LEO Fair Retirement Act of 2025
Sponsored By: Representative Rep. Pou, Nellie [D-NJ-9]
Introduced
Summary
Buy back capped overtime premium pay to increase pensions. The bill would let federal law enforcement officers include premium pay that was previously limited by statute in their pension calculations by making an upfront lump-sum payment or by accepting an actuarial reduction. It would also extend availability pay to a set of criminal investigators and create a tax credit to help cover the lump-sum buy-in.
Show full summary
- Federal law enforcement officers would be able to purchase retirement credit for premium pay previously excluded from Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) annuities by making a lump-sum payment or electing an actuarial reduction. Officers can request an upfront payment estimate and must elect to pay within 90 days; the Office of Personnel Management must issue implementing regulations within one year.
- Certain criminal investigators would become eligible for availability pay. The bill lists covered categories including Postal Inspectors, GS-1811 criminal investigators, Federal air marshals, Diplomatic Security Service special agents, probation officers, and pretrial services officers.
- Individuals who make the lump-sum payment to secure the enhanced retirement credit would get a non-refundable federal income tax credit equal to the amount of those payments for the taxable year.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Tax credit for buy-in payments
If you make a lump-sum buy-in payment for this pension boost, you could claim a federal income tax credit for the same amount that year. The credit would be nonrefundable, so it lowers the tax you owe but would not create a refund if it exceeds your tax. You could claim it in the year you pay.
Availability pay for more investigators
If enacted, more federal investigators would qualify for availability pay. Covered jobs would include Postal Inspectors, GS-1811 investigators, Federal Air Marshals, Diplomatic Security Service special agents, probation officers, and pretrial services officers. These workers would be treated as criminal investigators for related overtime rules. The change would take effect when enacted.
Higher pensions for law officers, with buy-in
If enacted, covered federal law enforcement officers could count previously capped premium pay in the three-year average used to set their pension. To get this, you would either pay a one-time lump sum equal to the difference in pension contributions for those three years, or accept a lower monthly check. OPM would give you an estimate at least 180 days before retirement; you would have 90 days to make an irrevocable choice. You could use your Thrift Savings Plan to make the payment, under rules OPM would issue within one year. These changes would apply to annuities calculated one year after enactment.
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Sponsors & CoSponsors
Sponsor
Rep. Pou, Nellie [D-NJ-9]
NJ • D
Cosponsors
Rep. Bacon, Don [R-NE-2]
NE • R
Sponsored 5/8/2025
Rep. Fitzpatrick, Brian K. [R-PA-1]
PA • R
Sponsored 5/8/2025
Rep. Connolly, Gerald E. [D-VA-11]
VA • D
Sponsored 5/8/2025
Rep. Gooden, Lance [R-TX-5]
TX • R
Sponsored 6/27/2025
Rep. Thanedar, Shri [D-MI-13]
MI • D
Sponsored 7/16/2025
Rep. Sewell, Terri A. [D-AL-7]
AL • D
Sponsored 9/16/2025
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 11/10/2025
Rep. McDonald Rivet, Kristen [D-MI-8]
MI • D
Sponsored 1/14/2026
Roll Call Votes
No roll call votes available for this bill.
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