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

This bill proposes to amend Title 5 of the United States Code, specifically Section 8401, to alter how federal retirement annuities are calculated for certain employees. Its primary purpose is to exclude locality-based comparability payments from the "average pay" used to compute retirement benefits. This modification would impact the final annuity amount received by affected individuals. The legislation defines a new category of individuals called " revised average pay employees ." These are individuals who, as of the bill's enactment date, are not current federal employees or Members of Congress and have not performed any creditable civilian service. The exclusion of locality adjustments from average pay would apply exclusively to these individuals who become federal employees or Members after the bill's enactment, thereby affecting only future hires.