5 U.S.C. § 8351 — Participation in the Thrift Savings Plan

(a) Contributions. (1) An employee or Member may choose to contribute to the Thrift Savings Fund established by section 8437. (2) The choice may be made under the rules in section 8432(b) for people subject to chapter 84. (b) Rules for contributions. (1) Unless this subsection says otherwise, subchapters III and VII of chapter 84 apply to employees and Members contributing under subsection (a). (2)(A) In any pay period, an employee or Member may contribute any amount up to the maximum percentage of basic pay allowed by subparagraph (B). (B) The maximum is: for a pay period beginning in fiscal year 2001, 6 percent; 2002, 7 percent; 2003, 8 percent; 2004, 9 percent; 2005, 10 percent; and 2006 or later, 100 percent. (C) Despite this limit, an eligible participant, as defined in section 414(v) of the Internal Revenue Code of 1986, may make additional contributions allowed by that section and by regulations of the Executive Director consistent with it. (3) An employing agency may not make contributions for an employee or Member under section 8432(c). (4) Section 8433(b) applies when an employee or Member who chose to contribute separates from Government employment. (5)(A) Section 8435 rules requiring a spouse’s waiver or consent do not apply to money in the Fund contributed by the employee or Member, or former employee or Member, or to earnings attributable to that money. (B) For a married employee or Member, an election or election change authorized by subchapter III of chapter 84, and a loan or withdrawal under section 8433(g) or (h), may take effect or be approved only after the Executive Director notifies the spouse that the election or change was made or that an application for the loan or withdrawal was received. (C) The notice rule in subparagraph (B) may be waived for a spouse if the employee or Member satisfies the Executive Director of the Federal Retirement Thrift Investment Board that the spouse’s location cannot be found. (D) Except for loans or withdrawals under section 8433(g) or (h), the spouse or former-spouse notice rules in this paragraph do not apply if the person’s nonforfeitable account balance is $3,500 or less. (6) Despite paragraph (4), if a person separates from Government employment and has a nonforfeitable account balance below an amount set by the Executive Director’s regulation, the Executive Director must pay that balance to the participant in one payment. (7) “Nonforfeitable account balance” has the same meaning as in section 8401(32). This section does not define that quoted term. (8) When section 8432b applies to an employee contributing after being restored to or reemployed in a position covered by this subchapter under chapter 43 of title 38: (A) references in section 8432b to contributions under section 8432(a) mean employee contributions under this section, except that the reference in section 8432b(b)(2)(B) means employee contributions under this subchapter and section 8440e; (B) the contribution rate under section 8432b(b)(2)(A) is the maximum percentage under paragraph (2); and (C) subsections (c) and (d) of section 8432b are disregarded. (9) “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 may not make an election under this section. (d)(1) A foreign-national CIA employee whose services are performed outside the United States may not make an election under this section. (2)(A) Only CIA employees participating in the pilot project required by section 402(b) of the Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107–306; 50 U.S.C. 403–4 note) and contributing from basic pay may also contribute part of their bonus pay directly to the Fund. (B) Contributions under this paragraph are subject to section 8432(d). (e) The Executive Director of the Federal Retirement Thrift Investment Board may issue regulations to carry out this section.