H.R. 4996: Financial Opportunities for Retirees and Warriors Advancing Retirement Development Act

This bill, known as the Financial Opportunities for Retirees and Warriors Advancing Retirement Development Act (FORWARD Act), proposes changes to allow retired or certain disabled members of the uniformed services to contribute to their Thrift Savings Plan (TSP) after they have separated from service.

Key Provisions of the Bill

• Eligibility to Contribute: The bill stipulates that individuals who are former members of the uniformed services and are entitled to retired pay or who receive a 100% disability compensation from the Department of Veterans Affairs (VA) will be allowed to contribute a portion of their pay or compensation to the TSP.
• Contribution Requirements: To make contributions, individuals must have had an account with the TSP before leaving military service or civil service. Additionally, they must not be currently employed by any federal agency.
• No Additional Benefits: Contributions made under this provision will not result in additional benefits being granted under existing laws related to the TSP.
• Implementation Timeline: The bill requires that regulations for implementing these changes be issued by the Federal Retirement Thrift Investment Board, in coordination with the Department of Defense and the Department of Veterans Affairs, within 180 days after the bill is enacted.

Impact on Retirees

By enabling retired or disabled service members to contribute to their TSP after separation, this bill aims to enhance their financial security during retirement. It recognizes the contributions of veterans and provides them the opportunity to bolster their retirement savings.

Next Steps

The bill is currently in the introduced stage within the House of Representatives and has been referred to the Committee on Oversight and Government Reform for further consideration.

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