[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1624 Referred in House (RFH)]
103d CONGRESS
2d Session
S. 1624
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 1, 1994
Referred to the Committee on Post Office and Civil Service
_______________________________________________________________________
AN ACT
To standardize withdrawal options for Thrift Savings Plan participants,
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. STANDARDIZATION OF WITHDRAWAL OPTIONS FOR THRIFT SAVINGS
PLAN PARTICIPANTS.
(a) Participation in the Thrift Savings Plan.--Section 8351(b) of
title 5, United States Code, is amended--
(1) by amending paragraph (4) to read as follows:
``(4) Section 8433(b) of this title applies to any employee
or Member who elects to make contributions to the Thrift
Savings Fund under subsection (a) of this section and separates
from Government employment.'';
(2) by striking out paragraphs (5), (6), and (8);
(3) by redesignating paragraphs (7), (9), and (10) as
paragraphs (5), (6), and (7), respectively;
(4) in paragraph (5)(C) (as redesignated under paragraph
(3) of this subsection) by striking out ``or former spouse'' in
both places it appears;
(5) by amending paragraph (6) (as redesignated under
paragraph (3) of this subsection) to read as follows:
``(6) Notwithstanding paragraph (4), if an employee or
Member separates from Government employment and such employee's
or Member's nonforfeitable account balance is $3,500 or less,
the Executive Director shall pay the nonforfeitable account
balance to the participant in a single payment unless the
employee or Member elects, at such time and otherwise in such
manner as the Executive Director prescribes, one of the options
available under section 8433(b) of this title.''; and
(6) in paragraph (7) (as redesignated under paragraph (3)
of this subsection) by striking out ``nonforfeiture'' and
inserting in lieu thereof ``nonforfeitable''.
(b) Benefits and Election of Benefits.--Section 8433 of title 5,
United States Code, is amended--
(1) in subsection (b) by striking out the matter before
paragraph (1) and inserting in lieu thereof ``Subject to
section 8435 of this title, any employee or Member who
separates from Government employment entitled to an annuity
under subchapter II of this chapter or any employee or Member
who separates from Government employment is entitled and may
elect--'';
(2) by striking out subsections (c) and (d) and
redesignating subsections (e), (f), (g), (h), and (i) as
subsections (c), (d), (e), (f), and (g), respectively;
(3) in subsection (c)(1) (as redesignated under paragraph
(2) of this subsection) by striking out ``or (c)(4) or required
under subsection (d) directly to an eligible retirement plan or
plans) (as defined in section 402(a)(5)(E) of the Internal
Revenue Code of 1954)'' and inserting in lieu thereof
``directly to an eligible retirement plan or plans (as defined
in section 402(c)(8) of the Internal Revenue Code of 1986)'';
(4) in subsection (d)(2) (as redesignated under paragraph
(2) of this subsection) by striking out ``or (c)(2)''; and
(5) in subsection (f) (as redesignated under paragraph (2)
of this subsection)--
(A) by striking out paragraph (1) and redesignating
paragraphs (2) and (3) as paragraphs (1) and (2),
respectively; and
(B) in paragraph (1) (as redesignated under
subparagraph (A) of this paragraph)--
(i) by striking out ``Notwithstanding
subsections (b) and (c), if an employee or
Member separates from Government employment
under circumstances making such an employee or
Member eligible to make an election under
either of those subsections, and such
employee's or Member's'' and inserting in lieu
thereof ``Notwithstanding subsection (b), if an
employee or Member separates from Government
employment, and such employee's or Member's'';
and
(ii) by striking out ``or (c), as
applicable''; and
(C) in paragraph (2) (as redesignated under
subparagraph (A) of this paragraph) by striking out
``paragraphs (1) and (2)'' and inserting in lieu
thereof ``paragraph (1)''.
(c) Annuities: Methods of Payment; Election; Purchase.--Section
8434(c) of title 5, United States Code, is amended to read as follows:
``(c) Notwithstanding an elimination of a method of payment by the
Board an employee, Member, former employee, or former Member may elect
the eliminated method if the elimination of such method became
effective less than 5 years before the date on which the annuity
commences.''.
(d) Protections for Spouses and Former Spouses.--Section 8435 of
title 5, United States Code, is amended--
(1) in subsection (a)(1)(A) by striking out ``subsection
(b)(3), (b)(4), (c)(3), or (c)(4) of section 8433 of this title
or change an election previously made under subsection (b)(1),
(b)(2), (c)(1), or (c)(2)'' and inserting in lieu thereof
``subsection (b)(3) or (b)(4) of section 8433 of this title or
change an election previously made under subsection (b)(1) or
(b)(2)'';
(2) by striking out subsection (b);
(3) by redesignating subsections (c), (d), (e), (f), (g),
(h), and (i) as subsections (b), (c), (d), (e), (f), (g), and
(h), respectively;
(4) in subsection (b) (as redesignated under paragraph (3)
of this subsection) by amending paragraph (2) to read as
follows:
``(2) Paragraph (1) shall not apply, if--
``(A) a joint waiver of such method is made, in
writing, by the employee or Member and the spouse; or
``(B) the employee or Member waives such method, in
writing, after establishing to the satisfaction of the
Executive Director that circumstances described under
subsection (a)(2) (A) or (B) make the requirement of a
joint waiver inappropriate.''; and
(5) in subsection (c)(1) (as redesignated under paragraph
(3) of this subsection) by striking out ``and a transfer may
not be made under section 8433(d) of this title''.
(e) Justices and Judges.--Section 8440a(b) of title 5, United
States Code, is amended--
(1) in paragraph (5) by striking out ``Section 8433(d)''
and inserting in lieu thereof ``Section 8433(b)''; and
(2) by striking out paragraphs (7) and (8) and inserting in
lieu thereof the following:
``(7) Notwithstanding paragraphs (4) and (5), if any
justice or judge retires under subsection (a) or (b) of section
371 or section 372(a) of title 28, or resigns without having
met the age and service requirements set forth under section
371(c) of title 28, and such justice's or judge's
nonforfeitable account balance is $3,500 or less, the Executive
Director shall pay the nonforfeitable account balance to the
participant in a single payment unless the justice or judge
elects, at such time and otherwise in such manner as the
Executive Director prescribes, one of the options available
under section 8433(b).''.
(f) Bankruptcy Judges and Magistrates.--Section 8440b of title 5,
United States Code, is amended--
(1) in subsection (b)(4) by amending subparagraph (B) to
read as follows:
``(B) Section 8433(b) of this title applies to any
bankruptcy judge or magistrate who elects to make
contributions to the Thrift Savings Fund under
subsection (a) of this section and who retires before
attaining age 65 but is entitled, upon attaining age
65, to an annuity under section 377 of title 28 or
section 2(c) of the Retirement and Survivors Annuities
for Bankruptcy Judges and Magistrates Act of 1988.'';
(2) in subsection (b)(4)(C) by striking out ``Section
8433(d)'' and inserting in lieu thereof ``Section 8433(b)'';
(3) in subsection (b)(5) by striking out ``retirement under
section 377 of title 28 is'' and inserting in lieu thereof
``any of the actions described under paragraph (4) (A), (B), or
(C) shall be considered'';
(4) in subsection (b) by striking out paragraph (8) and
redesignating paragraph (9) as paragraph (8); and
(5) in paragraph (8) of subsection (b) (as redesignated
under paragraph (4) of this subsection)--
(A) by striking out ``Notwithstanding subparagraphs
(A) and (B) of paragraph (4), if any bankruptcy judge
or magistrate retires under circumstances making such
bankruptcy judge or magistrate eligible to make an
election under subsection (b) or (c)'' and inserting in
lieu thereof ``Notwithstanding paragraph (4), if any
bankruptcy judge or magistrate retires under
circumstances making such bankruptcy judge or
magistrate eligible to make an election under
subsection (b)''; and
(B) by striking out ``and (c), as applicable''.
(g) Claims Court Judges.--Section 8440c of title 5, United States
Code, is amended--
(1) in subsection (b)(4)(B) by striking out ``Section
8433(d)'' and inserting in lieu thereof ``Section 8433(b)'';
(2) in subsection (b)(5) by striking out ``retirement under
section 178 of title 28, is'' and inserting in lieu thereof
``any of the actions described in paragraph (4) (A) or (B)
shall be considered'';
(3) in subsection (b) by striking out paragraph (8) and
redesignating paragraph (9) as paragraph (8); and
(4) in paragraph (8) (as redesignated under paragraph (3)
of this subsection) by striking out ``Notwithstanding paragraph
(4)(A)'' and inserting in lieu thereof ``Notwithstanding
paragraph (4)''.
(h) Judges of the United States Court of Veterans Appeals.--Section
8440d(b)(5) of title 5, United States Code, is amended by striking out
``A transfer shall be made as provided under section 8433(d) of this
title'' and inserting in lieu thereof ``Section 8433(b) of this title
applies''.
(i) Technical and Conforming Amendments.--Chapters 83 and 84 of
title 5, United States Code, are amended--
(1) in section 8351(b)(5)(B) (as redesignated under
subsection (a)(3) of this section) by striking out ``section
8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
(2) in section 8351(b)(5)(D) (as redesignated under
subsection (a)(3) of this section) by striking out ``section
8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
(3) in section 8433(b)(4) by striking out ``subsection
(e)'' and inserting in lieu thereof ``subsection (c)'';
(4) in section 8433(d)(1) (as redesignated under subsection
(b)(2) of this section) by striking out ``(d) of section 8435''
and inserting in lieu thereof ``(c) of section 8435'';
(5) in section 8433(d)(2) (as redesignated under subsection
(b)(2) of this section) by striking out ``section 8435(d)'' and
inserting in lieu thereof ``section 8435(c)'';
(6) in section 8433(e) (as redesignated under subsection
(b)(2) of this section) by striking out ``section 8435(d)(2)''
and inserting in lieu thereof ``section 8435(c)(2)'';
(7) in section 8433(g)(5) (as redesignated under subsection
(b)(2) of this section) by striking out ``section 8435(f)'' and
inserting in lieu thereof ``section 8435(e)'';
(8) in section 8434(b) by striking out ``section 8435(c)''
and inserting in lieu thereof ``section 8435(b)'';
(9) in section 8435(a)(1)(B) by striking out ``subsection
(c)'' and inserting in lieu thereof ``subsection (b)'';
(10) in section 8435(d)(1)(B) (as redesignated under
subsection (d)(3) of this section) by striking out ``subsection
(d)(2)'' and inserting in lieu thereof ``subsection (c)(2)'';
(11) in section 8435(d)(3)(A) (as redesignated under
subsection (d)(3) of this section) by striking out ``subsection
(c)(1)'' and inserting in lieu thereof ``subsection (b)(1)'';
(12) in section 8435(d)(6) (as redesignated under
subsection (d)(3) of this section) by striking out ``or
(c)(2)'' and inserting in lieu thereof ``or (b)(2)'';
(13) in section 8435(e)(1)(A) (as redesignated under
subsection (d)(3) of this section) by striking out ``section
8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
(14) in section 8435(e)(2) (as redesignated under
subsection (d)(3) of this section) by striking out ``section
8433(i) of this title shall not be approved if approval would
have the result described in subsection (d)(1)'' and inserting
in lieu thereof ``section 8433(g) of this title shall not be
approved if approval would have the result described under
subsection (c)(1)'';
(15) in section 8435(g) (as redesignated under subsection
(d)(3) of this section) by striking out ``section 8433(i)'' and
inserting in lieu thereof ``section 8433(g)'';
(16) in section 8437(c)(5) by striking out ``section
8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
and
(17) in section 8440a(b)(6) by striking out ``section
8351(b)(7)'' and inserting in lieu thereof ``section
8351(b)(5)''.
(j) Interim Provision.--Section 8433(d) of title 5, United States
Code, is amended by striking out ``shall transfer the amount of the
balance'' and inserting in lieu thereof ``may transfer the amount of
the balance''.
(k) Effective Dates.--(1) Except as provided in paragraph (2), the
provisions of this section shall take effect 1 year after the date of
enactment of this Act or upon such other date as the Executive Director
of the Federal Retirement Thrift Investment Board shall provide in
regulation.
(2) The provisions of subsection (j) of this section shall take
effect upon the date of the enactment of this Act.
Passed the Senate November 24 (legislative day, November
23), 1993.
Attest:
WALTER J. STEWART,
Secretary.