5 U.S.C. § 8437 — Thrift Savings Fund
submitted 40 years ago by Pub. L. 99-335 to r/title-5-GOVERNMENT-ORGANIZATION-AND-EMPLOYEES · 663 words · no verdicts yet
This law creates the Thrift Savings Fund in the U.S. Treasury. It holds contributions, deposits, and investment earnings, minus money paid out. The money can only fund specific purposes and is generally protected from creditors, with a few exceptions.
(a) The Fund* is created in the U.S. Treasury as the Thrift Savings Fund.
(b) What's in it. The Fund equals the total of all contributions made under section 8432 plus all amounts deposited under section 8479(b), increased by net investment earnings (or reduced by net investment losses), and reduced by the total payments made out of the Fund (including administrative expenses).
(c) What the money can be used for. The Fund's money is permanently appropriated, available without a yearly deadline, but only for: (1) investing under section 8438; (2) paying benefits or buying annuity contracts under this subchapter; (3) paying the administrative costs of running the Federal Retirement Thrift Investment Management System* (under subchapter VII); (4) making distributions for the tax-treatment purposes in section 8440(b); (5) making loans to employees and Members under section 8433(g); and (6) buying insurance as allowed under section 8479(b)(2).
(d) Paying for administration. Administrative costs are paid first out of any forfeited sums under section 8432(g), and only after that out of the Fund's net earnings*.
(e) Protection from other uses and creditors.
(1) Subject to subsection (d) and paragraphs (2)-(3), money in an individual's account* can only be used for that person's (or their beneficiaries') exclusive benefit under this subchapter, nothing else.
(2) Except as paragraph (3) allows, this money can't be assigned, given away, or taken through legal processes like execution, levy, attachment, or garnishment. A loan from the Fund to an employee* or Member* doesn't count as an assignment.
(3) The money can be reached through legal process for: enforcing child support or alimony obligations (under the Social Security Act); enforcing a criminal restitution order; forfeiture under section 8432(g)(5); an Executive Director* transfer obligation under the Congressional Accountability Act; an Executive Director* payment obligation under section 8467; and a federal tax levy. For these purposes, agency contributions under section 8432(c)(1) don't count as part of the balance unless they've already become nonforfeitable (vested).
(f) No other appropriation. Fund money can't be appropriated, and can't be used, for any purpose other than what this section specifies.
(g) Held in trust. All sums contributed by an employee, Member, or their employing agency, plus all net earnings on them, are held in the Fund in trust for that employee or Member.
There is established in the Treasury of the United States a Thrift Savings Fund*.
The Thrift Savings Fund consists of the sum of all amounts contributed under section 8432 of this title and all amounts deposited under section 8479(b) of this title, increased by the total net earnings* from investments of sums in the Thrift Savings Fund or reduced by the total net losses* from investments of the Thrift Savings Fund, and reduced by the total amount of payments made from the Thrift Savings Fund (including payments for administrative expenses).
The sums in the Thrift Savings Fund are appropriated and shall remain available without fiscal year limitation—
to invest under section 8438 of this title;
to pay benefits or purchase annuity contracts under this subchapter;
to pay the administrative expenses of the Federal Retirement Thrift Investment Management System* prescribed in subchapter VII of this chapter;
to make distributions for the purposes of section 8440(b) of this title;
to make loans to employees and Members as authorized under section 8433(g) of this title; and
to purchase insurance as provided in section 8479(b)(2) of this title.
Administrative expenses incurred to carry out this subchapter and subchapter VII of this chapter shall be paid first out of any sums in the Thrift Savings Fund forfeited under section 8432(g) of this title and then out of net earnings in such Fund.
Subject to subsection (d) and paragraphs (2) and (3), sums in the Thrift Savings Fund credited to the account* of an employee*, Member*, former employee, or former Member may not be used for, or diverted to, purposes other than for the exclusive benefit of the employee, Member, former employee, or former Member or his beneficiaries under this subchapter.
Except as provided in paragraph (3), sums in the Thrift Savings Fund may not be assigned or alienated and are not subject to execution, levy, attachment, garnishment, or other legal process. For the purposes of this paragraph, a loan made from such Fund to an employee or Member shall not be considered to be an assignment or alienation.
Moneys due or payable from the Thrift Savings Fund to any individual and, in the case of an individual who is an employee or Member (or former employee or Member), the balance in the account of the employee or Member (or former employee or Member) shall be subject to legal process for the enforcement of the individual’s legal obligations to provide child support or make alimony payments as provided in section 459 of the Social Security Act (42 U.S.C. 659), the enforcement of an order for restitution under section 3663A of title 18, forfeiture under section 8432(g)(5) of this title, an obligation of the Executive Director* to make a transfer under section 415(d)(3) of the Congressional Accountability Act of 1995 (2 U.S.C. 1415(d)(3)), or an obligation of the Executive Director* to make a payment to another person under section 8467 of this title, and shall be subject to a Federal tax levy under section 6331 of the Internal Revenue Code of 1986. For the purposes of this paragraph, an amount contributed for the benefit of an individual under section 8432(c)(1) (including any earnings attributable thereto) shall not be considered part of the balance in such individual’s account unless such amount is nonforfeitable, as determined under applicable provisions of section 8432(g).
The sums in the Thrift Savings Fund shall not be appropriated for any purpose other than the purposes specified in this section and may not be used for any other purpose.
All sums contributed to the Thrift Savings Fund by an employee or Member or by an employing agency for the benefit of such employee or Member and all net earnings in such Fund attributable to investment of such sums are held in such Fund in trust for such employee or Member.
Source credit: (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 550; amended Pub. L. 100–238, title I, §§ 116, 117(a), Jan. 8, 1988, 101 Stat. 1751; Pub. L. 103–226, § 9(i)(16), Mar. 30, 1994, 108 Stat. 122; Pub. L. 103–358, § 2(b)(4), Oct. 14, 1994, 108 Stat. 3421; Pub. L. 111–31, div. B, title I, § 108, June 22, 2009, 123 Stat. 1856; Pub. L. 112–267, § 1, Jan. 14, 2013, 126 Stat. 2440; Pub. L. 115–397, title I, § 111(b), Dec. 21, 2018, 132 Stat. 5311.)
- 1986Enacted · Pub. L. 99-335 · 100 Stat. 550
- 1988Amended · Pub. L. 100-238 · 101 Stat. 1751
- 1994Amended · Pub. L. 103-226 · 108 Stat. 122
- 1994Amended · Pub. L. 103-358 · 108 Stat. 3421
- 2009Amended · Pub. L. 111-31 · 123 Stat. 1856
- 2013Amended · Pub. L. 112-267 · 126 Stat. 2440
- 2018Amended · Pub. L. 115-397 · 132 Stat. 5311
A history note hasn’t been published yet. The record shows enactment by Pub. L. 99-335 on 1986-06-06.
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