To amend the provisions of title 5, United States Code, that provide for a 2 percent reduction in retirement benefits for each year that the employee is under age 55 at the time of retiring.

Amends Federal civil service law with respect to the Federal Civil Service Retirement System to modify annuity computations for certain early retirees at least 50 years old, replacing the current fixed percentage reduction (generally one-sixth of 1 percent per month) with a graduated scale of several different fixed percentage reductions lower than the current ones, applicable according to the retiree's particular under-55 age group.