Federal RuleAug 21
62
DOL Rewrites Disability Rules for 'Merit-Based Opportunity' Push
RuleLabor DepartmentFederal Contract Compliance Programs OfficeSignificant Wallet
119-s-26119th CongressWALLET
A bill to exclude locality adjustments from average pay for purposes of computing the amount of retirement annuities of new employees.
Sponsored By: Senator Cassidy, Bill [R-LA]
Introduced
Summary
Excludes locality-based comparability pay from the retirement and disability annuity formulas for a defined class of new Federal Employees’ Retirement System members. This bill would require the 'average pay' used to compute annuities for certain new hires to omit locality pay under 5 U.S.C. 5304 and 5304a.
Show full summary
- New federal hires covered by FERS: Retirement and disability annuities for these employees would be calculated using an average pay that excludes locality-based comparability payments.
- "Revised average pay employee" is defined as someone with no creditable civilian service on the date of enactment who later becomes an employee or Member covered under the chapter.
- Employees or Members with prior creditable civilian service remain subject to the existing average-pay calculation and are not in the newly defined group.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Locality pay removed from new hires' annuities
If enacted, this bill would change how retirement annuities are calculated for some new federal hires. It would exclude locality-based comparability pay (the extra pay for high-cost areas) from the "average pay" used to compute annuities. You would be affected only if, on the date of enactment, you were not covered under chapter 84 and had no prior civilian service creditable under 5 U.S.C. 8411, and you later become a federal employee or Member with creditable service. If enacted, this would likely lower your retirement annuity because the pay used to compute benefits would be smaller. The change would apply beginning on the date of enactment.
Sponsors & CoSponsors
Sponsor
Cassidy, Bill [R-LA]
LA • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov