SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Congressional Member's Pension 
Limitation Act of 1994''.

SEC. 2. REFERENCE.

    Whenever in this Act a section or other provision is amended or 
repealed, such amendment or repeal shall be considered to be made to 
that section or other provision of title 5, United States Code.

SEC. 3. MAXIMUM ALLOWABLE MEMBER SERVICE FOR PURPOSES OF RETIREMENT 
              BENEFITS.

    (a) Definitions.--
            (1) FERS.--
                    (A) Maximum allowable member service.--Section 8401 
                is amended--
                            (i) by striking out ``and'' at the end of 
                        paragraph (31);
                            (ii) by striking out the period at the end 
                        of paragraph (32) and inserting in lieu thereof 
                        ``; and''; and
                            (iii) by adding at the end the following:
            ``(33) the term `maximum allowable Member service' means 
        service as a Member of 12 years.''.
                    (B) Average pay.--Section 8401(3) is amended to 
                read as follows:
            ``(3) the term `average pay' means--
                    ``(A) the largest annual rate resulting from 
                averaging--
                            ``(i) in the case of an employee, an 
                        employee's rates of basic pay in effect over 
                        any 3 consecutive years of service; or
                            ``(ii) in the case of a Member, the 
                        Member's rates of basic pay in effect for the 3 
                        years of Member service immediately preceding 
                        retirement; or
                    ``(B) in the case of an annuity under this chapter 
                based on service of less than 3 years, over the total 
                service;
        with each rate weighted by the period it was in effect;''.
            (2) CSRS.--
                    (A) Maximum allowable member service.--Section 8331 
                is amended--
                            (i) by striking out ``and'' at the end of 
                        paragraph (25);
                            (ii) by striking out the period at the end 
                        of paragraph (26) and inserting in lieu thereof 
                        ``; and''; and
                            (iii) by adding at the end the following:
            ``(27) the term `maximum allowable Member service' means 
        service as a Member of 12 years.''.
                    (B) Average pay.--Section 8331(4) is amended to 
                read as follows:
            ``(3) `average pay' means--
                    ``(A) the largest annual rate resulting from 
                averaging--
                            ``(i) in the case of an employee, an 
                        employee's rates of basic pay in effect over 
                        any 3 consecutive years of creditable service; 
                        or
                            ``(ii) in the case of a Member, the 
                        Member's rates of basic pay in effect for the 3 
                        years of Member service immediately preceding 
                        retirement; or
                    ``(B) in the case of an annuity under subsection 
                (d) or (e)(1) of section 8341 of this title based on 
                service of less than 3 years, over the total service;
        with each rate weighted by the time it was in effect;''.
    (b) Creditable Service.--
            (1) FERS.--
                    (A) In general.--Section 8411(a) is amended by 
                adding at the end the following:
    ``(3) A Member may not be allowed credit for Member service under 
this chapter that is greater than the maximum allowable Member 
service.''.
                    (B) Conforming amendment.--Section 8411(b)(1) is 
                amended by inserting before the semicolon at the end 
                thereof the following ``, but not in excess of the 
                maximum allowable Member service''.
            (2) CSRS.--Section 8332(b) is amended in the matter 
        preceding paragraph (1) by inserting ``Credit may not be 
        allowed for Member service under this chapter that is the 
        greater of the maximum allowable Member service or the Member 
        service of the Member determined as of the beginning of the 
        104th Congress.'' before ``The service includes''.

SEC. 4. IMMEDIATE RETIREMENT.

    Section 8412 is amended as follows:
            (1) Subsection (a) of such section is amended by striking 
        out ``or Member''.
            (2) Subsection (b) of such section is amended by striking 
        out ``or Member''.
            (3) Subsection (c) of such section is amended by striking 
        out ``or Member''.
            (4) Subsection (f) of such section is amended to read as 
        follows:
    ``(f) A Member who is separated from the service after becoming 62 
years of age and completing 4 years of service is entitled to an 
annuity.''.
            (5) Subsection (g) of such section is amended by striking 
        out ``or Member'' each place it occurs.

SEC. 5. COMPUTATION OF ANNUITIES.

    (a) FERS.--Section 8415 is amended as follows:
            (1) By amending subsection (b) to read as follows:
    ``(b) The annuity of a Member, or former Member with title to a 
Member annuity, retiring under this subchapter is computed under 
subsection (a), except that if the individual has had at least 4 years 
of service as a Member, so much of the annuity as is computed with 
respect to such service, not exceeding a total of the maximum allowable 
Member service, shall be computed by multiplying 1\7/10\ percent of the 
individual's average pay by the years of service as a Member.''.
            (2) In subsection (c), by striking ``or Member, or 
        combination thereof, so much of the annuity as is computed with 
        respect to either such type of service (or combination 
        thereof),'' and inserting ``, so much of the annuity as is 
        computed with respect to such service,''.
            (3) In subsection (f), by striking out ``or Member'' each 
        place it appears.
    (b) CSRS.--
            (1) Age.--The second sentence of section 8339(h) is amended 
        by striking out ``60 years'' and inserting in lieu thereof ``62 
        years''.
            (2) Maximum.--Section 8339(c)(1) is amended by inserting 
        ``, not to exceed the total service of such Member or former 
        Member as of the effective date of the Member's Pension 
        Limitation Act of 1994 or 12 years (whichever is greater),'' 
        after ``service as a Member''.

SEC. 6. DEDUCTIONS FROM PAY.

    (a) FERS.--
            (1) In general.--Section 8422(a) is amended--
                    (A) in paragraph (1), by striking out ``The'' and 
                inserting in lieu thereof ``Except as provided in 
                paragraph (3), the''; and
                    (B) adding at the end thereof the following:
    ``(3) Paragraphs (1) and (2) shall cease to apply with respect to a 
Member when the service of the Member attains the maximum allowable 
Member service.''.
            (2) Government contributions.--Section 8423(a)(1) is 
        amended in the matter preceding subparagraph (A) by inserting 
        ``paragraphs (1) and (2) of'' before ``section 8422(a)''.
    (b) CSRS.--
            (1) In general.--Section 8334(a) is amended--
                    (A) in paragraph (1), by striking out ``The 
                employing agency'' and inserting in lieu thereof 
                ``Except as provided in paragraph (3), the employing 
                agency''; and
                    (B) adding at the end thereof the following:
    ``(3) Paragraphs (1) and (2) shall cease to apply with respect to a 
Member when the service of the Member attains the maximum allowable 
Member service.''.
            (2) Deposits.--Section 8334(c) is amended by adding at the 
        end the following: ``This subsection does not apply with 
        respect to a Member for Member service performed after January 
        1, 1995, in excess of the maximum allowable Member service of 
        that Member.''.

SEC. 7. THRIFT SAVINGS PLAN.

    (a) FERS.--
            (1) Limitation on government contributions.--Section 
        8432(c) is amended--
                    (A) by striking out ``At the time'' in paragraph 
                (1)(A) and inserting in lieu thereof ``Except as 
                provided in paragraph (4), at the time'';
                    (B) by striking out ``In addition to'' in paragraph 
                (2)(A) and inserting in lieu thereof ``Except as 
                provided in paragraph (4), in addition to''; and
                    (C) by adding at the end the following:
    ``(4) Paragraphs (1) and (2) shall cease to apply with respect to a 
Member when the Member attains the maximum allowable Member service.''.
            (2) Forfeiture.--Section 8432(g)(3) is amended--
                    (A) by inserting ``(A)'' after ``(3)'';
                    (B) by striking out ``Member or'' each place it 
                appears; and
                    (C) by adding at the end the following:
    ``(B) Contributions made for the benefit of a Member under 
subsection (c)(1) and all earnings attributable to such contributions 
shall be forfeited if the Member separates from Government employment 
before completing 4 years of civilian service.''.

SEC. 8. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to Members 
of Congress who are Members of Congress beginning with the 104th 
Congress.
Congressional Member's Pension Limitation Act of 1994 - Amends provisions governing the Federal Employee Retirement System (FERS) and the Civil Service Retirement System (CSRS) to redefine the "average pay" of a Member of Congress as the largest annual rate resulting from averaging the Member's rates of basic pay in effect for the three years of his or her service immediately preceding retirement. 
Prohibits a Member from being allowed creditable service for:  (l) more than 12 years of Member service for purposes of FERS; or (2) more than the greater of 12 years of Member service or the Member's period of service as of the beginning of the 104th Congress for purposes of CSRS. 
(Sec. 4)  Revises provisions governing FERS annuity eligibility to entitle a Member to an annuity upon being separated from service after reaching age 62 and completing four years of service. 
(Sec. 5)  Makes changes in the computation of FERS annuities payable to Members to:  (1) eliminate adjustments for service as a congressional employee; (2) apply the 1.7 multiplier to not more than 12 years of service of Members who had at least four years of service; and (3) apply annuity reductions to Members who retire before age 62 (currently, before age 60).  Prohibits the service of a Member for purposes of computing his or her CSRS annuity from exceeding the total service of such Member or former Member as of the effective date of this Act or 12 years (whichever is greater). 
(Sec. 6)  Ends an employing agency's FERS or CSRS deductions from a Member's basic pay and ends Government and Member contributions after the Member has performed 12 years of service.  Prohibits a Member credited with civilian service after July 31, 1920, for which CSRS retirement deductions or deposits have not been made from making such deposits for the service if it exceeds 12 years and was performed after January 1, 1995. 
(Sec. 7)  Requires a Member's employing agency to cease making contributions to the Thrift Savings Fund on the Member's behalf after the Member performs 12 years of service.  Forfeits contributions and attributable earnings if a Member separates from Government employment before completing four years of service.
Congressional Member's Pension Limitation Act of 1994