This bill would change how federal retirement benefits are calculated for newly hired federal employees. Specifically, it would exclude locality pay adjustments—extra compensation given to federal workers in high-cost areas—from the calculation of average pay used to determine retirement annuities. The change would apply only to employees hired after the bill becomes law, not to current or past federal workers. The bill aims to reduce retirement costs by ensuring that locality adjustments, which can significantly boost an employee's final average salary, do not inflate their eventual pension payments. There is no specific funding amount or implementation timeline mentioned in the legislation.
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