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Federal Retirement Changes: Excluding Locality Pay for New Employees.

This bill alters how federal retirement annuities are calculated for new employees. Locality-based pay adjustments, which account for cost of living differences, will no longer be included in the average pay used to determine future retirement benefits. This means individuals starting federal service after this bill's enactment may receive lower retirement benefits compared to current employees if their pay included such adjustments.
Key points
Locality pay adjustments will be excluded from the average pay calculation for new federal employees' retirement annuities.
The change applies to individuals who begin federal employment after the bill's enactment date and have no prior creditable civilian service.
Potentially lower retirement benefits for future federal employees who would have received locality adjustments.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_26
Sponsor: Sen. Cassidy, Bill [R-LA]
Process start date: 2025-01-07
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

A bill to exclude locality adjustments from average pay for purposes of computing the amount of retirement annuities of new employees.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_26.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-01-07.

What are the main provisions?

Key points include:

  • Locality pay adjustments will be excluded from the average pay calculation for new federal employees' retirement annuities.
  • The change applies to individuals who begin federal employment after the bill's enactment date and have no prior creditable civilian service.
  • Potentially lower retirement benefits for future federal employees who would have received locality adjustments.
What is the specific legal status?

The current status is Introduced.

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 2025-12-23.

CATEGORIES

Benefits Labor