S. 873Senate115th Congress (2017-2019)In Committee

TSP Modernization Act of 2017

AI-Generated Summary

Updated April 15, 2026 at 2:42 PM UTC

The TSP Modernization Act of 2017 changes the rules for taking money out of the Thrift Savings Plan (TSP). It gives federal employees, retirees, and other participants more flexibility in when and how they can withdraw funds, and it lets the TSP’s Executive Director set additional conditions through regulations. The changes take effect once the law is enacted and after the new regulations are issued.

Key Provisions

Allows a person who has left federal service to make one or more partial withdrawals, rather than being limited to a single withdrawal.
Lets the Executive Director prescribe extra conditions for these withdrawals by regulation.
Changes the language for stopping periodic payments so that a participant can return a payment that was already made.
Eliminates the deadline for making a withdrawal election, giving participants more time to decide.
Reorganizes the rules for age‑based in‑service withdrawals, removing an outdated paragraph and renumbering the remaining ones.
Updates a related technical reference to match the new paragraph numbers.
Requires the Executive Director to issue regulations as soon as administratively feasible, with the amendments becoming effective on enactment and applicable after the regulations take effect.

Legislative Activity

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4 earlier actions

SenateCalendars Latest Action

Placed on Senate Legislative Calendar under General Orders. Calendar No. 260.

November 8, 2017

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SenateIntro Referral

Introduced in Senate

April 6, 2017

SenateIntro Referral

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Homeland Security and Governmental Affairs Committee

April 6, 2017

SenateCommittee

Committee on Homeland Security and Governmental Affairs. Ordered to be reported without amendment favorably.

Homeland Security and Governmental Affairs Committee

July 26, 2017

SenateCommittee

Committee on Homeland Security and Governmental Affairs. Reported by Senator Johnson with an amendment. With written report No. 115-183.

Homeland Security and Governmental Affairs Committee

November 8, 2017

SenateCalendars

Placed on Senate Legislative Calendar under General Orders. Calendar No. 260.

November 8, 2017

Bill Text

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Reported to SenateIssued November 8, 2017

Calendar No. 260

115th CONGRESS

1st Session

S. 873

[Report No. 115–183]

IN THE SENATE OF THE UNITED STATES

April 6 (legislative day, April 4), 2017

Mr. Portman (for himself, Mr. Carper, Ms. Duckworth, Mr. Rounds, and Mr. Kaine) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

November 8, 2017

Reported by Mr. Johnson, with an amendment

Insert the part printed in italic

A BILL

To amend section 8433 of title 5, United States Code, to provide for flexibility in making withdrawals from the Thrift Savings Fund.

Short title

This Act may be cited as the TSP Modernization Act of 2017.

Withdrawal flexibility

(a)

Post-Separation partial withdrawals

Section 8433(c) of title 5, United States Code, is amended—

(1)

in paragraph (1), by striking and who has not made a withdrawal under subsection (h)(1)(A) may make one withdrawal and inserting may make 1 or more withdrawals; and

(2)

by adding at the end the following:

(5)

Withdrawals under this subsection shall be subject to such other conditions as the Executive Director may prescribe by regulation.

(b)

Stopping periodic payments

Section 8433(d)(2) of title 5, United States Code, is amended—

(1)

by striking change an and inserting return a payment that was made under an; and

(2)

by striking a payment and inserting such payment.

(c)

Elimination of withdrawal election deadline

Section 8433(f) of title 5, United States Code, is amended—

(1)

by striking (1) Notwithstanding and inserting Notwithstanding; and

(2)

by striking paragraph (2).

(d)

Age-Based in-Service withdrawals

Section 8433(h) of title 5, United States Code, is amended—

(1)

by striking paragraph (2); and

(2)

by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively.

(e)

Technical and conforming amendment

Section 8432b(h)(2)(A) of title 5, United States Code, is amended by striking section 8433(d), or paragraph (1) or (2) of section 8433(h) and inserting subsection (d) or (f) of section 8433.

(f)

Regulations

As soon as is administratively feasible, as determined by the Executive Director of the Federal Retirement Thrift Investment Board, the Executive Director shall prescribe regulations to carry out the amendments made by this section.

(g)

Effective date; applicability

The amendments made by this section shall—

(1)

take effect on the date of enactment of this Act; and

(2)

apply on and after the effective date of the regulations prescribed under subsection (f).

November 8, 2017

Reported with an amendment