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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.
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Status:
Expired
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Additional Information
Federal Employee Locality Accountability in Retirement Act
Print number: S 4833
Sponsor: Sen. Cassidy, Bill [R-LA]
Process start date: 2024-07-30
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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Summary & Status

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

A structured overview of the legislative process, official sources, status and civic context.

What is the official ID of this bill?

The official print number for this legislation is 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.

Analysis and Potential Impact of S 4833

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge. Review our public AI processing logs for full transparency, and use Lustra to track active legislation for instant status push notifications.

CATEGORIES

Labor Benefits