Public-Private Employee Retirement Parity Act

S. 644
To amend subchapter II of chapter 84 of title 5, United States Code, to prohibit coverage for annuity purposes for any individual hired as a Federal employee after 2012.

IN THE SENATE OF THE UNITED STATES
March 17, 2011

Mr. BURR (for himself, Mr. COBURN, Mr. CHAMBLISS, Mr. MCCAIN, Mr. JOHNSON of Wisconsin, Mr. CORNYN, Mr. THUNE, Mr. INHOFE, Mr. KYL, Mr. SESSIONS, Mr. ENSIGN, Mr. LEE, and Mr. TOOMEY) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

A BILL
To amend subchapter II of chapter 84 of title 5, United States Code, to prohibit coverage for annuity purposes for any individual hired as a Federal employee after 2012.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Public-Private Employee Retirement Parity Act’.

SEC. 2. TERMINATION OF ANNUITIES UNDER THE FEDERAL EMPLOYEES RETIREMENT SYSTEM.

(a) Creditable Service- Section 8411 of title 5, United States Code, is amended–
(1) in subsection (b)(1), by inserting `except as provided under subsection (m),’ after `(1)’; and
(2) by adding at the end the following:
`(m) Notwithstanding any other provision of this section, any period of service performed by an employee or Member after December 31, 2012 shall not be creditable service for purposes of this subchapter, if that employee or Member did not perform any period of creditable service under this section before January 1, 2013 (including any military service creditable under subsection (c)).’.

(b) Employee Contributions- Section 8422 of title 5, United States Code, is amended–
(1) in subsection (a)(1), by striking `The’ and inserting `Except as provided under subsection (j), the’; and
(2) by adding at the end the following:
`(j) Notwithstanding any other provision of this section, an employing agency shall not make any deduction or withholding under this section from the basic pay of any employee or Member for any period of service performed after December 31, 2012, if that period of service is not creditable service under section 8411(m).’.

(c) Agency Contributions- Section 8423 of title 5, United States Code, is amended–
(1) in subsection (a)(1), by striking `Each’ and inserting `Except as provided under subsection (d), each’; and
(2) by adding at the end the following:

`(d) Notwithstanding any other provision of this section, an employing agency shall not make any contribution under this section for any employee or Member for any period of service performed after December 31, 2012, if that period of service is not creditable service under section 8411(m).’.

(d) Limitation on Credit for Military Service-
(1) IN GENERAL- Section 8411(c) of title 5, United States Code, is amended–
(A) in paragraph (1), by striking `paragraphs (2), (3), and (5)’ and inserting `paragraphs (2), (3), (5), and (6)’; and

(B) by adding at the end the following:

`(6) Notwithstanding any other provision of this subsection, any period of military service performed after December 31, 2012 shall not be allowed credit under this subchapter, if the employee or Member did not perform any period of creditable service under this section before January 1, 2013.’.

(2) CONTRIBUTIONS- Section 8422(e)(1)(A) of title 5, United States Code, is amended by striking `Except as provided in subparagraph (B), and subject to paragraph (6),’ and inserting `Except as provided under section 8411(c)(6) and subparagraph (B) of this paragraph, and subject to paragraph (6) of this subsection,’.