I
104TH CONGRESS
1ST SESSION
H. R. 1185
To amend chapters 83 and 84 of title 5, United States Code, to increase
the percentage of basic pay required to be contributed by individuals;
to change the method for computing ‘‘average pay’’; and for other pur-
poses.
IN THE HOUSE OF REPRESENTATIVES
MARCH 9, 1995
Mr. MICA introduced the following bill; which was referred to the Committee
on Government Reform and Oversight
A BILL
To amend chapters 83 and 84 of title 5, United States
Code, to increase the percentage of basic pay required
to be contributed by individuals; to change the method
for computing ‘‘average pay’’; and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Federal Retirement Reform Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Amendment of title 5, United States Code.
Sec. 3. Individual contributions.
Sec. 4. Average pay.
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 provi-
sion, the reference shall be considered to be made to a
section or other provision of title 5, United States Code.
SEC. 3. INDIVIDUAL CONTRIBUTIONS.
(a) CSRS.—
(1) IN
GENERAL.—The table under section
8334(c) is amended—
(A) in the matter relating to an employee
by striking
‘‘7 ........
After December 31,
1969.’’
and inserting the following:
‘‘7 ........
January 1, 1970, to De-
cember 31, 1995.
‘‘8 ........
January 1, 1996, to De-
cember 31, 1996.
‘‘81⁄2 .....
January 1, 1997, to De-
cember 31, 1997.
‘‘91⁄2 .....
After December 31,
1997.’’;
(B) in the matter relating to a Member or
employee for Congressional employee service by
striking
‘‘71⁄2 .....
After December 31,
1969.’’
and inserting the following:
‘‘71⁄2 .....
January 1, 1970, to De-
cember 31, 1995.
‘‘81⁄2 .....
January 1, 1996, to De-
cember 31, 1996.
‘‘9 ........
January 1, 1997, to De-
cember 31, 1997.
‘‘91⁄2 .....
After December 31,
1997.’’;
(C) 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 De-
cember 31, 1995.
‘‘9 ........
January 1, 1996, to De-
cember 31, 1996.
‘‘91⁄2 .....
After December 31,
1996.’’;
(D) in the matter relating to a law enforce-
ment officer for law enforcement service and
firefighter for firefighter service by striking
‘‘71⁄2 .....
After December 31,
1974.’’
and inserting the following:
‘‘71⁄2 .....
January 1, 1975, to De-
cember 31, 1995.
‘‘81⁄2 .....
January 1, 1996, to De-
cember 31, 1996.
‘‘9 ........
January 1, 1997, to De-
cember 31, 1997.
‘‘91⁄2 .....
After December 31,
1997.’’;
(E) in the matter relating to a bankruptcy
judge by striking
‘‘8 ........
After December 31,
1983.’’
and inserting the following:
‘‘8 ........
January 1, 1984, to De-
cember 31, 1995.
‘‘9 ........
January 1, 1996, to De-
cember 31, 1996.
‘‘91⁄2 .....
After December 31,
1996.’’;
(F) in the matter relating to a judge of the
United States Court of Appeals for the Armed
Forces for service as a judge of that court by
striking
‘‘8 ........
On and after the date of
the enactment of the
Department of De-
fense Authorization
Act, 1984.’’
and inserting the following:
‘‘8 ........
The date of the enact-
ment of the Depart-
ment of Defense Au-
thorization Act, 1984,
to December 31,
1995.
‘‘9 ........
January 1, 1996, to De-
cember 31, 1996.
‘‘91⁄2 .....
After December 31,
1996.’’;
(G) in the matter relating to a United
States magistrate by striking
‘‘8 ........
After September 30,
1987.’’
and inserting the following:
‘‘8 ........
October 1, 1987, to De-
cember 31, 1995.
‘‘9 ........
January 1, 1996, to De-
cember 31, 1996.
‘‘91⁄2 .....
After December 31,
1996.’’; and
(H) in the matter relating to a Claims
Court judge by striking
‘‘8 ........
After September 30,
1988.’’
and inserting the following:
‘‘8 ........
October 1, 1988, to De-
cember 31, 1995.
‘‘9 ........
January 1, 1996, to De-
cember 31, 1996.
‘‘91⁄2 .....
After December 31,
1996.’’.
(2) DEDUCTIONS.—The first sentence of section
8334(a)(1) is amended to read as follows: ‘‘The em-
ploying agency shall deduct and withhold from the
basic pay of an employee, Member, Congressional
employee, law enforcement officer, firefighter, bank-
ruptcy judge, judge of the United States Court of
Appeals for the Armed Forces, United States mag-
istrate, or Claims Court judge, as the case may be,
the percentage of basic pay applicable under sub-
section (c).’’.
(3) GOVERNMENT
CONTRIBUTIONS.—Section
8334(a)(1) is amended by inserting after the second
sentence the following: ‘‘The amount to be contrib-
uted under the preceding sentence with respect to
any service period occurring after December 31,
1995, shall be determined as if the applicable per-
centage under subsection (c) for each such period
were not greater than the applicable percentage
thereunder, for the type of service involved, for cal-
endar year 1995.’’.
(4) OTHER SERVICE.—
(A) MILITARY SERVICE.—Section 8334(j)
is amended—
(i) in paragraph (1)(A) by inserting
‘‘and subject to paragraph (5),’’ after ‘‘Ex-
cept as provided in subparagraph (B),’’;
and
(ii) by adding at the end the follow-
ing:
‘‘(5) Effective with respect to any period of military
service after December 31, 1995, the percentage of basic
pay under section 204 of title 37 payable under paragraph
(1) shall be equal to the same percentage as would be ap-
plicable under section 8334(c) for that same period for
service as an ‘employee’, subject to paragraph (1)(B).’’.
‘‘(3) The applicable percentage under this paragraph,
for civilian service after December 31, 1995, shall be as
follows:
Percent-
age of
basic
pay
Service period
‘‘Employee .................................................
8 ..........
January 1, 1996, to De-
cember 31, 1996.
‘‘81⁄2 .....
January 1, 1997, to De-
cember 31, 1997.
‘‘91⁄2 .....
After December 31,
1997.
‘‘Congressional employee ..........................
81⁄2 .......
January 1, 1996, to De-
cember 31, 1996.
‘‘9 ........
January 1, 1997, to De-
cember 31, 1997.
‘‘91⁄2 .....
After December 31,
1997.
‘‘Member ...................................................
81⁄2 .......
January 1, 1996, to De-
cember 31, 1996.
‘‘9 ........
January 1, 1997, to De-
cember 31, 1997.
‘‘91⁄2 .....
After December 31,
1997.
‘‘Law enforcement officer .........................
81⁄2 .......
January 1, 1996, to De-
cember 31, 1996.
‘‘9 ........
January 1, 1997, to De-
cember 31, 1997.
‘‘91⁄2 .....
After December 31,
1997.
‘‘Firefighter ...............................................
81⁄2 .......
January 1, 1996, to De-
cember 31, 1996.
‘‘9 ........
January 1, 1997, to De-
cember 31, 1997.
‘‘91⁄2 .....
After December 31,
1997.
‘‘Air traffic controller ...............................
81⁄2 .......
January 1, 1996, to De-
cember 31, 1996.
‘‘9 ........
January 1, 1997, to De-
cember 31, 1997.
‘‘91⁄2 .....
After December 31,
1997.’’.
(2) OTHER SERVICE.—
(A) MILITARY SERVICE.—Section 8422(e)
is amended—
(i) in paragraph (1)(A) by inserting
‘‘and subject to paragraph (5),’’ after ‘‘Ex-
cept as provided in subparagraph (B),’’;
and
(ii) by adding at the end the follow-
ing:
‘‘(5) Effective with respect to any period of military
service after December 31, 1995, the percentage of basic
pay under section 204 of title 37 payable under paragraph
(1) shall be equal to the same percentage as would be ap-
plicable under section 8422(a)(3) for that same period for
service as an ‘employee’, subject to paragraph (1)(B).’’.
(B) 
VOLUNTEER
SERVICE.—Section
8422(f) is amended—
(i) in paragraph (1) by striking the
period at the end and inserting ‘‘, subject
to paragraph (4).’’; and
(ii) by adding at the end the follow-
ing:
‘‘(4) Effective with respect to any period of service
after December 31, 1995, the percentage of the readjust-
ment allowance or stipend (as the case may be) payable
under paragraph (1) shall be equal to the same percentage
as would be applicable under section 8422(a)(3) for that
same period for service as an employee.’’.
(c) EXEMPTION.—
(1) IN GENERAL.—Section 1005(d) of title 39,
United States Code, is amended by adding at the
end the following:
‘‘(3) For purposes of applying chapters 83 and 84
of title 5 with respect to any officer or employee of the
Postal Service, section 3 of the Federal Retirement Re-
form Act of 1995 shall be treated as if it had not been
enacted.’’.
(2) TECHNICAL AMENDMENT.—The second sen-
tence of section 1005(d)(1) of title 39, United States
Code, is amended by striking the period and insert-
ing ‘‘, subject to paragraph (3).’’.
(d) EFFECTIVE DATE.—This section shall take effect
on January 1, 1996.
SEC. 4. AVERAGE PAY.
(a) CSRS.—
(1) IN GENERAL.—Subchapter III of chapter
83 is amended by inserting after section 8339 the
following:
‘‘§ 8339a. Special rules relating to average pay
‘‘(a) Notwithstanding section 8331(4), for purposes
of any annuity or survivor annuity eligibility for which is
based on a separation occurring after December 31, 1995,
‘average pay’ shall be determined in accordance with this
section.
‘‘(b) For purposes of any computation under this sub-
chapter which involves the multiplication of ‘average pay’
times a fixed percentage times a period of service (includ-
ing any computation under the second sentence of section
8339(a)), with respect to any annuity or survivor annuity
described in subsection (a), the term ‘average pay’ shall—
‘‘(1) with respect to service performed before
calendar year 1996, have the meaning given such
term by subsection (d)(1);
‘‘(2) with respect to service performed during
calendar year 1996, have the meaning given such
term by subsection (d)(2); and
‘‘(3) with respect to service performed after cal-
endar year 1996, have the meaning given such term
by subsection (d)(3).
‘‘(c)(1) For purposes of any computation described
in paragraph (2), the term ‘average pay’ shall, if the sepa-
ration (on which eligibility for the annuity or survivor an-
nuity involved is based) occurs—
‘‘(A) during calendar year 1996, have the
meaning given such term by subsection (d)(2); or
‘‘(B) after calendar year 1996, have the mean-
ing given such term by subsection (d)(3).
‘‘(2) This subsection shall apply for purposes of any
computation under this subchapter involving the mul-
tiplication of ‘average pay’ times a specified percentage
(where the total percentage to be applied in such computa-
tion is specifically stated, rather than to be determined
as a function of length of service), such as the computa-
tion of any minimum amount under section 8339(e),
8339(g)(1), or 8341(d)(1), any maximum amount allow-
able under section 8339(f) or 8340(g)(1)(B), and any
amount under subparagraph (A) or clause (i) of section
8341(e)(2).
‘‘(d) For purposes of this section—
‘‘(1) the meaning given the term ‘average pay’
by this paragraph shall be the meaning given such
term by section 8331(4);
‘‘(2) the meaning given the term ‘average pay’
by this paragraph shall be the meaning such term
would have under section 8331(4) if ‘4 consecutive
years’ were substituted for ‘3 consecutive years’ and
‘4 years’ were substituted for ‘3 years’; and
‘‘(3) the meaning given the term ‘average pay’
by this paragraph shall be the meaning such term
would have under section 8331(4) if ‘5 consecutive
years’ were substituted for ‘3 consecutive years’ and
‘5 years’ were substituted for ‘3 years’.
‘‘(e) Nothing in this section shall be considered to
apply with respect to any annuity or survivor annuity eligi-
bility for which is based on a separation occurring before
January 1, 1996.
‘‘(f) The Office of Personnel Management shall pre-
scribe such regulations as may be necessary to carry out
this section, including regulations for the application of
section 8339(m) and (p) (and any other provision of this
subchapter not otherwise specifically addressed in this sec-
tion) in a manner consistent with the purposes of this sec-
tion.’’.
(2) TECHNICAL AMENDMENTS.—
(A) Section 8331(4) is amended by strik-
ing ‘‘effect;’’ and inserting ‘‘effect, subject to
section 8339a;’’.
(B) The table of sections for chapter 83 is
amended by inserting after the item relating to
section 8339 the following:
‘‘8339a. Special rules relating to average pay.’’.
(b) FERS.—
(1) IN GENERAL.—Chapter 84 is amended by
inserting after section 8461 the following:
‘‘§ 8461a. Special rules relating to average pay
‘‘(a) Notwithstanding section 8401(3), for purposes
of any annuity or survivor annuity eligibility for which is
based on a separation occurring after December 31, 1995,
‘average pay’ shall be determined in accordance with this
section.
‘‘(b)(1) Except as provided in paragraph (2), for pur-
poses of any computation under this chapter which in-
volves the multiplication of ‘average pay’ times a fixed per-
centage times a period of service, with respect to any an-
nuity or survivor annuity described in subsection (a), the
term ‘average pay’ shall—
‘‘(A) with respect to service performed before
calendar year 1996, have the meaning given such
term by subsection (d)(1);
‘‘(B) with respect to service performed during
calendar year 1996, have the meaning given such
term by subsection (d)(2); and
‘‘(C) with respect to service performed after cal-
endar year 1996, have the meaning given such term
by subsection (d)(3).
‘‘(2) In the case of an annuity or survivor annuity
eligibility for which is based on the service of an employee
or Member who, as of December 31, 1995, has less than
5 years of civilian service creditable under section 8411,
for purposes of any computation described in paragraph
(1), the term ‘average pay’ shall, if the separation (on
which eligibility for such annuity or survivor annuity is
based) occurs—
‘‘(A) during calendar year 1996, have the
meaning given such term by subsection (d)(2); or
‘‘(B) after calendar year 1996, have the mean-
ing given such term by subsection (d)(3).
‘‘(c)(1) For purposes of any computation described
in paragraph (2), the term ‘average pay’ shall, if the sepa-
ration (on which eligibility for the annuity or survivor an-
nuity involved is based) occurs—
‘‘(A) during calendar year 1996, have the
meaning given such term by subsection (d)(2); or
‘‘(B) after calendar year 1996, have the mean-
ing given such term by subsection (d)(3).
‘‘(2) This subsection shall apply for purposes of any
computation under this chapter involving the multiplica-
tion of ‘average pay’ times a specified percentage (where
the total percentage to be applied in such computation is
specifically stated, rather than to be determined as a func-
tion of length of service), such as the computation of an
amount under section 8442(b)(1)(A)(i) or 8452(a)(1)(A).
‘‘(d) For purposes of this section—
‘‘(1) the meaning given the term ‘average pay’
by this paragraph shall be the meaning given such
term by section 8401(3);
‘‘(2) the meaning given the term ‘average pay’
by this paragraph shall be the meaning such term
would have under section 8401(3) if ‘4 consecutive
years’ were substituted for ‘3 consecutive years’ and
‘4 years’ were substituted for ‘3 years’; and
‘‘(3) the meaning given the term ‘average pay’
by this paragraph shall be the meaning such term
would have under section 8401(3) if ‘5 consecutive
years’ were substituted for ‘3 consecutive years’ and
‘5 years’ were substituted for ‘3 years’.
‘‘(e) Nothing in this section shall be considered to
apply with respect to any annuity or survivor annuity eligi-
bility for which is based on a separation occurring before
January 1, 1996.
‘‘(f) The Office of Personnel Management shall pre-
scribe such regulations as may be necessary to carry out
this section, including regulations for the application of
section 8415(e) (and any other provision of this chapter
not otherwise specifically addressed in this section) in a
manner consistent with the purposes of this section.’’.
(2) TECHNICAL AMENDMENTS.—
(A) Section 8401(3) is amended by strik-
ing ‘‘effect;’’ and inserting ‘‘effect, subject to
section 8461a;’’.
(B) The table of sections for chapter 84 is
amended by inserting after the item relating to
section 8461 the following:
‘‘8461a. Special rules relating to average pay.’’.
(c) REGULATIONS.—The Office of Personnel Man-
agement shall prescribe such regulations as may be nec-
essary to carry out the purposes of this section, including
regulations to provide that section 302(a)(6) of the Fed-
eral Employees’ Retirement System Act of 1986 (5 U.S.C.
8331 note) shall be carried out in a manner consistent
with the amendments made by this section.
Æ
HR 1185 IH——2