To amend title 5, United States Code, to secure the annuities of Federal civilian employees, and for other purposes.

Summary: Securing Annuities for Federal Employees Act of 2012 - Increases the employee contribution to the Civil Service Retirement System (CSRS) and to the Federal Employees Retirement System (FERS) by .5% of salary in each of calendar years 2013, 2014, and 2015. Reduces the employer contribution to CSRS and FERS by the amount of the increased employee contribution.

Establishes new annuity computation rules for federal employees and Members of Congress who begin service after December 31, 2012, and who have less than five years of civilian service creditable under CSRS or any other retirement system for federal employees (secure annuity employees). Increases the employee contribution for secure annuity employees and calculates annuities for such employees based upon the average of their highest five years of salary (for current federal employees, the calculation is based on the highest three years of salary).

Eliminates the FERS annuity supplement for employees not subject to mandatory retirement who separate from service after December 31, 2012.

Allows federal employees, including employees of the U.S. Postal Service (USPS) and the Postal Regulatory Commission (PRC), and Members of Congress, to contribute payments received for accumulated and accrued annual or vacation leave to the Thrift Savings Fund.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Securing Annuities for Federal 
Employees Act of 2012''.

SEC. 2. RETIREMENT CONTRIBUTIONS.

    (a) Civil Service Retirement System.--
            (1) Individual contributions.--Section 8334(c) of title 5, 
        United States Code, is amended--
                    (A) by striking ``(c) Each'' and inserting ``(c)(1) 
                Each''; and
                    (B) by adding at the end the following:
    ``(2) Notwithstanding any other provision of this subsection, the 
applicable percentage of basic pay under this subsection shall, for 
purposes of computing an amount--
            ``(A) for a period in calendar year 2013, 2014, or 2015, be 
        equal to the applicable percentage under this subsection for 
        the preceding calendar year (including as increased under this 
        paragraph, if applicable), plus an additional 0.5 percentage 
        point; and
            ``(B) for a period in any calendar year after 2015, be 
        equal to the applicable percentage under this subsection for 
        calendar year 2015 (as determined under subparagraph (A)).''.
            (2) Government contributions.--Section 8334(a)(1)(B) of 
        title 5, United States Code, is amended--
                    (A) in clause (i), by striking ``Except as provided 
                in clause (ii),'' and inserting ``Except as provided in 
                clause (ii) or (iii),''; and
                    (B) by adding at the end the following:
    ``(iii) The amount to be contributed under clause (i) shall, with 
respect to a period in any year beginning after December 31, 2012, be 
equal to--
            ``(I) the amount which would otherwise apply under clause 
        (i) with respect to such period, reduced by
            ``(II) the amount by which, with respect to such period, 
        the withholding under subparagraph (A) exceeds the amount which 
        would otherwise have been withheld from the basic pay of the 
        employee or elected official involved under subparagraph (A) 
        based on the percentage applicable under subsection (c) for 
        calendar year 2012.''.
    (b) Federal Employees' Retirement System.--Section 8422(a)(3) of 
title 5, United States Code, is amended--
            (1) by striking ``(3) The'' and inserting ``(3)(A) The''; 
        and
            (2) by adding at the end the following:
    ``(B) Notwithstanding any other provision of this paragraph, the 
applicable percentage under this paragraph shall, for purposes of 
computing any amount--
            ``(i) for a period in calendar year 2013, 2014, or 2015, be 
        equal to the applicable percentage under this paragraph for the 
        preceding calendar year (including as increased under this 
        subparagraph, if applicable), plus an additional 0.5 percentage 
        point; and
            ``(ii) for a period in any calendar year after 2015, be 
        equal to the applicable percentage under this paragraph for 
        calendar year 2015 (as determined under clause (i)).''.

SEC. 3. AMENDMENTS RELATING TO SECURE ANNUITY EMPLOYEES.

    (a) Definition of Secure Annuity Employee.--Section 8401 of title 
5, United States Code, is amended--
            (1) in paragraph (35), by striking ``and'' at the end;
            (2) in paragraph (36), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(37) the term `secure annuity employee' means an employee 
        or Member who--
                    ``(A) first becomes subject to this chapter after 
                December 31, 2012; and
                    ``(B) at the time of first becoming subject to this 
                chapter, does not have at least 5 years of civilian 
                service creditable under the Civil Service Retirement 
                System or any other retirement system for Government 
                employees.''.
    (b) Individual Contributions.--Section 8422(a)(3) of title 5, 
United States Code (as amended by section 2(b)) is further amended--
            (1) in subparagraph (B) (as added by section 2(b)), in the 
        matter before clause (i), by striking ``this paragraph, the'' 
        and inserting ``this paragraph and except in the case of a 
        secure annuity employee, the''; and
            (2) by adding after subparagraph (B) (as so added) the 
        following:
    ``(C) Notwithstanding any other provision of this paragraph, in the 
case of a secure annuity employee, the applicable percentage under this 
paragraph shall--
            ``(i) in the case of a secure annuity employee who is an 
        employee, Congressional employee, or Member, be equal to 10.2 
        percent; and
            ``(ii) in the case of a secure annuity employee who is a 
        law enforcement officer, firefighter, member of the Capitol 
        Police, member of the Supreme Court Police, air traffic 
        controller, nuclear materials courier, or customs and border 
        protection officer, be equal to 10.7 percent.''.
    (c) Average Pay.--Section 8401(3) of title 5, United States Code, 
is amended--
            (1) by striking ``(3)'' and inserting ``(3)(A)''; and
            (2) by adding ``except that'' after the semicolon; and
            (3) by adding at the end the following:
            ``(B) in the case of a secure annuity employee, the term 
        `average pay' has the meaning determined applying subparagraph 
        (A)--
                    ``(i) by substituting `5 consecutive years' for `3 
                consecutive years'; and
                    ``(ii) by substituting `5 years' for `3 years'.''.
    (d) Computation of Basic Annuity.--Section 8415 of title 5, United 
States Code, is amended--
            (1) by striking subsections (a) through (e) and inserting 
        the following:
    ``(a) Except as otherwise provided in this section, the annuity of 
an employee retiring under this subchapter is--
            ``(1) in the case of an employee other than a secure 
        annuity employee, 1 percent of that individual's average pay 
        multiplied by such individual's total service; and
            ``(2) in the case of an employee who is a secure annuity 
        employee, 0.7 percent of that individual's average pay 
        multiplied by such individual's total service.
    ``(b)(1) The annuity of a Member, or former Member with title to a 
Member annuity, retiring under this subchapter is computed under 
subsection (a)(1), except that if the individual has had at least 5 
years of service as a Member or Congressional employee, or any 
combination thereof, so much of the annuity as is computed with respect 
to either such type of service (or a combination thereof), not 
exceeding a total of 20 years, shall be computed by multiplying 1.7 
percent of the individual's average pay by the years of such service.
    ``(2) The annuity of a Member, or former Member with title to a 
Member annuity, retiring under this subchapter is, if the individual is 
or was a secure annuity employee, computed--
            ``(A) under subsection (a)(2); and
            ``(B) disregarding paragraph (1) of this subsection.
    ``(c)(1) The annuity of a Congressional employee, or former 
Congressional employee, retiring under this subchapter is computed 
under subsection (a)(1), except that if the individual has had at least 
5 years of service as a Congressional employee or Member, or any 
combination thereof, so much of the annuity as is computed with respect 
to either such type of service (or a combination thereof), not 
exceeding a total of 20 years, shall be computed by multiplying 1.7 
percent of the individual's average pay by the years of such service.
    ``(2) The annuity of a Congressional employee, or former 
Congressional employee, retiring under this subchapter is, if the 
individual is or was a secure annuity employee, computed--
            ``(A) under subsection (a)(2); and
            ``(B) disregarding paragraph (1) of this subsection.
    ``(d) The annuity of an employee retiring under subsection (d) or 
(e) of section 8412 or under subsection (a), (b), or (c) of section 
8425 is--
            ``(1) in the case of an individual other than a secure 
        annuity employee--
                    ``(A) 1.7 percent of that individual's average pay 
                multiplied by so much of such individual's total 
                service as does not exceed 20 years; plus
                    ``(B) 1 percent of that individual's average pay 
                multiplied by so much of such individual's total 
                service as exceeds 20 years; and
            ``(2) in the case of an individual who is a secure annuity 
        employee--
                    ``(A) 1.4 percent of that individual's average pay 
                multiplied by so much of such individual's total 
                service as does not exceed 20 years; plus
                    ``(B) 0.7 percent of that individual's average pay 
                multiplied by so much of such individual's total 
                service as exceeds 20 years.
    ``(e) The annuity of an air traffic controller or former air 
traffic controller retiring under section 8412(a) is computed under 
subsection (a)(1), except that if the individual has had at least 5 
years of service as an air traffic controller as defined by section 
2109(1)(A)(i), so much of the annuity as is computed with respect to 
such type of service shall be computed--
            ``(1) in the case of an individual other than a secure 
        annuity employee, by multiplying 1.7 percent of the 
        individual's average pay by the years of such service; and
            ``(2) in the case of an individual who is a secure annuity 
        employee, by multiplying 1.4 percent of the individual's 
        average pay by the years of such service.''; and
            (2) in subsection (h)--
                    (A) in paragraph (1), by striking ``subsection 
                (a)'' and inserting ``subsection (a)(1)''; and
                    (B) in paragraph (2), in the matter following 
                subparagraph (B), by striking ``or customs and border 
                protection officer'' and inserting ``customs and border 
                protection officer, or secure annuity employee.''.

SEC. 4. ANNUITY SUPPLEMENT.

    Section 8421(a) of title 5, United States Code, is amended--
            (1) in paragraph (1), by striking ``paragraph (3)'' and 
        inserting ``paragraphs (3) and (4)'';
            (2) in paragraph (2), by striking ``paragraph (3)'' and 
        inserting ``paragraphs (3) and (4)''; and
            (3) by adding at the end the following:
    ``(4)(A) Except as provided in subparagraph (B), no annuity 
supplement under this section shall be payable in the case of an 
individual whose entitlement to annuity is based on such individual's 
separation from service after December 31, 2012.
    ``(B) Nothing in this paragraph applies in the case of an 
individual separating under subsection (d) or (e) of section 8412.''.

SEC. 5. CONTRIBUTIONS TO THRIFT SAVINGS FUND OF PAYMENTS FOR ACCRUED OR 
              ACCUMULATED LEAVE.

    (a) Amendments Relating to CSRS.--Section 8351(b) of title 5, 
United States Code, is amended--
            (1) by striking paragraph (2)(A) and inserting the 
        following:
    ``(2)(A) An employee or Member may contribute to the Thrift Savings 
Fund in any pay period any amount of such employee's or Member's basic 
pay for such pay period, and may contribute (by direct transfer to the 
Fund) any part of any payment that the employee or Member receives for 
accumulated and accrued annual or vacation leave under section 5551 or 
5552. Notwithstanding section 2105(e), in this paragraph the term 
`employee' includes an employee of the United States Postal Service or 
of the Postal Regulatory Commission.'';
            (2) by striking subparagraph (B) of paragraph (2); and
            (3) by redesignating subparagraph (C) of paragraph (2) as 
        subparagraph (B).
    (b) Amendments Relating to FERS.--Section 8432(a) of title 5, 
United States Code, is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
    ``(1) An employee or Member--
            ``(A) may contribute to the Thrift Savings Fund in any pay 
        period, pursuant to an election under subsection (b), any 
        amount of such employee's or Member's basic pay for such pay 
        period; and
            ``(B) may contribute (by direct transfer to the Fund) any 
        part of any payment that the employee or Member receives for 
        accumulated and accrued annual or vacation leave under section 
        5551 or 5552.
    ``(2) Contributions made under paragraph (1)(A) pursuant to an 
election under subsection (b) shall, with respect to each pay period 
for which such election remains in effect, be made in accordance with a 
program of regular contributions provided in regulations prescribed by 
the Executive Director.''; and
            (2) by adding at the end the following new paragraph:
    ``(4) Notwithstanding section 2105(e), in this subsection the term 
`employee' includes an employee of the United States Postal Service or 
of the Postal Regulatory Commission.''.
    (c) Regulations.--The Executive Director of the Federal Retirement 
Thrift Investment Board shall promulgate regulations to carry out the 
amendments made by this section.
    (d) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect one year after the date of the enactment of this 
section, or upon such earlier date as may be established by the 
Executive Director of the Federal Retirement Thrift Investment Board 
under the regulations promulgated pursuant to subsection (c).

SEC. 6. COORDINATION WITH OTHER RETIREMENT SYSTEMS.

    (a) Foreign Service.--For provisions of law requiring maintenance 
of existing conformity--
            (1) between the Civil Service Retirement System and the 
        Foreign Service Retirement System, and
            (2) between the Federal Employees' Retirement System and 
        the Foreign Service Pension System,
see section 827 of the Foreign Service Act of 1980 (22 U.S.C. 4067).
    (b) CIARDS.--
            (1) Compatibility with csrs.--For provisions of law 
        relating to maintenance of existing conformity between the 
        Civil Service Retirement System and the Central Intelligence 
        Agency Retirement and Disability System, see section 292 of the 
        Central Intelligence Agency Retirement Act (50 U.S.C. 2141).
            (2) Applicability of fers.--For provisions of law providing 
        for the application of the Federal Employees' Retirement System 
        with respect to employees of the Central Intelligence Agency, 
        see title III of the Central Intelligence Agency Retirement Act 
        (50 U.S.C. 2151 and following).
    (c) TVA.--Section 3 of the Tennessee Valley Authority Act of 1933 
(16 U.S.C. 831b) is amended by adding at the end the following:
    ``(c) The chief executive officer shall prescribe any regulations 
which may be necessary in order to carry out the purposes of the 
Securing Annuities for Federal Employees Act of 2012 with respect to 
any defined benefit plan covering employees of the Tennessee Valley 
Authority.''.