fund. The Committee
adopted the amendment in the nature of a substitute by voice
vote and, also by voice vote, ordered the bill, as amended, to
be reported to the House.
IV. Committee Hearings and Written Testimony
The Committee did not hold any hearings related to this
legislation.
V. Explanation of the Bill as Reported: Section-by-Section
Section 1. Eligible Rollover Distributions
This section amends 5 U.S.C. 8432 to permit employees and
Members to transfer to the TSP his or her account balance from
a plan qualified under section 401(a) or 408(b) of the Internal
Revenue Code or an Individual Retirement Arrangement (IRA)
qualified under sections 408(a) or 408(b) to the TSP. Such
transfers are not permitted under current law.
Section 2. Immediate Participation in the Thrift Savings Plan
This section amends 5 U.S.C. 8432(b) to eliminate
statutorily required waiting periods before employees and
Members may contribute to the TSP. Under this section, such
individuals shall be eligible to contribute on the day they
began service or, if that is not administratively feasible, on
the earliest date thereafter that the Executive Director
determines to be feasible. This section takes effect 6 months
after the date of enactment or on such earlier date as the
Executive Director of the Federal Retirement Thrift Investment
Board may prescribe by regulation.
Section 3. Additional Government Contributions for Retirement
This section amends 5 U.S.C. 8432(a) to require agencies to
contribute an additional one one-hundredth of one percent of
FERS payroll to the Civil Service Retirement and Disability
Fund. These additional contributions will not reduce the amount
of supplemental contributions required under section 8423(b) of
title 5, United States Code or section 857(b) of the Foreign
Service Act of 1980 (22 U.S.C. Sec. 4071f(b)). Agencies may not
take the additional contributions required under this section
from accounts used to pay employee salaries or benefits.
VI. Compliance With Rule XIII
Pursuant to rule XIII, clause 3(c)(1) of the Rules of the
House of Representatives, under the authority of rule X, clause
2(b)(1) and clause 3(e), the results and findings from
Committee oversight activities are incorporated in the bill and
this report.
VII. Budget Analysis and Projections
The budget analysis and projections required by section
308(a) of the Congressional Budget Act of 1974 are contained in
the estimate of the Congressional Budget Office.
VIII. Cost Estimate of the Congressional Budget Office
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 26, 1999.
Hon. Dan Burton,
Chairman, Committee on Government Reform,
U.S. House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 208, a bill
amending the Thrift Savings Plan for federal employees.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Eric Rollins.
Sincerely,
Steven M. Lieberman,
(For Dan L. Crippen, Director).
Enclosure.
H.R. 208--To amend title 5, United States Code, to allow for the
contribution of certain rollover distributions to accounts in
the Thrift Savings Plan, to eliminate certain waiting-period
requirements for participating in the Thrift Savings Plan, and
for other purposes
Summary: H.R. 208 would make two changes to the Thrift
Savings Plan (TSP), the defined contribution component of the
federal government's major civilian retirement programs. The
bill would let newly hired federal employees make contributions
to the TSP sooner than allowed under current law and let
federal employees transfer balances from other tax-deferred
savings plans to their TSP accounts. The bill would also raise
the amount that federal agencies contribute to the Civil
Service trust fund for employees covered by the Federal
Employees' Retirement System (FERS) by \1/100\ of a percentage
point. All changes would become effective on October 1, 2000.
CBO estimates that H.R. 208 would increase discretionary
spending by $35 million over the 2000-2004 period because of
higher agency contributions to the Civil Service Retirement
Trust Fund. The bill would have no net impact on direct
spending and revenues over the same period. The receipt of the
additional retirement contributions would lower direct spending
by $35 million, and the bill's TSP-related provisions would
decrease revenues by $35 million over the 2000-2004 period.
Because this bill would affect direct spending and receipts,
pay-as-you-go procedures would apply.
H.R. 208 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not have a significant effect on the budgets of state,
local, or tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 208 is shown in the following table.
------------------------------------------------------------------------
By fiscal years, in millions of
dollars--
---------------------------------------
2000 2001 2002 2003 2004
------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Agency retirement contributions. 0 8 8 9 10
CHANGES IN DIRECT SPENDING
Agency retirement contributions. 0 -8 -8 -9 -10
CHANGES IN REVENUES
Estimated revenues.............. 0 -8 -9 -9 -9
TOTAL COST OF H.R. 208
Direct spending and revenues.... 0 0 1 0 -1
All spending and revenues....... 0 8 9 9 9
------------------------------------------------------------------------
Note:--The Joint Committee on Taxation prepared the estimates of the
changes in revenues.
The costs of this legislation fall within budget function
950 (Undistributed Offsetting Receipts).
Basis of Estimate
Raise Agency Retirement Contributions Under FERS
Under FERS, total employee and agency retirement
contributions equal the normal cost of providing retirement
benefits. The current normal cost for most FERS employees is
11.5 percent of basic pay. Employees typically contribute 0.8
percent of their basic pay, and agencies pay the remaining 10.7
percent. H.R. 208 would add \1/100\ of a percentage point to
the amount that agencies contribute. For most FERS employees,
agency contributions would rise to 10.71 percent of basic pay.
This provision would increase agency retirement
contributions under FERS by $35 million over the 2000-2004
period. This increase in agency contributions would be
reflected in the budget both as additional agency outlays and
as an increase in offsetting receipts to the Civil Service
Retirement Trust Fund.
Allow New Hires to Participate in TSP Sooner
Newly hired Federal employees must now wait two open
seasons (6 to 12 months) before they can begin making
contributions to the TSP. H.R. 208 would allow new hires to
begin making TSP contributions immediately, although government
contributions would still not begin until the second open
season.
The Joint Committee on Taxation (JCT) estimates that the
Federal Government would forgo tax revenues of about $35
million over the 2000-2004 period as a result of this
provision. Based on recent experience, JCT assumed that between
90,000 and 95,000 eligible new employees would be hired each
year, and that most of these new hires would participate in the
TSP. Under the bill, employees would contribute more money to
their TSP accounts than under current law. This increase in
contributions would decrease federal income tax revenues
because TSP contributions are not taxed until withdrawn from
the plan.
Allow Rollovers from Other Tax-Deferred Savings Plans
H.R. 208 would allow employees to transfer funds from
certain tax-deferred savings plans, such as a 401(k) plan from
a previous job, to their TSP accounts. JCT estimates that this
provision would not have a significant budgetary impact.
Pay-as-you-go considerations: The provisions of H.R. 208
would affect direct spending and revenues and therefore be
subject to pay-as-you-go procedures. The pay-as-you-go effects
of the bill are shown in the following table. For the purposes
of enforcing pay-as-you-go procedures, only the effects in the
current year, the budget year, and the succeeding four years
are counted.
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal years, in millions of dollars--
---------------------------------------------------------------------------------------
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays.............................................. 0 0 -8 -8 -9 -10 -10 -11 -12 -13 -13
Changes in receipts............................................. 0 0 -8 -9 -9 -9 -9 -10 -10 -10 -11
--------------------------------------------------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: H.R. 208
contains no intergovernmental or private-sector mandates as
defined in the Unfunded Mandates Reform Act and would not have
a significant effect on the budgets of state, local, or tribal
governments.
Estimate prepared by: Federal Costs: Eric Rollins. Impact
on State, Local, and Tribal Governments: Leo Lex. Impact on the
Private Sector: John Harris.
Estimate approved by: Paul N. Van de Water, Assistant
Director for Budget Analysis.
IX. Specific Constitutional Authority for This Legislation
Clauses 1 and 18 of Article I, Sec. 8 of the Constitution
grant Congress the power to enact this law.
X. Committee Recommendation
On March 17, 1999, a quorum being present, the Committee
ordered the bill favorably reported.
Committee on Government Reform--106th Congress. Record Vote
Date: March 17, 1999. Amendment Offered by: Hon. Constance
A. Morella. Adopted by voice vote. Final Passage of H.R. 208.
Offered by: Hon. Constance A. Morella. Adopted by voice vote.
XI. Congressional Accountability Act; Public Law 104-1; Section
102(B)(3)
H.R. 208 affects employees of the legislative branch who
participate in the Thrift Savings Plan.
XII. Unfunded Mandates Reform Act; Public Law 104-4; Section 423
H.R. 208 does not impose any Federal mandates on state,
local, or tribal governments, or the private sector, and it
does not preempt any state or local law.
XIII. Federal Advisory Committee Act (5 U.S.C. App.) Section 5(b)
The Committee finds that H.R. 208 does not establish or
authorize establishment of an advisory committee within the
definition of 5 U.S.C. App., Section 5(b).
XIV. Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 5, UNITED STATES CODE
* * * * * * *
PART III--EMPLOYEES
* * * * * * *
Subpart G--Insurance and Annuities
* * * * * * *
CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM
* * * * * * *
SUBCHAPTER II--BASIC ANNUITY
* * * * * * *
Sec. 8423. Government contributions
(a)(1) * * *
* * * * * * *
(5) Notwithstanding any other provision of this chapter,
effective with respect to contributions for pay periods
beginning on or after October 1, 2000, the normal-cost
percentage used for purposes of any computation under this
subsection shall be equal to--
(A) the percentage that would otherwise apply if this
paragraph had not been enacted, plus
(B) .01 of 1 percentage point.
* * * * * * *
SUBCHAPTER III--THRIFT SAVINGS PLAN
* * * * * * *
Sec. 8432. Contributions
(a) An employee or Member may contribute to the Thrift
Savings Fund in any pay period, pursuant to an election under
subsection (b)[(1)], an amount not to exceed 10 percent of such
individual's basic pay for such period. [Contributions made
under this subsection during any 6-month period for which an
election period is provided under subsection (b)(1) shall be
made each pay periodduring such 6-month period pursuant to a
program of regular contributions provided in regulations prescribed by
the Executive Director.] 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.
(b)(1)(A) * * *
(B) The amount to be contributed pursuant to an election
under subparagraph (A) (or any election allowable by virtue of
paragraph (4)) shall be the percentage of basic pay or amount
designated by the employee or Member.
* * * * * * *
(3) [Notwithstanding paragraph (2)(A), an] An employee or
Member who elects to become subject to this chapter under
section 301 of the Federal Employees' Retirement System Act of
1986 may make the first election for the purpose of subsection
(a) during the period prescribed for such purpose by the
Executive Director. The period prescribed by the Executive
Director shall commence on the date on which the employee or
Member makes the election to become subject to this chapter.
[(4)(A) Notwithstanding paragraph (2)(A), an employee or
Member who is an employee or Member on January 1, 1987, and
continues as an employee or Member without a break in service
through April 1, 1987, may make the first election for the
purpose of subsection (a) during the election period prescribed
for such purpose by the Executive Director. The Executive
Director shall prescribe an election period for such purpose
which shall commence on April 1, 1987. An election by such an
employee or Member during that election period shall be
effective on the first day of the employee's or Member's first
pay period which begins after the date on which the employee or
Member makes that election.
[(B) Notwithstanding subsection (a), the maximum amount that
an employee or Member may contribute during any pay period
which begins on or after April 1, 1987, and before October 1,
1987, pursuant to an election made during the election period
provided under subparagraph (A) is the amount equal to 15
percent of such individual's basic pay for such period.]
(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
electionbecomes 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).
* * * * * * *
(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. 8439. Accounting and information
(a)(1) The Executive Director shall establish and maintain an
account for each individual who makes contributions or for whom
contributions are made under [section 8432(c)(1)] section 8432
of this title or who makes contributions to the Thrift Savings
Fund under section 8351 of this title.
* * * * * * *
(c)(1) * * *
(2) Information under this subsection shall be provided at
least 30 calendar days before the beginning of each election
period under section 8432(b)(1)(A) of this title, and in a
manner designed to facilitate informed decisionmaking with
respect to elections under sections 8432 and 8438 of this
title. Nothing in this paragraph shall be considered to limit
the dissemination of information only to the times required
under the preceding sentence.
* * * * * * *
Sec. 8440a. Justices and judges
(a)(1) * * *
(2) An election may be made under paragraph (1) only during
a period provided under section 8432(b) for individuals subject
to [chapter 84 of this title: Provided, however, That a justice
or judge may make the first such election within 60 days of the
effective date of this section.] this chapter.
* * * * * * *
Sec. 8440d. Judges of the United States Court of Appeals for Veterans
Claims
(a)(1) * * *
(2) An election may be made under paragraph (1) only during a
period provided under section 8432(b) of this title for
individuals subject to [chapter 84 of this title.] this
chapter.
* * * * * * *
----------
SECTION 307 OF THE FEDERAL EMPLOYEES' RETIREMENT SYSTEM ACT OF 1986
SEC. 307. USE OF ``NORMAL-COST PERCENTAGE''.
Notwithstanding any other provision of law, the normal-cost
percentage (as defined by section 8401(23) of title 5, United
States Code, as added by this Act) of the Federal Employees'
Retirement System, including the additional amount required
under section 8423(a)(5)(B) of such title 5, shall be used to
value the cost of the System for all purposes in which the cost
of the System is required to be determined by the Federal
Government, including any comparisons between the cost of
performing commercial activities under contract with commercial
sources and the cost of performing those activities using
Government facilities and personnel.