To amend chapter 84 of title 5, United States Code, to provide that certain Federal annuity computations are adjusted by 1 percentage point relating to periods of receiving disability payments, and for other purposes.

This law adjusts how retirement benefits are calculated for federal employees who spent time away from work due to a job-related injury or illness. Specifically, it increases the retirement annuity formula by one percentage point for any employee covered by the Federal Employees’ Retirement System (FERS) who received disability compensation for at least two months.

The practical impact is that federal workers who were injured on the job will not see their future retirement checks reduced because of the time they spent on disability. By increasing the calculation percentage, the law ensures these employees receive a retirement benefit more closely aligned with what they would have earned had they remained in active service.