What This Bill Does
This bill allows federal law enforcement officers to count overtime hours they worked but were never paid for when calculating their retirement benefits. Currently, federal law caps how much overtime pay officers can receive, which means officers sometimes work extra hours without getting paid for them. This bill lets those unpaid hours count toward their retirement annuity (a fixed payment received after retirement) if the officers pay a lump sum to make up the cost.
##
Who It Affects
- Federal law enforcement officers employed by federal agencies
- Postal Inspectors
- Criminal investigators in the GS-1811 job series
- Federal air marshals
- Special agents in the Diplomatic Security Service
- Probation officers
- Pretrial services officers
- The Office of Personnel Management
##
Key Provisions
- Law enforcement officers can request an estimate from the Office of Personnel Management showing the cost to add unpaid overtime hours to their retirement calculation, at least 180 days before their annuity begins (Sec. 2(a)(1) and (2)(B))
- Officers must make a lump-sum payment (a one-time payment of a specific amount) to the Office of Personnel Management within 90 days of receiving their estimate if they want unpaid overtime hours counted toward retirement (Sec. 2(a)(2))
- The lump-sum payment equals the difference between retirement contributions that should have been made if overtime was included versus contributions actually made (Sec. 2(a)(2)(C))
- Officers may choose an actuarial annuity reduction (a permanent decrease in monthly retirement payments) instead of making a lump-sum payment (Sec. 2(a)(2)(D))
- The Office of Personnel Management must create regulations within one year that include procedures for lump-sum payments from officers' Thrift Savings Fund accounts (a retirement savings account for federal employees) (Sec. 2(d))
- Certain federal law enforcement positions now qualify for availability pay (extra compensation for being available to work at any time) (Sec. 3(a))
- Officers can claim a tax credit against federal income taxes for lump-sum payments they make under this bill (Sec. 4(a))
##
What Changes
If this bill becomes law, federal law enforcement officers will have the opportunity to receive higher retirement benefits by paying back the cost of overtime hours they worked but were not compensated for under current premium pay caps. Agencies will need to keep better records of the difference between what officers actually earned and what they would have earned without the overtime caps. Five additional job positions will become eligible for availability pay.
##
Important Definitions
- **Law enforcement officer**: Defined as a "qualified public safety employee" under Section 72(t)(10) of the Internal Revenue Code of 1986 (Sec. 2(a)(1) and (b)(3))
- **Premium pay**: Additional compensation beyond base salary, specifically described in Section 5547(a) of title 5, United States Code (Sec. 2(a)(1) and (b)(1))
- **Average pay**: The calculation used to determine retirement benefits, normally based on the highest 3 consecutive years of earnings (Sec. 2(a)(2)(C))
- **Availability pay**: Compensation an employee receives for being available to work outside normal duty hours (Sec. 3(a))
##
Effective Date
The changes apply to any retirement annuity calculated one year after the date this Act becomes law (Sec. 2(c)).
I
118TH CONGRESS
1ST SESSION H. R. 1323
To amend title 5, United States Code, to provide that for purposes of
computing the annuity of certain law enforcement officers, any hours
worked in excess of the limitation applicable to law enforcement premium
pay shall be included in such computation, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 1, 2023
Mr. PASCRELL (for himself, Mr. BACON, Mr. FITZPATRICK, and Mr. CON-
NOLLY) introduced the following bill; which was referred to the Com-
mittee on Oversight and Accountability, and in addition to the Committee
on Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To amend title 5, United States Code, to provide that for
purposes of computing the annuity of certain law en-
forcement officers, any hours worked in excess of the
limitation applicable to law enforcement premium pay
shall be included in such computation, and for other
purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
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•HR 1323 IH
SECTION 1. SHORT TITLE; FINDINGS.
1
(a) SHORT TITLE.—This Act may be cited as the
2
‘‘LEO Fair Retirement Act of 2023’’.
3
(b) FINDINGS.—Congress finds the following:
4
(1) Federal law enforcement officers are never
5
‘‘off-duty’’. They are counted on to respond at any
6
time of the day or night, regardless of their official
7
duty status, to protect the public safety. Outside of
8
our Nation’s Armed Forces, theirs is the only pro-
9
fession comprised of individuals who are routinely
10
called upon to put their lives on the line to keep
11
America safe.
12
(2) Though the Federal Government may house
13
the largest variety of occupations of any U.S. em-
14
ployer across its panoply of agencies and entities,
15
Federal law enforcement is absolutely unique among
16
them, and the Federal law enforcement officer has
17
no counterpart in the private sector. It is one of the
18
most stressful, most dangerous, and most rewarding
19
careers for those who meet the rigorous require-
20
ments of the job.
21
(3) It was in recognition of the unique nature
22
of the occupation, and the demanding schedules re-
23
quired of those who fill its ranks, that Congress es-
24
tablished distinct pay and benefit systems for Fed-
25
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•HR 1323 IH
eral law enforcement positions. This includes basic
1
pay, retirement, and even overtime compensation.
2
(4) Under current law, however, the payment of
3
overtime compensation is limited, and is only pay-
4
able to the extent that the payments do not cause
5
the aggregate of the law enforcement officer’s bi-
6
weekly or annual pay to exceed the pay caps estab-
7
lished under section 5547 of title 5, United States
8
Code. This often results in a law enforcement officer
9
working significant amounts of overtime hours year
10
after year for which the officer is never com-
11
pensated.
12
(5) In light of the continuing homeland and na-
13
tional security threats facing our Nation, it is in the
14
interest of the Federal Government to ensure that it
15
can continue to recruit and retain the highest caliber
16
personnel by allowing Federal law enforcement offi-
17
cers the opportunity to reclaim full credit in retire-
18
ment for overtime hours worked but never paid.
19
SEC. 2. COMPUTATION OF ANNUITY FOR HOURS WORKED
20
IN EXCESS OF LAW ENFORCEMENT PREMIUM
21
PAY LIMITATIONS.
22
(a) CSRS.—
23
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•HR 1323 IH
(1) IN
GENERAL.—Section 8339 of title 5,
1
United States Code, is amended by adding at the
2
end the following:
3
‘‘(v)(1) Notwithstanding any other provision of this
4
title, including sections 5545a and 5547, and consistent
5
with the requirements of paragraph (2), any premium pay
6
described in section 5547(a) that would have been received
7
by a law enforcement officer but for the limitation pro-
8
vided in such section shall be included in the average pay
9
of such officer for purposes of computing the annuity of
10
such officer under this section.
11
‘‘(2)(A) Paragraph (1) shall not apply unless the law
12
enforcement officer makes a lump-sum payment to the Of-
13
fice in the manner prescribed under this paragraph.
14
‘‘(B) The officer may—
15
‘‘(i) not later than 180 days before the date
16
that the officer’s annuity will commence, request
17
from the Office an estimate (expressed as a dollar
18
figure) of—
19
‘‘(I) the lump-sum payment described
20
under subparagraph (C);
21
‘‘(II) the amount of the officer’s monthly
22
annuity payment if the officer elects to make
23
the lump-sum payment and receive an amended
24
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•HR 1323 IH
annuity that includes the application of para-
1
graph (1); and
2
‘‘(III) the amount of such officer’s monthly
3
annuity payment if the officer does not make
4
such an election; and
5
‘‘(ii) consistent with the requirements of sub-
6
paragraph (D), not later than 90 days after receipt
7
of the estimate under clause (i), irrevocably elect to
8
make the lump-sum payment to the Office.
9
‘‘(C) If a law enforcement officer makes an election
10
pursuant to subparagraph (B)(ii), such officer shall make
11
a lump-sum payment to the Office equal to the difference
12
between—
13
‘‘(i) the amount that would have been contrib-
14
uted by the officer and the employer under section
15
8334 during the 3 consecutive years used to deter-
16
mine average pay (as described under section
17
8331(4)) if the rate of basic pay of the officer dur-
18
ing such period of years included any premium pay
19
described in section 5547(a) that would have been
20
received by a law enforcement officer but for the
21
limitation provided in such section; and
22
‘‘(ii) the amount that was so contributed during
23
such period of years.
24
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•HR 1323 IH
‘‘(D) The officer may elect an actuarial annuity re-
1
duction, consistent with regulations prescribed by the Of-
2
fice, in lieu of the lump-sum payment required under sub-
3
paragraphs (B) and (C).
4
‘‘(3) In this subsection, the term ‘law enforcement of-
5
ficer’ has the meaning given the term ‘qualified public
6
safety employee’ in section 72(t)(10) of the Internal Rev-
7
enue Code of 1986.’’.
8
(2) CLARIFICATION WITH RESPECT TO ANNUITY
9
LIMIT.—The limitation provided in section 8339(f)
10
of title 5, United States Code, shall apply to any an-
11
nuity calculated pursuant to subsection (v) of such
12
section (as added by paragraph (1)).
13
(b) FERS.—Section 8415 of title 5, United States
14
Code, is amended by adding at the end the following:
15
‘‘(o)(1) Notwithstanding any other provision of this
16
title, including sections 5545a and 5547, and consistent
17
with the requirements of paragraph (2), any premium pay
18
described in section 5547(a) that would have been received
19
by a law enforcement officer but for the limitation pro-
20
vided in such section shall be included in the average pay
21
of such officer for purposes of computing the annuity of
22
such officer under this section.
23
‘‘(2) Paragraph (1) shall not apply unless the law en-
24
forcement officer makes a lump-sum payment to the Office
25
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•HR 1323 IH
in the same manner as prescribed under section
1
8339(v)(2).
2
‘‘(3) In this subsection, the term ‘law enforcement of-
3
ficer’ has the meaning given the term ‘qualified public
4
safety employee’ in section 72(t)(10) of the Internal Rev-
5
enue Code of 1986.’’.
6
(c) APPLICATION.—The amendments made by sub-
7
sections (a) and (b) shall apply to any applicable annuity
8
calculated on or after the date that is one year after the
9
date of enactment of this Act.
10
(d) REGULATIONS.—
11
(1) IN GENERAL.—Not later than 1 year after
12
the date of enactment of this Act, the Director of
13
the Office of Personnel Management shall promul-
14
gate regulations to carry out sections 8339(v) and
15
8415(o) of title 5, United States Code, as added by
16
subsections (a) and (b).
17
(2) LUMP-SUM
PAYMENT.—Such regulations
18
shall include—
19
(A) procedures under which any law en-
20
forcement officer covered by such sections may
21
make the lump-sum payment as described
22
under sections 8339(v)(2) and 8415(o)(2) of
23
title 5, United States Code, as added by sub-
24
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•HR 1323 IH
sections (a) and (b), from amounts within the
1
officer’s Thrift Savings Fund account; and
2
(B) procedures, promulgated in consulta-
3
tion with the Thrift Savings Board, under
4
which a transfer may be made from such ac-
5
count to the Office of Personnel Management.
6
(3) SOLICITATION
OF
PAYROLL
INFORMA-
7
TION.—Such regulations shall include—
8
(A) guidance for agencies employing law
9
enforcement officers for proper retention of
10
payroll information required to carry out the
11
amendments made by subsections (a) and (b),
12
including, for each creditable year of service,
13
the difference between the amount the law en-
14
forcement officer received in gross compensa-
15
tion and the amount that would have been re-
16
ceived as gross compensation but for the appli-
17
cation of the premium pay caps in section 5547
18
of title 5, United States Code; and
19
(B) procedures for the Director to solicit
20
sufficient payroll information from the head of
21
each applicable agency to provide for the com-
22
putations required by the amendments made by
23
this Act.
24
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•HR 1323 IH
SEC. 3. ELIGIBILITY FOR AVAILABILITY PAY.
1
(a) IN GENERAL.—Section 5545a of title 5, United
2
States Code, is amended by adding at the end the fol-
3
lowing:
4
‘‘(l)(1) The provisions of subsections (a)–(h) pro-
5
viding for availability pay shall apply to a covered em-
6
ployee. For the purpose of this section, section 5542(d)
7
of this title, and section 13(a)(16) and (b)(30) of the Fair
8
Labor Standards Act of 1938 (29 U.S.C. 213(a)(16) and
9
(b)(30)), a covered employee shall be deemed to be a crimi-
10
nal investigator as defined in this section.
11
‘‘(2) In this subsection, the term ‘covered employee’
12
means—
13
‘‘(A) a Postal Inspector (referred to in section
14
1003(c) of title 39);
15
‘‘(B) a criminal investigator classified under the
16
GS–1811 series (or any successor series);
17
‘‘(C) a Federal air marshal;
18
‘‘(D) a special agent in the Diplomatic Security
19
Service;
20
‘‘(E) a probation officer (referred to in section
21
3672 of title 18); and
22
‘‘(F) a pretrial services officer (referred to in
23
section 3153 of title 18).’’.
24
(b) CONFORMING AMENDMENT.—Section 410(b)(11)
25
of title 39, United States Code, is amended by striking
26
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•HR 1323 IH
‘‘section 5520a’’ and inserting ‘‘sections 5520a and
1
5545a’’.
2
SEC. 4. CREDIT FOR CERTAIN LUMP-SUM PAYMENTS OF
3
UNCOMPENSATED LAW ENFORCEMENT PRE-
4
MIUM PAY.
5
(a) IN GENERAL.—In the case of an individual, there
6
shall be allowed as a credit against the tax imposed by
7
chapter 1 of the Internal Revenue Code of 1986 for the
8
taxable year an amount equal to the sum of the lump-
9
sum payments made by the individual during such taxable
10
year pursuant to section 8339(v)(2) or 8415(o)(2) of title
11
5, United States Code, with respect to an annuity of such
12
individual.
13
(b) TREATED
AS
NON-REFUNDABLE
PERSONAL
14
CREDIT.—For purposes of the Internal Revenue Code of
15
1986, the credit allowed under subsection (a) shall be
16
treated as a credit allowed under subpart A of part IV
17
of subchapter A of chapter 1 of such Code.
18
Æ
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