S.26 - To exclude locality adjustments from average pay for purposes of computing the amount of retirement annuities of new employees. (119th Congress)
Summary
S.26 proposes to amend Title 5 of the United States Code, specifically Section 8401, to exclude locality adjustments from the calculation of average pay for new federal employees' retirement annuities. This change would affect individuals who become employed or become Members covered under the relevant chapter after the enactment of this bill. The bill aims to revise how retirement benefits are calculated for new federal employees.
Expected Effects
The primary effect of this bill would be to lower the retirement annuities for new federal employees by excluding locality pay adjustments from their average pay calculation. This could potentially lead to cost savings for the government in the long term. It may also impact the attractiveness of federal employment, particularly in high-cost-of-living areas.
Potential Benefits
- Potential long-term cost savings for the federal government.
- May encourage more efficient allocation of federal resources.
- Could lead to a more uniform retirement calculation across different geographic locations.
- Might incentivize employees to seek promotions or higher base pay rather than relying on locality adjustments.
- Could simplify the retirement calculation process.
Most Benefited Areas:
Potential Disadvantages
- Reduced retirement benefits for new federal employees.
- Potential difficulty in attracting and retaining talent, especially in high-cost areas.
- May negatively impact employee morale and job satisfaction.
- Could shift the burden of retirement savings more onto individual employees.
- Possible legal challenges or union opposition.
Most Disadvantaged Areas:
Constitutional Alignment
This bill falls under the legislative powers granted to Congress in Article I, Section 8 of the U.S. Constitution, which allows Congress to establish rules for the compensation and benefits of federal employees. There is no direct conflict with any specific constitutional provision. However, the long-term impact on the federal workforce and its ability to effectively serve the public could be debated in relation to the 'general Welfare' clause of the Preamble.
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).