Section 1 Short title
This Act may be cited as the “Financial Independence for Disabled Veterans Act of 2016”.
Financial Independence for Disabled Veterans Act of 2016
A BILL
To authorize members and former members of the uniformed services who are entitled to veterans disability compensation to continue to participate in the Thrift Savings Plan through the deduction and deposit of a percentage of their veterans disability compensation to the Thrift Savings Fund.
Sec. 2 Disabled veterans continued participation in Thrift Savings Plan
Participation authorized— The Executive Director of the Federal Retirement Thrift Investment Board shall prescribe regulations to permit the continued participation in the Thrift Savings Plan by a member of the uniformed services after the discharge or release of the member from service in the uniformed services if the member or former member is entitled to veterans disability compensation.
Contributions— For purposes of section 8432 of title 5, United States Code, the monthly veterans disability compensation of a member or former member of the uniformed services shall be deemed to be basic pay for a monthly pay period.
Matching contributions prohibited— The deduction and deposit in the Thrift Savings Fund of a percentage of the veterans disability compensation of a member or former member of the uniformed services does not require or authorize Government contributions under section 8432 of title 5, United States Code, or any other provision of law.
Veterans disability compensation defined— In this section, the term “veterans disability compensation” has the meaning given the term “compensation” in section 101(13) of title 38, United States Code.