Section 1 Short title
This Act may be cited as the “Smart Savings Act”.
Smart Savings Act
AN ACT
To amend title 5, United States Code, to change the default investment fund under the Thrift Savings Plan, and for other purposes.
Sec. 2 Thrift Savings Plan default investment fund
In general— Section 8438(c)(2) of title 5, United States Code, is amended to read as follows:
“(2)
“(A) Except as provided in subparagraph (B), if an election has not been made with respect to any sums available for investment in the Thrift Savings Fund, the Executive Director shall invest such sums in an age-appropriate target date asset allocation portfolio of the funds described in subsection (b), as determined by the Executive Director.
“(B) If an election has not been made by a member (as defined in section 211 of title 37) contributing to the Thrift Savings Fund under section 8440e with respect to any sums available for investment in such member’s Thrift Savings Fund account, the Executive Director shall invest such sums in the Government Securities Investment Fund.”
by inserting “(1)” before “Each employee”; and
by adding at the end the following:
“(2) Before the date on which an individual is enrolled to make contributions to the Thrift Savings Fund, or as soon as practical thereafter, an individual who is automatically enrolled under section 8432(b)(2) shall receive the risk acknowledgment information described in paragraph (1).”
Technical and conforming amendment— Section 8472(g)(2) of title 5, United States Code, is amended by striking “required by section 8438 of this title to be invested in securities of the Government” and inserting “under section 8438(c)(2)(B)”.
Guidance— Not later than 9 months after the date of enactment of this Act, the Executive Director (as that term is defined under section 8401(13) of title 5, United States Code) shall develop and issue guidance implementing the amendments made by this section.
Effective date and application— The amendments made by this section shall—
take effect on the date on which the Executive Director issues guidance under subsection (d); and
apply to individuals who enroll in the Thrift Savings Plan on or after such date.
Sec. 3 Clarification of fiduciary protections
Section 8477(e)(1)(C)(ii) of title 5, United States Code, is amended—
in subclause (II)—
by inserting “or beneficiary” after “participant”; and
by inserting “or option” after “fund”; and
in subclause (III)—
by inserting “or beneficiary” after “participant”; and
by inserting “or beneficiaries' ” after “participants' ”.