Financial Opportunities for Retirees and Warriors Advancing Retirement Development Act; FORWARD Act
Summary
The FORWARD Act (H.R. 4996) proposes to amend Title 5 of the United States Code, allowing retired or disabled members of the uniformed services to contribute to the Thrift Savings Plan (TSP) after separation from service. This bill aims to provide additional retirement savings opportunities for veterans and disabled service members. It directs the Federal Retirement Thrift Investment Board, in coordination with the Department of Defense and Department of Veterans Affairs, to issue regulations for implementation.
Expected Effects
If enacted, the FORWARD Act would enable eligible retired and disabled veterans to contribute to the TSP, potentially increasing their retirement savings. The regulations developed by the Federal Retirement Thrift Investment Board would define the specifics of how these contributions can be made. This could lead to greater financial security for veterans.
Potential Benefits
- Provides an additional avenue for retirement savings for retired and disabled veterans.
- Allows veterans to continue growing their retirement funds through the TSP.
- May improve the financial stability and well-being of veterans and their families.
- Offers a familiar and trusted investment vehicle (TSP) for retirement savings.
- Could potentially reduce reliance on other government assistance programs in the long term.
Most Benefited Areas:
Potential Disadvantages
- May create additional administrative burden for the Federal Retirement Thrift Investment Board, Department of Defense, and Department of Veterans Affairs.
- Could potentially complicate the management of the Thrift Savings Fund.
- The lack of employer matching contributions for these individuals could limit the overall benefit.
- Potential for unintended consequences or loopholes that could be exploited.
- The bill does not address the potential tax implications for contributions and withdrawals.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause, as it seeks to improve the financial well-being of veterans, who have served the nation. Specifically, it falls under Congress's power to provide for the common defense and general welfare as outlined in the Preamble. Article I, Section 8 grants Congress the power to make laws necessary and proper for carrying out its enumerated powers, which could include providing for veterans' retirement.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).