[Federal Register Volume 88, Number 95 (Wednesday, May 17, 2023)]
[Rules and Regulations]
[Pages 31467-31469]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-09972]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
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  Federal Register / Vol. 88, No. 95 / Wednesday, May 17, 2023 / Rules 
and Regulations  

[[Page 31467]]



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: Final rule.

-----------------------------------------------------------------------

SUMMARY: The U.S. Office of Personnel Management (OPM) is finalizing 
amendments to 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''). These Acts decreased the benefit 
accrual rate used in the annuity computation and increased employee 
deductions.

DATES: This final rule is effective on May 17, 2023.

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

    On November 16, 2022, OPM issued a proposed rule at 87 FR 68642 to 
implement the provisions of Public Law 110-279,122 Stat. 2604 (2008) 
(codified at 2 U.S.C. 2051), as amended by Public Law 116-21, (2019). 
The 60-day public comment period ended on January 17, 2023. OPM 
received one comment--which was not responsive to the subject matter 
discussed in the rule. Therefore, this rule is being finalized with no 
changes for the November 16th proposed rule.
    Because of the uncertain tenure of congressional service, the FERS 
was originally designed, as the Civil Service Retirement System had 
been, to provide a larger benefit for each year of service to Members 
or congressional employees than to most other federal employees. Prior 
to the enactment of the 2012 Act, all 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.

Regulatory Impact Analysis

    Executive Order 12866 and Executive Order 13563 direct-s 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 rule is not a ``significant regulatory action,'' under Executive 
Order 12866 and was not reviewed by the Office of Management and 
Budget.

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 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

[[Page 31468]]

``major rule'' as defined by the Congressional Review Act (5 U.S.C. 
804(2)).

Paperwork Reduction Act

    This rule does not impose any 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 amends 5 CFR parts 841--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 
definitions of ``FERS FRAE'' and ``FERS RAE'' 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. Revise Sec.  841.503 to read as follows:


Sec.  841.503  Amounts of employee deductions.

    (a) Except as provided in paragraph (b) of this section, the rate 
of employee deductions from basic pay for FERS coverage is seven 
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.
    (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--
    (1) 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.
    (2) 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--
    (1) 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.
    (2) 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 paragraphs (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.

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

[[Page 31469]]

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--
    (1) Has completed 20 years of service; and
    (2) Is at least age 62 at the time of separation on which 
entitlement to an annuity is based.

[FR Doc. 2023-09972 Filed 5-16-23; 8:45 am]
BILLING CODE 6325-38-P