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The U.S. Office of Personnel Management (OPM) is proposing to amend 5 CFR section 842.406 to comply with the updates required by Public Law 112-96. This law made two significant changes to the retirement benefits of Members of Congress who are first covered by FERS after December 31, 2012. First, Public Law 112-96 decreased the FERS benefit accrual rate (used in the FERS pension calculation) for Members first covered by FERS (or reelected with less than five years of FERS service) after December 31, 2012, to be the same as regular FERS employees. Therefore, the larger benefit per year of service is no longer available to Members (or congressional employees) first covered by FERS after December 31, 2012.

For Members of Congress covered by FERS after December 31, 2012, the accrual rate for congressional service covered by FERS is 1.0% per year of service, or, if the Member has at least 20 years of service and serves until at least the age of 62, the benefit accrual rate is 1.1% per year of service. This is the same accrual rate that applies to regular FERS employees. An update to section 5 CFR 842.406 is needed to reflect these changes.