Sponsor
Brian K. Fitzpatrick
Representative · R-PA
Representative · R-PA
The bill trades elimination of future employer‑backed congressional pension benefits (shifting retirement risk and costs to Members) for preserving already‑earned benefits, continued TSP access, and immediate refunds for short‑service Members, while producing potential short‑term implementation costs and long‑term federal savings.
Members of Congress who have already earned federal retirement benefits keep those vested benefits after enactment.
Members retain eligibility to participate in the Thrift Savings Plan (TSP), preserving access to a defined‑contribution retirement savings vehicle.
Members with under five years of civilian service will receive lump‑sum refunds treated as if they met the cited service requirements, ensuring short‑service Members receive immediate repayment of their contributions.
Current and future Members of Congress lose future CSRS/FERS retirement coverage and employer retirement contributions, substantially reducing expected future retirement income and shifting retirement funding risk onto individual Members.
Removal of employer contributions increases the need for Members to save more personally or rely heavily on the TSP, raising retirement planning burdens and potential financial insecurity for some Members.
While the change may reduce long‑term federal pension liabilities, it could create short‑term administrative costs and implementation burdens for the Office of Personnel Management and affect taxpayers during the transition (e.g., processing lump‑sum refunds).
Based on analysis of 2 sections of legislative text.
Stops future CSRS/FERS coverage and contributions for Members of Congress, preserves existing earned benefits, and keeps TSP participation available.
Official title: To amend title 5, United States Code, to terminate pensions for Members of Congress, and for other purposes.
Introduced January 3, 2025 by Brian K. Fitzpatrick · Last progress January 3, 2025
Eliminates future Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) coverage and employer/employee contributions for Members of Congress (excluding the Vice President), while preserving benefits already earned and continued eligibility to participate in the Thrift Savings Plan (TSP). Agencies (OPM and the TSP Executive Director) must issue regulations to implement the changes and provide lump‑sum refunds for certain short‑service FERS-covered Members. The change takes effect 90 days after enactment and applies only to future service; vested benefits and earned retirement rights before enactment remain intact. The bill mainly changes benefit rules for persons serving as Members of Congress going forward and requires clerical updates to Title 5 of the U.S. Code.