LegiStorm

Summary:

Certain federal employees who perform specific duties, as defined in statute, are classified as law enforcement officers (LEOs) for the purpose of federal retirement benefits. LEOs and a few legislatively designated groups, including federal firefighters and air traffic controllers, are eligible for enhanced retirement benefits under the Civil Service Retirement System (CSRS) for individuals hired before 1984 or the Federal Employees’ Retirement System (FERS) for individuals hired in 1984 or later. The availability of enhanced retirement benefits for LEOs and similar groups is linked to an expectation of limited federal service. This limited service is due, in turn, to the rigorous physical demands of law enforcement duties and the mandatory retirement age to which these individuals are subject. LEO enhanced retirement benefits are designed to provide adequate retirement income for federal employees with careers that end at an earlier age with fewer years of service than regular civilian federal employees. In general, law enforcement personnel are subject to mandatory retirement at age 57 or as soon as 20 years of service have been completed after age 57. The maximum age of entry, which is intended to ensure full retirement benefits upon reaching mandatory retirement age, is typically age 37. Under both CSRS and FERS, law enforcement personnel are eligible for their enhanced benefits at the age of 50 provided they have completed the minimum requirement of 20 years of service. Under FERS, law enforcement personnel with 25 years of service are eligible for retirement regardless of age. Law enforcement personnel in CSRS and their employing agencies each contribute 7.5% of payroll. CSRS law enforcement personnel accrue benefits at the rate of 2.5% per year for their first 20 years of service and 2% for each year after the 20th year of service. Law enforcement personnel in FERS accrue benefits at the rate of 1.7% per year for the first 20 years of service and 1% per year for each year thereafter. FERS contribution rates vary by date of hire. Law enforcement personnel in FERS first hired before 2013 contribute 1.3% of pay, and, beginning in FY2024, their agencies contribute 38.2% of pay. Under P.L. 112-96, FERS law enforcement personnel first hired in 2013 contribute 3.6% of pay, and their agencies contribute 36.4% of pay, beginning in FY2024. Finally, under P.L. 113-67, FERS law enforcement personnel first hired in 2014 or later contribute 4.9% of pay, but their agencies still contribute 36.4% of pay, beginning in FY2024. FERS benefit accrual rates remain unchanged for law enforcement personnel first hired in 2013 or later (including individuals first hired in 2014 or later). In addition to these FERS contributions, both employees and agencies make required Social Security contributions (6.2% of covered wages from both employees and agencies). Employees may also contribute to the Thrift Savings Plan (TSP). An agency employing FERS employees makes a 1% automatic TSP contribution and a matching contribution equal to 100% of the worker’s first 3% of pay and 50% of the next 2% of pay. Many employees in law enforcement occupations are not recognized as LEOs by their agencies and the Office of Personnel Management for the purposes of federal retirement coverage and, consequently, are not eligible to receive enhanced retirement benefits. Several employee groups and unions representing individuals in these occupations have sought enhanced retirement benefits through additional legislation. Recent Congresses have responded by introducing legislation that would provide enhanced retirement benefits to additional personnel. Though granting more groups such benefits may alleviate problems of attrition and perceived inequity across law enforcement occupations, it would also increase personnel costs for employing agencies as well as overall federal expenditures on civilian federal retirement benefits.