
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC8351]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
                         CHAPTER 83--RETIREMENT
 
                SUBCHAPTER III--CIVIL SERVICE RETIREMENT
 
Sec. 8351. Participation in the Thrift Savings Plan

    (a)(1) An employee or Member may elect to contribute to the Thrift 
Savings Fund established by section 8437 of this title.
    (2) An election may be made under paragraph (1) only during a period 
provided under section 8432(b) for individuals who are subject to 
chapter 84 of this title.
    (b)(1) Except as otherwise provided in this subsection, the 
provisions of subchapters III and VII of chapter 84 of this title shall 
apply with respect to employees and Members making contributions to the 
Thrift Savings Fund under subsection (a) of this section.
    (2)(A) An employee or Member may contribute to the Thrift Savings 
Fund in any pay period any amount not exceeding the maximum percentage 
of such employee's or Member's basic pay for such pay period allowable 
under subparagraph (B).
    (B) The maximum percentage allowable under this subparagraph shall 
be determined in accordance with the following table:

In the case of a pay period                         The maximum percent-
beginning in fiscal year:                              age allowable is:
            2001................................                    6   
            2002................................                    7   
            2003................................                    8   
            2004................................                    9   
            2005................................                   10   
            2006 or thereafter..................                  100.  

    (3) No contributions may be made by an employing agency for the 
benefit of an employee or Member under section 8432(c) of this title.
    (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.
    (5)(A) The provisions of section 8435 of this title that require a 
waiver or consent by the spouse of an employee or Member (or former 
employee or Member) shall not apply with respect to sums in the Thrift 
Savings Fund contributed by the employee or Member (or former employee 
or Member) and earnings in the fund attributable to such sums.
    (B) An election or change of election authorized by subchapter III 
of chapter 84 of this title shall be effective in the case of a married 
employee or Member, and a loan or withdrawal may be approved under 
section 8433(g) and (h) of this title in such case, only after the 
Executive Director notifies the employee's or Member's spouse that the 
election or change of election has been made or that the Executive 
Director has received an application for such loan or withdrawal, as the 
case may be.
    (C) Subparagraph (B) may be waived with respect to a spouse if the 
employee or Member establishes to the satisfaction of the Executive 
Director of the Federal Retirement Thrift Investment Board that the 
whereabouts of such spouse cannot be determined.
    (D) Except with respect to the making of loans or withdrawals under 
section 8433(g) or (h), none of the provisions of this paragraph 
requiring notification to a spouse or former spouse of an employee, 
Member, former employee, or former Member shall apply in any case in 
which the nonforfeitable account balance of the employee, Member, former 
employee, or former Member is $3,500 or less.
    (6) Notwithstanding paragraph (4), if an employee or Member 
separates from Government employment and such employee's or Member's 
nonforfeitable account balance is less than an amount that the Executive 
Director prescribes by regulation, the Executive Director shall pay the 
nonforfeitable account balance to the participant in a single payment.
    (7) For the purpose of this section, the term ``nonforfeitable 
account balance'' has the same meaning as under section 8401(32).
    (8) In applying section 8432b to an employee contributing to the 
Thrift Savings Fund after being restored to or reemployed in a position 
subject to this subchapter, pursuant to chapter 43 of title 38--
        (A) any reference in such section to contributions under section 
    8432(a) shall be considered a reference to employee contributions 
    under this section;
        (B) the contribution rate under section 8432b(b)(2)(A) shall be 
    the maximum percentage allowable under subsection (b)(2) of this 
    section; and
        (C) subsections (c) and (d) of section 8432b shall be 
    disregarded.

    (9) For the purpose of this section, separation from Government 
employment includes a transfer described in section 8431.
    (c) A member of the Foreign Service described in section 103(6) of 
the Foreign Service Act of 1980 shall be ineligible to make any election 
under this section.
    (d) A foreign national employee of the Central Intelligence Agency 
whose services are performed outside the United States shall be 
ineligible to make an election under this section.
    (e) The Executive Director of the Federal Retirement Thrift 
Investment Board may prescribe regulations to carry out this section.

(Added Pub. L. 99-335, title II, Sec. 206(a)(1), June 6, 1986, 100 Stat. 
593; amended Pub. L. 100-238, title I, Sec. 111(a), Jan. 8, 1988, 101 
Stat. 1750; Pub. L. 101-335, Secs. 3(b)(1), 6(b)(1), July 17, 1990, 104 
Stat. 320, 323; Pub. L. 102-183, title III, Sec. 308(a), Dec. 4, 1991, 
105 Stat. 1265; Pub. L. 102-484, div. D, title XLIV, Sec. 4437(c), Oct. 
23, 1992, 106 Stat. 2724; Pub. L. 103-226, Sec. 9(a), (i)(1), (2), Mar. 
30, 1994, 108 Stat. 118, 121; Pub. L. 103-353, Sec. 4(d), Oct. 13, 1994, 
108 Stat. 3172; Pub. L. 104-208, div. A, title I, Sec. 101(f) [title VI, 
Sec. 659 [title II, Sec. 202]], Sept. 30, 1996, 110 Stat. 3009-314, 
3009-372, 3009-374; Pub. L. 106-65, div. A, title VI, Sec. 661(a)(3)(B), 
Oct. 5, 1999, 113 Stat. 671; Pub. L. 106-168, title II, Sec. 203(b), 
Dec. 12, 1999, 113 Stat. 1820; Pub. L. 106-554, Sec. 1(a)(4) [div. B, 
title I, Sec. 138(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A-234.)

                    Amendment of Subsection (b)(8)(A)

        Pub. L. 106-65, div. A, title VI, Secs. 661(a)(3)(B)(ii), 663, 
    Oct. 5, 1999, 113 Stat. 671, 673, as amended by Pub. L. 106-398, 
    Sec. 1 [[div. A], title VI, Sec. 661(a)], Oct. 30, 2000, 114 Stat. 
    1654, 1654A-167, provided that effective 180 days after Oct. 30, 
    2000, unless postponed, subsection (b)(8)(A) of this section 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;''.

                       References in Text

    Section 103(6) of the Foreign Service Act of 1980, referred to in 
subsec. (c), is classified to section 3903(6) of Title 22, Foreign 
Relations and Intercourse.


                               Amendments

    2000--Subsec. (b)(2). Pub. L. 106-554 designated existing provisions 
as subpar. (A), substituted ``the maximum percentage of such employee's 
or Member's basic pay for such pay period allowable under subparagraph 
(B).'' for ``5 percent of the amount of the employee's or Member's basic 
pay for such period.'', and added subpar. (B).
    1999--Subsec. (b)(8). Pub. L. 106-65, Sec. 661(a)(3)(B)(i), and Pub. 
L. 106-168, amended subsec. (b) identically, redesignating par. (11) as 
(8).
    Subsec. (b)(9). Pub. L. 106-168 added par. (9).
    Subsec. (b)(11). Pub. L. 106-65, Sec. 661(a)(3)(B)(i), and Pub. L. 
106-168, amended subsec. (b) identically, redesignating par. (11) as 
(8).
    1996--Subsec. (b)(5)(B). Pub. L. 104-208, Sec. 101(f) [title VI, 
Sec. 659 [title II, Sec. 202(1)(A)]], substituted ``An election or 
change of election'' for ``An election, change of election, or 
modification (relating to the commencement date of a deferred 
annuity)'', inserted ``or withdrawal'' after ``and a loan'' and ``and 
(h)'' after ``8433(g)'', substituted ``the election or change of 
election'' for ``the election, change of election, or modification'', 
and inserted ``or withdrawal'' after ``for such loan''.
    Subsec. (b)(5)(D). Pub. L. 104-208, Sec. 101(f) [title VI, Sec. 659 
[title II, Sec. 202(1)(B)]], inserted ``or withdrawals'' after ``of 
loans'' and ``or (h)'' after ``8433(g)''.
    Subsec. (b)(6). Pub. L. 104-208, Sec. 101(f) [title VI, Sec. 659 
[title II, Sec. 202(2)]], substituted ``less than an amount that the 
Executive Director prescribes by regulation'' for ``$3,500 or less'' and 
struck out ``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 subsection (b)'' before period at end.
    1994--Subsec. (b)(4). Pub. L. 103-226, Sec. 9(a)(1), amended par. 
(4) generally. Prior to amendment, par. (4) read as follows: ``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 entitled to an 
immediate annuity under this subchapter (including a disability 
retirement annuity under section 8337 of this title), separates from 
Government employment pursuant to regulations under section 3502(a) of 
this title or procedures under section 3595(a) of this title in a 
reduction in force, or separates from Government employment entitled to 
benefits under subchapter I of chapter 81 of this title.''
    Subsec. (b)(5). Pub. L. 103-226, Sec. 9(a)(2), (3), redesignated 
par. (7) as (5) and struck out former par. (5) which read as follows: 
``Section 8433(c) 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 entitled to a deferred annuity under 
this subchapter.''
    Subsec. (b)(5)(B) to (D). Pub. L. 103-226, Sec. 9(a)(4), (i)(1), 
(2), substituted ``section 8433(g)'' for ``section 8433(i)'' in subpars. 
(B) and (D) and struck out ``or former spouse'' after ``spouse'' in two 
places in subpar. (C).
    Subsec. (b)(6). Pub. L. 103-226, Sec. 9(a)(5), amended par. (6) 
generally. Prior to amendment, par. (6) read as follows: 
``Notwithstanding paragraphs (4) and (5), if an employee or Member 
separates from Government employment under circumstances making such 
employee or Member eligible to make an election under subsection (b) or 
(c) of section 8433, 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 such subsection (b) or (c), as applicable.''
    Pub. L. 103-226, Sec. 9(a)(2), (3), redesignated par. (9) as (6) and 
struck out former par. (6) which read as follows: ``Section 8433(d) 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 the service before becoming entitled to an 
immediate or deferred annuity under this subchapter.''
    Subsec. (b)(7). Pub. L. 103-226, Sec. 9(a)(6), which directed 
substitution of ``nonforfeitable'' for ``nonforfeiture'', could not be 
executed because the term ``nonforfeiture'' does not appear in text.
    Pub. L. 103-226, Sec. 9(a)(3), redesignated par. (10) as (7). Former 
par. (7) redesignated (5).
    Subsec. (b)(8). Pub. L. 103-226, Sec. 9(a)(2), struck out par. (8) 
which read as follows: ``Notwithstanding paragraph (6), if an employee 
or Member who elects to make contributions to the Thrift Savings Fund 
under subsection (a) separates from Government employment before 
becoming entitled to a deferred or immediate annuity under this 
subchapter, 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, to have the nonforfeitable 
account balance transferred to an eligible retirement plan as provided 
in section 8433(e).''
    Subsec. (b)(9), (10). Pub. L. 103-226, Sec. 9(a)(3), redesignated 
pars. (9) and (10) as (6) and (7), respectively.
    Subsec. (b)(11). Pub. L. 103-353 added par. (11).
    1992--Subsec. (b)(4). Pub. L. 102-484 inserted ``, separates from 
Government employment pursuant to regulations under section 3502(a) of 
this title or procedures under section 3595(a) of this title in a 
reduction in force,'' after ``section 8337 of this title)''.
    1991--Subsecs. (d), (e). Pub. L. 102-183 added subsec. (d) and 
redesignated former subsec. (d) as (e).
    1990--Subsec. (b)(7)(D). Pub. L. 101-335, Sec. 6(b)(1)(B), added 
subpar. (D).
    Subsec. (b)(8). Pub. L. 101-335, Sec. 6(b)(1)(A), added par. (8).
    Pub. L. 101-335, Sec. 3(b)(1), struck out par. (8) which read as 
follows: ``Sums contributed under this section and earnings attributable 
to such sums may be invested and reinvested only in the Government 
Securities Investment Fund established under section 8438(b)(1)(A) of 
this title.''
    Subsec. (b)(9), (10). Pub. L. 101-335, Sec. 6(b)(1)(A), added pars. 
(9) and (10).
    1988--Subsecs. (c), (d). Pub. L. 100-238 added subsec. (c) and 
redesignated former subsec. (c) as (d).


                    Effective Date of 2000 Amendment

    Pub. L. 106-554, Sec. 1(a)(4) [div. B, title I, Sec. 138(c)], Dec. 
21, 2000, 114 Stat. 2763, 2763A-234, provided that:
    ``(1) In general.--The amendments made by this section [enacting 
section 8440f of this title and amending this section and sections 8432 
and 8440a to 8440e of this title] shall take effect on the date of 
enactment of this Act [Dec. 21, 2000].
    ``(2) Coordination with election periods.--The Executive Director 
shall by regulation determine the first election period in which 
elections may be made consistent with the amendments made by this 
section.
    ``(3) Definitions.--For purposes of this section--
        ``(A) the term `election period' means a period afforded under 
    section 8432(b) of title 5, United States Code; and
        ``(B) the term `Executive Director' has the meaning given such 
    term by section 8401(13) of title 5, United States Code.''


                    Effective Date of 1999 Amendments

    Amendment by Pub. L. 106-168 applicable with respect to transfers 
occurring before, on, or after Dec. 12, 1999, with special rule for 
applying amendment with respect to transfers occurring before Dec. 12, 
1999, see section 203(c) of Pub. L. 106-168, set out as an Effective 
Date note under section 8431 of this title.
    Amendment by section 661(a)(3)(B)(ii) of Pub. L. 106-65 effective 
180 days after Oct. 30, 2000, unless postponed, see section 663 of Pub. 
L. 106-65, as amended, set out as an Effective Date note under section 
8440e of this title.


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-208 effective Sept. 30, 1996, and 
withdrawals and elections as provided under such amendment to be made at 
earliest practicable date as determined by Executive Director in 
regulations, see section 101(f) [title VI, Sec. 659 [title II, 
Sec. 207]] of Pub. L. 104-208, set out as a note under section 5545a of 
this title.


                    Effective Date of 1994 Amendments

    Amendment by Pub. L. 103-353 effective Oct. 13, 1994, and applicable 
to any employee whose release from military service, discharge from 
hospitalization, or other similar event making the individual eligible 
to seek restoration or reemployment under chapter 43 of Title 38, 
Veterans' Benefits, occurs on or after Aug. 2, 1990, with special rules 
for applying amendment to employees restored or reemployed before 
effective date, see section 4(e), (f) of Pub. L. 103-353, set out as an 
Effective Date note under section 8432b of this title.
    Section 9(j) of Pub. L. 103-226 provided that: ``This section 
[amending this section and sections 8433 to 8435, 8437, and 8440a to 
8440d of this title] shall take effect 1 year after the date of the 
enactment of this Act [Mar. 30, 1994] or on such earlier date as the 
Executive Director of the Federal Retirement Thrift Investment Board 
shall provide in regulation.'' [Implementing regulations were published 
in the Federal Register Feb. 21, 1995, 60 F.R. 9595, effective Mar. 10, 
1995.]


                    Effective Date of 1992 Amendment

    Section 4437(d) of Pub. L. 102-484 provided that: ``The amendments 
made by this section [amending this section and sections 8433 and 8435 
of this title] shall apply with respect to separations occurring after 
December 31, 1993, or such earlier date as the Executive Director 
(appointed under section 8474 of title 5, United States Code) may by 
regulation prescribe.''


                    Effective Date of 1991 Amendment

    Section 308(b) of Pub. L. 102-183 provided that:
    ``(1) The amendment made by subsection (a) [amending this section] 
shall take effect as of January 1, 1987.
    ``(2) Any refund which becomes payable as a result of the effective 
date specified in paragraph (1) shall, to the extent that that refund 
involves an individual's contributions to the Thrift Savings Fund 
(established under section 8437 of title 5, United States Code), be 
adjusted to reflect any earnings attributable thereto.''


                    Effective Date of 1990 Amendment

    Section 3(c) of Pub. L. 101-335 provided that: ``Subsections (a) and 
(b), and the amendments made by such subsections [amending this section 
and sections 8438, 8440a, and 8440b of this title and enacting 
provisions set out as a note under section 8438 of this title], shall be 
effective as of the second election period described in section 8432(b) 
of title 5, United States Code, beginning after the date of enactment of 
this Act [July 17, 1990], or as of such earlier date as the Executive 
Director may by regulation prescribe.''
    Section 6(c) of Pub. L. 101-335 provided that: ``This section, and 
the amendments made by this section [amending this section and sections 
8401, 8433, 8435, 8440a, and 8440b of this title and enacting provisions 
set out as a note under section 8433 of this title], shall be effective 
as of the second election period described in section 8432(b) of title 
5, United States Code, beginning after the date of enactment of this Act 
[July 17, 1990] (or as of such earlier date as the Executive Director 
may by regulation prescribe), and shall apply with respect to 
separations occurring before, on, or after that effective date.''


                    Effective Date of 1988 Amendment

    Section 111(b) of Pub. L. 100-238 provided that: ``The amendments 
made by subsection (a) [amending this section] shall be effective as of 
March 31, 1987. Any refund which becomes payable as a result of the 
preceding sentence shall, to the extent that such refund involves an 
individual's contributions to the Thrift Savings Fund (established under 
section 8437 of title 5, United States Code), be adjusted to reflect any 
earnings attributable thereto.''


                             Effective Date

    Section effective Jan. 1, 1987, see section 702(a) of Pub. L. 99-
335, set out as a note under section 8401 of this title.


                 Period When Election May First Be Made

    Section 206(b) of Pub. L. 99-335, as amended by Pub. L. 99-509, 
title VI, Sec. 6001(b), Oct. 21, 1986, 100 Stat. 1930, provided that an 
election could first be made by a Federal employee or a Member of 
Congress under 5 U.S.C. 8351 (a)(2) during an election period prescribed 
by Executive Director of Federal Retirement Thrift Investment Board to 
begin on Apr. 1, 1987, with such election to take effect on first day of 
employee's or Member's first pay period which began on or after the date 
of the election. The maximum amount that an employee or Member could 
elect to contribute during any pay period which began on or after Apr. 
1, 1987, and before Oct. 1, 1987, was an amount equal to 7.5 percent of 
the individual's basic pay for that period.

                  Section Referred to in Other Sections

    This section is referred to in sections 8432, 8432c, 8439, 8440, 
8440a, 8440d of this title; title 10 section 945; title 22 section 4069; 
title 42 section 2297h-8; title 50 section 2142.
