Remember.... this is the House bill. The Senate will have its own bill. If the House and Senate pass bills that are not identical, they must go to Conference to hash-out any differences, agree to a single bill for both houses, then re-vote in the House and Senate on the Conference bill. If that final bill passes both houses, then the President must sign it. So while the House wants to make significant changes to pay and benefits, the Senate bill is not yet available to see if there are any differences.
House Committee on Oversight and Government Reform
Sec. 90001 - This section raises the required contribution rates for certain groups of individuals who entered FERS before January 1, 2014. (This applies to most federal employees, Members of Congress, and congressional staff.) Under this section, FERS employee contributions for those individuals first hired before 2013 increases from 0.8% to 4.4% of pay over two calendar years, beginning in January 2026. This same increase applies to Members and congressional staff first elected or hired before 2013, plus an additional 0.5%. FERS employee contributions for those individuals first hired in 2013, including Members and congressional staff, increases from 3.1% to 4.4% of pay, also over two calendar years and beginning in January 2026.
Sec. 90002 - This section eliminates the FERS annuity supplement for new retirees not yet entitled to it. (Under current law, certain FERS employees who retire before age 62 with certain years of service receive a supplement to their annuity, which ends when the retiree turns 62 or becomes eligible to receive Social Security benefits.) Employees who retire under a mandatory authority and employees who retire before enactment of this section continue to receive the annuity supplement.
Sec. 90003 - This section changes the years of salary history used for calculating retirement benefits for FERS (and the now-closed Civil Service Retirement System) to be the average of the highest five consecutive years of basic pay (instead of the average of the highest three consecutive years), effective for new retirees beginning in January 2027. This section does not apply to law enforcement officers and related personnel.
Sec. 90004 - This section requires most new federal civilian employees to choose either to serve as at-will employees or to contribute an additional 5% of their salary to FERS. Specifically, the section increases the contribution rate from 4.4% to 9.4% of pay for these employees (or from 4.9% to 9.9% for groups covered by enhanced retirement benefits) unless they elect to be employed on an at-will basis. Employees who elect to be employed on an at-will basis may be subject to adverse actions, including termination, without notice or the right to appeal the action.
Sec. 90005 - This section directs the MSPB to establish and collect a filing fee for employees, former employees, or applicants who file claims or appeals with the MSPB. This fee must be in the amount required for federal district court filings (currently, $350). If the individual is successful in their claim, the fee must be returned to that individual. The section provides an exception for actions brought by the Office of Special Counsel to the MSBP and for claims alleging retaliation against whistleblowers.
Sec. 90006 - This section requires the Office of Personnel Management (OPM) to issue regulations and implement a process to verify (1) the veracity of any qualifying life event through which an enrollee in the FEHB Program seeks to add a family member for coverage under the program; and (2) that, when an enrollee seeks to add a family member to the FEHB program, the individual added is a qualifying family member. The section also requires OPM, in coordination with employing offices, to conduct a comprehensive audit regarding family members enrolled in the FEHB program. In conducting this audit, OPM must review marriage certificates, birth certificates, and other appropriate documents to determine eligibility. OPM must develop a process to disenroll or remove an individual who is not eligible to participate in the FEHB program and notify the OPM inspector general of such disenrollment or removal. The section allows for some Employees Health Benefits Fund amounts to be available to OPM annually starting in FY2026 to develop, maintain, and conduct ongoing eligibility verification and oversight and oversight of the FEHB enrollment and eligibility systems. Other amounts shall be available for audit activities.
House Committee on Transportation and Infrastructure
Sec. 100008 - This section provides the Federal Aviation Administration with specified funds for FY2025, to remain available through FY2029. This includes additional funding for:
- air traffic control tower and terminal radar approach control facility replacement;
- radar systems replacement;
- telecommunications infrastructure and systems replacement;
- runway safety projects and airport surface surveillance projects; and
- air traffic controller recruitment, retention, training, and advanced training technologies.
The FAA must submit a report to Congress every 90 days on these expenditures.