Following is a Congressional Research Service explanation of the provisions in the House-passed tax and spending bill affecting federal employee retirement benefits, MSPB appeals and scrutiny of family member eligibility in the FEHB program, along with an explanation of how some provisions were changed or dropped from the version passed by the House Oversight and Government Reform Committee as the House prepared to vote on the bill.
Section 90001—Elimination of the FERS Annuity Supplement
FERS is the retirement plan that covers the majority of the civilian federal workforce hired since 1984, including Members of Congress and congressional staff. FERS was created by the Federal Employees’ Retirement System Act of 1986 (P.L. 99-335), which integrated federal civilian workers into the Social Security program and reduced pension costs for the federal government. (For additional information, see CRS Report R47084, Federal Retirement Plans: Frequently Asked Questions). FERS has three elements: (1) Social Security, (2) the FERS basic annuity (including the FERS annuity supplement), and (3) the Thrift Savings Plan (TSP). FERS law is codified in Chapter 84 of Title 5 of the U.S. Code. As of FY2023, there were 2,804,800 current employees covered by FERS and 1,235,000 annuitants (1,134,000 retirees and 101,000 survivors).
