
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC8432b]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
            CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM
 
                   SUBCHAPTER III--THRIFT SAVINGS PLAN
 
Sec. 8432b. Contributions of persons who perform military 
        service
        
    (a) This section applies to any employee who--
        (1) separates or enters leave-without-pay status in order to 
    perform military service; and
        (2) is subsequently restored to or reemployed in a position 
    which is subject to this chapter, pursuant to chapter 43 of title 
    38.

    (b)(1) Each employee to whom this section applies may contribute to 
the Thrift Savings Fund, in accordance with this subsection, an amount 
not to exceed the amount described in paragraph (2).
    (2) The maximum amount which an employee may contribute under this 
subsection is equal to--
        (A) the contributions under section 8432(a) which would have 
    been made, over the period beginning on date of separation or 
    commencement of leave-without-pay status (as applicable) and ending 
    on the day before the date of restoration or reemployment (as 
    applicable); reduced by
        (B) any contributions under section 8432(a) actually made by 
    such employee over the period described in subparagraph (A).

    (3) Contributions under this subsection--
        (A) shall be made at the same time and in the same manner as 
    would any contributions under section 8432(a);
        (B) shall be made over the period of time specified by the 
    employee under paragraph (4)(B); and
        (C) shall be in addition to any contributions then actually 
    being made under section 8432(a).

    (4) The Executive Director shall prescribe the time, form, and 
manner in which an employee may specify--
        (A) the total amount such employee wishes to contribute under 
    this subsection with respect to any particular period referred to in 
    paragraph (2)(B); and
        (B) the period of time over which the employee wishes to make 
    contributions under this subsection.

The employing agency may place a maximum limit on the period of time 
referred to in subparagraph (B), which cannot be shorter than two times 
the period referred to in paragraph (2)(B) and not longer than four 
times such period.
    (c) If an employee makes contributions under subsection (b), the 
employing agency shall make contributions to the Thrift Savings Fund on 
such employee's behalf--
        (1) in the same manner as would be required under section 
    8432(c)(2) if the employee contributions were being made under 
    section 8432(a); and
        (2) disregarding any contributions then actually being made 
    under section 8432(a) and any agency contributions relating thereto.

    (d) 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--
        (1) 1 percent of such employee's basic pay (as determined under 
    subsection (e)) for the period referred to in subsection (b)(2)(B); 
    reduced by
        (2) any contributions actually made on such employee's behalf 
    under section 8432(c)(1) with respect to the period referred to in 
    subsection (b)(2)(B).

    (e) For purposes of any computation under this section, an employee 
shall, with respect to the period referred to in subsection (b)(2)(B), 
be considered to have been paid at the rate which would have been 
payable over such period had such employee remained continuously 
employed in the position which such employee last held before separating 
or entering leave-without-pay status to perform military service.
    (f)(1) The employing agency may be required to pay lost earnings on 
contributions made pursuant to subsections (c) and (d). Such earnings, 
if required, shall be calculated retroactively to the date the 
contribution would have been made had the employee not separated or 
entered leave without pay status to perform military service.
    (2) Procedures for calculating and crediting the earnings payable 
pursuant to paragraph (1) shall be prescribed by the Executive Director.
    (g) Amounts paid under subsection (c), (d), or (f) shall be paid--
        (1) by the agency to which the employee is restored or in which 
    such employee is reemployed;
        (2) from the same source as would be the case under section 
    8432(e) with respect to sums required under section 8432(c); and
        (3) within the time prescribed by the Executive Director.

    (h)(1) For purposes of section 8432(g), in the case of an employee 
to whom this section applies--
        (A) a separation from civilian service in order to perform the 
    military service on which the employee's restoration or reemployment 
    rights are based shall be disregarded; and
        (B) such employee shall be credited with a period of civilian 
    service equal to the period referred to in subsection (b)(2)(B).

    (2)(A) An employee to whom this section applies may elect, for 
purposes of section 8433(d), or paragraph (1) or (2) of section 
8433(h),\1\ as the case may be, to have such employee's separation 
(described in subsection (a)(1)) treated as if it had never occurred.
---------------------------------------------------------------------------
    \1\ See References in Text note below.
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    (B) An election under this paragraph shall be made within such 
period of time after restoration or reemployment (as the case may be) 
and otherwise in such manner as the Executive Director prescribes.
    (i) The Executive Director shall prescribe regulations to carry out 
this section.

(Added Pub. L. 103-353, Sec. 4(a)(1), Oct. 13, 1994, 108 Stat. 3170; 
amended Pub. L. 106-65, div. A, title VI, Sec. 661(a)(3)(A), (C), Oct. 
5, 1999, 113 Stat. 671.)

               Amendment of Subsections (b)(2)(B) and (c)

        Pub. L. 106-65, div. A, title VI, Secs. 661(a)(3)(A), (C), 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, this section is amended as follows:
        (1) in subsection (b)(2)(B) by inserting ``or 8440e'' after 
    ``section 8432(a); and
        (2) in subsection (c) 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:

    (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).

                       References in Text

    Section 8433(h), referred to in subsec. (h)(2)(A), was redesignated 
section 8433(f) by Pub. L. 103-226, Sec. 9(b)(2), Mar. 30, 1994, 108 
Stat. 119.


                    Effective Date of 1999 Amendment

    Amendment by 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

    Section 4(e), (f) of Pub. L. 103-353 provided that:
    ``(e) Effective Date; Applicability.--This section [enacting this 
section and amending sections 8351, 8432, and 8433 of this title] and 
the amendments made by this section--
        ``(1) shall take effect on the date of enactment of this Act 
    [Oct. 13, 1994]; and
        ``(2) shall apply 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, United States Code, occurs on or after 
    August 2, 1990.
    ``(f) Rules for Applying Amendments to Employees Restored or 
Reemployed Before Effective Date.--In the case of any employee 
(described in subsection (e)(2)) who is reemployed or restored (in the 
circumstances described in section 8432b(a) of title 5, United States 
Code, as amended by this section) before the date of enactment of this 
Act [Oct. 13, 1994], the amendments made by this section [enacting this 
section and amending sections 8351, 8432, and 8433 of this title] shall 
apply to such employee, in accordance with their terms, subject to the 
following:
        ``(1) The employee shall be deemed not to have been reemployed 
    or restored until--
            ``(A) the date of enactment of this Act, or
            ``(B) the first day following such employee's reemployment 
        or restoration on which such employee is or was eligible to make 
        an election relating to contributions to the Thrift Savings 
        Fund,
    whichever occurs or occurred first.
        ``(2) If the employee changed agencies during the period between 
    the date of actual reemployment or restoration and the date of 
    enactment of this Act, the employing agency as of such date of 
    enactment shall be considered the reemploying or restoring agency.
        ``(3)(A) For purposes of any computation under section 8432b of 
    such title, pay shall be determined in accordance with subsection 
    (e) of such section, except that, with respect to the period 
    described in subparagraph (B), actual pay attributable to such 
    period shall be used.
        ``(B) The period described in this subparagraph is the period 
    beginning on the first day of the first applicable pay period 
    beginning on or after the date of the employee's actual reemployment 
    or restoration and ending on the day before the date determined 
    under paragraph (1).
        ``(4) Deem section 8432b(b)(2)(A) of such title to be amended by 
    striking `ending on the day before the date of restoration or 
    reemployment (as applicable)' and inserting `ending on the date 
    determined under section 4(f)(1) of the Uniformed Services 
    Employment and Reemployment Rights Act of 1994'.''

                  Section Referred to in Other Sections

    This section is referred to in sections 8351, 8432, 8432c, 8433 of 
this title; title 38 section 4318.
