---
kind: "section"
citation: "5 U.S.C. § 8432"
title: "5"
title_heading: "Government Organization and Employees"
number: "8432"
heading: "Contributions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/8432"
units:
  - "Part III — Employees"
  - "Subpart G — Insurance and Annuities"
  - "Chapter 84 — Federal Employees’ Retirement System"
  - "Subchapter III — Thrift Savings Plan"
---

# §8432. Contributions

- (a)
  - (1) An [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) may contribute to the Thrift Savings [Fund](/usc/5/8401.md?p=6) in any [pay](/usc/5/7511.md?p=a-4) period, pursuant to an election under [subsection (b)](#b), an amount not to exceed the maximum percentage of such [employee](/usc/5/4701.md?p=a-2)’s or [Member](/usc/5/8401.md?p=20)’s [basic pay](/usc/5/8401.md?p=4) for such [pay](/usc/5/7511.md?p=a-4) period allowable under [paragraph (2)](#a-2). Contributions under this subsection pursuant to such an election shall, with respect to each [pay](/usc/5/7511.md?p=a-4) period for which such election remains in effect, be made in accordance with a program of regular contributions provided in regulations prescribed by the [Executive Director](/usc/5/8401.md?p=13).
  - (2) The maximum percentage allowable under this paragraph shall be determined in accordance with the following table:

    | In the case of a [pay](/usc/5/7511.md?p=a-4) period beginning<br>in fiscal year: | The maximum percentage<br>allowable is: |
    | --- | --- |
    | 2001 | 11 |
    | 2002 | 12 |
    | 2003 | 13 |
    | 2004 | 14 |
    | 2005 | 15 |
    | 2006 or thereafter | 100. |

  - (3) Notwithstanding any limitation under this subsection, an [eligible](/usc/5/4701.md?p=a-3) participant (as defined by section 414(v) of the Internal Revenue Code of 1986) may make such additional contributions to the Thrift Savings [Fund](/usc/5/8401.md?p=6) as are permitted by such [section 414(v)](/usc/5/414.md) and regulations of the [Executive Director](/usc/5/8401.md?p=13) consistent therewith.
- (b)
  - (1)
    - (A)
      - (i) The [Executive Director](/usc/5/8401.md?p=13) shall prescribe regulations under which [employees](/usc/5/4701.md?p=a-2) and [Members](/usc/5/8401.md?p=20) may make contributions under [subsection (a)](#a), to modify the amount to be contributed under such subsection, or to terminate such contributions.
      - (ii) An election to make contributions under this paragraph—
        - (I) may be made at any time;
        - (II) shall take effect on the earliest date after the election that is administratively feasible; and
        - (III) shall remain in effect until modified or terminated.
    - (B) The amount to be contributed pursuant to an election under [subparagraph (A)](#b-1-A) shall be the percentage of [basic pay](/usc/5/8401.md?p=4) or amount designated by the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20).
  - (2)
    - (A) The [Executive Director](/usc/5/8401.md?p=13) shall by regulation provide for an [eligible individual](/usc/5/8951.md?p=3) to be automatically enrolled to make contributions under [subsection (a)](#a) at the default percentage of [basic pay](/usc/5/8401.md?p=4).
    - (B) For purposes of this paragraph, the default percentage shall be equal to 3 percent or such other percentage, not less than 2 percent nor more than 5 percent, as the [Board](/usc/5/8401.md?p=5) may prescribe.
    - (C) The regulations shall include provisions under which any individual who would otherwise be automatically enrolled in accordance with [subparagraph (A)](#b-2-A) may—
      - (i) modify the percentage or amount to be contributed pursuant to automatic enrollment, effective not later than the first full [pay](/usc/5/7511.md?p=a-4) period following receipt of the election by the appropriate processing entity; or
      - (ii) decline automatic enrollment altogether.
    - (D)
      - (i) Except as provided in [clause (ii)](#b-2-D-ii), for purposes of this paragraph, the term “[eligible individual](/usc/5/8951.md?p=3)” means any individual who, after any regulations under [subparagraph (A)](#b-2-A) first take effect, is appointed, transferred, or reappointed to a [position](/usc/5/5102.md?p=a-3) in which that individual becomes [eligible](/usc/5/4701.md?p=a-3) to contribute to the Thrift Savings [Fund](/usc/5/8401.md?p=6).
      - (ii)
        - (ii) [^1] Except in the case of a full TSP [member](/usc/5/8401.md?p=20) (as defined in [section 8440e(a)](/usc/5/8440e.md?p=a)), [members](/usc/5/8401.md?p=20) of the uniformed [services](/usc/5/8401.md?p=26) shall not be [eligible individuals](/usc/5/8951.md?p=3) for purposes of this paragraph.
    - (E) Sections [8351(a)(1)](/usc/5/8351.md?p=a-1), [8440a(a)(1)](/usc/5/8440a.md?p=a-1), [8440b(a)(1)](/usc/5/8440b.md?p=a-1), [8440c(a)(1)](/usc/5/8440c.md?p=a-1), [8440d(a)(1)](/usc/5/8440d.md?p=a-1), and [8440e(b)(1)](/usc/5/8440e.md?p=b-1) shall be applied in a manner consistent with the purposes of this paragraph.
    - (F) Notwithstanding any other provision of this paragraph, if a full TSP [member](/usc/5/8401.md?p=20) (as defined in [section 8440e(a)](/usc/5/8440e.md?p=a)) has declined automatic enrollment into the Thrift Savings Plan for a year, the full TSP [member](/usc/5/8401.md?p=20) shall be automatically reenrolled on January 1 of the succeeding year, with contributions under [subsection (a)](#a) at the default percentage of [basic pay](/usc/5/8401.md?p=4).
- (c)
  - (1)
    - (A) At the time prescribed by the [Executive Director](/usc/5/8401.md?p=13), but no later than 12 days after the end of the [pay](/usc/5/7511.md?p=a-4) period that includes the first date on which an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) may make contributions under [subsection (a)](#a) (without regard to whether the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) has elected to make such contributions during such [pay](/usc/5/7511.md?p=a-4) period), and within such time as the [Executive Director](/usc/5/8401.md?p=13) may prescribe with respect to succeeding [pay](/usc/5/7511.md?p=a-4) periods (but no later than 12 days after the end of each such [pay](/usc/5/7511.md?p=a-4) period), the employing [agency](/usc/5/3132.md?p=a-1) shall contribute to the Thrift Savings [Fund](/usc/5/8401.md?p=6) for the benefit of such [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) the amount equal to 1 percent of the [basic pay](/usc/5/8401.md?p=4) of such [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) for such [pay](/usc/5/7511.md?p=a-4) period.
    - (B) In the case of each [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) who is an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) on January 1, 1987, and continues as an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) without a break in [service](/usc/5/8401.md?p=26) through April 1, 1987, the employing [agency](/usc/5/3132.md?p=a-1) shall contribute to the Thrift Savings [Fund](/usc/5/8401.md?p=6) for the benefit of such [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) the amount equal to 1 percent of the total [basic pay](/usc/5/8401.md?p=4) paid to such [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) for that period of [service](/usc/5/8401.md?p=26).
    - (C) If an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20)—
      - (i) is an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) on January 1, 1987;
      - (ii) separates from [Government](/usc/5/4101.md?p=3) employment before April 1, 1987; and
      - (iii) before separation, completes the number of years of civilian [service](/usc/5/8401.md?p=26) applicable to such [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) under subparagraph [(A)](#g-2-A) or [(B)](#g-2-B) of subsection (g)(2),

      the employing [agency](/usc/5/3132.md?p=a-1) shall contribute to the Thrift Savings [Fund](/usc/5/8401.md?p=6) for the benefit of such [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) the amount equal to 1 percent of the total [basic pay](/usc/5/8401.md?p=4) paid to such [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) for [service](/usc/5/8401.md?p=26) performed on or after January 1, 1987, and before the date of the separation.

  - (2)
    - (A) In addition to contributions made under [paragraph (1)](#c-1), the employing [agency](/usc/5/3132.md?p=a-1) of an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) who contributes to the Thrift Savings [Fund](/usc/5/8401.md?p=6) under [subsection (a)](#a) for any [pay](/usc/5/7511.md?p=a-4) period shall make a contribution to the Thrift Savings [Fund](/usc/5/8401.md?p=6) for the benefit of such [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20). The employing [agency](/usc/5/3132.md?p=a-1)’s contribution shall be made within such time as the [Executive Director](/usc/5/8401.md?p=13) may prescribe, but no later than 12 days after the end of each such [pay](/usc/5/7511.md?p=a-4) period.
    - (B) The amount contributed under [subparagraph (A)](#c-2-A) by an employing [agency](/usc/5/3132.md?p=a-1) with respect to a contribution of an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) during any [pay](/usc/5/7511.md?p=a-4) period shall be the amount equal to the sum of—
      - (i) such portion of the total amount of the [employee](/usc/5/4701.md?p=a-2)’s or [Member](/usc/5/8401.md?p=20)’s contribution as does not exceed 3 percent of such [employee](/usc/5/4701.md?p=a-2)’s or [Member](/usc/5/8401.md?p=20)’s [basic pay](/usc/5/8401.md?p=4) for such period; and
      - (ii) one-half of such portion of the amount of the [employee](/usc/5/4701.md?p=a-2)’s or [Member](/usc/5/8401.md?p=20)’s contribution as exceeds 3 percent, but does not exceed 5 percent, of such [employee](/usc/5/4701.md?p=a-2)’s or [Member](/usc/5/8401.md?p=20)’s [basic pay](/usc/5/8401.md?p=4) for such [pay](/usc/5/7511.md?p=a-4) period.
    - (C) Notwithstanding [subparagraph (B)](#c-2-B), the amount contributed under [subparagraph (A)](#c-2-A) by an employing [agency](/usc/5/3132.md?p=a-1) with respect to any contribution made by an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) during any [pay](/usc/5/7511.md?p=a-4) period which begins after the date on which such [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) makes an election under subsection (b)(4)[^2] and before July 1, 1987, shall be the amount equal to the sum of—
      - (i) two times such portion of the total amount of the [employee](/usc/5/4701.md?p=a-2)’s or [Member](/usc/5/8401.md?p=20)’s contribution as does not exceed 3 percent of such [employee](/usc/5/4701.md?p=a-2)’s or [Member](/usc/5/8401.md?p=20)’s [basic pay](/usc/5/8401.md?p=4) for such [pay](/usc/5/7511.md?p=a-4) period; and
      - (ii) such portion of the total amount of the [employee](/usc/5/4701.md?p=a-2)’s or [Member](/usc/5/8401.md?p=20)’s contributions as exceeds 3 percent, but does not exceed 5 percent, of such [employee](/usc/5/4701.md?p=a-2)’s or [Member](/usc/5/8401.md?p=20)’s [basic pay](/usc/5/8401.md?p=4) for such [pay](/usc/5/7511.md?p=a-4) period.
  - (3)
    - (A) There shall be contributed to the Thrift Savings [Fund](/usc/5/8401.md?p=6) on behalf of each [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) described in [subparagraph (B)](#c-3-B) the amount determined under [subparagraph (C)](#c-3-C).
    - (B) An [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) referred to in [subparagraph (A)](#c-3-A) is an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) who—
      - (i) is an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) on January 1, 1987;
      - (ii) has creditable [service](/usc/5/8401.md?p=26) described in [section 8411(b)(2) of this title](/usc/5/8411.md?p=b-2); and
      - (iii) has not received a refund of the amount of the retirement deductions made with respect to such [service](/usc/5/8401.md?p=26) under section 204 of the Federal [Employees](/usc/5/4701.md?p=a-2)’ Retirement Contribution Temporary Adjustment Act of 1983.
    - (C) The amount referred to in [subparagraph (A)](#c-3-A) in the case of an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) is equal to the sum of—
      - (i) 1 percent of the total [basic pay](/usc/5/8401.md?p=4) paid to such [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) for [service](/usc/5/8401.md?p=26) described in [section 8411(b)(2) of this title](/usc/5/8411.md?p=b-2); and
      - (ii) interest on such amount computed with respect to such [service](/usc/5/8401.md?p=26) in the manner provided in paragraphs (2) and (3) of [section 8334(e) of this title](/usc/5/8334.md?p=e).
    - (D) The [Secretary](/usc/5/9901.md?p=2) of the Treasury shall credit to the Thrift Savings [Fund](/usc/5/8401.md?p=6), out of any sums in the Treasury not otherwise appropriated, the amounts determined by the [Director](/usc/5/8401.md?p=8) to be necessary to carry out this paragraph.
- (d) Notwithstanding any other provision of this section, no contribution may be made under this section for any year to the extent that such contribution, when added to prior contributions for such year, exceeds any limitation under section 415 of the Internal Revenue Code of 1986. However, no contribution made under [subsection (c)(3)](#c-3) shall be subject to, or taken into [account](/usc/5/8401.md?p=1), for purposes of the preceding sentence.
- (e) The sums required to be contributed to the Thrift Savings [Fund](/usc/5/8401.md?p=6) by an employing [agency](/usc/5/3132.md?p=a-1) under [subsection (c)](#c) for the benefit of an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) shall be paid from the appropriation or [fund](/usc/5/8401.md?p=6) available to such [agency](/usc/5/3132.md?p=a-1) for payment of salaries of the [employee](/usc/5/4701.md?p=a-2)’s or [Member](/usc/5/8401.md?p=20)’s [office](/usc/5/5402.md?p=3) or establishment. When an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) in the legislative branch is paid by the Chief Administrative Officer of the House of Representatives, the Chief Administrative Officer may [pay](/usc/5/7511.md?p=a-4) from the applicable [accounts](/usc/5/8401.md?p=1) of the House of Representatives the contribution that otherwise would be contributed from the appropriation or [fund](/usc/5/8401.md?p=6) used to [pay](/usc/5/7511.md?p=a-4) the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20).
- (f) Amounts contributed by an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) under [subsection (a)](#a) and amounts contributed with respect to such [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) under [subsection (c)](#c) shall be deposited in the Thrift Savings [Fund](/usc/5/8401.md?p=6) to the credit of that [employee](/usc/5/4701.md?p=a-2)’s or [Member](/usc/5/8401.md?p=20)’s [account](/usc/5/8401.md?p=1) in accordance with such procedures as the [Secretary](/usc/5/9901.md?p=2) of the Treasury may, in consultation with the [Executive Director](/usc/5/8401.md?p=13), prescribe in regulations.
- (g)
  - (1) Except as otherwise provided in this subsection, all contributions made under this section shall be fully nonforfeitable when made.
  - (2) Contributions made for the benefit of an [employee](/usc/5/4701.md?p=a-2) under [subsection (c)(1)](#c-1) and all [earnings](/usc/5/8401.md?p=10) attributable to such contributions shall be forfeited if the [employee](/usc/5/4701.md?p=a-2) separates from [Government](/usc/5/4101.md?p=3) employment before completing—
    - (A) 2 years of civilian [service](/usc/5/8401.md?p=26) in the case of an [employee](/usc/5/4701.md?p=a-2) who, at the time of separation, is serving in—
      - (i) a [position](/usc/5/5102.md?p=a-3) in the [Senior Executive](/usc/5/3132.md?p=a-3) [Service](/usc/5/8401.md?p=26) as a [noncareer appointee](/usc/5/3132.md?p=a-7) (as defined in [section 3132(a)(7) of this title](/usc/5/3132.md?p=a-7));
      - (ii) a [position](/usc/5/5102.md?p=a-3) listed in section [5312](/usc/5/5312.md), [5313](/usc/5/5313.md), [5314](/usc/5/5314.md), [5315](/usc/5/5315.md), or [5316](/usc/5/5316.md) of this title or a [position](/usc/5/5102.md?p=a-3) placed in level IV or V of the Executive Schedule under [section 5317 of this title](/usc/5/5317.md); or
      - (iii) a [position](/usc/5/5102.md?p=a-3) in the Executive branch which is excepted from the competitive [service](/usc/5/8401.md?p=26) by the [Office](/usc/5/5402.md?p=3) by reason of the confidential and policy-determining character of the [position](/usc/5/5102.md?p=a-3);
    - (B) 3 years of civilian [service](/usc/5/8401.md?p=26) in the case of an [employee](/usc/5/4701.md?p=a-2) who is not serving in a [position](/usc/5/5102.md?p=a-3) described in [subparagraph (A)](#g-2-A) at the time of separation; or
    - (C) 2 years of [service](/usc/5/8401.md?p=26) in the case of a [member of the uniformed services](/usc/5/9001.md?p=3).
  - (3) Contributions made for the benefit of a [Member](/usc/5/8401.md?p=20) or [Congressional employee](/usc/5/5531.md?p=7) under [subsection (c)(1)](#c-1) and all [earnings](/usc/5/8401.md?p=10) attributable to such contributions shall be forfeited if the [Member](/usc/5/8401.md?p=20) or [Congressional employee](/usc/5/5531.md?p=7) separates from [Government](/usc/5/4101.md?p=3) employment before completing 2 years of civilian [service](/usc/5/8401.md?p=26).
  - (4) Nothing in paragraph [(2)](#g-2) or [(3)](#g-3) shall cause the forfeiture of any contributions made for the benefit of an [employee](/usc/5/4701.md?p=a-2), [Member](/usc/5/8401.md?p=20), or [Congressional employee](/usc/5/5531.md?p=7) under [subsection (c)(1)](#c-1), or any [earnings](/usc/5/8401.md?p=10) attributable thereto, if such [employee](/usc/5/4701.md?p=a-2), [Member](/usc/5/8401.md?p=20), or [Congressional employee](/usc/5/5531.md?p=7) is not separated from [Government](/usc/5/4101.md?p=3) employment as of date of death.
  - (5) Notwithstanding any other provision of law, contributions made by the [Government](/usc/5/4101.md?p=3) for the benefit of an [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) under [subsection (c)](#c), and all [earnings](/usc/5/8401.md?p=10) attributable to such contributions, shall be forfeited if the annuity of the [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20), or that of a [survivor](/usc/5/8401.md?p=28) or beneficiary, is forfeited under subchapter II of chapter 83.
- (h) No transfers or contributions may be made to the Thrift Savings [Fund](/usc/5/8401.md?p=6) except as provided in this chapter or [section 8351 of this title](/usc/5/8351.md).
- (i)
  - (1) This subsection applies to any [employee](/usc/5/4701.md?p=a-2)—
    - (A) to whom [section 8432b](/usc/5/8432b.md) applies; and
    - (B) who, during the period of such [employee](/usc/5/4701.md?p=a-2)’s absence from civilian [service](/usc/5/8401.md?p=26) (as referred to in [section 8432b(b)(2)(B)](/usc/5/8432b.md?p=b-2-B))—
      - (i) is [eligible](/usc/5/4701.md?p=a-3) to make an election described in [subsection (b)(1)](#b-1); or
      - (ii) would be so [eligible](/usc/5/4701.md?p=a-3) but for having either elected to terminate individual contributions to the Thrift Savings [Fund](/usc/5/8401.md?p=6) within 2 months before commencing [military service](/usc/5/8401.md?p=31) or separated in order to perform [military service](/usc/5/8401.md?p=31).
  - (2) The [Executive Director](/usc/5/8401.md?p=13) shall prescribe regulations to ensure that any [employee](/usc/5/4701.md?p=a-2) to whom this subsection applies shall, within a reasonable time after being restored or reemployed (in the manner described in [section 8432b(a)(2)](/usc/5/8432b.md?p=a-2)), be afforded the opportunity to make, for purposes of this section, any election which would be allowable during a period described in [subsection (b)(1)(A)](#b-1-A).
- (j)
  - (1) For the purpose of this subsection—
    - (A) the term “[eligible](/usc/5/4701.md?p=a-3) rollover distribution” has the meaning given such term by section 402(c)(4) of the Internal Revenue Code of 1986; and
    - (B) the term “qualified trust” has the meaning given such term by section 402(c)(8) of the Internal Revenue Code of 1986.
  - (2) An [employee](/usc/5/4701.md?p=a-2) or [Member](/usc/5/8401.md?p=20) may contribute to the Thrift Savings [Fund](/usc/5/8401.md?p=6) an [eligible](/usc/5/4701.md?p=a-3) rollover that a qualified trust could accept under the Internal Revenue Code of 1986. A contribution made under this subsection shall be made in the form described in section 401(a)(31) of the Internal Revenue Code of 1986. In the case of an [eligible](/usc/5/4701.md?p=a-3) rollover distribution, the maximum amount transferred to the Thrift Savings [Fund](/usc/5/8401.md?p=6) shall not exceed the amount which would otherwise have been included in the [employee](/usc/5/4701.md?p=a-2)’s or [Member](/usc/5/8401.md?p=20)’s gross income for Federal income tax purposes.
  - (3) The [Executive Director](/usc/5/8401.md?p=13) shall prescribe regulations to carry out this subsection.
- (k)
  - (1) Only those [employees](/usc/5/4701.md?p=a-2) of the Central Intelligence [Agency](/usc/5/3132.md?p=a-1) 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](/usc/50/403–4.md) note)[^2] and making contributions to the Thrift Savings [Fund](/usc/5/8401.md?p=6) out of [basic pay](/usc/5/8401.md?p=4) may also contribute (by direct transfer to the [Fund](/usc/5/8401.md?p=6)) any part of bonus [pay](/usc/5/7511.md?p=a-4) received by the [employee](/usc/5/4701.md?p=a-2) as part of the pilot project.
  - (2) Contributions under this subsection are subject to [subsection (d)](#d).
  - (3) For purposes of [subsection (c)](#c), [basic pay](/usc/5/8401.md?p=4) of an [employee](/usc/5/4701.md?p=a-2) of the Central Intelligence [Agency](/usc/5/3132.md?p=a-1) participating in the pilot project referred to in [paragraph (1)](#k-1) shall include bonus [pay](/usc/5/7511.md?p=a-4) received by the [employee](/usc/5/4701.md?p=a-2) as part of the pilot project.

## Footnotes

[^1]: So in original.
[^2]: See References in Text note below.

## Source credit

(Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 541; amended Pub. L. 99–509, title VI, § 6001(a)(1), (2), Oct. 21, 1986, 100 Stat. 1929, 1930; Pub. L. 100–20, § 1(b), Apr. 7, 1987, 101 Stat. 265; Pub. L. 100–238, title I, §§ 114, 115, 121, Jan. 8, 1988, 101 Stat. 1751, 1752; Pub. L. 103–353, §§ 4(c), 5(e)(3), Oct. 13, 1994, 108 Stat. 3172, 3174; Pub. L. 104–93, title III, § 304(a), Jan. 6, 1996, 109 Stat. 965; Pub. L. 104–186, title II, § 215(16), Aug. 20, 1996, 110 Stat. 1746; Pub. L. 104–316, title I, § 103(g), Oct. 19, 1996, 110 Stat. 3829; Pub. L. 106–361, §§ 1(a), 2(a), (b)(1)–(3), Oct. 27, 2000, 114 Stat. 1400, 1401; Pub. L. 106–554, § 1(a)(4) [div. B, title I, § 138(a)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A–233; Pub. L. 107–304, § 1(b)(1), Nov. 27, 2002, 116 Stat. 2363; Pub. L. 108–177, title IV, § 405(b)(2), Dec. 13, 2003, 117 Stat. 2632; Pub. L. 108–469, § 1(b), (c), (d)(2), Dec. 21, 2004, 118 Stat. 3891; Pub. L. 111–31, div. B, title I, § 102, June 22, 2009, 123 Stat. 1853; Pub. L. 114–92, div. A, title VI, § 632(b), (c), Nov. 25, 2015, 129 Stat. 847; Pub. L. 114–328, div. A, title VI, § 632, Dec. 23, 2016, 130 Stat. 2162.)

## Notes

### Editorial Notes

### References in Text

The Internal Revenue Code of 1986, referred to in subsecs. (a)(3), (d), and (j), is classified generally to Title 26, Internal Revenue Code.

Subsection (b)(4), referred to in subsec. (c)(2)(C), was repealed by section 102(a) of Pub. L. 111–31. See 2009 Amendment note below.

Section 204 of the Federal Employees’ Retirement Contribution Temporary Adjustment Act of 1983 [Pub. L. 98–168], referred to in subsec. (c)(3)(B)(iii), is set out as a note under section 8331 of this title.

The Intelligence Authorization Act for Fiscal Year 2003, referred to in subsec. (k)(1), is Pub. L. 107–306, Nov. 27, 2002, 116 Stat. 2383. Section 402 of the Act was formerly set out as a note under section 403–4 of Title 50, War and National Defense, and was editorially reclassified as a note under section 3505 of Title 50.

### Amendments

2016—Subsec. (g)(6). Pub. L. 114–328, § 632, repealed Pub. L. 114–92, § 632(c)(2). See 2015 Amendment note below.

2015—Subsec. (b)(2)(D)(ii). Pub. L. 114–92, § 632(b)(1), substituted “(ii) Except in the case of a full TSP member (as defined in section 8440e(a)), members” for “Members”.

Subsec. (b)(2)(E). Pub. L. 114–92, § 632(b)(2), substituted “8440e(b)(1)” for “8440e(a)(1)”.

Subsec. (b)(2)(F). Pub. L. 114–92, § 632(b)(3), added subpar. (F).

Subsec. (g)(2)(C). Pub. L. 114–92, § 632(c)(1), added subpar. (C).

Subsec. (g)(6). Pub. L. 114–92, § 632(c)(2), which directed the amendment of subsec. (g) by adding at the end “(6) For purposes of this subsection, a member of the uniformed services shall be considered to have separated from Government employment if the member is discharged or released from service in the uniformed services.”, was repealed by Pub. L. 114–328, § 632.

2009—Subsec. (b)(1)(B). Pub. L. 111–31, § 102(b), which directed the amendment of par. (1) by “striking the parenthetical matter in subparagraph (B)” was executed by striking out “(or any election allowable by virtue of paragraph (4))” before “shall be the percentage”, but not striking out “(A)” after “subparagraph”, to reflect the probable intent of Congress.

Subsec. (b)(2) to (4). Pub. L. 111–31, § 102(a), added par. (2) and struck out former pars. (2) to (4) which related to eligibility to make an election regarding contributions.

2004—Subsec. (b)(1)(A). Pub. L. 108–469, § 1(b), designated existing provisions as cl. (i), substituted “may” for “shall be afforded a reasonable period every 6 months to elect to”, struck out second sentence which read “An election to make such contributions shall remain in effect until modified or terminated.”, and added cl. (ii).

Subsec. (b)(2)(A), (C). Pub. L. 108–469, § 1(d)(2)(A), (B), substituted “until the date” for “until the second period”.

Subsec. (b)(2)(D). Pub. L. 108–469, § 1(d)(2)(C), substituted “as provided” for “other than during a period afforded”.

Subsec. (b)(4)(C). Pub. L. 108–469, § 1(c), designated existing provisions as cl. (i) and added cl. (ii).

2003—Subsec. (k). Pub. L. 108–177 added subsec. (k).

2002—Subsec. (a)(3). Pub. L. 107–304 added par. (3).

2000—Subsec. (a). Pub. L. 106–554 designated existing provisions as par. (1), substituted “the maximum percentage of such employee’s or Member’s basic pay for such pay period allowable under paragraph (2).” for “10 percent of such individual’s basic pay for such period.”, and added par. (2).

Pub. L. 106–361, § 2(b)(1), substituted “(b)” for “(b)(1)” and “Contributions under this subsection pursuant to such an election shall, with respect to each pay period for which such election remains in effect, be made in accordance with a program of regular contributions provided in regulations prescribed by the Executive Director” for “Contributions made under this subsection during any 6-month period for which an election period is provided under subsection (b)(1) shall be made each pay period during such 6-month period pursuant to a program of regular contributions provided in regulations prescribed by the Executive Director”.

Subsec. (b)(1)(B). Pub. L. 106–361, § 2(b)(2), inserted “(or any election allowable by virtue of paragraph (4))” after “subparagraph (A)”.

Subsec. (b)(3). Pub. L. 106–361, § 2(b)(3), substituted “An” for “Notwithstanding paragraph (2)(A), an”.

Subsec. (b)(4). Pub. L. 106–361, § 2(a), amended par. (4) generally. Prior to amendment, par. (4) read as follows:

“(A) Notwithstanding paragraph (2)(A), an employee or Member who is an employee or Member on January 1, 1987, and continues as an employee or Member without a break in service through April 1, 1987, may make the first election for the purpose of subsection (a) during the election period prescribed for such purpose by the Executive Director. The Executive Director shall prescribe an election period for such purpose which shall commence on April 1, 1987. An election by such an employee or Member during that election period shall be effective on the first day of the employee’s or Member’s first pay period which begins after the date on which the employee or Member makes that election.

“(B) Notwithstanding subsection (a), the maximum amount that an employee or Member may contribute during any pay period which begins on or after April 1, 1987, and before October 1, 1987, pursuant to an election made during the election period provided under subparagraph (A) is the amount equal to 15 percent of such individual’s basic pay for such pay period.”

Subsec. (j). Pub. L. 106–361, § 1(a), added subsec. (j).

1996—Subsec. (e). Pub. L. 104–186 substituted “Chief Administrative Officer of the House of Representatives, the Chief Administrative Officer may pay from the applicable accounts” for “Clerk of the House of Representatives, the Clerk may pay from the contingent fund”.

Subsec. (f). Pub. L. 104–316 substituted “Secretary of the Treasury” for “Comptroller General of the United States”.

Subsec. (g)(5). Pub. L. 104–93 added par. (5).

1994—Subsec. (d). Pub. L. 103–353, § 5(e)(3), substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”.

Subsec. (i). Pub. L. 103–353, § 4(c), added subsec. (i).

1988—Subsec. (c)(1)(A). Pub. L. 100–238, § 121(a), substituted “At the time prescribed by the Executive Director, but no later than 12 days after the end of” for “At the end of” and “within such time as the Executive Director may prescribe with respect to succeeding pay periods (but no later than 12 days after the end of each such pay period)” for “at the end of each succeeding pay period”.

Subsec. (c)(2)(A). Pub. L. 100–238, § 121(b), substituted “within such time as the Executive Director may prescribe, but no later than 12 days after the end of each such pay period” for “at the end of such pay period”.

Subsec. (d). Pub. L. 100–238, § 114, inserted at end “However, no contribution made under subsection (c)(3) shall be subject to, or taken into account, for purposes of the preceding sentence.”

Subsec. (g)(1). Pub. L. 100–238, § 115(1), substituted “Except as otherwise provided in this subsection” for “Except as provided in paragraphs (2) and (3)”.

Subsec. (g)(4). Pub. L. 100–238, § 115(2), added par. (4).

1987—Subsec. (b)(4)(A). Pub. L. 100–20 substituted “Notwithstanding paragraph (2)(A), an employee or Member who is an employee or Member on January 1, 1987, and continues as an employee or Member without a break in service through April 1, 1987, may make the first election for the purpose of subsection (a) during the election period prescribed for such purpose by the Executive Director” for “Notwithstanding paragraph (2)(A), an employee or Member who is an employee or Member on January 1, 1987, continues as an employee or Member without a break in service through April 1, 1987, and has creditable service described in section 8411(b)(2) of this title may make the first election for the purpose of subsection (a) during the election period prescribed for such purpose by the Executive Director”.

1986—Subsec. (b)(4). Pub. L. 99–509, § 6001(a)(1), designated existing provisions as subpar. (A), inserted “continues as an employee or Member without a break in service through April 1, 1987,” substituted “April 1, 1987” for “January 1, 1987”, substituted “the date on which the employee or Member makes that election” for “the last day of that election period”, and added subpar. (B).

Subsec. (c)(1). Pub. L. 99–509, § 6001(a)(2)(A), designated existing provisions as subpar. (A) and added subpars. (B) and (C).

Subsec. (c)(2)(C). Pub. L. 99–509, § 6001(a)(2)(B), added subpar. (C).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2016 Amendment

Pub. L. 114–328, div. A, title VI, § 632, Dec. 23, 2016, 130 Stat. 2162, provided that, effective Dec. 23, 2016, paragraph (2) of section 632(c) of Pub. L. 114–92 (amending this section) is repealed, and the amendment proposed to be made by that paragraph shall not be made or go into effect.

### Effective Date of 2015 Amendment; Implementation

Pub. L. 114–92, div. A, title VI, § 635, Nov. 25, 2015, 129 Stat. 851, provided that: Effective Date.—The amendments made by this part [part I (§§ 631–635) of subtitle D of title VI of Pub. L. 114–92, enacting section 1415 of Title 10, Armed Forces, and section 356 of Title 37, Pay and Allowances of the Uniformed Services, and amending this section and sections 8432b, 8438, and 8440e of this title, sections 1401, 1401a, 1409, 1410, 1413a, 1414, 1463, and 12739 of Title 10, section 3045 of Title 33, Navigation and Navigable Waters, sections 211 and 354 of Title 37, section 5304 of Title 38, Veterans’ Benefits, and section 212 of Title 42, The Public Health and Welfare] shall take effect on January 1, 2018.Implementation.— In general.—The Secretaries concerned, the Director of the Office of Personnel Management, and the Federal Retirement Thrift Investment Board shall each and jointly take appropriate actions to ensure the full and effective implementation of the amendments made by this part in order to ensure that members of the uniformed services will be able to participate in the modernized retirement plan provided by this part commencing on the date specified in subsection (a). Implementation plan.—Not later than March 1, 2016, the Secretaries concerned shall submit to the appropriate committees of Congress a report containing a plan to ensure the full and effective commencement and operational implementation of the amendments made by this part in accordance with paragraph (1). Additional Technical and Conforming Amendments.—The report required by subsection (b) shall contain a draft of such legislation as may be necessary to make any additional technical and conforming changes to titles 10 and 37, United States Code, and other provisions of law that are required or should be made by reason of the amendments made by this part. Definitions.—In this section: The term ‘appropriate committees of Congress’ means— the Committee on Armed Services, the Committee on Energy and Commerce, the Committee on Natural Resources, the Committee on Oversight and Government Reform [now Committee on Oversight and Accountability], and the Committee on Transportation and Infrastructure of the House of Representatives; and the Committee on Armed Services, the Committee on Commerce, Science, and Transportation, the Committee on Energy and Natural Resources, the Committee on Homeland Security and Governmental Affairs, and the Committee on Health, Education, Labor, and Pensions of the Senate. The term ‘Secretary concerned’ has the meaning given that term in section 101 of title 37, United States Code.”

### Effective Date of 2002 Amendment

Amendment by Pub. L. 107–304 effective as of the earliest practicable date determined by the Executive Director in regulations, see section 1(c) of Pub. L. 107–304, set out as a note under section 8351 of this title.

### Effective Date of 2000 Amendment

Pub. L. 106–361, § 1(b), Oct. 27, 2000, 114 Stat. 1400, provided that: “The amendment made by this section [amending this section] shall take effect at the earliest practicable date after September 30, 2000, as determined by the Executive Director in regulations.” [Final regulations implementing the amendments became effective May 2, 2001. See 66 F.R. 22088.]

Pub. L. 106–361, § 2(c)(1), Oct. 27, 2000, 114 Stat. 1401, provided that: “The amendments made by this section [amending this section and sections 8439, 8440a, and 8440d of this title] shall take effect at the earliest practicable date after September 30, 2000, as determined by the Executive Director in regulations.” [Final regulations implementing the amendments became effective May 2, 2001. See 66 F.R. 22088.]

### Effective Date of 1996 Amendment

Pub. L. 104–93, title III, § 304(b), Jan. 6, 1996, 109 Stat. 965, provided that: “The amendment made by subsection (a) [amending this section] shall apply to offenses upon which the requisite annuity forfeitures are based occurring on or after the date of the enactment of this Act [Jan. 6, 1996].”

### Effective Date of 1994 Amendment

Amendment by section 4(c) of Pub. L. 103–353 effective Oct. 13, 1994, and applicable to any employee whose release from military service, discharge from hospitalization, or other similar event making the individual eligible to seek restoration or reemployment under chapter 43 of Title 38, Veterans’ Benefits, occurs on or after Aug. 2, 1990, with special rules for applying amendment to employees restored or reemployed before effective date, see section 4(e), (f) of Pub. L. 103–353, set out as an Effective Date note under section 8432b of this title.

Amendment by section 5(e)(3) of Pub. L. 103–353 effective with respect to reemployments initiated on or after the first day after the 60-day period beginning Oct. 13, 1994, with transition rules, see section 8 of Pub. L. 103–353, set out as an Effective Date note under section 4301 of Title 38.

### Effective Date of 1986 Amendment

Pub. L. 99–509, title VI, § 6001(f), Oct. 21, 1986, 100 Stat. 1931, provided that: “This section [amending this section and section 8472 of this title, enacting provisions set out as notes under this section, and amending provisions set out as a note under section 8351 of this title], other than subsection (d) [set out below], and the amendments made by this section shall take effect on January 1, 1987.”

### Regulations

Pub. L. 99–509, title VI, § 6001(d), Oct. 21, 1986, 100 Stat. 1931, provided that: “The Executive Director of the Federal Retirement Thrift Investment Board may prescribe regulations to carry out subsections (a), (b), and (c) [amending this section, enacting provisions set out as notes under this section, and amending provisions set out as a note under section 8351 of this title] and the amendments made by subsections (a) and (b).”

### Savings Provisions

Pub. L. 106–361, § 2(c)(2), Oct. 27, 2000, 114 Stat. 1401, provided that: “Notwithstanding any other provision of this section [amending this section and sections 8439, 8440a, and 8440d of this title and enacting provisions set out as a note under this section], until the amendments made by this section take effect [see Effective Date of 2000 Amendment note above], title 5, United States Code, shall be applied as if this section had not been enacted.”

### Eligibility of Certain Individuals To Participate in Thrift Savings Plan

Pub. L. 100–238, title I, § 125, Jan. 8, 1988. 101 Stat. 1756, as amended by Pub. L. 107–347, title II, § 209(g)(3), Dec. 17, 2002, 116 Stat. 2932; Pub. L. 110–234, title VII, § 7101(b)(6), May 22, 2008, 122 Stat. 1214; Pub. L. 110–246, § 4(a), title VII, § 7101(b)(6), June 18, 2008, 122 Stat. 1664, 1975, provided that: Definitions.—For purposes of this section— the term ‘Executive Director’ means the Executive Director under section 8474 of title 5, United States Code; and the term ‘Thrift Savings Plan’ refers to the program under subchapter III of chapter 84 of title 5, United States Code.Regulations.— In general.—The Executive Director shall prescribe regulations relating to participation in the Thrift Savings Plan by an individual described in subsection (c). Specific matters to be included.—Under the regulations— in computing a percentage of basic pay to determine an amount to be contributed to the Thrift Savings Fund, the rate of basic pay to be used shall be the same as that used in computing any amount which the individual involved is otherwise required, as a condition for participating in the Civil Service Retirement System or the Federal Employees’ Retirement System (as the case may be), to contribute to the Civil Service Retirement and Disability Fund; and an employing authority which would not otherwise make contributions to the Thrift Savings Fund shall be allowed, with respect to any individual under subsection (c) who is serving under such authority, and at the sole discretion of such authority, to make any contributions on behalf of such individual which would be permitted or required under the provisions of section 8432(c) of title 5, United States Code, if such authority were the individual’s employing agency under such provisions. Applicability.—This section applies with respect to— any individual participating in the Civil Service Retirement System or the Federal Employees’ Retirement System as— an individual who has entered on approved leave without pay to serve as a full-time officer or employee of an organization composed primarily of employees (as defined by section 8331(1) or 8401(11) of title 5, United States Code); an individual assigned from a Federal agency to a State or local government under subchapter VI of chapter 33 of title 5, United States Code; an individual appointed or otherwise assigned to one of the cooperative extension services, as defined by section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103); or an individual assigned from a Federal agency to a private sector organization under chapter 37 of title 5, United States Code; and any individual who is participating in the Civil Service Retirement System as a result of a provision of law described in section 8347(o).Effective Date.— In general.—Except as provided in paragraph (2), the regulations prescribed under this section shall become effective in accordance with the provisions of such regulations. Exception.—The regulations prescribed under this section shall, with respect to individuals under subsection (c)(1)(C), be effective as of January 1, 1987.”

### Contributions to Thrift Savings Fund

Pub. L. 99–509, title VI, § 6001(a)(3), Oct. 21, 1986, 100 Stat. 1930, directed that contributions made to Thrift Savings Fund under 5 U.S.C. 8432(c)(1)(B), (C) and (3) be made as soon as practicable during the 15-day period which began on Apr. 1, 1987.

### Inapplicability of Limitation on Number of Elections Within a Six-Month Period

Pub. L. 99–509, title VI, § 6001(c), Oct. 21, 1986, 100 Stat. 1931, provided that the requirement that contributions be made for a 6-month period after an election, as provided in 5 U.S.C. 8432(a), did not apply to contributions made pursuant to an election made during the period provided in former 5 U.S.C. 8432(b)(4) or section 206(b) of Pub. L. 99–335, formerly set out as a note under section 8351 of this title; that the first election period prescribed under 5 U.S.C. 8432(b)(1) commence on July 1, 1987; and that each employee or Member who made such an election could make an election under 5 U.S.C. 8432(b)(1) during the election period that began on July 1, 1987.

### Plan for Delayed Contributions to Thrift Savings Fund

Pub. L. 99–335, title III, § 312, June 6, 1986, 100 Stat. 608, directed Executive Director of Federal Retirement Thrift Investment Board to transmit to Congress, not later than Jan. 1, 1988, a plan to afford Federal employees and Members of Congress who make less than maximum amount of authorized contributions to Thrift Savings Fund in any period an opportunity to contribute to such Fund, in a later period, the excess of such amount over the amount contributed during such period, with plan to include such recommendations for legislation as Executive Director considered appropriate.