HB3305, the “LEO Fair Retirement Act of 2025,” would change federal retirement rules for certain law enforcement personnel by allowing some previously uncompensated overtime hours to count toward retirement annuity calculations. The bill is aimed at officers whose premium pay is capped under current law, leaving some overtime hours worked but not paid; it would let those hours be reflected in the employee’s average pay for CSRS and FERS retirement benefits, subject to a lump-sum payment or an actuarial reduction. The measure also directs the Office of Personnel Management to issue regulations and establishes procedures for using Thrift Savings Plan funds to make the required payment.
In addition to the retirement changes, the bill expands eligibility for availability pay to several categories of federal employees by deeming them criminal investigators for specified purposes. Those covered employees include Postal Inspectors, GS-1811 criminal investigators, Federal air marshals, Diplomatic Security Service special agents, probation officers, and pretrial services officers. The bill also creates a federal income tax credit for the lump-sum payments made to buy credit for uncompensated premium pay, treating the credit as a nonrefundable personal credit under the Internal Revenue Code.
Impact
The bill would amend Title 5 of the U.S. Code, primarily sections governing Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) annuities, to include certain unpaid premium-pay hours in retirement calculations for law enforcement officers. It would also amend the availability pay statute and make a conforming change to the Postal Service statute, while adding a new tax credit in the Internal Revenue Code for qualifying lump-sum payments. The practical effect would be to increase potential retirement benefits for affected federal law enforcement personnel and related officers, while requiring OPM to establish implementing regulations and payroll-record procedures.
Sentiment
The bill’s findings and structure reflect a strongly supportive view of federal law enforcement and a policy goal of improving recruitment, retention, and retirement fairness for officers who work extensive overtime. The bill was introduced by a bipartisan group of House members, which suggests cross-party interest in the proposal. No committee transcript or vote record is available here, so there is no recorded opposition or formal vote-based sentiment in the provided materials.
Contention
The main policy issue is cost and eligibility: the bill would increase retirement annuities for certain federal employees by crediting overtime that was not paid because of statutory premium-pay caps, but only if the employee makes a lump-sum payment or accepts an actuarial reduction. Another point of potential contention is the scope of covered employees, since the bill extends availability pay treatment beyond traditional criminal investigators to several other federal roles, including Postal Inspectors, air marshals, probation officers, and pretrial services officers. Administrative complexity may also be debated, because the bill requires OPM to reconstruct payroll histories, issue regulations, and coordinate with agencies and the Thrift Savings Board.