This bill expands the definition of "law enforcement officer" for federal retirement purposes under FERS and CSRS to include specific IRS, Postal Inspection, and VA police employees, and establishes rules for how current employees can count prior service under the new designation.
Andrew Garbarino
Representative
NY-2
The Law Enforcement Officers Equity Act expands the definition of "law enforcement officer" for federal retirement purposes under both the Federal Employees Retirement System (FERS) and the Civil Service Retirement System (CSRS). This change adds specific IRS, Postal Inspection Service, and VA police roles to those eligible for enhanced retirement benefits. The bill also establishes procedures for current officers to elect to have their prior service counted under these new definitions, which may require a payment from the employee and their employing agency.
IRS Tax Collectors, VA Police Gain Early Retirement Eligibility, But Must Buy Back Past Service Time
The “Law Enforcement Officers Equity Act” is making a significant change to federal retirement rules, specifically for the Federal Employees Retirement System (FERS) and the older Civil Service Retirement System (CSRS). This bill expands the definition of “law enforcement officer” (LEO) for retirement purposes, which is a big deal because LEOs can retire earlier than most federal employees. The newly included roles are specific employees from the Internal Revenue Service (IRS) whose main job is collecting overdue taxes, U.S. Postal Inspectors, VA Police officers, and certain Customs and Border Protection specialists (Sec. 2).
The Cost of Counting Past Time
If you’re currently working in one of these newly designated roles—what the bill calls an “incumbent”—the bill lets you count your past service time toward the new, more favorable LEO retirement rules. But here’s the catch: it’s not free. To get credit for that prior service, you have to submit a written election and pay a deposit (Sec. 3). This payment covers the difference between what you actually contributed to your retirement fund back then and what you would have contributed if you had been classified as an LEO all along, plus interest. Essentially, you’re buying back your past time to get the benefit of earlier retirement eligibility, which creates a direct, sometimes substantial, financial hit for the employee.
Who Pays What: The Agency’s Share
It’s not just the employee footing the bill. If an incumbent elects to buy back their past service, the employing agency (like the IRS or VA) also has to chip in their share (Sec. 3). The agency must pay the government’s portion of the cost difference, plus interest, over a 10-year period. This means that while the bill provides a benefit to the employees, it also creates a new, mandatory cost for federal agency budgets—money they have to find to cover the retrospective retirement costs for their newly classified LEOs.
Three-Year Retention Window
One interesting temporary provision is that officers covered by this section are exempt from mandatory separation rules for the first three years after the law is enacted (Sec. 3). Normally, federal LEOs must retire by a certain age. This three-year pause effectively allows these agencies to retain experienced personnel who might otherwise be forced out due to age limits, giving them a short window to adjust to the new rules and potentially benefit from the earlier retirement eligibility this bill provides.