S. 26 (119th)Bill Overview

A bill to exclude locality adjustments from average pay for purposes of computing the amount of retirement annuities of new employees.

Government Operations and Politics|Employee benefits and pensionsGovernment employee pay, benefits, personnel management
Cosponsors
Support
Republican
Introduced
Jan 7, 2025
Discussions
Bill Text
Current stageCommittee

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Introduced
Committee
Floor
President
Law
Congressional Activities
01 · The brief
Plain-English summaryWhat this bill actually does

The bill amends 5 U.S.C. §8401 to exclude locality-based comparability payments (under sections 5304 or 5304a) from "average pay" used to compute retirement annuities for certain new employees. It defines a "revised average pay employee" as an individual with no prior creditable civilian service who becomes a covered employee after enactment.

Why people may split

Left sees this as a benefit cut; right sees it as fiscal restraint.

Watch point

Relative to its intended legislative type, this bill is a focused substantive policy change implemented by targeted amendments to 5 U.S.C. §8401 that clearly specify the exclusion of locality-based comparability payments for a defined category of new employees.

The bill amends 5 U.S.C. §8401 to exclude locality-based comparability payments (under sections 5304 or 5304a) from "average pay" used to compute retirement annuities for certain new employees.

It defines a "revised average pay employee" as an individual with no prior creditable civilian service who becomes a covered employee after enactment.

Current employees with prior creditable service are not included in the new category.

Passage35/100

Technically narrow and fiscally saving, but affects organized interests and lacks clear bipartisan compromise language; more likely if folded into a larger bill.

CredibilityPartially aligned

Relative to its intended legislative type, this bill is a focused substantive policy change implemented by targeted amendments to 5 U.S.C. §8401 that clearly specify the exclusion of locality-based comparability payments for a defined category of new employees. The legal mechanism is reasonably well-specified and integrates directly with the cited statutory provisions.

Contention60/100

Left sees this as a benefit cut; right sees it as fiscal restraint.

02 · What it does

Who stands to gain, and who may push back.

Likely benefits vs burdens50% / 50%
Federal agencies · Local governmentsFederal agencies · Local governments

These are examples from the analysis, not a ranked list of the most-affected groups.

Likely helped
  • Federal agenciesReduces long‑term federal retirement payouts for newly hired employees, lowering budgetary obligations.
  • Federal agenciesSlows growth of federal retirement liabilities, potentially improving long‑term fiscal sustainability.
  • Local governmentsAligns pensionable earnings with base pay, framing locality pay as current compensation not a pension base.
Likely burdened
  • Federal agenciesReduces future retirement incomes for new federal employees compared to current law.
  • Local governmentsDisproportionately affects employees hired in high‑locality, high‑cost areas, creating regional retirement inequities.
  • Local governmentsCould worsen recruitment and retention for agencies in high‑cost markets that rely on locality pay.
03 · Why people split

Why the argument around this bill splits.

Left sees this as a benefit cut; right sees it as fiscal restraint.
Progressive30%

Likely to view the bill as a reduction in retirement compensation for future federal employees, especially in high-cost areas.

Concern will center on fairness to lower-paid workers and potential recruitment harms.

Support may be limited because it reduces benefits for public-sector workers.

Likely resistant
Centrist60%

Views the bill as a plausible fiscal reform that narrows what counts toward pensions for new hires.

Balances potential federal savings against recruitment and fairness concerns.

Would prefer data on projected savings and a phased implementation.

Split reaction
Conservative85%

Likely to view the bill favorably as fiscally responsible and limiting future pension growth.

Sees excluding locality pay from pension averages as a reasonable restraint on benefit escalation.

Appreciates that current employees are unaffected, focusing savings on new obligations.

Leans supportive
04 · Can it pass?

The path through Congress.

Introduced

Reached or meaningfully advanced

Committee

Reached or meaningfully advanced

Floor

Still ahead

President

Still ahead

Law

Still ahead

Passage likelihood35/100

Technically narrow and fiscally saving, but affects organized interests and lacks clear bipartisan compromise language; more likely if folded into a larger bill.

Scope and complexity
24%
Scopenarrow
24%
Complexitylow
Why this could stall
  • Estimated budgetary savings or CBO score absent
  • Level of organized labor opposition or advocacy
05 · Recent votes

Recent votes on the bill.

No vote history yet

The bill has not accumulated any surfaced votes yet.

06 · Go deeper

Go deeper than the headline read.

Included on this page

Left sees this as a benefit cut; right sees it as fiscal restraint.

Technically narrow and fiscally saving, but affects organized interests and lacks clear bipartisan compromise language; more likely if fold…

Unlocked analysis

Relative to its intended legislative type, this bill is a focused substantive policy change implemented by targeted amendments to 5 U.S.C. §8401 that clearly specify the exclusion of locality-based comparability payment…

Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.

Perspective breakdownsPassage barriersLegislative design reviewStakeholder impact map
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