Proposed Rule2022-24875
Retirement: Members of Congress and Congressional Employees
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 16, 2022
Issuing agencies
Personnel Management Office
Abstract
The U.S. Office of Personnel Management (OPM) is proposing this rule to amend the CFR for purposes of ensuring these regulations reflect the provisions enacted under the Middle Class Tax Relief and Job Creation Act of 2012 ("2012 Act") and the Bipartisan Budget Act of 2013 ("2013 Act"). The 2012 Act made significant changes to the retirement benefits of Members of Congress (Members) or congressional employees who are first covered by the Federal Employees' Retirement System (FERS) after December 31, 2012. The 2012 Act decreased the FERS benefit accrual rate used in the FERS annuity calculation for congressional employees or Members first covered by FERS (or reelected with less than five years of FERS service) after December 31, 2012. The 2012 Act also increased the FERS employee contributions by 1.8 percentage points for Members first covered by FERS (or reelected with less than five years of FERS-covered service) after December 31, 2012. Enactment of the 2013 Act, further increased the FERS employee deductions by an additional 1.3 percentage points for all FERS-covered employees first covered by FERS after December 31, 2013 (or rehired/ reelected with less than five years of FERS-covered service), including Members and congressional employees. OPM's proposed rule amends the CFR to reflect these changes.
Full Text
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<title>Federal Register, Volume 87 Issue 220 (Wednesday, November 16, 2022)</title>
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[Federal Register Volume 87, Number 220 (Wednesday, November 16, 2022)]
[Proposed Rules]
[Pages 68642-68644]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-24875]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 87, No. 220 / Wednesday, November 16, 2022 /
Proposed Rules
[[Page 68642]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Parts 841 and 842
RIN 3206-AO42
Retirement: Members of Congress and Congressional Employees
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
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SUMMARY: The U.S. Office of Personnel Management (OPM) is proposing
this rule to amend the CFR for purposes of ensuring these regulations
reflect the provisions enacted under the Middle Class Tax Relief and
Job Creation Act of 2012 (``2012 Act'') and the Bipartisan Budget Act
of 2013 (``2013 Act''). The 2012 Act made significant changes to the
retirement benefits of Members of Congress (Members) or congressional
employees who are first covered by the Federal Employees' Retirement
System (FERS) after December 31, 2012. The 2012 Act decreased the FERS
benefit accrual rate used in the FERS annuity calculation for
congressional employees or Members first covered by FERS (or reelected
with less than five years of FERS service) after December 31, 2012. The
2012 Act also increased the FERS employee contributions by 1.8
percentage points for Members first covered by FERS (or reelected with
less than five years of FERS-covered service) after December 31, 2012.
Enactment of the 2013 Act, further increased the FERS employee
deductions by an additional 1.3 percentage points for all FERS-covered
employees first covered by FERS after December 31, 2013 (or rehired/
reelected with less than five years of FERS-covered service), including
Members and congressional employees. OPM's proposed rule amends the CFR
to reflect these changes.
DATES: We must receive your comments by January 17, 2023.
ADDRESSES: You may submit comments identified by docket number and/or
Regulatory Information Number (RIN) and title, by the following method:
<bullet> Electronic: Federal eRulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Follow the instructions for submitting comments.
All submissions received must include the agency name and docket
number or RIN for this document. The general policy for comments and
other submissions from members of the public is to make these
submissions available for public viewing at <a href="http://www.regulations.gov">http://www.regulations.gov</a>
as they are received without change, including any personal identifiers
or contact information.
FOR FURTHER INFORMATION CONTACT: Jane Bancroft, (202) 606-0299. Email:
<a href="/cdn-cgi/l/email-protection#401225342932252d252e346e102f2c292339002f302d6e272f36"><span class="__cf_email__" data-cfemail="154770617c677078707b613b457a797c766c557a65783b727a63">[email protected]</span></a>, with Public Law 112-96 and Attn: Jane
Bancroft in the subject line.
SUPPLEMENTARY INFORMATION:
Background
Because of the uncertain tenure of congressional service, the
Federal Employees Retirement System (FERS) was originally designed, as
CSRS had been, to provide a larger benefit for each year of service to
Members of Congress or congressional employees than to most other
federal employees. Prior to the enactment of the 2012 Act, all Members
of Congress (Members) or congressional employees became eligible for
retirement annuities at an earlier age and with fewer years of service
than most other federal employees. However, all Members or
congressional employees paid a higher percentage of employee deductions
for their retirement benefits than most other federal employees.
The 2012 Act made two significant changes to the retirement
benefits of congressional employees and Members who are first covered
by FERS after December 31, 2012. First, the 2012 Act decreased the FERS
benefit accrual rates used in the FERS annuity calculation for
congressional employees or Members first covered by FERS (or reelected
with less than five years of FERS service) after December 31, 2012, to
be the same as regular FERS employees. Therefore, the higher accrual
rate applicable to Members or congressional employees is no longer
available to those first covered by FERS after December 31, 2012.
Second, the 2012 Act increased the FERS employee contributions by
1.8 percentage points for Members first covered by FERS (or reelected
with less than five years of FERS-covered service) after December 31,
2012. Therefore, Members newly covered by FERS beginning January 1,
2013, are required to contribute 3.1% of their basic pay to the Civil
Service Retirement and Disability Fund. Enactment of the 2013 Act,
further increased the FERS employee deductions by an additional 1.3
percentage points for all FERS-covered employees, including Members and
congressional employees, first covered by FERS after December 31, 2013
(or rehired/reelected with less than five years of FERS-covered
service). Subsequently, under the 2013 Act, Members and other federal
employees first covered by FERS beginning in 2014 are required to
contribute 4.4% of basic pay to FERS.
Beginning January 1, 2013, there is no longer a larger employee
contribution under FERS required for Members and congressional
employees in comparison with regular FERS employees; all of these
groups contribute 3.1% of basic pay toward their FERS annuity if first
covered after December 31, 2012, or 4.4% of basic pay if first covered
by FERS after December 31, 2013. Members first elected after December
31, 2012, however, remain eligible for retirement annuities under FERS
at earlier ages and with fewer years of service than regular federal
employees.
Executive Order 12866
Executive Order 12866 Executive Order 12866 directs agencies to
assess all costs and benefits of available regulatory alternatives and,
if regulation is necessary, to select regulatory approaches that
maximize net benefits (including potential economic, environmental,
public health and safety effects, distributive impacts, and equity).
This proposed rule is not a significant regulatory action and was not
reviewed by OMB under E.O. 12866.
Regulatory Flexibility Act
The Office of Personnel Management certifies that this rule will
not have a significant economic impact on a substantial number of small
entities.
Federalism
We have examined this rule in accordance with Executive Order
13132, Federalism, and have determined that this rule will not have any
negative impact on the rights, roles and
[[Page 68643]]
responsibilities of State, local, or tribal governments.
Civil Justice Reform
This regulation meets the applicable standard set forth in
Executive Order 12988.
Unfunded Mandates Reform Act of 1995
This rule will not result in the expenditure by state, local, and
tribal governments, in the aggregate, or by the private sector, of $100
million or more in any year and it will not significantly or uniquely
affect small governments. Therefore, no actions were deemed necessary
under the provisions of the Unfunded Mandates Reform Act of 1995.
Congressional Review Act
The Congressional Review Act (5 U.S.C. 801 et seq.) requires rules
(as defined in 5 U.S.C. 804) to be submitted to Congress before taking
effect. OPM will submit to Congress and the Comptroller General of the
United States a report regarding the issuance of this action before its
effective date, as required by 5 U.S.C. 801. This is not a ``major
rule'' as defined by the Congressional Review Act (5 U.S.C. 804(2)).
Paperwork Reduction Act
This rule does not impose any new reporting or record-keeping
requirements subject to the Paperwork Reduction Act.
List of Subjects
5 CFR Part 841
Administrative practice and procedure, Air traffic controllers,
Claims Disability benefits, Firefighters, Government employees, Income
taxes, Intergovernmental relations, Law enforcement officers, Pensions,
Retirement.
5 CFR Part 842
Air traffic controllers, Alimony, Firefighters, Law enforcement
officers, Pensions, Retirement.
Office of Personnel Management.
Stephen Hickman,
Federal Register Liaison.
For the reasons stated in the preamble, the Office of Personnel
Management proposes to amend 5 CFR parts 841 and 842 to read as
follows:
PART 841--FEDERAL EMPLOYEES RETIREMENT SYSTEM--GENERAL
ADMINISTRATION
0
1. Revise the authority citation for part 841 to read as follows:
Authority: 5 U.S.C. 8461; Sec. 841.108 also issued under 5
U.S.C. 552a; Secs. 841.110 and 841.111 also issued under 5 U.S.C.
8470(a); subpart D also issued under 5 U.S.C. 8423; Sec. 841.504
also issued under 5 U.S.C. 8422; Sec. 841.507 also issued under
section 505 of Pub. L. 99-335; subpart J also issued under 5 U.S.C.
8469; Sec. 841.506 also issued under 5 U.S.C. 7701(b)(2); Sec.
841.508 also issued under section 505 of Pub. L. 99-335; Sec.
841.604 also issued under Title II, Pub. L. 106-265, 114 Stat. 780;
Sec. 5001 of Pub. L. 112-96 at 126 Stat. 199.
0
2. Amend Sec. 841.103 by adding, in alphabetical order, the definition
of ``FERS FRAE'' to read as follows:
Sec. 841.103 Definitions.
* * * * *
FERS FRAE, or a Further Revised Annuity Employee as identified
under 5 U.S.C. 8422, is an employee or Member covered under FERS hired
on or after January 1, 2014, unless the employee or Member--
(1) was covered under FERS on December 31, 2012; or
(2) performed civilian service creditable or potentially creditable
under FERS on December 31, 2012;
(3) or, if not covered under FERS on December 31, 2012, performed
at least 5 years of civilian service creditable or potentially
creditable under FERS prior to December 31, 2012; or
(4) was covered under FERS RAE on December 31, 2013; or
(5) was performing civilian service creditable or potentially
creditable under FERS RAE on December 31, 2013; or
(6) if not covered under FERS RAE on December 31, 2013, performed
at least 5 years of civilian service creditable or potentially
creditable under FERS prior to December 31, 2013.
FERS RAE, or a Revised Annuity Employee as identified under 5
U.S.C. 8422, is an employee or Member covered under FERS hired on or
after January 1, 2013, and before January 1, 2014, unless the employee
or Member--
(1) was covered under FERS on December 31, 2012; or
(2) performed civilian service creditable or potentially creditable
under FERS on December 31, 2012; or
(3) if not covered under FERS on December 31, 2012, performed at
least 5 years of civilian service creditable or potentially creditable
under FERS prior to December 31, 2012.
0
3. Amend Sec. 841.503 by revising paragraphs (b) and (c), and adding
paragraphs (d) and (e) to read as follows:
Sec. 841.503 Amounts of employee deductions.
* * * * *
(b) The rate of employee deductions from basic pay for FERS
coverage for a Member, law enforcement officer, firefighter, nuclear
materials courier, customs and border protection officer, air traffic
controller, member of the Supreme Court Police, Congressional employee,
or employee under section 302 of the Central Intelligence Agency Act of
1964 for Certain Employees (who are not FERS RAE or FERS FRAE employees
or Members, as defined under Sec. 841.103 of this part), is seven and
one-half percent of basic pay, minus the percent of tax which is (or
would be) in effect for the payment, for the employee cost of social
security.
(c) After December 31, 2012, the rate of employee deductions from
basic pay for--
(i) a FERS RAE employee, Member, or Congressional employee is nine
and three-tenths percent of basic pay, minus the percent of tax which
is (or would be) in effect for the payment, for the employee cost of
social security.
(ii) a FERS RAE law enforcement officer, firefighter, nuclear
materials courier, customs and border protection officer, air traffic
controller, member of the Supreme Court Police, or employee under
section 302 of the Central Intelligence Agency Act of 1964 for Certain
Employees is nine and eight-tenths percent of basic pay, minus the
percent of tax which is (or would be) in effect for the payment, for
the employee cost of social security.
(d) After December 31, 2013, the rate of employee deductions from
basic pay for--
(i) FERS FRAE employee, Member, or Congressional employee is ten
and six-tenths percent basic pay, minus the percent of tax which is (or
would be) in effect for the payment, for the employee cost of social
security.
(ii) a FERS FRAE law enforcement officer, firefighter, nuclear
materials courier, customs and border protection officer, air traffic
controller, member of the Supreme Court Police, or employee under
section 302 of the Central Intelligence Agency Act of 1964 for Certain
Employees is eleven and one-tenth percent of basic pay, minus the
percent of tax which is (or would be) in effect for the payment, for
the employee cost of social security.
(e) Employee deductions will be at the rate in paragraph (a)
through (d) of this section as if social security deductions were being
made even if social security deductions have ceased because of the
amount of earnings during the year, or are not made for any other
reason.
[[Page 68644]]
PART 842--FEDERAL EMPLOYEES RETIREMENT SYSTEM--BASIC ANNUITY
0
4. Revise the authority citation for part 842 to read as follows:
Authority: 5 U.S.C. 8461(g); Secs. 842.104 and 842.106 also
issued under 5 U.S.C. 8461(n); Sec. 842.104 also issued under Secs.
3 and 7(c) of Pub. L. 105-274, 112 Stat. 2419; Sec. 842.105 also
issued under 5 U.S.C. 8402(c)(1) and 7701(b)(2); Sec. 842.106 also
issued under Sec. 102(e) of Pub. L. 104-8, 109 Stat. 102, as amended
by Sec. 153 of Pub. L. 104-134, 110 Stat. 1321-102; Sec. 842.107
also issued under Secs. 11202(f), 11232(e), and 11246(b) of Pub. L.
105-33, 111 Stat. 251, and Sec. 7(b) of Pub. L. 105-274, 112 Stat.
2419; Sec. 842.108 also issued under Sec. 7(e) of Pub. L. 105-274,
112 Stat. 2419; Sec. 842.109 also issued under Sec. 1622(b) of Pub.
L. 104-106, 110 Stat. 515; Sec. 842.110 also issued under Sec. 111
of Pub. L. 99-500, 100 Stat. 1783, and Sec. 111 of Pub. L. 99-591,
100 Stat. 3341-348, and also Sec. 1 of Pub. L. 110-279, 122 Stat.
2602, as amended by Sec. 1(a) of Pub. L. 116-21, 133 Stat. 903; Sec.
842.208 also issued under Sec. 535(d) of Title V of Division E of
Pub. L. 110-161, 121 Stat. 2042; Sec. 842.213 also issued under 5
U.S.C. 8414(b)(1)(B) and Sec. 1313(b)(5) of Pub. L. 107-296, 116
Stat. 2135; Secs. 842.304 and 842.305 also issued under Sec. 321(f)
of Pub. L. 107-228, 116 Stat. 1383; Secs. 842.604 and 842.611 also
issued under 5 U.S.C. 8417; Sec. 842.607 also issued under 5 U.S.C.
8416 and 8417; Sec. 842.614 also issued under 5 U.S.C. 8419; Sec.
842.615 also issued under 5 U.S.C. 8418; Sec. 842.703 also issued
under Sec. 7001(a)(4) of Pub. L. 101-508, 104 Stat. 1388; Sec.
842.707 also issued under Sec. 6001 of Pub. L. 100-203, 101 Stat.
1300; Sec. 842.708 also issued under Sec. 4005 of Pub. L. 101-239,
103 Stat. 2106, and Sec. 7001 of Pub. L. 101-508, 104 Stat. 1388;
Subpart H also issued under 5 U.S.C. 1104; Sec. 842.810 also issued
under Sec. 636 of Appendix C to Pub. L. 106-554 at 114 Stat. 2763A-
164; Sec. 842.811 also issued under Sec. 226(c)(2) of Pub. Law 108-
176, 117 Stat. 2529; Subpart J also issued under Sec. 535(d) of
Title V of Division E of Pub. L. 110-161, 121 Stat. 2042; Pub. L.
115-352, 132 Stat. 5067 (5 U.S.C. 101); Sec. 5001 of Pub. L. 112-96
at 126 Stat. 199; 5 U.S.C. 8401; 5 U.S.C. 8415.
Subpart D--Computations
0
5. Revise Sec. 842.406 to read as follows:
Sec. 842.406 Members of Congress and Congressional Employees.
(a) The annuity of a congressional employee or Member who is first
covered by FERS on or before December 31, 2012, and who has had at
least 5 years of service as a congressional employee, Member, or any
combination thereof totaling 5 years is --
(1) One and seven-tenths percent of average pay multiplied by the
total number of years of service as a Member and/or congressional
employee not exceeding 20 years; plus
(2) One percent of average pay multiplied by the years of service
other than that of a Member and/or congressional employee.
(b) Except as provided in paragraph (c) of this section, the
annuity of a congressional employee or Member who is first covered by
FERS after December 31, 2012, or Member re-elected with less than 5
years of FERS service after December 31, 2012, and who has had at least
5 years of service as a congressional employee, Member, or any
combination thereof totaling 5 years is 1 percent of average pay
multiplied by total service.
(c) The annuity of a congressional employee or Member is 1.1
percent of average pay multiplied by total service, provided the
congressional employee or Member-
(i) Has completed 20 years of service; and
(ii) Is at least age 62 at the time of separation on which
entitlement to an annuity is based.
[FR Doc. 2022-24875 Filed 11-15-22; 8:45 am]
BILLING CODE P
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