Exclusion of locality adjustments from retirement annuities

Section 8401 of title 5, United States Code, is amended— (1) in paragraph (3), by inserting, which for a revised average pay employee shall exclude any locality-based comparability payments under section 5304 or 5304a, after rates of basic pay; (2) in paragraph (38)(B), by striking and at the end; (3) in paragraph (39), by striking the period at the end and inserting; and; and (4) by adding at the end the following: (40) the term revised average pay employee means an individual who— (A) on the date of enactment of this paragraph— (i) is not an employee or Member covered under this chapter; (ii) is not performing civilian service which is creditable service under section 8411; and (iii) has not performed any civilian service which is creditable service under section 8411; and (B) after the date of enactment of this paragraph, becomes employed as an employee or becomes a Member covered under this chapter performing service which is creditable service under section 8411..