Air Traffic Controller Act of 1981

Air Traffic Controller Act of 1981 - Redefines the terms "air traffic controller" and "controller," for purposes of civil service provisions, to mean any air traffic control specialist of the GS-2152 series.

Establishes a salary classification system for air traffic controllers. Requires: (1) semiannual salary cost of living adjustments of one and one half percent for each one percent increase in the the Consumer Price Index for Urban Wage and Clerical Workers (CPI); (2) an additional ten percent increase annually; and (3) automatic annual step increases within and between pay grades. Establishes differential payments for hours worked during a night shift, midnight shift, weekend, or assignment as an on-the-job training instructor. Exempts the salary of an air traffic controller from provisions limiting the pay of Federal employees.

Establishes a work week of four consecutive eight-hour days for controllers.

Entitles controllers to form labor organizations and bargain collectively for wages, hours, leave, and other terms of employment.

Directs the Office of Personnel Management to issue regulations providing that: (1) a controller shall be eligible for retirement with a reduced pension after fifteen years of service, or full retirement with an income equal to 75 percent of the controller's highest salary after 20 years of service, regardless of age; and (2) retired controllers shall receive a semiannual cost of living increase of seven percent or the percentage increase in the CPI, whichever is larger.