Securing Annuities for Federal Employees Act of 2012 - Increases the employee contribution to the Civil Service Retirement System (CSRS) and to the Federal Employees Retirement System (FERS) by .5% of salary in each of calendar years 2013, 2014, and 2015. Reduces the employer contribution to CSRS and FERS by the amount of the increased employee contribution.
Establishes new annuity computation rules for federal employees and Members of Congress who begin service after December 31, 2012, and who have less than five years of civilian service creditable under CSRS or any other retirement system for federal employees (secure annuity employees). Increases the employee contribution for secure annuity employees and calculates annuities for such employees based upon the average of their highest five years of salary (for current federal employees, the calculation is based on the highest three years of salary).
Eliminates the FERS annuity supplement for employees not subject to mandatory retirement who separate from service after December 31, 2012.
Allows federal employees, including employees of the U.S. Postal Service (USPS) and the Postal Regulatory Commission (PRC), and Members of Congress, to contribute payments received for accumulated and accrued annual or vacation leave to the Thrift Savings Fund.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3813 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 3813
To amend title 5, United States Code, to secure the annuities of
Federal civilian employees, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 24, 2012
Mr. Ross of Florida introduced the following bill; which was referred
to the Committee on Oversight and Government Reform, and in addition to
the Committee on House Administration, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend title 5, United States Code, to secure the annuities of
Federal civilian employees, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Securing Annuities for Federal
Employees Act of 2012''.
SEC. 2. RETIREMENT CONTRIBUTIONS.
(a) Civil Service Retirement System.--
(1) Individual contributions.--Section 8334(a)(1)(A) of
title 5, United States Code, is amended--
(A) by striking ``(a)(1)(A) The'' and inserting
``(a)(1)(A)(i) Except as provided in clause (ii),
the''; and
(B) by adding at the end the following:
``(ii) The percentage of basic pay to be deducted and withheld
under clause (i) shall--
``(I) for each of calendar years 2013, 2014, and 2015, be
equal to the percentage that applied in the preceding calendar
year (as increased under this subclause, if applicable), plus
an additional 0.5 percentage point; and
``(II) for each calendar year after 2015, be equal to the
applicable percentage for calendar year 2015 (as determined
under subclause (I)).''.
(2) Government contributions.--Section 8334(a)(1)(B) of
title 5, United States Code, is amended--
(A) in clause (i), by striking ``Except as provided
in clause (ii),'' and inserting ``Except as provided in
clause (ii) or (iii),''; and
(B) by adding at the end the following:
``(iii) The amount to be contributed under clause (i) shall, with
respect to a period in any calendar year specified in subparagraph
(A)(ii), be equal to--
``(I) the amount that would otherwise apply under clause
(i), reduced by
``(II) the amount by which the withholding under
subparagraph (A) exceeds the amount which would (but for clause
(ii) of such subparagraph) otherwise have been withheld under
such subparagraph from the basic pay of the employee or elected
official involved with respect to such period.''.
(3) Offset rule.--Section 8334(k) of title 5, United States
Code, is amended by adding at the end the following:
``(5) This subsection shall be applied in a manner consistent with
subsections (a)(1)(A)(ii) and (a)(1)(B)(iii) of section 8334.''.
(b) Federal Employees' Retirement System.--Section 8422(a) of title
5, United States Code, is amended--
(1) in paragraph (1), by striking ``paragraph (2).'' and
inserting ``this subsection.''; and
(2) by adding at the end the following:
``(4) Notwithstanding any other provision of this subsection, the
percentage to be deducted and withheld under this subsection shall--
``(A) for each of calendar years 2013, 2014, and 2015, be
equal to the percentage that applied in the preceding calendar
year under this subsection (including this subparagraph, if
applicable), plus an additional 0.5 percentage point; and
``(B) for each calendar year after 2015, be equal to the
applicable percentage for calendar year 2015 (as determined
under subparagraph (A)).''.
(c) Foreign Service.--For provisions of law requiring maintenance
of existing conformity--
(1) between the Civil Service Retirement System and the
Foreign Service Retirement System, and
(2) between the Federal Employees' Retirement System and
the Foreign Service Pension System,
see section 827 of the Foreign Service Act of 1980 (22 U.S.C. 4067).
(d) CIARDS.--
(1) Compatibility with csrs.--In order to carry out the
purposes of this section with respect to the Central
Intelligence Agency Retirement and Disability System, the
authority under section 292 of the Central Intelligence Agency
Retirement Act (50 U.S.C. 2141) shall be applied.
(2) Applicability of fers.--For provisions of law providing
for the application of the Federal Employees' Retirement System
with respect to employees of the Central Intelligence Agency,
see title III of the Central Intelligence Agency Retirement Act
(50 U.S.C. 2151 and following).
(e) TVA.--Section 3 of the Tennessee Valley Authority Act of 1933
(16 U.S.C. 831b) is amended by adding at the end the following:
``(c) The chief executive officer shall prescribe any regulations
which may be necessary in order to carry out the purposes of the
Securing Annuities for Federal Employees Act of 2012 with respect to
any defined benefit plan covering employees of the Tennessee Valley
Authority.''.
SEC. 3. AMENDMENTS RELATING TO SECURE ANNUITY EMPLOYEES.
(a) Definition of Secure Annuity Employee.--Section 8401 of title
5, United States Code, is amended--
(1) in paragraph (35), by striking ``and'' at the end;
(2) in paragraph (36), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(37) the term `secure annuity employee' means an employee
or Member who--
``(A) first becomes subject to this chapter after
December 31, 2012; and
``(B) at the time of first becoming subject to this
chapter, does not have at least 5 years of civilian
service creditable under the Civil Service Retirement
System or any other retirement system for Government
employees.''.
(b) Individual Contributions.--Section 8422(a) of title 5, United
States Code (as amended by section 2(b)) is further amended--
(1) in paragraph (4) (as added by section 2(b)), in the
matter before subparagraph (A), by inserting ``and except in
the case of a secure annuity employee,'' after ``this
subsection''; and
(2) by adding after paragraph (4) (as so added) the
following:
``(5) Notwithstanding any other provision of this subsection, in
the case of a secure annuity employee, the percentage to be deducted
and withheld shall be computed under paragraphs (1) through (3), except
that the applicable percentage under paragraph (3) for civilian service
shall--
``(A) in the case of a secure annuity employee who is an
employee, Congressional employee, or Member, be equal to 10.2
percent; and
``(B) in the case of a secure annuity employee who is a law
enforcement officer, firefighter, member of the Capitol Police,
member of the Supreme Court Police, air traffic controller,
nuclear materials courier, or customs and border protection
officer, be equal to 10.7 percent.''.
(c) Average Pay.--Section 8401(3) of title 5, United States Code,
is amended--
(1) by striking ``(3)'' and inserting ``(3)(A)''; and
(2) by adding ``except that'' after the semicolon; and
(3) by adding at the end the following:
``(B) in the case of a secure annuity employee, the term
`average pay' has the meaning determined applying subparagraph
(A)--
``(i) by substituting `5 consecutive years' for `3
consecutive years'; and
``(ii) by substituting `5 years' for `3 years'.''.
(d) Computation of Basic Annuity.--Section 8415 of title 5, United
States Code, is amended--
(1) by striking subsections (a) through (e) and inserting
the following:
``(a) Except as otherwise provided in this section, the annuity of
an employee retiring under this subchapter is--
``(1) in the case of an employee other than a secure
annuity employee, 1 percent of that individual's average pay
multiplied by such individual's total service; and
``(2) in the case of an employee who is a secure annuity
employee, 0.7 percent of that individual's average pay
multiplied by such individual's total service.
``(b)(1) The annuity of a Member, or former Member with title to a
Member annuity, retiring under this subchapter is computed under
subsection (a)(1), except that if the individual has had at least 5
years of service as a Member or Congressional employee, or any
combination thereof, so much of the annuity as is computed with respect
to either such type of service (or a combination thereof), not
exceeding a total of 20 years, shall be computed by multiplying 1.7
percent of the individual's average pay by the years of such service.
``(2) The annuity of a Member, or former Member with title to a
Member annuity, retiring under this subchapter is, if the individual is
or was a secure annuity employee, computed--
``(A) under subsection (a)(2); and
``(B) disregarding paragraph (1) of this subsection.
``(c)(1) The annuity of a Congressional employee, or former
Congressional employee, retiring under this subchapter is computed
under subsection (a)(1), except that if the individual has had at least
5 years of service as a Congressional employee or Member, or any
combination thereof, so much of the annuity as is computed with respect
to either such type of service (or a combination thereof), not
exceeding a total of 20 years, shall be computed by multiplying 1.7
percent of the individual's average pay by the years of such service.
``(2) The annuity of a Congressional employee, or former
Congressional employee, retiring under this subchapter is, if the
individual is or was a secure annuity employee, computed--
``(A) under subsection (a)(2); and
``(B) disregarding paragraph (1) of this subsection.
``(d) The annuity of an employee retiring under subsection (d) or
(e) of section 8412 or under subsection (a), (b), or (c) of section
8425 is--
``(1) in the case of an individual other than a secure
annuity employee--
``(A) 1.7 percent of that individual's average pay
multiplied by so much of such individual's total
service as does not exceed 20 years; plus
``(B) 1 percent of that individual's average pay
multiplied by so much of such individual's total
service as exceeds 20 years; and
``(2) in the case of an individual who is a secure annuity
employee--
``(A) 1.4 percent of that individual's average pay
multiplied by so much of such individual's total
service as does not exceed 20 years; plus
``(B) 0.7 percent of that individual's average pay
multiplied by so much of such individual's total
service as exceeds 20 years.
``(e) The annuity of an air traffic controller or former air
traffic controller retiring under section 8412(a) is computed under
subsection (a)(1), except that if the individual has had at least 5
years of service as an air traffic controller as defined by section
2109(1)(A)(i), so much of the annuity as is computed with respect to
such type of service shall be computed--
``(1) in the case of an individual other than a secure
annuity employee, by multiplying 1.7 percent of the
individual's average pay by the years of such service; and
``(2) in the case of an individual who is a secure annuity
employee, by multiplying 1.4 percent of the individual's
average pay by the years of such service.''; and
(2) in subsection (h)--
(A) in paragraph (1), by striking ``subsection
(a)'' and inserting ``subsection (a)(1)''; and
(B) in paragraph (2), in the matter following
subparagraph (B), by striking ``or customs and border
protection officer'' and inserting ``customs and border
protection officer, or secure annuity employee.''.
SEC. 4. ANNUITY SUPPLEMENT.
Section 8421(a) of title 5, United States Code, is amended--
(1) in paragraph (1), by striking ``paragraph (3)'' and
inserting ``paragraphs (3) and (4)'';
(2) in paragraph (2), by striking ``paragraph (3)'' and
inserting ``paragraphs (3) and (4)''; and
(3) by adding at the end the following:
``(4)(A) Except as provided in subparagraph (B), no annuity
supplement under this section shall be payable in the case of an
individual whose entitlement to annuity is based on such individual's
separation from service after December 31, 2012.
``(B) Nothing in this paragraph applies in the case of an
individual separating under subsection (d) or (e) of section 8412.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by the Yeas and Nays: 22 - 16.
Reported (Amended) by the Committee on Oversight and Government Reform. H. Rept. 112-394, Part I.
Reported (Amended) by the Committee on Oversight and Government Reform. H. Rept. 112-394, Part I.
Committee on House Administration discharged.
Committee on House Administration discharged.
Placed on the Union Calendar, Calendar No. 274.
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Rules Committee Resolution H. Res. 547 Reported to House. The resolution provides for one hour of debate on H.R. 3408. All points of order against consideration of the bill are waived. Specified amendments printed in part A of the report accompanying this resolution are in order. The resolution provides for one hour of debate on H.R. 3813. All points of order against consideration of the bill are waived. Specified amendments printed in part B of the report accompanying this resolution are in order. The resolution provides for one hour of debate on H.R. 7.