PARTICIPATION IN THRIFT SAVINGS PLAN.

SEC. 661. PARTICIPATION IN THRIFT SAVINGS PLAN. (a) Participation Authority.—(1)(A) Chapter 3 of title 37, United States Code, is amended by adding at the end the following: “§ 211. Participation in Thrift Savings Plan “(a) Definition.—In this section, the term ‘member’ means— “(1) a member of the uniformed services serving on active duty; and “(2) a member of the Ready Reserve in any pay status. “(b) Authority.—Any member may participate in the Thrift Savings Plan in accordance with section 8440e of title 5. “(c) Rule of Construction Regarding Separation.—For purposes of subchapters III and VII of chapter 84 of title 5, each of the following actions shall, in the case of a member participating in the Thrift Savings Plan in accordance with section 8440e of such title, be considered a separation from Government employment: “(1) Release of the member from active duty, not followed, before the end of the 31-day period beginning on the day following the effective date of the release, by— “(A) a resumption of active duty; or “(B) an appointment to a position covered by chapter 83 or 84 of title 5 or an equivalent retirement system, as identified by the Executive Director (appointed by the Federal Retirement Thrift Investment Board) in regulations. “(2) Transfer of the member to inactive status, or to a retired list pursuant to any provision of title 10.”. (B) The table of sections at the beginning of such chapter is amended by adding at the end the following: “211. Participation in Thrift Savings Plan.”. (2)(A) Subchapter III of chapter 84 of title 5, United States Code, is amended by adding at the end the following: “§ 8440e. Members of the uniformed services “(a) For purposes of this section— “(1) the term ‘member’ has the meaning given such term by section 211 of title 37; and “(2) the term ‘basic pay’ means basic pay payable under section 204 of title 37. “(b)(1) Any member eligible to participate in the Thrift Savings Plan by virtue of section 211(b) of title 37 may contribute to the Thrift Savings Fund. “(2)(A) Except as provided in subparagraph (B), an election to contribute to the Thrift Savings Fund under this section may be made only during a period provided under section 8432(b), subject to the same conditions as prescribed under paragraph (2) (A)– (D) thereof.113 STAT. 671 “(B)(i) Notwithstanding subparagraph (A), any individual who is a member as of the effective date described in paragraph (1) of section 663(a) of the National Defense Authorization Act for Fiscal Year 2000 (or, if applicable, paragraph (2) thereof) may make the first such election during the 60-day period beginning on such effective date. “(ii) An election made under this subparagraph shall take effect on the first day of the first applicable pay period beginning after the close of the 60-day period referred to in clause (i). “(c) Except as otherwise provided in this section, the provisions of this subchapter and subchapter VII shall apply with respect to members making contributions to the Thrift Savings Fund, and such members shall, for purposes of this subchapter and subchapter VII, be considered employees within the meaning of section 8401(11). “(d)(1)(A) The amount contributed by a member described in section 211(a)(1) of title 37 for any pay period out of basic pay may not exceed 5 percent of such member’s basic pay for such pay period. “(B) The amount contributed by a member described in section 211(a)(2) of title 37 for any pay period out of any compensation received under section 206 of title 37 may not exceed 5 percent of such compensation, payable to such member for such pay period. “(2) A member making contributions to the Thrift Savings Fund out of basic pay, or out of compensation under section 206 of title 37, may also contribute (by direct transfer to the Fund) any part of any special or incentive pay that such member receives under chapter 5 of title 37. “(3) Nothing in this section or section 211 of title 37 shall be considered to waive any dollar limitation under the Internal Revenue Code of 1986 which otherwise applies with respect to the Thrift Savings Fund. “(e) Except as provided in section 211(d) of title 37, no contribution under section 8432(c) of this title may be made for the benefit of a member making contributions to the Thrift Savings Fund under this section.”. (B) The table of sections at the beginning of chapter 84 of title 5, United States Code, is amended by adding after the item relating to section 8440d the following: “8440e. Members of the uniformed services.”. (3)(A) Section 8432b(b)(2)(B) of title 5, United States Code, is amended by inserting “or 8440e” after “section 8432(a)”. (B)(i) Section 8351(b) of title 5, United States Code, is amended by redesignating paragraph (11) as paragraph (8). (ii) Subparagraph (A) of section 8351(b)(8) of such title 5 (as so redesignated by clause (i)) is amended by striking the semicolon and inserting the following: “, except that the reference in section 8432b(b)(2)(B) to employee contributions under section 8432(a) shall be considered a reference to employee contributions under this subchapter and section 8440e;”. (C) Subsection (c) of section 8432b of such title 5 is amended by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, by striking “(c)” and inserting “(c)(1)”, and by adding at the end the following:113 STAT. 672 “(2) An employee to whom this section applies is entitled to have contributed to the Thrift Savings Fund on such employee’s behalf an amount equal to— “(A) the total contributions to which that individual would have been entitled under section 8432(c)(2), based on the amounts contributed by such individual under section 8440e (other than under subsection (d)(2) thereof) with respect to the period referred to in subsection (b)(2)(B), if those amounts had been contributed by such individual under section 8432(a); reduced by “(B) any contributions actually made on such employee’s behalf under section 8432(c)(2) (including pursuant to an agreement under section 211(d) of title 37) with respect to the period referred to in subsection (b)(2)(B).”. (4) Subsections (g)(1) and (h)(3) of section 8433 of title 5, United States Code, are each amended by striking “under section 8432(a) of this title”. (5) Section 8439(a) of title 5, United States Code, is amended— (A) in paragraph (1), by striking “under section 8432(c)(1) of this title” and “under section 8351 of this title”; (B) in paragraph (2)(A)(i), by striking all after “individual” and inserting a semicolon; and (C) in paragraph (2)(A)(ii), by striking all after “individual” and inserting “; and”. (6) Section 8473 of title 5, United States Code, is amended— (A) in subsection (a), by striking “14 members” and inserting “15 members”; and (B) in subsection (b)— (i) by striking “14 members” and inserting “15 members”; (ii) by striking “and” at the end of paragraph (8); (iii) by striking the period at the end of paragraph (9) and inserting “; and”; and (iv) by adding at the end the following: “(10) 1 shall be appointed to represent participants (under section 8440e) who are members of the uniformed services.”. (b) Regulations.—Not later than the date on which qualifying offsetting legislation (as defined in section 663(b)) is enacted or 180 days after the date of the enactment of this Act, whichever is later, the Executive Director (appointed by the Federal Retirement Thrift Investment Board) shall issue regulations to implement the amendments made by this subtitle.