Computation of annuity for hours worked in excess of law enforcement premium pay limitations

(a) CSRS (1) In general Section 8339 of title 5, United States Code, is amended by adding at the end the following: (v) (1) Notwithstanding any other provision of this title, including sections 5545a and 5547, and consistent with the requirements of paragraph (2), any premium pay described in section 5547(a) that would have been received by a law enforcement officer but for the limitation provided in such section shall be included in the average pay of such officer for purposes of computing the annuity of such officer under this section. (2) (A) Paragraph (1) shall not apply unless the law enforcement officer makes a lump-sum payment to the Office in the manner prescribed under this paragraph. (B) The officer may— (i) not later than 180 days before the date that the officer’s annuity will commence, request from the Office an estimate (expressed as a dollar figure) of— (I) the lump-sum payment described under subparagraph (C); (II) the amount of the officer’s monthly annuity payment if the officer elects to make the lump-sum payment and receive an amended annuity that includes the application of paragraph (1); and (III) the amount of such officer’s monthly annuity payment if the officer does not make such an election; and (ii) consistent with the requirements of subparagraph (D), not later than 90 days after receipt of the estimate under clause (i), irrevocably elect to make the lump-sum payment to the Office. (C) If a law enforcement officer makes an election pursuant to subparagraph (B)(ii), such officer shall make a lump-sum payment to the Office equal to the difference between— (i) the amount that would have been contributed by the officer and the employer under section 8334 during the 3 consecutive years used to determine average pay (as described under section 8331(4)) if the rate of basic pay of the officer during such period of years included any premium pay described in section 5547(a) that would have been received by a law enforcement officer but for the limitation provided in such section; and (ii) the amount that was so contributed during such period of years. (D) The officer may elect an actuarial annuity reduction, consistent with regulations prescribed by the Office, in lieu of the lump-sum payment required under subparagraphs (B) and (C). (3) In this subsection, the term law enforcement officer has the meaning given the term qualified public safety employee in section 72(t)(10) of the Internal Revenue Code of 1986.. (2) Clarification with respect to annuity limit The limitation provided in section 8339(f) of title 5, United States Code, shall apply to any annuity calculated pursuant to subsection (v) of such section (as added by paragraph (1)). (b) FERS Section 8415 of title 5, United States Code, is amended by adding at the end the following: (o) (1) Notwithstanding any other provision of this title, including sections 5545a and 5547, and consistent with the requirements of paragraph (2), any premium pay described in section 5547(a) that would have been received by a law enforcement officer but for the limitation provided in such section shall be included in the average pay of such officer for purposes of computing the annuity of such officer under this section. (2) Paragraph (1) shall not apply unless the law enforcement officer makes a lump-sum payment to the Office in the same manner as prescribed under section 8339(v)(2). (3) In this subsection, the term law enforcement officer has the meaning given the term qualified public safety employee in section 72(t)(10) of the Internal Revenue Code of 1986.. (c) Application The amendments made by subsections (a) and (b) shall apply to any applicable annuity calculated on or after the date that is one year after the date of enactment of this Act. (d) Regulations (1) In general Not later than 1 year after the date of enactment of this Act, the Director of the Office of Personnel Management shall promulgate regulations to carry out sections 8339(v) and 8415(o) of title 5, United States Code, as added by subsections (a) and (b). (2) Lump-sum payment Such regulations shall include— (A) procedures under which any law enforcement officer covered by such sections may make the lump-sum payment as described under sections 8339(v)(2) and 8415(o)(2) of title 5, United States Code, as added by subsections (a) and (b), from amounts within the officer’s Thrift Savings Fund account; and (B) procedures, promulgated in consultation with the Thrift Savings Board, under which a transfer may be made from such account to the Office of Personnel Management. (3) Solicitation of payroll information Such regulations shall include— (A) guidance for agencies employing law enforcement officers for proper retention of payroll information required to carry out the amendments made by subsections (a) and (b), including, for each creditable year of service, the difference between the amount the law enforcement officer received in gross compensation and the amount that would have been received as gross compensation but for the application of the premium pay caps in section 5547 of title 5, United States Code; and (B) procedures for the Director to solicit sufficient payroll information from the head of each applicable agency to provide for the computations required by the amendments made by this Act.