The Federal Firefighters Families First Act amends 5 U.S.C. §5545b to change the divisor used to compute a firefighter’s basic hourly rate, requires that a portion of regularly scheduled overtime be folded into the annuity average-pay calculation, and directs OPM to set a maximum “regular workweek” (not to exceed an average of 60 hours). The Act also makes conforming amendments to retirement-definition provisions and limits application to annuity entitlements based on separations occurring after a 60-day post-enactment window.
This package increases both current pay calculations and future annuity bases for qualifying federal firefighters — a targeted compensation and retention measure. Practically, it raises hourly-rate computations (which affect overtime and certain premium pays), alters how average pay for annuity calculations is computed, creates a definitional cap for what counts as “regular” hours, and shifts actuarial costs to agencies and retirement funds while creating new operational and payroll complexities for employers and OPM.
At a Glance
What It Does
The bill replaces the numeric divisor in 5 U.S.C. §5545b used to compute a firefighter’s basic hourly rate (changing the existing statutory divisor to 2087), adds a new subsection that increases the annuity average-pay base by including one‑half of the firefighter’s basic hourly rate times overtime hours that are part of the regular tour of duty, and requires OPM within one year to set a maximum regular workweek (capped at an average of 60 hours).
Who It Affects
The primary subjects are federal firefighters covered by 5 U.S.C. §5545b and retirement calculations under chapters 83 and 84 (CSRS and FERS). Secondary effects hit payroll and human-resources officers, agency budget officials, OPM (for rulemaking and actuarial adjustments), and the federal retirement systems and Treasury.
Why It Matters
By changing the hourly-rate divisor and explicitly folding a portion of recurring overtime into the annuity base, the bill raises both near‑term pay and long‑term retirement benefits for covered firefighters. That improves recruitment and retention incentives but increases annuity liabilities and creates new administrative, payroll, and actuarial demands on agencies and OPM.
More articles like this one.
A weekly email with all the latest developments on this topic.
What This Bill Actually Does
The Act alters three levers that together increase how much federal firefighters are paid now and how their retirement benefits are calculated later. First, it replaces the statutory divisor used to compute a firefighter’s ‘‘basic hourly rate’’ with a smaller number (2087).
Because the hourly rate is computed by dividing annual pay by that statutory number, a smaller divisor raises the computed hourly rate; that affects overtime pay and any compensation tied to an hourly computation. Second, the bill adds a new rule for average pay when calculating annuities under the CSRS/FERS average-pay definitions: for years (or other creditable periods) used in the average‑pay computation, the annuity base must include, in addition to basic pay, an amount equal to one‑half of the firefighter’s basic hourly rate times the number of overtime hours that are part of the firefighter’s regular tour of duty.
That means recurring, scheduled overtime embedded in a firefighter’s tour will increase the annuity’s average‑pay denominator and thus raise future pension checks.
Third, the bill requires the Office of Personnel Management to write regulations within one year establishing the maximum number of regularly recurring hours that make up a firefighter’s workweek; the statute caps that maximum at an average of 60 hours per week. That rule will decide which overtime hours are ‘‘regular tour’’ hours (and therefore count toward the annuity calculation) and which are truly episodic.
The Act also makes conforming edits to the statutory definitions in the retirement chapter so the new subsection is integrated into average-pay law.The effective-date language limits application: the changes apply only to annuity entitlements based on separations after the 60-day period following enactment. Agencies therefore will face short-term payroll and recordkeeping changes, actuarial offices will need to reprice liabilities, and OPM will need to resolve definitional and implementation details in regulations — notably how to identify and document ‘‘regular tour’’ overtime and how to adjust agency contribution schedules or actuarial assumptions to reflect higher expected annuities.
The Five Things You Need to Know
The bill changes the statutory divisor used to compute a firefighter’s basic hourly rate to 2087 (replacing the prior statutory number).
It requires that, for average‑pay calculations under chapters 83 and 84, an amount equal to one‑half the firefighter’s basic hourly rate times overtime hours that are part of the regular tour of duty be included in the annuity base.
OPM must, within one year of enactment, issue regulations defining the maximum number of regularly recurring hours that comprise a firefighter’s workweek; the statute caps that maximum at an average of 60 hours per week.
Conforming amendments add section 5545b(e) as a cross‑reference in the statutory average‑pay definitions at 5 U.S.C. §§8331(4) and 8401(3).
The amendments apply only to annuity entitlements based on separations occurring after the 60‑day period beginning on the date of enactment (i.e.
no retroactive application to earlier separations).
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
Short title and statutory purposes
This section names the Act and states four statutory purposes: improve pay equality for federal firefighters, enhance recruitment and retention, include pay for regularly recurring scheduled hours in retirement computations, and establish the regular workweek. Its practical purpose is to frame subsequent provisions as narrowly targeted to firefighter compensation and retirement without broader civil‑service changes; it signals congressional intent that recurring, scheduled overtime is to be treated differently from episodic overtime when computing retirement benefits.
Change the hourly-rate divisor in 5 U.S.C. §5545b
Section 2 replaces the numeric divisor references in 5 U.S.C. §5545b(b)(1)(A) and (c)(1)(B) — striking the former statutory number and inserting 2087. Because the basic hourly rate is derived by dividing an annual pay figure by that statutory number, reducing the divisor increases the statutory hourly rate used for overtime calculations and any pay elements tied to that hourly figure. Practically, agencies will need to update payroll formulas and potentially recalculate recent pay where ongoing pay cycles depend on the statutory computation.
Include recurring overtime in average‑pay for annuities
Section 3 appends a new subsection to 5 U.S.C. §5545b that requires inclusion, for average‑pay purposes, of an amount equal to one‑half the firefighter’s basic hourly rate times the number of overtime hours that are part of the firefighter’s regular tour of duty. The provision interacts directly with the average‑pay definitions in chapters 83 and 84, prompting the bill’s conforming amendments. Practically, this elevates scheduled overtime into the annuity base (but only at one‑half the hourly rate), so pensions for employees with regular scheduled overtime will be larger than under current law; agencies and OPM will need to specify recordkeeping standards to demonstrate which overtime hours qualify.
OPM rulemaking to set maximum regular workweek (≤60 hours average)
Section 4 directs OPM to issue regulations within one year establishing the maximum number of regularly recurring hours that comprise a firefighter’s workweek and statutorily caps that maximum at an average of 60 hours per week. The regulatory task is consequential: it will determine the boundary between ‘‘regular’’ scheduled hours (which count toward the annuity calculation) and irregular overtime. Agencies must track hours to the standard OPM prescribes; unions and employing agencies will likely litigate or negotiate the definitions and averaging periods that determine which overtime counts.
Effective date rule for annuity entitlements
Section 5 limits the amendments to annuity entitlements based on separations occurring after the 60‑day period beginning on the date of enactment. This temporal limitation means current retirees and those whose separations predate the window will not retroactively benefit; however, it leaves open how partial service spanning the effective date will be treated in complex separations or disability retirements, which will require administrative guidance.
This bill is one of many.
Codify tracks hundreds of bills on Employment across all five countries.
Explore Employment in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Federal firefighters covered by 5 U.S.C. §5545b — The primary beneficiaries; the changes increase the computed hourly rate (raising overtime and related pay) and boost average‑pay calculations for annuities when firefighters have regularly scheduled overtime, increasing lifetime retirement income.
- Firefighters’ families and survivors — Higher average‑pay calculations increase survivor and spousal annuities and potentially result in larger lump‑sum or recurring benefits for dependents when an eligible firefighter dies or retires.
- Federal fire departments and hiring managers — Improved pay and a clearer rule that counts recurring overtime toward retirement strengthens recruitment and retention tools for specialized federal fire service roles, making federal postings more competitive with state and local jurisdictions.
Who Bears the Cost
- Federal agencies employing firefighters (payroll and budget offices) — Higher hourly rates and larger future annuity obligations raise personnel costs and require budgeting for increased retirement contributions or absorbment of higher pay-grade expenses.
- Office of Personnel Management and actuarial offices — OPM must write detailed regulations, issue guidance, and coordinate actuarial repricing; the change will consume staff resources and require technical rulemaking and actuarial revaluation.
- Federal retirement systems and ultimately taxpayers — CSRS/FERS liabilities will rise as average‑pay bases increase; unless fully pre-funded, those costs are borne by the Treasury and reflected in agency contribution rates and future budgetary pressures.
- Payroll and HR systems teams — Agencies must implement new formulas, revise payroll systems, reclassify hours as ‘‘regular tour’’ when appropriate, and maintain documentation to support retirement calculations.
Key Issues
The Core Tension
The central tension is between correcting a compensation and retirement shortfall for a high‑risk, recruitment‑sensitive workforce and the fiscal and administrative consequences of doing so: treating recurring overtime as part of ‘‘regular’’ pay fairly increases retirement benefits but also materially raises pension liabilities and creates incentives for schedule design that could magnify costs — a trade‑off between equitable pay/retention and sustainable, administrable retirement financing.
The bill bundles three technical changes that together raise pay and pension bases, but it leaves multiple implementation gaps. It does not define key terms such as the ‘‘regular tour of duty’’ beyond delegating to OPM, and it does not specify the averaging period or record-keeping standards for determining which overtime is ‘‘regular’’ and therefore creditable for annuity calculations.
That gap hands significant discretionary power to OPM and invites disagreement between agencies and unions about what qualifies. OPM’s rulemaking choices (e.g., daily vs. multi-week averaging, thresholds for predictability) will shape benefit costs more than the statute’s formulas.
The Act also shifts actuarial costs without prescribing funding mechanisms. Increasing the average‑pay base and computed hourly rate will raise annuity liabilities under CSRS/FERS; absent a dedicated appropriation or an increase in agency retirement contributions, those costs fall on the civilian personnel budget and, ultimately, the federal balance sheet.
Finally, changing the divisor from the prior statutory number to 2087 yields immediate payroll adjustments and potential retro-billing or restatement exposure for agencies; the statute’s limited effective-date language avoids retroactive annuity awards but does not resolve whether overpayments or underpayments during the transition are collectible or how to correct past payrolls that used the former divisor.
Try it yourself.
Ask a question in plain English, or pick a topic below. Results in seconds.