[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1185 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1185

To amend chapters 83 and 84 of title 5, United States Code, to increase 
the percentage of basic pay required to be contributed by individuals; 
   to change the method for computing ``average pay''; and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 9, 1995

   Mr. Mica introduced the following bill; which was referred to the 
              Committee on Government Reform and Oversight

_______________________________________________________________________

                                 A BILL


 
To amend chapters 83 and 84 of title 5, United States Code, to increase 
the percentage of basic pay required to be contributed by individuals; 
   to change the method for computing ``average pay''; 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Retirement 
Reform Act of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Amendment of title 5, United States Code.
Sec. 3. Individual contributions.
Sec. 4. Average pay.

SEC. 2. AMENDMENT OF TITLE 5, UNITED STATES CODE.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of title 5, United States Code.

SEC. 3. INDIVIDUAL CONTRIBUTIONS.

    (a) CSRS.--
            (1) In general.--The table under section 8334(c) is 
        amended--
                    (A) in the matter relating to an employee by 
                striking

                        ``7.........  After December 31, 1969.''        
                                                                        

                and inserting the following:

                        ``7.........  January 1, 1970, to December 31,  
                                       1995.                            
                        ``8.........  January 1, 1996, to December 31,  
                                       1996.                            
                        ``8\1/2\....  January 1, 1997, to December 31,  
                                       1997.                            
                        ``9\1/2\....  After December 31, 1997.'';       
                                                                        

                    (B) in the matter relating to a Member or employee 
                for Congressional employee service by striking

                        ``7\1/2\....  After December 31, 1969.''        
                                                                        

                and inserting the following:

                        ``7\1/2\....  January 1, 1970, to December 31,  
                                       1995.                            
                        ``8\1/2\....  January 1, 1996, to December 31,  
                                       1996.                            
                        ``9.........  January 1, 1997, to December 31,  
                                       1997.                            
                        ``9\1/2\....  After December 31, 1997.'';       
                                                                        

                    (C) in the matter relating to a Member for Member 
                service by striking

                                                                        
                        ``8.........  After December 31, 1969.''        
                                                                        

                and inserting the following:

                                                                        
                        ``8.........  January 1, 1970, to December 31,  
                                       1995.                            
                        ``9.........  January 1, 1996, to December 31,  
                                       1996.                            
                        ``9\1/2\....  After December 31, 1996.'';       
                                                                        

                    (D) in the matter relating to a law enforcement 
                officer for law enforcement service and firefighter for 
                firefighter service by striking

                                                                        
                        ``7\1/2\....  After December 31, 1974.''        
                                                                        

                and inserting the following:

                                                                        
                        ``7\1/2\....  January 1, 1975, to December 31,  
                                       1995.                            
                        ``8\1/2\....  January 1, 1996, to December 31,  
                                       1996.                            
                        ``9.........  January 1, 1997, to December 31,  
                                       1997.                            
                        ``9\1/2\....  After December 31, 1997.'';       
                                                                        

                    (E) in the matter relating to a bankruptcy judge by 
                striking

                                                                        
                        ``8.........  After December 31, 1983.''        
                                                                        

                and inserting the following:

                                                                        
                        ``8.........  January 1, 1984, to December 31,  
                                       1995.                            
                        ``9.........  January 1, 1996, to December 31,  
                                       1996.                            
                        ``9\1/2\....  After December 31, 1996.'';       
                                                                        

                    (F) in the matter relating to a judge of the United 
                States Court of Appeals for the Armed Forces for 
                service as a judge of that court by striking

                                                                        
                        ``8.........  On and after the date of the      
                                       enactment of the Department of   
                                       Defense Authorization Act,       
                                       1984.''                          
                                                                        

                and inserting the following:

                                                                        
                        ``8.........  The date of the enactment of the  
                                       Department of Defense            
                                       Authorization Act, 1984, to      
                                       December 31, 1995.               
                        ``9.........  January 1, 1996, to December 31,  
                                       1996.                            
                        ``9\1/2\....  After December 31, 1996.'';       
                                                                        

                    (G) in the matter relating to a United States 
                magistrate by striking

                                                                        
                        ``8.........  After September 30, 1987.''       
                                                                        

                and inserting the following:

                                                                        
                        ``8.........  October 1, 1987, to December 31,  
                                       1995.                            
                        ``9.........  January 1, 1996, to December 31,  
                                       1996.                            
                        ``9\1/2\....  After December 31, 1996.''; and   
                                                                        

                    (H) in the matter relating to a Claims Court judge 
                by striking

                                                                        
                        ``8.........  After September 30, 1988.''       
                                                                        

                and inserting the following:

                                                                        
                        ``8.........  October 1, 1988, to December 31,  
                                       1995.                            
                        ``9.........  January 1, 1996, to December 31,  
                                       1996.                            
                        ``9\1/2\....  After December 31, 1996.''.       
                                                                        

            (2) Deductions.--The first sentence of section 8334(a)(1) 
        is amended to read as follows: ``The employing agency shall 
        deduct and withhold from the basic pay of an employee, Member, 
        Congressional employee, law enforcement officer, firefighter, 
        bankruptcy judge, judge of the United States Court of Appeals 
        for the Armed Forces, United States magistrate, or Claims Court 
        judge, as the case may be, the percentage of basic pay 
        applicable under subsection (c).''.
            (3) Government contributions.--Section 8334(a)(1) is 
        amended by inserting after the second sentence the following: 
        ``The amount to be contributed under the preceding sentence 
        with respect to any service period occurring after December 
31, 1995, shall be determined as if the applicable percentage under 
subsection (c) for each such period were not greater than the 
applicable percentage thereunder, for the type of service involved, for 
calendar year 1995.''.
            (4) Other service.--
                    (A) Military service.--Section 8334(j) is amended--
                            (i) in paragraph (1)(A) by inserting ``and 
                        subject to paragraph (5),'' after ``Except as 
                        provided in subparagraph (B),''; and
                            (ii) by adding at the end the following:
    ``(5) Effective with respect to any period of military service 
after December 31, 1995, the percentage of basic pay under section 204 
of title 37 payable under paragraph (1) shall be equal to the same 
percentage as would be applicable under section 8334(c) for that same 
period for service as an `employee', subject to paragraph (1)(B).''.
                    (B) Volunteer service.--Section 8334(l) is 
                amended--
                            (i) in paragraph (1) by striking the period 
                        at the end and inserting ``, subject to 
                        paragraph (4).''; and
                            (ii) by adding at the end the following:
    ``(4) Effective with respect to any period of service after 
December 31, 1995, the percentage of the readjustment allowance or 
stipend (as the case may be) payable under paragraph (1) shall be equal 
to the same percentage as would be applicable under section 8334(c) for 
that same period for service as an `employee'.''.
    (b) FERS.--
            (1) In general.--Section 8422(a) is amended by striking 
        paragraph (2) and inserting the following:
    ``(2) The percentage to be deducted and withheld from basic pay for 
any pay period shall be equal to--
            ``(A) the applicable percentage under paragraph (3), minus
            ``(B) the percentage then in effect under section 3101(a) 
        of the Internal Revenue Code of 1986 (relating to rate of tax 
        for old-age, survivors, and disability insurance).
    ``(3) The applicable percentage under this paragraph, for civilian 
service after December 31, 1995, shall be as follows:

                                                                        
                         Percentage                                     
                        of basic pay            Service period          
                                                                        
``Employee............  8...........  January 1, 1996, to December 31,  
                                       1996.                            
                        ``8\1/2\....  January 1, 1997, to December 31,  
                                       1997.                            
                        ``9\1/2\....  After December 31, 1997.          
``Congressional         8\1/2\......  January 1, 1996, to December 31,  
 employee.                             1996.                            
                        ``9.........  January 1, 1997, to December 31,  
                                       1997.                            
                        ``9\1/2\....  After December 31, 1997.          
``Member..............  8\1/2\......  January 1, 1996, to December 31,  
                                       1996.                            
                        ``9.........  January 1, 1997, to December 31,  
                                       1997.                            
                        ``9\1/2\....  After December 31, 1997.          
``Law enforcement       8\1/2\......  January 1, 1996, to December 31,  
 officer.                              1996.                            
                        ``9.........  January 1, 1997, to December 31,  
                                       1997.                            
                        ``9\1/2\....  After December 31, 1997.          
``Firefighter.........  8\1/2\......  January 1, 1996, to December 31,  
                                       1996.                            
                        ``9.........  January 1, 1997, to December 31,  
                                       1997.                            
                        ``9\1/2\....  After December 31, 1997.          
``Air traffic           8\1/2\......  January 1, 1996, to December 31,  
 controller.                           1996.                            
                        ``9.........  January 1, 1997, to December 31,  
                                       1997.                            
                        ``9\1/2\....  After December 31, 1997.''.       
                                                                        

            (2) Other service.--
                    (A) Military service.--Section 8422(e) is amended--
                            (i) in paragraph (1)(A) by inserting ``and 
                        subject to paragraph (5),'' after ``Except as 
                        provided in subparagraph (B),''; and
                            (ii) by adding at the end the following:
    ``(5) Effective with respect to any period of military service 
after December 31, 1995, the percentage of basic pay under section 204 
of title 37 payable under paragraph (1) shall be equal to the same 
percentage as would be applicable under section 8422(a)(3) for that 
same period for service as an `employee', subject to paragraph 
(1)(B).''.
                    (B) Volunteer service.--Section 8422(f) is 
                amended--
                            (i) in paragraph (1) by striking the period 
                        at the end and inserting ``, subject to 
                        paragraph (4).''; and
                            (ii) by adding at the end the following:
    ``(4) Effective with respect to any period of service after 
December 31, 1995, the percentage of the readjustment allowance or 
stipend (as the case may be) payable under paragraph (1) shall be equal 
to the same percentage as would be applicable under section 8422(a)(3) 
for that same period for service as an employee.''.
    (c) Exemption.--
            (1) In general.--Section 1005(d) of title 39, United States 
        Code, is amended by adding at the end the following:
    ``(3) For purposes of applying chapters 83 and 84 of title 5 with 
respect to any officer or employee of the Postal Service, section 3 of 
the Federal Retirement Reform Act of 1995 shall be treated as if it had 
not been enacted.''.
            (2) Technical amendment.--The second sentence of section 
        1005(d)(1) of title 39, United States Code, is amended by 
        striking the period and inserting ``, subject to paragraph 
        (3).''.
    (d) Effective Date.--This section shall take effect on January 1, 
1996.

SEC. 4. AVERAGE PAY.

    (a) CSRS.--
            (1) In general.--Subchapter III of chapter 83 is amended by 
        inserting after section 8339 the following:
``Sec. 8339a. Special rules relating to average pay
    ``(a) Notwithstanding section 8331(4), for purposes of any annuity 
or survivor annuity eligibility for which is based on a separation 
occurring after December 31, 1995, `average pay' shall be determined in 
accordance with this section.
    ``(b) For purposes of any computation under this subchapter which 
involves the multiplication of `average pay' times a fixed percentage 
times a period of service (including any computation under the second 
sentence of section 8339(a)), with respect to any annuity or survivor 
annuity described in subsection (a), the term `average pay' shall--
            ``(1) with respect to service performed before calendar 
        year 1996, have the meaning given such term by subsection 
        (d)(1);
            ``(2) with respect to service performed during calendar 
        year 1996, have the meaning given such term by subsection 
        (d)(2); and
            ``(3) with respect to service performed after calendar year 
        1996, have the meaning given such term by subsection (d)(3).
    ``(c)(1) For purposes of any computation described in paragraph 
(2), the term `average pay' shall, if the separation (on which 
eligibility for the annuity or survivor annuity involved is based) 
occurs--
            ``(A) during calendar year 1996, have the meaning given 
        such term by subsection (d)(2); or
            ``(B) after calendar year 1996, have the meaning given such 
        term by subsection (d)(3).
    ``(2) This subsection shall apply for purposes of any computation 
under this subchapter involving the multiplication of `average pay' 
times a specified percentage (where the total percentage to be applied 
in such computation is specifically stated, rather than to be 
determined as a function of length of service), such as the computation 
of any minimum amount under section 8339(e), 8339(g)(1), or 8341(d)(1), 
any maximum amount allowable under section 8339(f) or 8340(g)(1)(B), 
and any amount under subparagraph (A) or clause (i) of section 
8341(e)(2).
    ``(d) For purposes of this section--
            ``(1) the meaning given the term `average pay' by this 
        paragraph shall be the meaning given such term by section 
        8331(4);
            ``(2) the meaning given the term `average pay' by this 
        paragraph shall be the meaning such term would have under 
        section 8331(4) if `4 consecutive years' were substituted for 
        `3 consecutive years' and `4 years' were substituted for `3 
        years'; and
            ``(3) the meaning given the term `average pay' by this 
        paragraph shall be the meaning such term would have under 
        section 8331(4) if `5 consecutive years' were substituted for 
        `3 consecutive years' and `5 years' were substituted for `3 
        years'.
    ``(e) Nothing in this section shall be considered to apply with 
respect to any annuity or survivor annuity eligibility for which is 
based on a separation occurring before January 1, 1996.
    ``(f) The Office of Personnel Management shall prescribe such 
regulations as may be necessary to carry out this section, including 
regulations for the application of section 8339(m) and (p) (and any 
other provision of this subchapter not otherwise specifically addressed 
in this section) in a manner consistent with the purposes of this 
section.''.
            (2) Technical amendments.--
                    (A) Section 8331(4) is amended by striking 
                ``effect;'' and inserting ``effect, subject to section 
                8339a;''.
                    (B) The table of sections for chapter 83 is amended 
                by inserting after the item relating to section 8339 
                the following:

``8339a. Special rules relating to average pay.''.
    (b) FERS.--
            (1) In general.--Chapter 84 is amended by inserting after 
        section 8461 the following:
``Sec. 8461a. Special rules relating to average pay
    ``(a) Notwithstanding section 8401(3), for purposes of any annuity 
or survivor annuity eligibility for which is based on a separation 
occurring after December 31, 1995, `average pay' shall be determined in 
accordance with this section.
    ``(b)(1) Except as provided in paragraph (2), for purposes of any 
computation under this chapter which involves the multiplication of 
`average pay' times a fixed percentage times a period of service, with 
respect to any annuity or survivor annuity described in subsection (a), 
the term `average pay' shall--
            ``(A) with respect to service performed before calendar 
        year 1996, have the meaning given such term by subsection 
        (d)(1);
            ``(B) with respect to service performed during calendar 
        year 1996, have the meaning given such term by subsection 
        (d)(2); and
            ``(C) with respect to service performed after calendar year 
        1996, have the meaning given such term by subsection (d)(3).
    ``(2) In the case of an annuity or survivor annuity eligibility for 
which is based on the service of an employee or Member who, as of 
December 31, 1995, has less than 5 years of civilian service creditable 
under section 8411, for purposes of any computation described in 
paragraph (1), the term `average pay' shall, if the separation (on 
which eligibility for such annuity or survivor annuity is based) 
occurs--
            ``(A) during calendar year 1996, have the meaning given 
        such term by subsection (d)(2); or
            ``(B) after calendar year 1996, have the meaning given such 
        term by subsection (d)(3).
    ``(c)(1) For purposes of any computation described in paragraph 
(2), the term `average pay' shall, if the separation (on which 
eligibility for the annuity or survivor annuity involved is based) 
occurs--
            ``(A) during calendar year 1996, have the meaning given 
        such term by subsection (d)(2); or
            ``(B) after calendar year 1996, have the meaning given such 
        term by subsection (d)(3).
    ``(2) This subsection shall apply for purposes of any computation 
under this chapter involving the multiplication of `average pay' times 
a specified percentage (where the total percentage to be applied in 
such computation is specifically stated, rather than to be determined 
as a function of length of service), such as the computation of an 
amount under section 8442(b)(1)(A)(i) or 8452(a)(1)(A).
    ``(d) For purposes of this section--
            ``(1) the meaning given the term `average pay' by this 
        paragraph shall be the meaning given such term by section 
        8401(3);
            ``(2) the meaning given the term `average pay' by this 
        paragraph shall be the meaning such term would have under 
        section 8401(3) if `4 consecutive years' were substituted for 
        `3 consecutive years' and `4 years' were substituted for `3 
        years'; and
            ``(3) the meaning given the term `average pay' by this 
        paragraph shall be the meaning such term would have under 
        section 8401(3) if `5 consecutive years' were substituted for 
        `3 consecutive years' and `5 years' were substituted for `3 
        years'.
    ``(e) Nothing in this section shall be considered to apply with 
respect to any annuity or survivor annuity eligibility for which is 
based on a separation occurring before January 1, 1996.
    ``(f) The Office of Personnel Management shall prescribe such 
regulations as may be necessary to carry out this section, including 
regulations for the application of section 8415(e) (and any other 
provision of this chapter not otherwise specifically addressed in this 
section) in a manner consistent with the purposes of this section.''.
            (2) Technical amendments.--
                    (A) Section 8401(3) is amended by striking 
                ``effect;'' and inserting ``effect, subject to section 
                8461a;''.
                    (B) The table of sections for chapter 84 is amended 
                by inserting after the item relating to section 8461 
                the following:

``8461a. Special rules relating to average pay.''.
    (c) Regulations.--The Office of Personnel Management shall 
prescribe such regulations as may be necessary to carry out the 
purposes of this section, including regulations to provide that section 
302(a)(6) of the Federal Employees' Retirement System Act of 1986 (5 
U.S.C. 8331 note) shall be carried out in a manner consistent with the 
amendments made by this section.
                                 <all>
HR 1185 IH----2