H.R.3305 - LEO Fair Retirement Act of 2025 (119th Congress)
Summary
H.R.3305, the LEO Fair Retirement Act of 2025, aims to amend Title 5 of the United States Code to adjust the annuity computation for certain law enforcement officers (LEOs). It addresses situations where LEOs work overtime hours that exceed the limitations for premium pay. The bill allows these officers to receive credit for those uncompensated overtime hours in their retirement annuity calculations, provided they make a lump-sum payment to cover the additional contributions or elect an actuarial annuity reduction.
Expected Effects
The bill would change how retirement annuities are calculated for eligible law enforcement officers. It allows for the inclusion of previously uncompensated overtime hours, potentially increasing retirement benefits. This change requires officers to make a lump-sum payment or accept a reduced annuity to offset the increased benefit.
Potential Benefits
- Increased Retirement Income: Law enforcement officers may receive higher retirement annuities by including previously uncompensated overtime hours.
- Fairer Compensation: Acknowledges the demanding schedules and uncompensated overtime often worked by LEOs.
- Improved Recruitment and Retention: Could attract and retain high-caliber personnel in federal law enforcement.
- Tax Credit: Provides a tax credit for lump-sum payments made to cover uncompensated premium pay.
- Eligibility for Availability Pay: Expands eligibility for availability pay to additional categories of law enforcement personnel.
Potential Disadvantages
- Lump-Sum Payment Requirement: Officers must make a potentially significant lump-sum payment to receive the increased annuity, which may be a financial burden.
- Actuarial Annuity Reduction: Choosing an annuity reduction instead of a lump-sum payment will decrease the monthly annuity amount.
- Administrative Complexity: Implementing the new calculation and payment procedures may create administrative challenges for the Office of Personnel Management and employing agencies.
- Potential for Abuse: Requires careful oversight to prevent manipulation of overtime hours to inflate retirement benefits.
- Cost to Taxpayers: The tax credit for lump-sum payments could result in a cost to taxpayers.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). By aiming to provide fairer compensation and benefits to law enforcement officers, the bill could improve morale and effectiveness, contributing to domestic tranquility and public safety. There are no apparent conflicts with specific constitutional provisions regarding individual rights or federalism. The bill operates within the established framework of federal employment and retirement benefits, which Congress has the power to regulate under Article I, Section 8.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).