H.R. 3305

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3305 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 3305

To amend title 5, United States Code, to provide that for purposes of 
computing the annuity of certain law enforcement officers, any hours 
worked in excess of the limitation applicable to law enforcement 
premium pay shall be included in such computation, and for other 
purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

May 8, 2025

Ms. Pou (for herself, Mr. Bacon, Mr. Fitzpatrick, and Mr. Connolly) 
introduced the following bill; which was referred to the Committee on 
Oversight and Government Reform, and in addition to the Committee on 
Ways and Means, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To amend title 5, United States Code, to provide that for purposes of 
computing the annuity of certain law enforcement officers, any hours 
worked in excess of the limitation applicable to law enforcement 
premium pay shall be included in such computation, and for other 
purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; FINDINGS.

(a) Short Title.--This Act may be cited as the ``LEO Fair 
Retirement Act of 2025''.
(b) Findings.--Congress finds the following:
(1) Federal law enforcement officers are never ``off-
duty''. They are counted on to respond at any time of the day 
or night, regardless of their official duty status, to protect 
the public safety. Outside of our Nation's Armed Forces, theirs 
is the only profession comprised of individuals who are 
routinely called upon to put their lives on the line to keep 
America safe.
(2) Though the Federal Government may house the largest 
variety of occupations of any U.S. employer across its panoply 
of agencies and entities, Federal law enforcement is absolutely 
unique among them, and the Federal law enforcement officer has 
no counterpart in the private sector. It is one of the most 
stressful, most dangerous, and most rewarding careers for those 
who meet the rigorous requirements of the job.
(3) It was in recognition of the unique nature of the 
occupation, and the demanding schedules required of those who 
fill its ranks, that Congress established distinct pay and 
benefit systems for Federal law enforcement positions. This 
includes basic pay, retirement, and even overtime compensation.
(4) Under current law, however, the payment of overtime 
compensation is limited, and is only payable to the extent that 
the payments do not cause the aggregate of the law enforcement 
officer's biweekly or annual pay to exceed the pay caps 
established under section 5547 of title 5, United States Code. 
This often results in a law enforcement officer working 
significant amounts of overtime hours year after year for which 
the officer is never compensated.
(5) In light of the continuing homeland and national 
security threats facing our Nation, it is in the interest of 
the Federal Government to ensure that it can continue to 
recruit and retain the highest caliber personnel by allowing 
Federal law enforcement officers the opportunity to reclaim 
full credit in retirement for overtime hours worked but never 
paid.

SEC. 2. COMPUTATION OF ANNUITY FOR HOURS WORKED IN EXCESS OF LAW 
ENFORCEMENT PREMIUM PAY LIMITATIONS.

(a) CSRS.--
(1) In general.--Section 8339 of title 5, United States 
Code, is amended by adding at the end the following:
``(v)(1) Notwithstanding any other provision of this title, 
including sections 5545a and 5547, and consistent with the requirements 
of paragraph (2), any premium pay described in section 5547(a) that 
would have been received by a law enforcement officer but for the 
limitation provided in such section shall be included in the average 
pay of such officer for purposes of computing the annuity of such 
officer under this section.
``(2)(A) Paragraph (1) shall not apply unless the law enforcement 
officer makes a lump-sum payment to the Office in the manner prescribed 
under this paragraph.
``(B) The officer may--
``(i) not later than 180 days before the date that the 
officer's annuity will commence, request from the Office an 
estimate (expressed as a dollar figure) of--
``(I) the lump-sum payment described under 
subparagraph (C);
``(II) the amount of the officer's monthly annuity 
payment if the officer elects to make the lump-sum 
payment and receive an amended annuity that includes 
the application of paragraph (1); and
``(III) the amount of such officer's monthly 
annuity payment if the officer does not make such an 
election; and
``(ii) consistent with the requirements of subparagraph 
(D), not later than 90 days after receipt of the estimate under 
clause (i), irrevocably elect to make the lump-sum payment to 
the Office.
``(C) If a law enforcement officer makes an election pursuant to 
subparagraph (B)(ii), such officer shall make a lump-sum payment to the 
Office equal to the difference between--
``(i) the amount that would have been contributed by the 
officer and the employer under section 8334 during the 3 
consecutive years used to determine average pay (as described 
under section 8331(4)) if the rate of basic pay of the officer 
during such period of years included any premium pay described 
in section 5547(a) that would have been received by a law 
enforcement officer but for the limitation provided in such 
section; and
``(ii) the amount that was so contributed during such 
period of years.
``(D) The officer may elect an actuarial annuity reduction, 
consistent with regulations prescribed by the Office, in lieu of the 
lump-sum payment required under subparagraphs (B) and (C).
``(3) In this subsection, the term `law enforcement officer' has 
the meaning given the term `qualified public safety employee' in 
section 72(t)(10) of the Internal Revenue Code of 1986.''.
(2) Clarification with respect to annuity limit.--The 
limitation provided in section 8339(f) of title 5, United 
States Code, shall apply to any annuity calculated pursuant to 
subsection (v) of such section (as added by paragraph (1)).
(b) FERS.--Section 8415 of title 5, United States Code, is amended 
by adding at the end the following:
``(o)(1) Notwithstanding any other provision of this title, 
including sections 5545a and 5547, and consistent with the requirements 
of paragraph (2), any premium pay described in section 5547(a) that 
would have been received by a law enforcement officer but for the 
limitation provided in such section shall be included in the average 
pay of such officer for purposes of computing the annuity of such 
officer under this section.
``(2) Paragraph (1) shall not apply unless the law enforcement 
officer makes a lump-sum payment to the Office in the same manner as 
prescribed under section 8339(v)(2).
``(3) In this subsection, the term `law enforcement officer' has 
the meaning given the term `qualified public safety employee' in 
section 72(t)(10) of the Internal Revenue Code of 1986.''.
(c) Application.--The amendments made by subsections (a) and (b) 
shall apply to any applicable annuity calculated on or after the date 
that is one year after the date of enactment of this Act.
(d) Regulations.--
(1) In general.--Not later than 1 year after the date of 
enactment of this Act, the Director of the Office of Personnel 
Management shall promulgate regulations to carry out sections 
8339(v) and 8415(o) of title 5, United States Code, as added by 
subsections (a) and (b).
(2) Lump-sum payment.--Such regulations shall include--
(A) procedures under which any law enforcement 
officer covered by such sections may make the lump-sum 
payment as described under sections 8339(v)(2) and 
8415(o)(2) of title 5, United States Code, as added by 
subsections (a) and (b), from amounts within the 
officer's Thrift Savings Fund account; and
(B) procedures, promulgated in consultation with 
the Thrift Savings Board, under which a transfer may be 
made from such account to the Office of Personnel 
Management.
(3) Solicitation of payroll information.--Such regulations 
shall include--
(A) guidance for agencies employing law enforcement 
officers for proper retention of payroll information 
required to carry out the amendments made by 
subsections (a) and (b), including, for each creditable 
year of service, the difference between the amount the 
law enforcement officer received in gross compensation 
and the amount that would have been received as gross 
compensation but for the application of the premium pay 
caps in section 5547 of title 5, United States Code; 
and
(B) procedures for the Director to solicit 
sufficient payroll information from the head of each 
applicable agency to provide for the computations 
required by the amendments made by this Act.

SEC. 3. ELIGIBILITY FOR AVAILABILITY PAY.

(a) In General.--Section 5545a of title 5, United States Code, is 
amended by adding at the end the following:
``(l)(1) The provisions of subsections (a)-(h) providing for 
availability pay shall apply to a covered employee. For the purpose of 
this section, section 5542(d) of this title, and section 13(a)(16) and 
(b)(30) of the Fair Labor Standards Act of 1938 (29 U.S.C. 213(a)(16) 
and (b)(30)), a covered employee shall be deemed to be a criminal 
investigator as defined in this section.
``(2) In this subsection, the term `covered employee' means--
``(A) a Postal Inspector (referred to in section 1003(c) of 
title 39);
``(B) a criminal investigator classified under the GS-1811 
series (or any successor series);
``(C) a Federal air marshal;
``(D) a special agent in the Diplomatic Security Service;
``(E) a probation officer (referred to in section 3672 of 
title 18); and
``(F) a pretrial services officer (referred to in section 
3153 of title 18).''.
(b) Conforming Amendment.--Section 410(b)(11) of title 39, United 
States Code, is amended by striking ``section 5520a'' and inserting 
``sections 5520a and 5545a''.

SEC. 4. CREDIT FOR CERTAIN LUMP-SUM PAYMENTS OF UNCOMPENSATED LAW 
ENFORCEMENT PREMIUM PAY.

(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by chapter 1 of the 
Internal Revenue Code of 1986 for the taxable year an amount equal to 
the sum of the lump-sum payments made by the individual during such 
taxable year pursuant to section 8339(v)(2) or 8415(o)(2) of title 5, 
United States Code, with respect to an annuity of such individual.
(b) Treated as Non-Refundable Personal Credit.--For purposes of the 
Internal Revenue Code of 1986, the credit allowed under subsection (a) 
shall be treated as a credit allowed under subpart A of part IV of 
subchapter A of chapter 1 of such Code.
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