Section 1. Short title
This Act may be cited as the Federal Employee Locality Accountability in Retirement Act.
Section 2. Exclusion of locality adjustments from retirement annuities
Section 8401 of title 5, United States Code, is amended—
(1) in paragraph (3), by inserting, which for a revised average pay employee shall exclude any locality-based comparability payments under section 5304 or 5304a, after rates of basic pay;
(2) in paragraph (38)(B), by striking and at the end;
(3) in paragraph (39), by striking the period at the end and inserting; and; and
(4) by adding at the end the following:
(40) the term revised average pay employee means an individual who—
(A) on the date of enactment of this paragraph—
(i) is not an employee or Member covered under this chapter;
(ii) is not performing civilian service which is creditable service under section 8411; and
(iii) has not performed any civilian service which is creditable service under section 8411; and
(B) after the date of enactment of this paragraph, becomes employed as an employee or becomes a Member covered under this chapter performing service which is creditable service under section 8411.