TSP Modernization Act
- Bill Number
- H.R. 9214
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-06-09: Referred to the House Committee on Oversight and Government Reform.
- Last Updated
- 2026-06-24T08:08:39Z
AI-Generated Summary
TSP Modernization Act (H.R. 9214) Summary
Purpose
This legislation aims to modernize the process for transferring funds from Thrift Savings Fund (TSP) accounts to qualified retirement plans by requiring electronic transfer options.
Key Provisions
- Electronic Transfer Requirement: Beginning one year after enactment, transfers from an individual's TSP account to a qualified retirement plan at a brokerage firm must be allowed electronically if such transfers are otherwise permitted.
- Information Requirement: Electronic transfers cannot occur until the individual provides necessary details to the Executive Director of the Federal Retirement Thrift Investment Board.
- Implementation Report: The Executive Director, in consultation with the Secretary of the Treasury, must submit a report to Congress one year after enactment detailing the implementation of the electronic transfer process.
- Definitions: The bill defines the "Thrift Savings Fund" as established under 5 U.S.C. § 8437 and "qualified retirement plan" as per Internal Revenue Code § 4974(c).
Significant Changes to Existing Law
- Introduces a mandatory electronic transfer mechanism for TSP withdrawals, overriding any prior laws, rules, or regulations that may have limited or prohibited electronic options.
- Establishes a new reporting obligation for the Executive Director to Congress, which was not previously required for this type of transfer process.
Potential Impacts
- Government Agencies: Requires updates to systems and procedures at the Federal Retirement Thrift Investment Board, with involvement from the Department of the Treasury in reporting.
- Citizens: Benefits federal employees and retirees by simplifying and accelerating transfers to external retirement plans, potentially reducing processing times and administrative burdens.
- International Relations: No direct impacts identified.
Main Stakeholders Affected
- Federal employees and retirees with TSP accounts.
- The Federal Retirement Thrift Investment Board and its Executive Director.
- The Department of the Treasury.
- Brokerage firms handling qualified retirement plans.
- Congress, through the required implementation report.
Notable Legal, Constitutional, or Political Implications
- The bill preempts existing restrictions on electronic transfers without altering core TSP structure or tax rules.
- No apparent constitutional concerns, as it focuses on administrative modernization within federal retirement systems.
- Politically neutral in scope, emphasizing efficiency in government operations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (22)
Rep. Bice, Stephanie I. [R-OK-5], Rep. Cammack, Kat [R-FL-3], Rep. Crawford, Eric A. "Rick" [R-AR-1], Rep. DesJarlais, Scott [R-TN-4], Rep. Donalds, Byron [R-FL-19], Rep. Ezell, Mike [R-MS-4], Rep. Guest, Michael [R-MS-3], Rep. Hurd, Jeff [R-CO-3], Rep. Issa, Darrell [R-CA-48], Del. King-Hinds, Kimberlyn [R-MP-At Large], Rep. McGuire, John J. [R-VA-5], Rep. Moore, Riley M. [R-WV-2], Rep. Ogles, Andrew [R-TN-5], Del. Radewagen, Aumua Amata Coleman [R-AS-At Large], Rep. Salazar, Maria Elvira [R-FL-27], Rep. Stauber, Pete [R-MN-8], Rep. Van Orden, Derrick [R-WI-3], Rep. Wagner, Ann [R-MO-2], Rep. Feenstra, Randy [R-IA-4], Rep. Tokuda, Jill N. [D-HI-2], Rep. Calvert, Ken [R-CA-41], Rep. Carson, André [D-IN-7]
Recent Actions
- 2026-06-09: Referred to the House Committee on Oversight and Government Reform.
- 2026-06-09: Introduced in House
- 2026-06-09: Introduced in House
Bill Versions
- TSP Modernization Act — issued 2026-06-09 — PDF (3 pages)