[Senate Report 117-173]
[From the U.S. Government Publishing Office]
Calendar No. 515
117th Congress } { Report
SENATE
2d Session } { 117-173
_______________________________________________________________________
FIRST RESPONDER FAIR RETURN FOR
EMPLOYEES ON THEIR INITIAL
RETIREMENT EARNED ACT
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
H.R. 521
TO PERMIT DISABLED LAW ENFORCEMENT OFFICERS, CUSTOMS
AND BORDER PROTECTION OFFICERS, FIREFIGHTERS, AIR
TRAFFIC CONTROLLERS, NUCLEAR MATERIALS COURIERS,
MEMBERS OF THE CAPITOL POLICE, MEMBERS OF THE SUPREME
COURT POLICE, EMPLOYEES OF THE CENTRAL INTELLIGENCE
AGENCY PERFORMING INTELLIGENCE ACTIVITIES ABROAD OR
HAVING SPECIALIZED SECURITY REQUIREMENTS, AND
DIPLOMATIC SECURITY SPECIAL AGENTS OF THE DEPARTMENT
OF STATE TO RECEIVE RETIREMENT BENEFITS IN THE SAME
MANNER AS IF THEY HAD NOT BEEN DISABLED
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
September 28, 2022.--Ordered to be printed
_________
U.S. GOVERNMENT PUBLISHING OFFICE
29-010 WASHINGTON : 2022
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona RAND PAUL, Kentucky
JACKY ROSEN, Nevada JAMES LANKFORD, Oklahoma
ALEX PADILLA, California MITT ROMNEY, Utah
JON OSSOFF, Georgia RICK SCOTT, Florida
JOSH HAWLEY, Missouri
David M. Weinberg, Staff Director
Zachary I. Schram, Chief Counsel
Lena C. Chang, Director of Governmental Affairs
Devin M. Parsons, Professional Staff Member
Pamela Thiessen, Minority Staff Director
Sam J. Mulopulos, Minority Deputy Staff Director
Cara G. Mumford, Minority Director of Governmental Affairs
Andrew J. Hopkins, Minority Counsel
Laura W. Kilbride, Chief Clerk
Calendar No. 515
117th Congress } { Report
SENATE
2d Session } { 117-173
======================================================================
FIRST RESPONDER FAIR RETURN FOR EMPLOYEES ON THEIR INITIAL RETIREMENT
EARNED ACT
_______
September 28, 2022.--Ordered to be printed
_______
Mr. Peters, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany H.R. 521]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (H.R. 521) to permit
disabled law enforcement officers, customs and border
protection officers, firefighters, air traffic controllers,
nuclear materials couriers, members of the Capitol Police,
members of the Supreme Court Police, employees of the Central
Intelligence Agency performing intelligence activities abroad
or having specialized security requirements, and diplomatic
security special agents of the Department of State to receive
retirement benefits in the same manner as if they had not been
disabled, having considered the same, reports favorably thereon
without amendment and recommends that the bill do pass.
CONTENTS
Page
I. Purpose and Summary.............................................. 1
II. Background and Need for the Legislation.......................... 2
III. Legislative History.............................................. 4
IV. Section-by-Section Analysis of the Bill, as Reported............. 4
V. Evaluation of Regulatory Impact.................................. 6
VI. Congressional Budget Office Cost Estimate........................ 7
VII. Changes in Existing Law Made by the Bill, as Reported........... 11
I. Purpose and Summary
H.R. 521, the First Responder Fair Return for Employees on
Their Initial Retirement Earned Act, or First Responder Fair
RETIRE Act, would allow federal first responders who are
disabled or injured on-the-job to remain eligible for enhanced
retirement benefits if they return to certain positions in the
civil service. The first responders include federal law
enforcement officers, firefighters, nuclear materials couriers,
Customs and Border Protection officers, air traffic
controllers, Capitol Police and Supreme Court Police officers,
certain Central Intelligence Agency (CIA) employees, and State
Department special agents. Under the bill, when injured first
responders continue related work in the federal government in
administrative or supervisory positions, they would remain
eligible for the same enhanced retirement package they had as
first responders.
II. Background and Need for the Legislation
Over the years, Congress has enacted a number of policies
related to providing enhanced retirement benefits for certain
categories of federal personnel. In 1947, Congress first passed
enhanced retirement benefits for Federal Bureau of
Investigation (FBI) agents.\1\ One year later, the House
Committee on Post Office and Civil Service filed a committee
report referencing the change in benefits for FBI officers that
stated, ``it is only fair to grant such retirement benefits
that are provided for under the bill to law enforcement agents
in all parts of the Government at an earlier age, because it is
physically impossible to carry on the necessary strenuous
activities after reaching 50 years of age.''\2\ Soon after,
Congress passed a law to provide the same benefits to a broader
group of federal law enforcement officers.\3\
---------------------------------------------------------------------------
\1\Pub. L. No. 80-168 (1947).
\2\House Committee on Post Office and Civil Service, Amending the
Civil Service Retirement Act to Provide Annuities for Certain Federal
Employees, 80th Cong. (May 1948).
\3\Congressional Research Service, Retirement Benefits for Federal
Law Enforcement Personnel (R42631) (Sept. 5, 2017) (www.crs.gov/
Reports/R42631); Pub. L. No. 80-879 (1948).
---------------------------------------------------------------------------
Although law enforcement officers were the first federal
personnel group to be granted enhanced retirement benefits,
certain positions within the first responder category have
either been added to the definition of law enforcement officer
for retirement purposes or provided with equivalent benefits
through direct legislation.\4\ Specifically, Congress passed
legislation to grant air traffic controllers and firefighters
enhanced retirement benefits in 1972, followed by U.S. Capitol
Police in 1990, nuclear materials couriers in 1998, U.S.
Supreme Court Police in 2000, and Customs and Border Protection
officers in 2008.\5\ Federal first responders hired prior to
1984 are eligible for enhanced retirement benefits under the
Civil Service Retirement System (CSRS), and those hired on or
after 1984 are covered under the Federal Employees' Retirement
System (FERS).\6\ The First Responder Fair RETIRE Act also
applies to certain Central Intelligence Agency employees and
special agents at Department of State with similar retirement
plans to the enhanced retirement groups under FERS or CSRS.\7\
---------------------------------------------------------------------------
\4\Congressional Research Service, Retirement Benefits for Federal
Law Enforcement Personnel (R42631) (Sept. 5, 2017) (www.crs.gov/
Reports/R42631).
\5\Pub. L. No. 92-297 (1972); Pub. L. No. 92-382 (1972); Pub. L.
No. 101-428 (1990); Strom Thurmond National Defense Authorization Act
for Fiscal Year 1999, Pub. L. No. 105-261, Sec. 3154 (1998);
Departments of Commerce, Justice, and State, the Judiciary, and Related
Agencies Appropriations Act, 2001, Pub. L. No. 106-553, Sec. 308
(2000); Consolidated Appropriations Act, 2008, Pub. L. No. 110-161,
Division E, Sec. 535 (2007).
\6\Congressional Research Service, supra note 4.
\7\Congressional Research Service, Federal Retirement Plans:
Frequently Asked Questions (R47084) (May 2, 2022) (www.crs.gov/Reports/
R47084).
---------------------------------------------------------------------------
Federal first responders eligible for an enhanced annuity
are subject to mandatory retirement at age 56 or 57 due to the
demanding and rigorous nature of their work.\8\ Under both CSRS
and FERS, personnel may start receiving their enhanced annuity
at the age of 50 if 20 years of service has been completed.\9\
First responders who have enhanced retirement benefits
contribute an additional 0.5% of their pay toward retirement
compared to other federal employees.\10\ This higher
contribution allows first responders to receive an augmented
annuity available after 20 years of service in lieu of the
standard 30 years of service required in other civil service
positions.\11\
---------------------------------------------------------------------------
\8\5 U.S.C. Sec. 8335; 5 U.S.C. Sec. 8425.
\9\5 U.S.C. Sec. 8336; 5 U.S.C. Sec. 8412.
\10\Congressional Research Service, supra note 4.
\11\National Federation of Federal Employees (nffe.org/wp-content/
uploads/2022/06/2022-Leg-Week-Papers-Fair-Retire.pdf) (accessed Aug.
25, 2022).
---------------------------------------------------------------------------
The augmented annuity or monthly pension is the primary
retirement benefit available to first responders and is
computed based on years of service, the average of the three
highest consecutive years of pay, and the accrual rate for each
year of service.\12\ Personnel eligible for enhanced retirement
benefits under CSRS accrue benefits at the rate of 2.5% per
year for their first 20 years of service and 2% per year
thereafter,while other civil service employees accrue 1.5% per
year for their first five years of service, 1.75% for years six
through ten, and 2% for each year after ten.\13\ Personnel
eligible for enhanced retirement benefits under FERS accrue
benefits at the rate of 1.7% per year for the first 20 years of
service and 1% per year thereafter, compared to other federal
employees who accrue benefits at the rate of 1% or 1.1% per
year of service.\14\
---------------------------------------------------------------------------
\12\Congressional Research Service, supra note 4.
\13\Office of Personnel Management, Retirement Services: CSRS
Information (www.opm.gov/
retirement-services/csrs-information/computation/) (accessed Aug. 25,
2022).
\14\Office of Personnel Management, Retirement Services: FERS
Information (www.opm.gov/
retirement-services/fers-information/computation/) (accessed Aug. 25,
2022).
---------------------------------------------------------------------------
Federal first responders play a critical role in responding
to natural disasters, domestic terrorism, and other
emergencies, which places them at a higher risk for work-
related injuries and disabilities. Upon injury, agencies can
reassign injured first responders into other civil service
positions, but often such reassignment disqualifies these
employees from their prior eligibility for enhanced retirement
benefits. For other federal employees, current law grants civil
servants who overcome their injuries with the right to be
placed into ``equivalent positions''' upon returning to work in
federal government, which enables them to continue to
contribute their valuable skills and experience to agency
operations without losing their retirement benefits.\15\
However, in the case of federal first responders who are
suddenly injured, returning to an equivalent, physically
demanding position that offers enhanced retirement benefits is
often not feasible.
---------------------------------------------------------------------------
\15\5 U.S.C. Sec. 8151.
---------------------------------------------------------------------------
Over the past several decades, a number of first responders
who have chosen to return to work in civil service positions
after sustaining injuries have faced significant financial
penalties for doing so. For example, bill sponsor
Representative Gerald Connolly (D-VA-11) described the
experience of a smokejumper during a May 2022 business meeting
conducted by the House Committee on Oversight and Reform.\16\
While on the job managing a wildfire emergency, the smokejumper
parachuted out of a plane and landed in a tree, subsequently
dropping 80 feet and breaking his back in five places. Although
he was 12 years into his career as a first responder, the
smokejumper needed to reenter the workforce in a different
position as a result of his injury. He chose to return to a
position within the federal government, but as noted during the
hearing, ``the reward for his bravery and his injury and
service was his removal from the retirement system'' when he
reentered the civil service.\17\ Due to gaps in current law,
the former smokejumper lost the 12 years of higher
contributions he had paid into the enhanced retirement system,
and now he must complete a 30-year career in order to fulfill
requirements for his retirement rather than the previously
prescribed 20-year career guaranteed to federal first
responders upon entry into public service.\18\
---------------------------------------------------------------------------
\16\House Committee on Oversight and Reform, Full Committee Markup,
117th Cong. (May 11, 2022).
\17\Id.
\18\National Federation of Federal Employees, supra note 11.
---------------------------------------------------------------------------
The First Responder Fair RETIRE Act helps fill gaps in the
current federal retirement law that financially penalize first
responders who have been injured or disabled when carrying out
their service. This bill would preserve enhanced retirement
benefits for first responders who are injured in the line of
duty but who choose to continue their careers within the
federal government in related positions that are less
physically demanding. Doing so will enable first responders who
sustain injuries to continue providing their skills and
expertise toward agency missions that save lives and keep
communities safe.
III. Legislative History
Representative Gerald Connolly (D-VA-11) introduced H.R.
521, the First Responder Fair RETIRE Act, on January 28, 2021,
with original cosponsors Representative James Langevin (D-RI-2)
and Representative Brian Fitzpatrick (R-PA-1). The bill was
referred to the House Committee on Oversight and Reform. The
House of Representatives passed the bill under suspension of
the rules by a vote of 417-0 on July 12, 2022.
The bill was referred to the Senate Committee on Homeland
Security and Governmental Affairs on July 13, 2022. The
Committee considered H.R. 521 at a business meeting on August
3, 2022. The Committee ordered the bill to be reported
favorably by voice vote en bloc with Senators Peters, Hassan,
Sinema, Rosen, Padilla, Ossoff, Portman, Lankford, Romney,
Scott, and Hawley present.
IV. Section-by-Section Analysis of the Bill, as Reported
Section 1. Short title
This section establishes the short title of the bill as the
``First Responder Fair Return for Employees on Their Initial
Retirement Earned Act'' or the ``First Responder Fair RETIRE
Act.''
Sec. 2. Sense of Congress
This section provides a sense of Congress that it is in the
national and homeland security interests of the United States
for federal agencies retain the specialized knowledge and
experience of individuals who suffer an injury or illness while
serving as a federal first responder. The sense of Congress
encourages the appointment of such individuals to positions in
the same federal agency and geographic location, as well as
with the same level of pay, to greatest extent possible.
Sec. 3. Retirement for certain employees
Subsection (a) defines the terms ``affected individual''
and ``covered position'' in the context of language the bill
adds to a section of title 5 related to CSRS. Covered positions
include the first responder positions of law enforcement
officers, Customs and Border Protection officers, firefighters,
air traffic controllers, nuclear materials couriers, members of
the Capitol Police, and members of the Supreme Court Police.
Affected individuals are those who sustained an illness or
injury on-the-job as a first responder that left them
permanently unable to continue the duties of the covered
position and who, as a result, have been appointed to a
different supervisory or administrative position related to the
first responder activities. The amending language would allow
the service that affected individuals carry out in their new
roles to be treated as creditable service toward the CSRS
retirement coverage they had as first responders, unless the
individual opts out of such treatment of benefits or there is a
break of more than three days before the individual transitions
to the new position. The affected individual is also no longer
eligible for the creditable service treatment after they meet
the age and service requirements for mandatory separation as
applies to their former covered position.
Subsection (b) defines the terms ``affected individual''
and ``covered position'' in the context of language the bill
adds to a section of title 5 related to FERS. Covered positions
include the first responder positions of law enforcement
officers, Customs and Border Protection officers, firefighters,
air traffic controllers, nuclear materials couriers, members of
the Capitol Police, and members of the Supreme Court Police.
Affected individuals are those who sustained an illness or
injury on-the-job as a first responder that left them
permanently unable to continue the duties of the covered
position and who, as a result, have been appointed to a
different supervisory or administrative position related to the
first responder activities. The amending language would allow
the service that affected individuals carry out in their new
roles to be treated as creditable service toward the FERS
retirement coverage they had as first responders, unless the
individual opts out of such treatment of benefits or there is a
break of more than three days before the individual transitions
to the new position. The affected individual is also no longer
eligible for the creditable service treatment after they meet
the age and service requirements for mandatory separation as
applies to their former covered position.
Subsection (c) defines the terms ``affected employee'' and
``covered position'' in the context of language the bill adds
to a section of title 50 related to CIA employee participation
in FERS. The definition of ``covered position'' in this
subsection includes CIA positions where employees are entitled
to FERS benefits similar to federal law enforcement officers.
Affected employees are CIA employees in a covered position who
have sustained an illness or injury on-the-job that left them
permanently unable to continue the duties of the position and
who, as a result, have been appointed to a non-covered position
in the CIA. The amending language would allow the service that
affected employees carry out in their new roles to be treated
as creditable service toward the FERS retirement coverage they
had in the covered position, unless the individual opts out of
such treatment of benefits or there is a break of more than
three days before the individual transitions to the new
position.
Subsection (d) defines the terms ``affected special agent''
and ``covered position'' in the context of language the bill
adds to a section of title 22 related to the retirement
benefits of special agents at the Department of State. The
definition of ``covered position'' as added by this subsection
of the bill includes Department of State special agents.
Affected special agents are those who have sustained an illness
or injury on-the-job that left them permanently unable to
continue the duties of the position and who, as a result, have
been appointed to a non-covered position in the Foreign
Service. The amending language would allow the service that
affected special agents carry out in their new roles to be
treated as creditable service toward the retirement coverage
they had in the covered position, unless the individual opts
out of such treatment of benefits or there is a break of more
than three days before the individual transitions to the new
position.
Subsection (e) calls for the Director of the Office of
Personnel Management to promulgate regulations to carry out the
amending language in subsections (a) and (b) of this bill
within one year after the date of the bill's enactment. The
Director of the CIA is directed to promulgate regulations to
carry out the amending the language in subsection (c), and the
Secretary of State is instructed to do so to carry out
subsection (d). The regulations must require the relevant heads
of agencies to certify that the injuries or illnesses of the
affected individuals occurred during the course of carrying out
their duties and permanently preclude them from continuing to
serve in the covered position. The regulations must also ensure
that the relevant heads of agencies appoint the affected
individuals into supervisory or administrative positions that
are related to the activities of the covered positions to the
greatest extent practicable. In addition, the regulations need
to ensure that the creditable service is treated as the same
type of service as the covered position where the individual
suffered the qualifying illness or injury, in accordance with
the amending language in the bill.
Subsection (f) specifies that the amendments made by bill
shall take effect on the date of enactment of the bill and
shall apply to individuals who suffer qualifying illnesses or
injuries on or after the date that is two years after bill's
enactment.
Sec. 4. Determination of budgetary effects
This section specifies that the budgetary effects of this
bill will be determined by referring to the ``Budgetary Effects
of PAYGO Legislation.''
V. Evaluation of Regulatory Impact
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill and determined
that the bill will have no regulatory impact within the meaning
of the rules. The Committee agrees with the Congressional
Budget Office's statement that the bill contains no
intergovernmental or private sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
VI. Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 23, 2022.
Hon. Gary Peters,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S.
Senate Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 521, the First
Responder Fair RETIRE Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Amber
Marcellino.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
The bill would
Allow certain federal employees who are
covered by provisions of enhanced retirement and who
become ill or injured while performing the duties of
their position to return to work in a different
position and remain covered by enhanced retirement
Estimated budgetary effects would mainly stem from
Increased direct spending for benefit
payments because of earlier retirements that would be
calculated under a more generous formula
Increased revenues from additional
retirement contributions paid by employees
Increased retirement contributions paid by
employing agencies out of their discretionary
appropriations
Bill summary: H.R. 521 would allow certain federal
employees who are covered by provisions of enhanced retirement
and who become ill or injured while performing the duties of
their position to remain covered by enhanced retirement even if
they have to resume duty (as a result of their illness or
injury) in a position that would otherwise not be covered.
Under the bill, people in covered positions include law
enforcement officers, fire fighters, customs and border
protection agents, air traffic controllers, nuclear materials
couriers, members of the U.S. Capitol Police, members of the
Supreme Court Police, Central Intelligence Agency agents, and
special agents under the Foreign Service Act of 1980.
Estimated Federal cost: The estimated budgetary effect of
H.R. 521 is shown in Table 1. The direct spending and revenue
effects fall in function 600 (income security); the
discretionary costs of the legislation would affect many budget
functions.
Table 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 521
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-------------------------------------------------------------------------------------------------------------
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2022-2027 2022-2032
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increases in Direct Spending
Estimated Budget Authority................ 0 0 0 0 * * * * 1 1 2 * 4
Estimated Outlays......................... 0 0 0 0 * * * * 1 1 2 * 4
Increases in Revenues
Estimated Revenues........................ 0 0 0 * * * * * * * * * 1
Net Increase or Decrease (-) in the Deficit From Changes in Direct Spending and Revenues
Effect on the Deficit..................... 0 0 0 * * * * * * 1 2 * 3
Increases in Spending Subject to Appropriation
Estimated Authorization................... 0 0 0 1 2 4 n.e n.e n.e n.e n.e 7 n.e
Estimated Outlays......................... 0 0 0 1 2 4 n.e n.e n.e n.e n.e 7 n.e
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding; n.e.=not estimated; * = between -$500,000 and $500,000.
Basis of estimate: For this estimate, CBO assumes that the
bill will be enacted near the end of calendar year 2022. The
provisions of H.R. 521 would apply to employees who first
suffer an injury or illness two years after enactment.
Background: According to information from the Office of
Personnel Management (OPM), approximately 220,000 federal
employees are in enhanced retirement positions that could be
affected by H.R. 521. Using data from the Department of
Agriculture, the Department of Homeland Security, and other
federal agencies, CBO estimates that under current law about
3.5 percent (or 8,000 employees) will be injured or become ill
each year while performing their duties. Of that number, about
1 percent (or 80 employees) will be unable to return to work in
a position covered by enhanced retirement because of the nature
of their injury or illness. When that happens, those employees
are shifted into standard retirement and cannot retire under
the provisions of enhanced retirement, which allow for earlier
eligibility and provide more generous annuity calculations.
The budgetary effects of allowing those people to receive
an enhanced retirement under H.R. 521 include the following:
Outlays for retirement benefits would be
larger and would begin sooner for some returning
employees because of the more generous annuity
calculation for enhanced retirement and the earlier
eligibility for retirement. Outlays for federal
retirement benefits are classified as direct spending.
Revenues from affected employees would
increase because those workers would be required to pay
a larger percentage of their salaries into the Civil
Service Retirement and Disability Fund (CSRDF). Those
payments are recorded as revenues in the federal
budget.
Outlays from employing agencies would
increase because the agencies would be required to pay
a larger percentage of their affected employees'
salaries into the CSRDF. Such transactions are
considered intragovernmental transfers that have no net
effect on the deficit. Payments from the agencies are
subject to the availability of future appropriations,
and receipts from those payments are classified as
offsetting receipts.
Direct spending: CBO estimates that enacting H.R. 521 would
increase direct spending by $4 million over the 2022-2032
period because some retirements would occur earlier than under
current law. Under the bill, people who qualified for earlier
retirement also would earn larger annual benefits and their
retirement would trigger earlier payments by the government for
its share of premiums for retirees under the Federal Employee
Health Benefits (FEHB) program.
Eligibility for enhanced retirement currently begins at age
50 for employees with 20 years of service or at any age with 25
years of service. Eligibility for standard retirement with a
full annuity occurs at age 62 with 5 years of service or at age
60 with 20 years of service. (Employees with 30 years of
service can retire at earlier ages, depending on factors such
as their birth year and the applicable retirement system.)
Using data summarizing the age and service distribution of law
enforcement officers and historical retirement data for that
group of employees, CBO estimates that enacting H.R. 521 would
result in about 30 retirements between 2026 and 2032 that would
have occurred after 2032 under current law.
The formula used to calculate the annual benefit for
enhanced retirement is more generous than the standard formula.
The annuity for an employee covered by enhanced retirement in
the Federal Employee Retirement System (FERS) is 1.7 percent
(rather than the standard 1.0 percent) of the average of the
employee's three highest consecutive years of salary (high-3),
multiplied by the number of years of service. For the roughly
30 retirements that CBO estimates would occur between 2026 and
2032 as a result of H.R. 521, the average starting annuity is
estimated to be about $47,000. That calculation is based on an
assessment that an affected employee's high-3 is likely to stem
from service completed before an injury or illness. Upon
returning to the workforce, such an employee's salary is likely
to be significantly lower because that worker would not return
to a position that is eligible for pay premiums such as law
enforcement availability pay, Sunday pay, or night
differential.
Earlier retirements also trigger earlier direct spending
for premiums for the FEHB program. (The federal share of
premiums for most active federal employees is paid out of
agencies' discretionary appropriations.) Using historical data
from OPM, CBO estimates that over 90 percent of employees
affected by H.R. 521 would continue to participate in the FEHB
program upon retirement. CBO estimates that, on average, the
annual federal share of FEHB premiums per recipient over the
2022-2032 period will be about $14,000.
Revenues: Under current law, federal employees covered by
enhanced retirement must contribute 0.5 percent more of their
salary than the rate paid by noncovered employees (between 0.8
percent and 4.4 percent for participants in FERS, depending on
when the employee began service). H.R. 521 would reclassify
some positions as qualifying for enhanced retirement; as a
result, CBO estimates that the additional employee
contributions required by the bill would increase revenues over
the 2022-2032 period by $1 million.
Spending Subject to Appropriation: Federal agencies are
required to contribute to the CSRDF up to an additional 19
percent of salary for an employee covered by enhanced
retirement. (The contribution rate for most employees not
covered by enhanced retirement is about 17 to 18 percent of the
worker's salary, depending on when they began service.) CBO
estimates that the additional agency contributions required by
H.R. 521 would increase spending subject to appropriation by $7
million over the 2022-2027 period.
Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays and revenues that are
subject to those pay-as-you-go procedures are shown in Table 2.
Table 2.--CBO's ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 521, THE FIRST RESPONDER FAIR RETIRE ACT, AS ORDERED REPORTED BY THE SENATE
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS ON AUGUST 3, 2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
--------------------------------------------------------------------------------------------------
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2022-2027 2022-2032
--------------------------------------------------------------------------------------------------------------------------------------------------------
Net Increase in the Deficit
Pay-As-You-Go Effect................................. 0 0 0 0 0 0 0 0 0 1 2 0 3
Memorandum:
Changes in Outlays............................... 0 0 0 0 0 0 0 0 1 1 2 0 4
Changes in Revenues.............................. 0 0 0 0 0 0 0 0 0 0 0 0 1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increase in long-term deficits: CBO estimates that enacting
H.R. 521 would not increase on-budget deficits by more than $5
billion in any of the four consecutive 10-year periods
beginning in 2033.
Mandates: None.
Previous CBO estimate: On July 12, 2022, CBO transmitted a
cost estimate for H.R. 521, the First Responder Fair RETIRE
Act, as ordered reported by the House Committee on Oversight
and Reform on May 11, 2022. CBO's estimated costs are the same
for both the Senate and House versions of the legislation.
Estimate prepared by: Federal Costs: Amber Marcellino.
Mandates: Andrew Laughlin.
Estimate reviewed by: Christina Hawley Anthony, Chief,
Projections Unit; H. Samuel Papenfuss, Deputy Director of
Budget Analysis.
VII. Changes in Existing Law Made by the Bill, As Reported
UNITED STATES CODE
* * * * * * *
TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
* * * * * * *
PART III--EMPLOYEES
* * * * * * *
Subpart G--Insurance and Annuities
* * * * * * *
CHAPTER 83--RETIREMENT
* * * * * * *
Subchapter III--Civil Service Retirement
* * * * * * *
SEC. 8336. IMMEDIATE RETIREMENT.
(a) * * *
(b) * * *
(c)(1) An employee who is separated from the service after
becoming 50 years of age and completing 20 years of service as
a law enforcement officer, firefighter, nuclear materials
courier, or customs and border protection officer, or any
combination of such service totaling at least 20 years, is
entitled to an annuity.
(2) * * *
(3)(A) In this paragraph--
(i) the term ``affected individual'' means an
individual covered under this subchapter who--
(I) is performing service in a covered
position;
(II) while on duty, becomes ill or is injured
as a direct result of the performance of such
duties before the date on which the individual
becomes entitled to an annuity under paragraph
(1) of this subsection or subsection (e), (m),
or (n), as applicable;
(III) because of the illness or injury
described in subclause (II), is permanently
unable to render useful and efficient service
in the employee's covered position, as
determined by the agency in which the
individual was serving when such individual
incurred the illness or injury; and
(IV) is appointed to a position in the civil
service that--
(aa) is not a covered position; and
(bb) is within an agency that
regularly appoints individuals to
supervisory or administrative positions
related to the activities of the former
covered position of the individual;
(ii) the term ``covered position'' means a position
as a law enforcement officer, customs and border
protection officer, firefighter, air traffic
controller, nuclear materials courier, member of the
Capitol Police, or member of the Supreme Court Police.
(B) Unless an affected individual files an election
described in subparagraph (E), creditable service by the
affected individual in a position described in subparagraph
(A)(i)(IV) shall be treated as creditable service in a covered
position for purposes of this chapter and determining the
amount to be deducted and withheld from the pay of the affected
individual under section 8334.
(C) Subparagraph (B) shall only apply if the affected
employee transitions to a position described in subparagraph
(A)(i)(IV) without a break in service exceeding 3 days.
(D) The service of an affected individual shall no longer
be eligible for treatment under subparagraph (B) if such
service occurs after the individual--
(i) is transferred to a supervisory or administrative
position related to the activities of the former
covered position of the individual; or
(ii) meets the age and service requirements that
would subject the individual to mandatory separation
under section 8335 if such individual had remained in
the former covered position.
(E) In accordance with procedures established by the
Director of the Office of Personnel Management, an affected
individual may file an election to have any creditable service
performed by the affected individual treated in accordance with
this chapter without regard to subparagraph (B).
(F) Nothing in this paragraph shall be construed to apply
to such affected individual any other pay-related laws or
regulations applicable to a covered position.
* * * * * * *
CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM
* * * * * * *
Subchapter II--Basic Annuity
* * * * * * *
SEC. 8412. IMMEDIATE RETIREMENT.
(a) * * *
(b) * * *
(c) * * *
(d)(1) An employee who is separated from the service,
except by removal for cause on charges of misconduct or
delinquency--
[(1)](A) after completing 25 years of service as a
law enforcement officer, member of the Capitol Police
or Supreme Court Police, firefighter, nuclear materials
courier, or customs and border protection officer, or
any combination of such service totaling at least 25
years, or
[(2)](B) after becoming 50 years of age and
completing 20 years of service as a law enforcement
officer, member of the Capitol Police or Supreme Court
Police, firefighter, nuclear materials courier, or
customs and border protection officer, or any
combination of such service totaling at least 20 years,
is entitled to an annuity.
(2)(A) In this paragraph--
(i) the term ``affected individual'' means an
individual covered under this chapter who--
(I) is performing service in a covered
position;
(II) while on duty, becomes ill or is injured
as a direct result of the performance of such
duties before the date on which the individual
becomes entitled to an annuity under paragraph
(1) of this subsection or subsection (e), as
applicable;
(III) because of the illness or injury
described in subclause (II), is permanently
unable to render useful and efficient service
in the employee's covered position, as
determined by the agency in which the
individual was serving when such individual
incurred the illness or injury; and
(IV) is appointed to a position in the civil
service that--
(aa) is not a covered position; and
(bb) is within an agency that
regularly appoints individuals to
supervisory or administrative positions
related to the activities of the former
covered position of the individual;
(ii) the term ``covered position'' means a position
as a law enforcement officer, customs and border
protection officer, firefighter, air traffic
controller, nuclear materials courier, member of the
Capitol Police, or member of the Supreme Court Police.
(B) Unless an affected individual files an election
described in subparagraph (E), creditable service by the
affected individual in a position described in subparagraph
(A)(i)(IV) shall be treated as creditable service in a covered
position for purposes of this chapter and determining the
amount to be deducted and withheld from the pay of the affected
individual under section 8422.
(C) Subparagraph (B) shall only apply if the affected
employee transitions to a position described in subparagraph
(A)(i)(IV) without a break in service exceeding 3 days.
(D) The service of an affected individual shall no longer
be eligible for treatment under subparagraph (B) if such
service occurs after the individual--
(i) is transferred to a supervisory or administrative
position related to the activities of the former
covered position of the individual; or
(ii) meets the age and service requirements that
would subject the individual to mandatory separation
under section 8425 if such individual had remained in
the former covered position.
(E) In accordance with procedures established by the
Director of the Office of Personnel Management, an affected
individual may file an election to have any creditable service
performed by the affected individual treated in accordance with
this chapter without regard to subparagraph (B).
* * * * * * *
SEC. 8414. EARLY RETIREMENT.
(a) * * *
(b)(1) * * *
(2) * * *
(3) Paragraph (1) shall not apply to an employee entitled
to an annuity under subsection (d)(1) or (e) of section 8412.
* * * * * * *
SEC. 8415. COMPUTATION OF BASIC ANNUITY.
* * * * * * *
(e) The annuity of an employee retiring under subsection
(d)(1) or (e) of section 8412 or under subsection (a), (b), or
(c) of section 8425 is--
(1) 17/10 percent of that individual's average pay
multiplied by so much of such individual's total
service as does not exceed 20 years; plus
(2) 1 percent of that individual's average pay
multiplied by so much of such individual's total
service as exceeds 20 years.
* * * * * * *
(h)(1) * * *
(2)(A) Paragraph (1) does not apply in the case of an
employee or Member retiring under section 8412(g) or 8413(b) if
the employee or Member would satisfy the age and service
requirements for title to an annuity under section 8412(a),
(b), [(d)(2)](d)(1)(B), (e)(2), or (f)(2), determined as if the
employee or Member had, as of the date of separation, attained
the age specified in subparagraph (B).
(B) A determination under subparagraph (A) shall be based
on how old the employee or Member will be as of the date on
which the annuity under section 8412(g) or 8413(b) is to
commence.
* * * * * * *
SEC. 8421. ANNUITY SUPPLEMENT
(a)(1) Subject to paragraph (3), an individual shall, if
and while entitled to an annuity under subsection (a), (b),
(d)(1), or (e) of section 8412, or under section 8414(c), also
be entitled to an annuity supplement under this section.
* * * * * * *
SEC. 8421A. REDUCTIONS ON ACCOUNT OF EARNINGS FROM WORK PERFORMED WHILE
ENTITLED TO AN ANNUITY SUPPLEMENT.
(a) * * *
(b) The amount of an individual's excess earnings shall be
charged to months as follows:
(1) * * *
(2) * * *
(3) * * *
(4)(A) * * *
(B) For purposes of this section--
(i) * * *
(ii) any earnings attributable to a period
before attaining the applicable retirement age
under section 8412(h) shall not be considered
in determining the excess earnings of an
individual who retires under section 8412(d)(1)
or (e), or section 8414(c).
* * * * * * *
SEC. 8425. MANDATORY SEPARATION.
(a) * * *
(b)(1) A law enforcement officer, firefighter, nuclear
materials courier, or customs and border protection officer who
is otherwise eligible for immediate retirement under section
8412(d)(1) shall be separated from the service on the last day
of the month in which that law enforcement officer,
firefighter, nuclear materials courier, or customs and border
protection officer 1 as the case may be, becomes 57 years of
age or completes 20 years of service if then over that age. If
the head of the agency judges that the public interest so
requires, that agency head may exempt such an employee from
automatic separation under this subsection until that employee
becomes 60 years of age. The employing office shall notify the
employee in writing of the date of separation at least 60 days
before that date. Action to separate the employee is not
effective, without the consent of the employee, until the last
day of the month in which the 60-day notice expires.
(2) * * *
(c) A member of the Capitol Police who is otherwise
eligible for immediate retirement under section 8412(d)(1)
shall be separated from the service on the last day of the
month in which such member becomes 57 years of age or completes
20 years of service if then over that age. The Capitol Police
Board, when in its judgment the public interest so requires,
may exempt such a member from automatic separation under this
subsection until that member becomes 60 years of age. The Board
shall notify the member in writing of the date of separation at
least 60 days before that date. Action to separate the member
is not effective, without the consent of the member, until the
last day of the month in which the 60-day notice expires.
(d) A member of the Supreme Court Police who is otherwise
eligible for immediate retirement under section 8412(d)(1)
shall be separated from the service on the last day of the
month in which such member becomes 57 years of age or completes
20 years of service if then over that age. The Marshal of the
Supreme Court of the United States, when in his judgment the
public interest so requires, may exempt such a member from
automatic separation under this subsection until that member
becomes 60 years of age. The Marshal shall notify the member in
writing of the date of separation at least 60 days before the
date. Action to separate the member is not effective, without
the consent of the member, until the last day of the month in
which the 60-day notice expires.
* * * * * * *
SEC. 8462. COST OF LIVING ADJUSTMENTS.
(a) * * *
(b) * * *
(c) Eligibility for an annuity increase under this section
is governed by the commencing date of each annuity payable from
the Fund as of the effective date of an increase, except as
follows:
(1) * * *
(2) * * *
(3)(A) * * *
(B)(i) * * *
(ii) This paragraph does not apply with respect to an
annuitant under subsection (d)(1) or (e) of section
8412 or (in the case of an annuitant separated from
service as a military reserve technician as a result of
disability) under section 8414(c).
(4) * * *
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 52--FOREIGN SERVICE
Subchapter VIII--Foreign Service Retirement and Disability
PART I--FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM
SEC. 4045. CONTRIBUTIONS TO FUND.
(a) * * *
(b) * * *
(c) * * *
(d) Contribution for civilian service; creditability of
interim service
(1) * * *
(2) * * *
(3) * * *
(4) * * *
(5) Notwithstanding paragraph (1), a special
contribution for past service as a Foreign Service
criminal investigator/inspector of the Office of the
Inspector General, Agency for International Development
which would have been creditable toward retirement
under either section 8336(c) or 8412(d)(1) of title 5,
and for which a special contribution has not been made
shall be equal to the difference between the amount
actually contributed pursuant to either this section or
section 4071e of this title and the amount that should
have been contributed pursuant to either section 8334
or 8422 of title 5.
(6) * * *
* * * * * * *
SEC. 4046. COMPUTATION OF ANNUITIES.
(a) Measurements; reduction for special contributions;
Foreign Service investigator/inspectors
(1) * * *
* * * * * * *
(6)(A) * * *
(B) * * *
(C) * * *
(D)(i) In this subparagraph--
(I) the term ``affected special agent'' means
an individual covered under this subchapter
who--
(aa) is performing service as a
special agent;
(bb) while on duty as a special
agent, becomes ill or is injured as a
direct result of the performance of
such duties before the date on which
the individual becomes entitled to an
annuity under section 811;
(cc) because of the illness or injury
described in item (bb), is permanently
unable to render useful and efficient
service in the employee's covered
position, as determined by the
Secretary; and
(dd) is appointed to a position in
the Foreign Service that is not a
covered position; and
(II) the term ``covered position'' means a position
as--
(aa) a law enforcement officer
described in section 8331(20) or
8401(17) of title 5, United States
Code;
(bb) a customs and border protection
officer described in section 8331(31)
or 8401(36) of title 5, United States
Code;
(cc) a firefighter described in
section 8331(21) or 8401(14) of title
5, United States Code;
(dd) an air traffic controller
described in section 8331(30) or
8401(35) of title 5, United States
Code;
(ee) a nuclear materials courier
described in section 8331(27) or
8401(33) of title 5, United States
Code;
(ff) a member of the United States
Capitol Police;
(gg) a member of the Supreme Court
Police;
(hh) an employee of the Agency
designated under section 302(a) of the
Central Intelligence Agency Retirement
Act (50 U.S.C. 2152(a)); or
(ii) a special agent.
(ii) Unless an affected special agent files an
election described in clause (iv), creditable service
by the affected special agent in a position described
in clause (i)(I)(dd) shall be treated as creditable
service as a special agent for purposes of this
subchapter, including determining the amount to be
deducted and withheld from the pay of the individual
under section 805.
(iii) Clause (ii) shall only apply if the special
agent transitions to a position described in clause
(i)(I)(dd) without a break in service exceeding 3 days.
(iv) The service of an affected employee shall no
longer be eligible for treatment under clause (ii) if
such service occurs after the employee is transferred
to a supervisory or administrative position related to
the activities of the former covered position of the
employee.
(v) In accordance with procedures established by the
Secretary, an affected special agent may file an
election to have any creditable service performed by
the affected special agent treated in accordance with
this subchapter, without regard to clause (ii).
* * * * * * *
SEC. 4052. MANDATORY RETIREMENT.
(a)(1) * * *
(2) Notwithstanding paragraph (1)--
(A) an individual described in section 4(a)(2) of the
Department of State Special Agents Retirement Act of
1998 who is otherwise eligible for immediate retirement
under this subchapter; or
(B) a Foreign Service criminal investigator/inspector
of the Office of Inspector General of the Agency for
International Development who would have been eligible
for retirement pursuant to either section 8336(c) or
8412(d)(1) of title 5, as applicable, had the employee
remained in civil service,
shall be separated from the Service on the last day of the
month in which such individual under subparagraph (A) or such
Foreign Service criminal investigator/inspector under
subparagraph (B) attains 57 years of age or completes 20 years
of service if then over that age. If the head of the agency
judges that the public interest so requires, that agency head
may exempt such an employee from automatic separation under
this subsection until that employee attains 60 years of age.
The employing office shall notify the employee in writing of
the date of separation at least 60 days before that date.
Action to separate the employee is not effective without the
consent of the employee, until the last day of the month in
which the 60-day notice expires.
* * * * * * *
TITLE 50--WAR AND NATIONAL DEFENSE
* * * * * * *
CHAPTER 38--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY
* * * * * * *
Subchapter III--Participation in Federal Employees' Retirement System
* * * * * * *
SEC. 2152. SPECIAL RULES RELATING TO SECTION 2013 CRITERIA EMPLOYEES.
(a) * * *
(b) * * *
(c) * * *
(d) Employees Disabled on Duty.--
(1) Definitions.--In this subsection--
(A) the term ``affected employee'' means an
employee of the Agency covered under subchapter
II of chapter 84 of title 5, United States
Code, who--
(i) is performing service in a
position designated under subsection
(a);
(ii) while on duty in the position
designated under subsection (a),
becomes ill or is injured as a direct
result of the performance of such
duties before the date on which the
employee becomes entitled to an annuity
under section 233 of this Act or
section 8412(d)(1) of title 5, United
States Code;
(iii) because of the illness or
injury described in clause (ii), is
permanently unable to render useful and
efficient service in the employee's
covered position, as determined by the
Director; and
(iv) is appointed to a position in
the civil service that is not a covered
position but is within the Agency; and
(B) the term ``covered position'' means a
position as--
(i) a law enforcement officer
described in section 8331(20) or
8401(17) of title 5, United States
Code;
(ii) a customs and border protection
officer described in section 8331(31)
or 8401(36) of title 5, United States
Code;
(iii) a firefighter described in
section 8331(21) or 8401(14) of title
5, United States Code;
(iv) an air traffic controller
described in section 8331(30) or
8401(35) of title 5, United States
Code;
(v) a nuclear materials courier
described in section 8331(27) or
8401(33) of title 5, United States
Code;
(vi) a member of the United States
Capitol Police;
(vii) a member of the Supreme Court
Police;
(viii) an affected employee; or
(ix) a special agent described in
section 804(15) of the Foreign Service
Act of 1980 (22 U.S.C. 4044(15)).
(2) Treatment of service after disability.--Unless an
affected employee files an election described in
paragraph (3), creditable service by the affected
employee in a position described in paragraph
(1)(A)(iv) shall be treated as creditable service in a
covered position for purposes of this Act and chapter
84 of title 5, United States Code, including
eligibility for an annuity under section 233 of this
Act or 8412(d)(1) of title 5, United States Code, and
determining the amount to be deducted and withheld from
the pay of the affected employee under section 8422 of
title 5, United States Code.
(3) Break in service.--Paragraph (2) shall only apply
if the affected employee transitions to a position
described in paragraph (1)(A)(iv) without a break a
service exceeding 3 days.
(4) Limitation on treatment of service.--The service
of an affected employee shall no longer be eligible for
treatment under paragraph (2) if such service occurs
after the employee is transferred to a supervisory or
administrative position related to the activities of
the former covered position of the employee.
(5) Opt out.--An affected employee may file an
election to have any creditable service performed by
the affected employee treated in accordance with
chapter 84 of title 5, United States Code, without
regard to paragraph (2).
[all]