Bill > S26

This bill proposes to modify how retirement annuities are calculated for new federal employees by excluding locality-based pay adjustments from their average pay calculations. Specifically, the bill defines a new term "revised average pay employee" as an individual who, at the time of the bill's enactment, is not currently a federal employee and has not performed creditable civilian service, but subsequently becomes employed as a federal employee or elected official. Under this proposed change, when calculating the retirement annuity for these new employees, any locality-based comparability payments (which are additional payments made to adjust for differences in the cost of living across different geographic areas) will be excluded from their basic pay rates. This means that new federal employees will have their retirement benefits calculated based on their base salary alone, without the additional locality-based compensation adjustments that are currently included in current employees' retirement calculations. The bill amends Section 8401 of Title 5 of the United States Code to implement these changes.