[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5171 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 5171

 To remove cost-of-living adjustments and locality adjustment payments 
from the calculation of certain limits on the pay of Federal employees, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 8, 2023

 Ms. Norton (for herself, Mr. Connolly, Mr. Ivey, Mr. Raskin, and Mr. 
    Trone) introduced the following bill; which was referred to the 
   Committee on Oversight and Accountability, and in addition to the 
Committee on Armed Services, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To remove cost-of-living adjustments and locality adjustment payments 
from the calculation of certain limits on the pay of Federal employees, 
                        and for other purposes.

    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 ``Federal Employee Pay Compression 
Relief Act of 2023''.

SEC. 2. FEDERAL EMPLOYEE COLA AND LOCALITY ADJUSTMENT PAY CAP REMOVAL.

    (a) Title 5.--Title 5, United States Code, is amended--
            (1) in section 5303, by amending subsection (f) to read as 
        follows:
    ``(f) Adjustments to the basic pay of an employee or for a position 
under this section shall be disregarded when determining if the pay of 
such employee or for such position exceeds a limit established under 
this title on the total or maximum of such pay.'';
            (2) in section 5304--
                    (A) by striking subsection (g); and
                    (B) by redesignating subsections (h) and (i) as 
                subsections (g) and (h), respectively;
            (3) in section 5305(g)--
                    (A) by striking paragraph (2);
                    (B) by striking ``(1) The benefit'' and inserting 
                ``The benefit''; and
                    (C) by striking ``paragraph (2) and'';
            (4) in section 5306, by striking subsection (e);
            (5) in section 5307(a)(2)--
                    (A) in subparagraph (B), by striking ``; or'' and 
                inserting a semicolon;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; or'' ; and
                    (C) by adding at the end the following new 
                subparagraph:
            ``(D) section 5304.'';
            (6) in section 5372(b)(4)--
                    (A) by striking ``Subject to paragraph (1)'' and 
                inserting ``(A) Subject to paragraph (1) and except as 
                provided by subparagraph (B)''; and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(B) For the purposes of determining whether the rate of 
        basic pay for an administrative law judge meets the maximum 
        rate of basic pay payable under paragraph (1), any adjustments 
        under subparagraph (A) and any locality-based comparability 
        payment under section 5304 or similar payment shall be excluded 
        from the rate of basic pay of the administrative law judge.'';
            (7) in section 5373--
                    (A) in subsection (b), by striking ``(including any 
                portion of such pay attributable to comparability with 
                private-sector pay in a locality)''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(c) Any annual pay adjustment under section 5303 or similar 
adjustment and any locality-based comparability payment under section 
5304 or similar payment shall be excluded from--
            ``(1) the annual rate of basic pay for a position or 
        employee for the purposes of subsection (a); and
            ``(2) the pay of a civilian employee paid from 
        nonappropriated funds for the purposes of subsection (b).'';
            (8) in section 5376(b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by inserting after 
                        ``Executive Schedule'' the following: ``, 
                        except that for the purpose of applying such 
                        limitation, the rate of basic pay for a 
                        position to which this section applies does not 
                        include any adjustments under paragraph (2) or 
                        any locality-based comparability payment under 
                        section 5304 or similar payment''; and
                            (ii) by striking ``5306(e) or''; and
                    (B) in paragraph (2), by striking ``Subject to 
                paragraph (1), effective'' and inserting ``Effective'';
            (9) in section 5377(d)(2) is amended--
                    (A) by striking ``Basic pay'' and inserting ``(A) 
                Basic pay''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(B) For the purposes of subparagraph (A), the 
                rate of basic pay fixed under this section shall 
                exclude any annual pay adjustment under section 5303 or 
                similar adjustment and any locality-based comparability 
                payment under section 5304 or similar payment, 
                including any changes in the basic rate of pay for a 
                position made under the authority of this section to 
                account for such an adjustment or payment that would 
                have applied to such position if this section had never 
                been enacted.''; and
            (10) in section 5382--
                    (A) in subsection (a), by striking ``5306(e) or''; 
                and
                    (B) by adding at the end the following new 
                subsection:
    ``(d) For the purposes of determining the highest rate of basic pay 
payable for a position under this section, the rate of basic pay for 
such position shall exclude the percentage of the pay of such position 
that is equal to the percentage by which the pay of such position would 
increase if, without regard to any limitation on the maximum rate of 
basic pay for such position, such position was eligible for a locality-
based comparability payment under section 5304 in the same manner as a 
position under the General Schedule that is in the same locality and 
eligible for such a payment.''.
    (b) Military Personnel.--Section 203(a) of title 37, United States 
Code, is amended by adding at the end the following new paragraph:
            ``(3) For the purposes of determining the highest rate of 
        basic pay payable for an officer or enlisted member under 
        paragraph (2), the rate of basic pay for such officer or 
        enlisted member shall exclude--
                    ``(A) any annual pay adjustment under section 1009 
                or similar adjustment; and
                    ``(B) any locality-based comparability payment 
                under section 5304 of title 5 or similar payment.''.
    (c) Other Pay Authorities.--
            (1) In general.--Except as otherwise provided in paragraph 
        (2) and notwithstanding any other provision of law, when 
        determining if the pay of the employee meets a Federal pay 
        limit, the following shall be disregarded:
                    (A) Any portion of the basic pay of the employee 
                that is attributable to an annual pay adjustment under 
                section 5303 of title 5, United States Code, or a 
                similar adjustment.
                    (B) Any portion of the basic pay of the employee 
                that is attributable to a locality-based comparability 
                payment under section 5304 of title 5, United States 
                Code, or a similar payment.
            (2) Exceptions.--Paragraph (1) does not apply with respect 
        to a Federal pay limit to the extent otherwise provided in--
                    (A) this Act;
                    (B) the amendments made by this Act; or
                    (C) a law that excludes the applicability of 
                paragraph (1) with respect to such Federal pay limit by 
                specific reference to this subsection.
            (3) Definitions.--In this subsection:
                    (A) Employee.--The term ``employee'' means an 
                individual holding an appointive position in the 
                executive branch, other than a position in a uniformed 
                service (as such term is defined in section 2101 of 
                title 5, United States Code).
                    (B) Federal pay limit.--The term ``Federal pay 
                limit'' means a limit on the maximum or total pay 
                payable to an employee that is--
                            (i) determined based on--
                                    (I) a rate of pay, including a 
                                maximum rate of pay, or pay scale 
                                established by or under title 5, United 
                                States Code; or
                                    (II) the rate of pay established 
                                under section 104 of title 3, United 
                                States Code; and
                            (ii) established by or pursuant to a law or 
                        regulation.
                    (C) Pay.--The term ``pay'' means amounts paid by 
                the Federal Government to an employee as compensation 
                for services performed as an employee.
    (d) Conforming Amendments.--
            (1) Section 733(a)(3)(A) of title 31, United States Code, 
        is amended by inserting after ``of title 5'' the following: ``, 
        except that for the purpose of applying such limitation on the 
        maximum rate, subsection (d) of such section does not apply'';
            (2) Section 3(b) of title 35, United States Code, is 
        amended--
                    (A) in paragraph (2)(B), by striking ``, including 
                any applicable locality-based comparability payment 
                that may be authorized under section 5304(h)(2)(C) of 
                title 5''; and
                    (B) in paragraph (6), by striking ``section 5306(e) 
                or''.
            (3) Section 14306(a)(2) of title 40, United States Code, is 
        amended by striking ``, including any applicable locality-based 
        comparability payment that may be authorized under section 
        5304(h)(2)(C) of title 5)''.
            (4) Section 15301(d)(1) of title 40, United States Code, is 
        amended by striking ``, including any applicable locality-based 
        comparability payment that may be authorized under section 
        5304(h)(2)(C) of that title''.
            (5) Section 382B(h)(5)(A)(ii) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 2009aa-1(h)(5)(A)(ii)) is 
        amended by striking ``, including any applicable locality-based 
        comparability payment that may be authorized under section 
        5304(h)(2)(C) of that title''.
            (6) Section 383A(h)(5)(A)(ii) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 2009bb-1(h)(5)(A)(ii)) is 
        amended by striking ``, including any applicable locality-based 
        comparability payment that may be authorized under section 
        5304(h)(2)(C) of that title''.
            (7) Section 141 of the Higher Education Act of 1965 (20 
        U.S.C. 1018) is amended--
                    (A) in subsection (d)(5)(A), by striking ``, 
                including any applicable locality-based comparability 
                payment that may be authorized under section 
                5304(h)(2)(B) of such title''; and
                    (B) in subsection (e)(3)--
                            (i) in subparagraph (A), by striking ``, 
                        including any applicable locality-based 
                        comparability payment that may be authorized 
                        under section 5304(h)(2)(C) of such title''; 
                        and
                            (ii) in subparagraph (B), by striking ``, 
                        including any applicable locality-based 
                        comparability payment,''.
            (8) Section 436(b) of the Energy Independence and Security 
        Act of 2007 (42 U.S.C. 17092(b)) is amended by striking ``, 
        including any applicable locality-based comparability payment 
        that may be authorized under section 5304(h)(2)(C) of that 
        title''.
    (e) Annuity Shortfalls.--The Secretary of the Treasury shall pay 
from the General Fund of the Treasury into the Civil Service Retirement 
and Disability Fund established under section 8348 of title 5, United 
States Code, the amount determined by the Director of the Office of 
Personnel Management to be necessary to reimburse the Fund for any 
estimated increase resulting from this Act or the amendments made by 
this Act in--
            (1) the unfunded liability of the Civil Service Retirement 
        and Disability Fund (as defined in section 8331 of title 5, 
        United States Code); and
            (2) the supplemental liability of such Fund (as defined in 
        section 8401 of title 5, United States Code).
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