Thrift Savings Plan Open Elections Act of 2004

Floor Speech

Mr. TOM DAVIS of Virginia. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4324) to amend title 5, United States Code, to eliminate the provisions limiting certain election opportunities available to individuals participating in the Thrift Savings Plan, and for other purposes, as amended.

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Mr. TOM DAVIS of Virginia. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on H.R. 4324.

The SPEAKER pro tempore. Is there objection to the request of the gentleman from Virginia?

There was no objection.

Mr. TOM DAVIS of Virginia. Mr. Speaker, I yield myself such time as I may consume.

I rise today in support of H.R. 4324, a bill that eliminates the open season for employee contributions to the Thrift Savings Plan. This legislation was reported from the Committee on Government Reform by a voice vote on July 31, and I am pleased to see it considered by the whole House today.

Mr. Speaker, as my colleagues know, the TSP offers Federal employees the same retirement savings opportunities that private companies afford their employees under traditional 401(k) plans.

The TSP is the largest defined contribution retirement plan in the world, with nearly three and a half million participants and over $143 billion in assets.

This legislation will allow TSP participants to make or modify their salary contributions at any time. Currently, Federal employees and members of the uniformed services who participate in the TSP are only provided two biannual periods to begin, adjust or end their contributions. This bill will give much-needed flexibility to participants of the Federal Government's retirement plan.

Every day, Federal employees across the Nation and around the globe perform critical duties to keep this Nation running smoothly.

Away from work, they experience all of life's events, births and deaths in the family, new homes, new jobs, salary adjustments and so on. With enactment of H.R. 4324, TSP participants can adopt their retirement savings to meet their changing circumstances.

Next year, I intend to offer additional legislation that will abolish the TSP open seasons entirely, but today, during the second open season after beginning Federal service, participants can earn matching funds up to 5 percent of their salary from their employing agencies. I believe allowing participants to secure these matching funds immediately is an important and deserved incentive for Federal employees to save. The Federal Retirement Thrift Investment Board, which administers the TSP, supports that change, and the Board supports H.R. 4324 as well.

The Committee on Government Reform, the committee of jurisdiction for Federal employee issues, was limited by budget constraints this Congress from moving a bill that would totally eliminate open seasons. Nevertheless, I am pleased to see H.R. 4324 advancing today.

I want to recognize the efforts of my distinguished counterpart in the other body, the gentlewoman from Maine, chairman of the Governmental Affairs Committee. She has worked very closely with me on today's bill to ensure that Federal employees will have the same retirement savings flexibilities enjoyed by many in the private sector.
Mr. Speaker, I reserve the balance of my time.

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Mr. TOM DAVIS of Virginia. Mr. Speaker, I urge my colleagues to support this important legislation, and I yield back the balance of my time.

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