arrow_back Back to App

Federal Retirement: Excluding Locality Pay from Annuity Calculations for New Hires

This bill changes how retirement annuities are calculated for individuals newly entering federal service. The key modification is that locality adjustments (payments based on higher local living costs) will be excluded from the average pay used to determine the retirement benefit amount. This means new federal employees may receive lower retirement benefits compared to current employees retiring under the existing rules.
Key points
The change applies only to individuals hired into federal service AFTER the enactment date of this Act.
Locality-based comparability payments will be excluded when calculating the 'average pay' used as the basis for federal retirement annuities.
The consequence is potentially lower future retirement benefits for new federal employees, particularly those working in high-cost areas where locality adjustments are significant.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_S_4833
Sponsor: Sen. Cassidy, Bill [R-LA]
Process start date: 2024-07-30
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Federal Employee Locality Accountability in Retirement Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_4833.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-07-30.

What are the main provisions?

Key points include:

  • The change applies only to individuals hired into federal service AFTER the enactment date of this Act.
  • Locality-based comparability payments will be excluded when calculating the 'average pay' used as the basis for federal retirement annuities.
  • The consequence is potentially lower future retirement benefits for new federal employees, particularly those working in high-cost areas where locality adjustments are significant.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Cassidy, Bill [R-LA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Labor Benefits