Congressional Annuity Reform Act of 1997

Summary: Congressional Annuity Reform Act of 1997 - Amends provisions concerning the Civil Service Retirement System (CSRS) to:  (1) limit the maximum CSRS annuity payable to Members of Congress with respect to cost of living adjustments (COLAs) to the final pay (or average pay, if higher) of the Member with respect to whom the annuity is paid; and (2) make other changes in the formula for computation of CSRS and Federal Employees' Retirement System (FERS) annuities payable to Members and congressional employees. 
Provides for the deduction and withholding of seven percent (currently, eight and seven and a half percent, respectively) of the basic pay of a member or congressional employee under CSRS (thus making such deduction and withholding equivalent to that of a Federal employee).

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Congressional Annuity Reform Act of 
1997''.

SEC. 2. AMENDMENT OF TITLE 5, UNITED STATES CODE.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of title 5, United States Code.

SEC. 3. CIVIL SERVICE RETIREMENT SYSTEM.

    (a) Provisions Relating to Maximum Annuity Allowable Pursuant to 
Cost-of-Living Adjustments.--Section 8340(g)(1) is amended--
            (1) in subparagraph (A) by striking ``or'' after the 
        semicolon;
            (2) in subparagraph (B)--
                    (A) by striking ``employee or Member'' and 
                inserting ``employee'';
                    (B) by striking ``employee or Member,'' and 
                inserting ``employee,'';
                    (C) by striking ``employee's or Member's'' and 
                inserting ``employee's''; and
                    (D) by striking the period at the end of 
                subparagraph (B)(ii) and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(C) the final pay (or average pay, if higher) of the 
        Member with respect to whom the annuity is paid.''.
    (b) Provisions Relating to Years of Service as a Member of Congress 
and Congressional Employee for Purposes of Computing an Annuity.--
            (1) Members.--
                    (A) In general.--Section 8339(c) is amended by 
                striking all that follows ``with respect to--'' and 
                inserting the following:
            ``(1) so much of his service as a Member as is or was 
        performed before the effective date of the Congressional 
        Annuity Reform Act of 1997;
            ``(2) so much of his military service as--
                    ``(A) is creditable for the purpose of this 
                paragraph; and
                    ``(B) is or was performed before the date referred 
                to in paragraph (1); and
            ``(3) so much of his Congressional employee service as is 
        or was performed before the date referred to in paragraph (1);
by multiplying 2\1/2\ percent of his average pay by the years of that 
service.''.
                    (B) Technical amendment.--Section 8332(d) is 
                amended by striking ``section 8339(c)(1)'' and 
                inserting ``section 8339(c)''.
            (2) Congressional employees.--Section 8339(b) is amended--
                    (A) by inserting ``so much of'' after ``is computed 
                with respect to''; and
                    (B) by inserting ``as is or was performed before 
                the effective date of the Congressional Annuity Reform 
                Act of 1997,'' before ``by multiplying''.
    (c) Contribution Rates.--
            (1) Deductions.--The first sentence of section 8334(a)(1) 
        is amended to read as follows: ``The employing agency shall 
        deduct and withhold 7 percent of the basic pay of an employee 
        and a Member, 7\1/2\ percent of the basic pay of a law 
        enforcement officer and a firefighter, and 8 percent of the 
        basic pay of a Claims Court judge, a United States magistrate, 
        a judge of the United States Court of Appeals for the Armed 
        Forces, and a bankruptcy judge.''.
            (2) Deposits.--
                    (A) For member service.--Section 8334(c) is amended 
                in the matter relating to a Member for Member service 
                by striking

                                                                                                                
                                                                                                                
                                                                                                                
                                          ``8....................  After December 31, 1969.''                   
                                                                                                                

                and inserting the following:

                                                                                                                
                                                                                                                
                                                                                                                
                                          ``8....................  January 1, 1970, to (but not including) the  
                                                                    effective date of the Congressional Annuity 
                                                                    Reform Act of 1997.                         
                                          ``7....................  On and after the effective date of the       
                                                                    Congressional Annuity Reform Act of 1997.''.
                                                                                                                

                    (B) For congressional employee service.--Section 
                8334(c) is amended in the matter relating to a Member 
                or employee for Congressional employee service by 
                striking

                                                                                                                
                                                                                                                
                                                                                                                
                                          ``7\1/2\...............  After December 31, 1969.''                   
                                                                                                                

                and inserting the following:

                                                                                                                
                                                                                                                
                                                                                                                
                                          ``7\1/2\...............  January 1, 1970, to (but not including) the  
                                                                    effective date of the Congressional Annuity 
                                                                    Reform Act of 1997.                         
                                          ``7....................  On and after the effective date of the       
                                                                    Congressional Annuity Reform Act of 1997.''.
                                                                                                                

SEC. 4. FEDERAL EMPLOYEES' RETIREMENT SYSTEM.

    (a) Provisions Relating to Years of Service as a Member of Congress 
and Congressional Employee for Purposes of Computing an Annuity.--
            (1) Members.--Section 8415(b) is amended by striking 
        ``shall'' and inserting ``shall, to the extent that such 
        service is or was performed before the effective date of the 
        Congressional Annuity Reform Act of 1997,''.
            (2) Congressional employees.--Section 8415(c) is amended by 
        striking ``shall'' and inserting ``shall, to the extent that 
        such service is or was performed before the effective date of 
        the Congressional Annuity Reform Act of 1997,''.
            (3) Provisions relating to the 1.1 percent accrual rate.--
        Section 8339(g) is amended--
                    (A) in paragraph (1) by striking ``an employee 
                under paragraph (2),'' and inserting ``an employee or 
                Member under paragraph (2),'';
                    (B) in paragraph (2) by inserting ``or Member'' 
                after ``in the case of an employee'' and by striking 
                ``Congressional employee,''; and
                    (C) by adding at the end the following:
    ``(3) Notwithstanding any other provision of this subsection--
            ``(A) this subsection shall not apply in the case of a 
        Member or Congressional employee whose separation (on which 
        entitlement to annuity is based) occurs before the effective 
        date of the Congressional Annuity Reform Act of 1997; and
            ``(B) in the case of a Member or Congressional employee to 
        whom this subsection applies, the 1.1 percent accrual rate 
        shall apply only with respect to any period of service other 
        than a period with respect to which the 1.7 percent accrual 
        rate applies under subsection (b) or (c).''.
    (b) Contribution Rates.--
            (1) Deductions From Pay.--Section 8422(a)(2) is amended--
                    (A) in subparagraph (A) by striking ``air traffic 
                controller, or Congressional employee)'' and inserting 
                ``or air traffic controller) or Member,''; and
                    (B) in subparagraph (B) by striking ``a Member, law 
                enforcement officer, firefighter, air traffic 
                controller, or Congressional employee,'' and inserting 
                ``a law enforcement officer, firefighter, or air 
                traffic controller,''.
            (2) Government Contributions.--Section 8423(a)(1) is 
        amended--
                    (A) in subparagraph (A)(i) by striking 
                ``subparagraph (B)),'' and inserting ``subparagraph 
                (B)) and Members,'';
                    (B) in subparagraph (B)(i) by striking ``Members, 
                Congressional employees,''; and
                    (C) in subparagraph (B)(ii) by striking ``and 
                Members''.

SEC. 5. EFFECTIVE DATE.

    (a) In General.--This Act shall take effect on the day after the 
next election of Representatives (within the meaning of the 27th 
article of amendment to the Constitution of the United States) 
occurring after the date of the enactment of this Act.
    (b) Annuity Maximum.--The amendments made by section 3(a) shall 
apply with respect to annuities commencing on or after the date on 
which this Act takes effect.