This bill excludes locality-based comparability payments from the calculation of retirement and disability annuities for new employees in the Federal Employees’ Retirement System. (General schedule and certain other federal employees receive locality-based comparability payments when their official worksite is located in a geographic area with a pay disparity between federal and non-federal workers of more than 5%.)
Federal Employee Return to Work ActThis bill prohibits providing certain annual or locality-based pay increases to teleworking federal employees.Currently, federal law mandates annual adjustments to General Schedule (GS) pay rates according to (1) a formula based on the annual percentage change in the Employment Cost Index (a measure of labor costs in the private sector); and (2) the difference between public and private sector pay rates in an employee's locality, if that difference exceeds 5%. For example, in 2025, the default annual rate of pay for a GS-7 (step 1) employee is $49,960; the adjusted annual rate of pay for a GS-7 (step 1) employee in the locality pay area that includes Washington, DC, is $57,164. The bill makes executive agency employees who telework at least one day each week (or, in the case of an alternative work schedule, 20% or more each week) ineligible for these payments.The bill is effective on the first day of the fiscal year beginning after the bill's enactment.
Directs the state civil service commission to design and implement a pilot location pay compensation program for state employees designated managerial or confidential that is based upon cost-of-living factors in different geographic areas of the state consistent with methodologies used by the federal government in its general schedule locality pay plan.
Minnesota State Retirement System; multiplier used to calculate the annuity amount for general state employees retirement plan increased; and postretirement adjustment increased for general state employees retirement plan, legislators retirement plan, and unclassified state employees retirement program.