What does Preamble of LEO Fair Retirement Act of 2025 do?

This bill aims to amend title 5 of the United States Code. The proposed amendment concerns the computation of annuities for certain law enforcement officers. It specifies that hours worked in excess of limitations applicable to law enforcement premium pay should be included in annuity calculations.

What does SHORT TITLE; FINDINGS. of LEO Fair Retirement Act of 2025 do?

This Act is formally titled the "LEO Fair Retirement Act of 2025". Congress recognizes federal law enforcement officers are uniquely positioned, being 'never off-duty' and routinely risking their lives. Federal law enforcement careers are considered stressful, dangerous, and demanding, with distinct pay and benefit systems. Current law limits overtime compensation for federal law enforcement officers, preventing them from being paid for all overtime hours worked. The Act aims to allow federal law enforcement officers to reclaim full retirement credit for overtime hours worked but not compensated, to aid in recruitment and retention.

What does COMPUTATION OF ANNUITY FOR HOURS WORKED IN EXCESS OF LAW of LEO Fair Retirement Act of 2025 do?

This section amends titles 5 and 8 of the United States Code to modify the computation of annuities for law enforcement officers under the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS). It allows premium pay, which would otherwise be limited, to be included in the average pay used to calculate an officer's annuity. To receive this benefit, officers must make a lump-sum payment to the Office, calculated as the difference between contributions with and without the premium pay limitation. Officers may elect an actuarial annuity reduction in lieu of the lump-sum payment. The amendments apply to annuities calculated on or after one year after the date of enactment of this Act. The Director of the Office of Personnel Management must promulgate regulations within one year of enactment to implement these changes, including procedures for lump-sum payments from Thrift Savings Fund accounts and guidance for agencies to retain relevant payroll information.

What does ELIGIBILITY FOR AVAILABILITY PAY. of LEO Fair Retirement Act of 2025 do?

This section amends Title 5, United States Code, Section 5545a to apply availability pay to covered employees. For the purposes of certain sections, covered employees are deemed to be criminal investigators. A 'covered employee' includes Postal Inspectors, criminal investigators classified under the GS-1811 series (or successor), Federal air marshals, special agents in the Diplomatic Security Service, probation officers, and pretrial services officers. Section 410(b)(11) of Title 39, United States Code, is amended to include references to both sections 5520a and 5545a.

What does CREDIT FOR CERTAIN LUMP-SUM PAYMENTS OF UNCOMPENSATED LAW of LEO Fair Retirement Act of 2025 do?

This section establishes a tax credit for individuals who make lump-sum payments related to annuities. The credit amount equals the sum of payments made pursuant to sections 8339(v)(2) or 8415(o)(2) of Title 5, United States Code. The credit is treated as a non-refundable personal credit under the Internal Revenue Code of 1986.

Back to bills

LEO Fair Retirement Act of 2025

Last updated: 5/8/2025 · Introduced: 5/8/2025

Author: Nellie Pou (D-NJ)

TL;DR (AI)

This bill allows federal law enforcement officers to include previously uncompensated overtime hours in annuity calculations, potentially increasing their retirement benefits.
The legislation expands availability pay to include a broader range of federal employees, such as Postal Inspectors and Federal air marshals, recognizing their demanding roles.
It establishes a tax credit for law enforcement officers who make lump-sum payments related to annuity adjustments, offsetting some of the financial impact of those adjustments.

119th Congressin committeeOfficial page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

Includes provisions on preamble, short title; findings., and 3 more.

5 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account