[Federal Register Volume 87, Number 220 (Wednesday, November 16, 2022)]
[Proposed Rules]
[Pages 68642-68644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24875]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 87, No. 220 / Wednesday, November 16, 2022 / 
Proposed Rules  

[[Page 68642]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 841 and 842

RIN 3206-AO42


Retirement: Members of Congress and Congressional Employees

AGENCY: Office of Personnel Management.

ACTION: Proposed rule.

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SUMMARY: The U.S. Office of Personnel Management (OPM) is proposing 
this rule to amend the CFR for purposes of ensuring these regulations 
reflect the provisions enacted under the Middle Class Tax Relief and 
Job Creation Act of 2012 (``2012 Act'') and the Bipartisan Budget Act 
of 2013 (``2013 Act''). The 2012 Act made significant changes to the 
retirement benefits of Members of Congress (Members) or congressional 
employees who are first covered by the Federal Employees' Retirement 
System (FERS) after December 31, 2012. The 2012 Act decreased the FERS 
benefit accrual rate used in the FERS annuity calculation for 
congressional employees or Members first covered by FERS (or reelected 
with less than five years of FERS service) after December 31, 2012. The 
2012 Act also increased the FERS employee contributions by 1.8 
percentage points for Members first covered by FERS (or reelected with 
less than five years of FERS-covered service) after December 31, 2012. 
Enactment of the 2013 Act, further increased the FERS employee 
deductions by an additional 1.3 percentage points for all FERS-covered 
employees first covered by FERS after December 31, 2013 (or rehired/
reelected with less than five years of FERS-covered service), including 
Members and congressional employees. OPM's proposed rule amends the CFR 
to reflect these changes.

DATES: We must receive your comments by January 17, 2023.

ADDRESSES: You may submit comments identified by docket number and/or 
Regulatory Information Number (RIN) and title, by the following method:
     Electronic: Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.
    All submissions received must include the agency name and docket 
number or RIN for this document. The general policy for comments and 
other submissions from members of the public is to make these 
submissions available for public viewing at http://www.regulations.gov 
as they are received without change, including any personal identifiers 
or contact information.

FOR FURTHER INFORMATION CONTACT: Jane Bancroft, (202) 606-0299. Email: 
[email protected], with Public Law 112-96 and Attn: Jane 
Bancroft in the subject line.

SUPPLEMENTARY INFORMATION:

Background

    Because of the uncertain tenure of congressional service, the 
Federal Employees Retirement System (FERS) was originally designed, as 
CSRS had been, to provide a larger benefit for each year of service to 
Members of Congress or congressional employees than to most other 
federal employees. Prior to the enactment of the 2012 Act, all Members 
of Congress (Members) or congressional employees became eligible for 
retirement annuities at an earlier age and with fewer years of service 
than most other federal employees. However, all Members or 
congressional employees paid a higher percentage of employee deductions 
for their retirement benefits than most other federal employees.
    The 2012 Act made two significant changes to the retirement 
benefits of congressional employees and Members who are first covered 
by FERS after December 31, 2012. First, the 2012 Act decreased the FERS 
benefit accrual rates used in the FERS annuity calculation for 
congressional employees or Members first covered by FERS (or reelected 
with less than five years of FERS service) after December 31, 2012, to 
be the same as regular FERS employees. Therefore, the higher accrual 
rate applicable to Members or congressional employees is no longer 
available to those first covered by FERS after December 31, 2012.
    Second, the 2012 Act increased the FERS employee contributions by 
1.8 percentage points for Members first covered by FERS (or reelected 
with less than five years of FERS-covered service) after December 31, 
2012. Therefore, Members newly covered by FERS beginning January 1, 
2013, are required to contribute 3.1% of their basic pay to the Civil 
Service Retirement and Disability Fund. Enactment of the 2013 Act, 
further increased the FERS employee deductions by an additional 1.3 
percentage points for all FERS-covered employees, including Members and 
congressional employees, first covered by FERS after December 31, 2013 
(or rehired/reelected with less than five years of FERS-covered 
service). Subsequently, under the 2013 Act, Members and other federal 
employees first covered by FERS beginning in 2014 are required to 
contribute 4.4% of basic pay to FERS.
    Beginning January 1, 2013, there is no longer a larger employee 
contribution under FERS required for Members and congressional 
employees in comparison with regular FERS employees; all of these 
groups contribute 3.1% of basic pay toward their FERS annuity if first 
covered after December 31, 2012, or 4.4% of basic pay if first covered 
by FERS after December 31, 2013. Members first elected after December 
31, 2012, however, remain eligible for retirement annuities under FERS 
at earlier ages and with fewer years of service than regular federal 
employees.

Executive Order 12866

    Executive Order 12866 Executive Order 12866 directs agencies to 
assess all costs and benefits of available regulatory alternatives and, 
if regulation is necessary, to select regulatory approaches that 
maximize net benefits (including potential economic, environmental, 
public health and safety effects, distributive impacts, and equity). 
This proposed rule is not a significant regulatory action and was not 
reviewed by OMB under E.O. 12866.

Regulatory Flexibility Act

    The Office of Personnel Management certifies that this rule will 
not have a significant economic impact on a substantial number of small 
entities.

Federalism

    We have examined this rule in accordance with Executive Order 
13132, Federalism, and have determined that this rule will not have any 
negative impact on the rights, roles and

[[Page 68643]]

responsibilities of State, local, or tribal governments.

Civil Justice Reform

    This regulation meets the applicable standard set forth in 
Executive Order 12988.

Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by state, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any year and it will not significantly or uniquely 
affect small governments. Therefore, no actions were deemed necessary 
under the provisions of the Unfunded Mandates Reform Act of 1995.

Congressional Review Act

    The Congressional Review Act (5 U.S.C. 801 et seq.) requires rules 
(as defined in 5 U.S.C. 804) to be submitted to Congress before taking 
effect. OPM will submit to Congress and the Comptroller General of the 
United States a report regarding the issuance of this action before its 
effective date, as required by 5 U.S.C. 801. This is not a ``major 
rule'' as defined by the Congressional Review Act (5 U.S.C. 804(2)).

Paperwork Reduction Act

    This rule does not impose any new reporting or record-keeping 
requirements subject to the Paperwork Reduction Act.

List of Subjects

5 CFR Part 841

    Administrative practice and procedure, Air traffic controllers, 
Claims Disability benefits, Firefighters, Government employees, Income 
taxes, Intergovernmental relations, Law enforcement officers, Pensions, 
Retirement.

5 CFR Part 842

    Air traffic controllers, Alimony, Firefighters, Law enforcement 
officers, Pensions, Retirement.

Office of Personnel Management.
Stephen Hickman,
Federal Register Liaison.

    For the reasons stated in the preamble, the Office of Personnel 
Management proposes to amend 5 CFR parts 841 and 842 to read as 
follows:

PART 841--FEDERAL EMPLOYEES RETIREMENT SYSTEM--GENERAL 
ADMINISTRATION

0
1. Revise the authority citation for part 841 to read as follows:

    Authority:  5 U.S.C. 8461; Sec. 841.108 also issued under 5 
U.S.C. 552a; Secs. 841.110 and 841.111 also issued under 5 U.S.C. 
8470(a); subpart D also issued under 5 U.S.C. 8423; Sec. 841.504 
also issued under 5 U.S.C. 8422; Sec. 841.507 also issued under 
section 505 of Pub. L. 99-335; subpart J also issued under 5 U.S.C. 
8469; Sec. 841.506 also issued under 5 U.S.C. 7701(b)(2); Sec. 
841.508 also issued under section 505 of Pub. L. 99-335; Sec. 
841.604 also issued under Title II, Pub. L. 106-265, 114 Stat. 780; 
Sec. 5001 of Pub. L. 112-96 at 126 Stat. 199.

0
2. Amend Sec.  841.103 by adding, in alphabetical order, the definition 
of ``FERS FRAE'' to read as follows:


Sec.  841.103   Definitions.

* * * * *
    FERS FRAE, or a Further Revised Annuity Employee as identified 
under 5 U.S.C. 8422, is an employee or Member covered under FERS hired 
on or after January 1, 2014, unless the employee or Member--
    (1) was covered under FERS on December 31, 2012; or
    (2) performed civilian service creditable or potentially creditable 
under FERS on December 31, 2012;
    (3) or, if not covered under FERS on December 31, 2012, performed 
at least 5 years of civilian service creditable or potentially 
creditable under FERS prior to December 31, 2012; or
    (4) was covered under FERS RAE on December 31, 2013; or
    (5) was performing civilian service creditable or potentially 
creditable under FERS RAE on December 31, 2013; or
    (6) if not covered under FERS RAE on December 31, 2013, performed 
at least 5 years of civilian service creditable or potentially 
creditable under FERS prior to December 31, 2013.
    FERS RAE, or a Revised Annuity Employee as identified under 5 
U.S.C. 8422, is an employee or Member covered under FERS hired on or 
after January 1, 2013, and before January 1, 2014, unless the employee 
or Member--
    (1) was covered under FERS on December 31, 2012; or
    (2) performed civilian service creditable or potentially creditable 
under FERS on December 31, 2012; or
    (3) if not covered under FERS on December 31, 2012, performed at 
least 5 years of civilian service creditable or potentially creditable 
under FERS prior to December 31, 2012.
0
3. Amend Sec.  841.503 by revising paragraphs (b) and (c), and adding 
paragraphs (d) and (e) to read as follows:


Sec.  841.503  Amounts of employee deductions.

* * * * *
    (b) The rate of employee deductions from basic pay for FERS 
coverage for a Member, law enforcement officer, firefighter, nuclear 
materials courier, customs and border protection officer, air traffic 
controller, member of the Supreme Court Police, Congressional employee, 
or employee under section 302 of the Central Intelligence Agency Act of 
1964 for Certain Employees (who are not FERS RAE or FERS FRAE employees 
or Members, as defined under Sec.  841.103 of this part), is seven and 
one-half percent of basic pay, minus the percent of tax which is (or 
would be) in effect for the payment, for the employee cost of social 
security.
    (c) After December 31, 2012, the rate of employee deductions from 
basic pay for--
    (i) a FERS RAE employee, Member, or Congressional employee is nine 
and three-tenths percent of basic pay, minus the percent of tax which 
is (or would be) in effect for the payment, for the employee cost of 
social security.
    (ii) a FERS RAE law enforcement officer, firefighter, nuclear 
materials courier, customs and border protection officer, air traffic 
controller, member of the Supreme Court Police, or employee under 
section 302 of the Central Intelligence Agency Act of 1964 for Certain 
Employees is nine and eight-tenths percent of basic pay, minus the 
percent of tax which is (or would be) in effect for the payment, for 
the employee cost of social security.
    (d) After December 31, 2013, the rate of employee deductions from 
basic pay for--
    (i) FERS FRAE employee, Member, or Congressional employee is ten 
and six-tenths percent basic pay, minus the percent of tax which is (or 
would be) in effect for the payment, for the employee cost of social 
security.
    (ii) a FERS FRAE law enforcement officer, firefighter, nuclear 
materials courier, customs and border protection officer, air traffic 
controller, member of the Supreme Court Police, or employee under 
section 302 of the Central Intelligence Agency Act of 1964 for Certain 
Employees is eleven and one-tenth percent of basic pay, minus the 
percent of tax which is (or would be) in effect for the payment, for 
the employee cost of social security.
    (e) Employee deductions will be at the rate in paragraph (a) 
through (d) of this section as if social security deductions were being 
made even if social security deductions have ceased because of the 
amount of earnings during the year, or are not made for any other 
reason.

[[Page 68644]]

PART 842--FEDERAL EMPLOYEES RETIREMENT SYSTEM--BASIC ANNUITY

0
4. Revise the authority citation for part 842 to read as follows:

    Authority:  5 U.S.C. 8461(g); Secs. 842.104 and 842.106 also 
issued under 5 U.S.C. 8461(n); Sec. 842.104 also issued under Secs. 
3 and 7(c) of Pub. L. 105-274, 112 Stat. 2419; Sec. 842.105 also 
issued under 5 U.S.C. 8402(c)(1) and 7701(b)(2); Sec. 842.106 also 
issued under Sec. 102(e) of Pub. L. 104-8, 109 Stat. 102, as amended 
by Sec. 153 of Pub. L. 104-134, 110 Stat. 1321-102; Sec. 842.107 
also issued under Secs. 11202(f), 11232(e), and 11246(b) of Pub. L. 
105-33, 111 Stat. 251, and Sec. 7(b) of Pub. L. 105-274, 112 Stat. 
2419; Sec. 842.108 also issued under Sec. 7(e) of Pub. L. 105-274, 
112 Stat. 2419; Sec. 842.109 also issued under Sec. 1622(b) of Pub. 
L. 104-106, 110 Stat. 515; Sec. 842.110 also issued under Sec. 111 
of Pub. L. 99-500, 100 Stat. 1783, and Sec. 111 of Pub. L. 99-591, 
100 Stat. 3341-348, and also Sec. 1 of Pub. L. 110-279, 122 Stat. 
2602, as amended by Sec. 1(a) of Pub. L. 116-21, 133 Stat. 903; Sec. 
842.208 also issued under Sec. 535(d) of Title V of Division E of 
Pub. L. 110-161, 121 Stat. 2042; Sec. 842.213 also issued under 5 
U.S.C. 8414(b)(1)(B) and Sec. 1313(b)(5) of Pub. L. 107-296, 116 
Stat. 2135; Secs. 842.304 and 842.305 also issued under Sec. 321(f) 
of Pub. L. 107-228, 116 Stat. 1383; Secs. 842.604 and 842.611 also 
issued under 5 U.S.C. 8417; Sec. 842.607 also issued under 5 U.S.C. 
8416 and 8417; Sec. 842.614 also issued under 5 U.S.C. 8419; Sec. 
842.615 also issued under 5 U.S.C. 8418; Sec. 842.703 also issued 
under Sec. 7001(a)(4) of Pub. L. 101-508, 104 Stat. 1388; Sec. 
842.707 also issued under Sec. 6001 of Pub. L. 100-203, 101 Stat. 
1300; Sec. 842.708 also issued under Sec. 4005 of Pub. L. 101-239, 
103 Stat. 2106, and Sec. 7001 of Pub. L. 101-508, 104 Stat. 1388; 
Subpart H also issued under 5 U.S.C. 1104; Sec. 842.810 also issued 
under Sec. 636 of Appendix C to Pub. L. 106-554 at 114 Stat. 2763A-
164; Sec. 842.811 also issued under Sec. 226(c)(2) of Pub. Law 108-
176, 117 Stat. 2529; Subpart J also issued under Sec. 535(d) of 
Title V of Division E of Pub. L. 110-161, 121 Stat. 2042; Pub. L. 
115-352, 132 Stat. 5067 (5 U.S.C. 101); Sec. 5001 of Pub. L. 112-96 
at 126 Stat. 199; 5 U.S.C. 8401; 5 U.S.C. 8415.

Subpart D--Computations

0
5. Revise Sec.  842.406 to read as follows:


Sec.  842.406  Members of Congress and Congressional Employees.

    (a) The annuity of a congressional employee or Member who is first 
covered by FERS on or before December 31, 2012, and who has had at 
least 5 years of service as a congressional employee, Member, or any 
combination thereof totaling 5 years is --
    (1) One and seven-tenths percent of average pay multiplied by the 
total number of years of service as a Member and/or congressional 
employee not exceeding 20 years; plus
    (2) One percent of average pay multiplied by the years of service 
other than that of a Member and/or congressional employee.
    (b) Except as provided in paragraph (c) of this section, the 
annuity of a congressional employee or Member who is first covered by 
FERS after December 31, 2012, or Member re-elected with less than 5 
years of FERS service after December 31, 2012, and who has had at least 
5 years of service as a congressional employee, Member, or any 
combination thereof totaling 5 years is 1 percent of average pay 
multiplied by total service.
    (c) The annuity of a congressional employee or Member is 1.1 
percent of average pay multiplied by total service, provided the 
congressional employee or Member-
    (i) Has completed 20 years of service; and
    (ii) Is at least age 62 at the time of separation on which 
entitlement to an annuity is based.

[FR Doc. 2022-24875 Filed 11-15-22; 8:45 am]
BILLING CODE P