,,ii #aaith ,,congress #ast ,session ,s4 #biff ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,october #a1 #bjbe,mr4 ,kaine 7for himself1 ,ms4 ,cortez ,masto1 ,ms4 ,duckworth1 ,mr4 ,warner1 ,ms4 ,alsobrooks1 ,mr4 ,wyden1 ,mr4 ,markey1 ,mrs4 ,shaheen1 ,mr4 ,hickenlooper1 ,mr4 ,schatz1 ,mr4 ,blumenthal1 ,ms4 ,hirono1 ,mr4 ,van ,hollen1 ,mr4 ,coons1 ,mr4 ,durbin1 ,mr4 ,padilla1 ,mr4 ,booker1 and ,ms4 ,rosen7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to waive certain penalties for affected ,federal employees receiving a distribution from the ,thrift ,savings ,plan during a lapse in appropriations1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,emergency ,relief for ,federal ,workers ,act of #bjbe4 #b4 ,waiver of #aj-percent additional tax on certain financial hardship distributions from ,thrift ,savings ,plan 7a7 ,in general ,paragraph 7#b7 of section #gb7t7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,o7 ,distributions to ,federal employees affected by a qualified lapse in appropriations 7i7 ,in general ,distributions made from the ,thrift ,savings ,plan under subchapter ,,iii of chapter #hd of title #e1 ,united ,states ,code1 to an individual who is a ,federal employee and who is on furlough or who is working without pay due to a qualified lapse in appropriations1 if such distributions are made during the period of such qualified lapse in appropriations 7including distributions which are in process as of the end of such lapse74 7ii7 ,limitation ,subclause 7i7 shall apply to any distributions only to the extent the aggregate of such distributions does not exceed #cj1jjj with respect to any qualified lapse in appropriations4 7iii7 ,adjustment for inflation ,in the case of a taxable year beginning after ,december #ca1 #bjbe1 the #cj1jjj amount in clause 7ii7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjbd for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,if any amount after adjustment under the preceding sentence is not a multiple of #ajj1 such amount shall be rounded to the next lower multiple of #ajj4 7iv7 ,qualified lapse in appropriations ,for purposes of this subparagraph1 the term qualified lapse in appropriations means a period of continuous lapse in ,federal appropriations 7including a partial lapse7 of at least #b weeks4 7v7 ,other terms ,for purposes of this subparagraph1 the terms furlough and pay have the respective meanings given such terms by section #geaa of title #e1 ,united ,states ,code4 4 7b7 ,effective date ,the amendment made by this section shall apply to distributions made after ,september #cj1 #bjbe4 #c4 ,thrift ,savings ,plan provisions 7a7 ,in-,service withdrawals ,section #hdcc7;h7 of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 7#e7 7,a7 ,in this paragraph-- 7i7 the term applicable date1 with respect to a covered age-based withdrawal or covered hardship withdrawal made during a qualified lapse in appropriations1 means the date that is #abj days after the last day of the qualified lapse in appropriations2 7ii7 the term covered age-based withdrawal means a withdrawal under paragraph 7#a77;,a7 made during the period of a qualified lapse in appropriations2 7iii7 the term covered hardship withdrawal means a withdrawal described in subparagraph 7,b72 7iv7 the term furlough has the meaning given the term in section #geaa2 7v7 the term pay has the meaning given the term in section #geaa2 and 7vi7 the term qualified lapse in appropriations has the meaning given the term in section #gb7t77#b77,o7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,the ,board shall permit an employee who is on furlough or working without pay due to a qualified lapse in appropriations to make a withdrawal based upon financial hardship under paragraph 7#a77;,b7 if-- 7i7 the withdrawal is made during the period of such qualified lapse in appropriations 7including withdrawals which are in process as of the end of such lapse72 and 7ii7 the aggregate amount of any such withdrawals during the period described in clause 7i7 does not exceed #cj1jjj1 subject to adjustments for inflation under subparagraph 7,e74 7,c7 ,the ,board may not limit the number of covered hardship withdrawals that an employee may make during the period of a qualified lapse in appropriations1 subject to the dollar limitation under subparagraph 7,b77ii74 7,d7 7i7 ,an individual who makes #a or more covered hardship withdrawals or #a or more covered age-based withdrawals during the period of a qualified lapse in appropriations may1 before the applicable date1 make #a or more contributions to the ,thrift ,savings ,fund in an aggregate amount not to exceed the lesser of-- 7,i7 the aggregate amount of the withdrawals2 or 7,,ii7 #cj1jjj1 subject to adjustments for inflation under subparagraph 7,e74 7ii7 ,an individual who makes a contribution to the ,thrift ,savings ,fund under clause 7i7 shall1 to the extent of the contribution1 be treated as having received the covered age-based withdrawal or covered hardship withdrawal1 as applicable1 in an eligible rollover distribution 7as defined in section #djb7;c77#d7 of the ,internal ,revenue ,code of #aihf7 and as having transferred the amount to the ,thrift ,savings ,fund in a direct trustee to trustee transfer within #fj days of the distribution4 7iii7 ,for purposes of sections #dja7;a77#ca71 #djb7;f71 and #cdje of the ,internal ,revenue ,code of #aihf1 a covered age-based withdrawal or covered hardship withdrawal shall not be treated as an eligible rollover distribution4 7,e7 ,the dollar limitation under subparagraphs 7,b77ii7 and 7,d77i77,,ii7 shall be adjusted for inflation in the same manner as under section #gb7t77#b77,o77iii7 of the ,internal ,revenue ,code of #aihf4 7,f7 ,the ,board may rely on a written representation from an employee to determine1 for purposes of this paragraph1 whether the employee has been furloughed or is working without pay due to a qualified lapse in appropriations4 7,g7 ,the ,director may require each agency affected by a qualified lapse in appropriations1 as part of the shutdown procedures of the agency1 to submit to the ,executive ,director a list with the name and social security number of each employee of the agency who will be furloughed or will work without pay due to the qualified lapse in appropriations4 4 7b7 ,loans ,section #hdcc7;g7 of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 7#e7 7,a7 ,the ,board shall prescribe rules allowing loans to be made under this subsection to employees who are furloughed or working without pay due to a lapse in appropriations1 without regard to the period of the lapse in appropriations4 7,b7 ,for purposes of subparagraph 7,a71 the terms furlough and pay have the meanings given those terms in section #geaa4 7#f7 7,a7 ,in this paragraph-- 7i7 the term furlough has the meaning given the term in section #geaa2 7ii7 the term pay has the meaning given the term in section #geaa2 7iii7 the term payment missed because of a shutdown means a payment-- 7,i7 on a loan under this subsection made to an employee who is on furlough or working without pay due to a qualified lapse in appropriations2 7,,ii7 that is due during the qualified lapse in appropriations2 and 7,,iii7 that was not paid by the employee2 and 7iv7 the term qualified lapse in appropriations has the meaning given the term in section #gb7t77#b77,o7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,the ,board shall prescribe rules providing that the full amount due for outstanding payments missed because of a shutdown by an employee shall be deducted and withheld from the pay provided to the employee for the period of the qualified lapse in appropriations4 4 #d4 ,missed loan payments not to be treated as taxable distribution during a qualified lapse in appropriations 7a7 ,in general ,paragraph 7#b7 of section #gb7p7 of the ,internal ,revenue ,code of #aihf is amended by redesignating subparagraph 7,e7 as subparagraph 7,f7 and by inserting after subparagraph 7,d7 the following new subparagraph3 7,e7 ,special rule for missed loan repayment during a qualified lapse in appropriations ,subparagraph 7,a7 shall not fail to apply to any loan from the ,thrift ,savings ,plan under subchapter ,,iii of chapter #hd of title #e1 ,united ,states ,code1 solely because there is a payment missed because of a shutdown 7as defined in section #hdcc7;g77#f77;,a77i7 of title #e1 ,united ,states ,code7 with respect to such loan1 and such loan 7or any portion of such loan7 shall not be treated as a taxable distribution solely because of such missed payment4 4 7b7 ,effective date ,the amendment made by this section shall apply to missed loan payments the due date for which is after ,september #cj1 #bjbe4