Federal Personnel:

Views From Two Agencies on Why More Employees Did Not Join the New Retirement System

GGD-88-52FS: Published: Mar 11, 1988. Publicly Released: Mar 18, 1988.

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In response to a congressional request, GAO provided information from Army and Veterans Administration officials on the major reasons why employees did not transfer from the Civil Service Retirement System (CSRS) to the new Federal Employee Retirement System (FERS).

GAO found that: (1) 32 officials reported that employees who planned to make their careers in the federal government believed that CSRS provided greater benefits than FERS; (2) 25 officials cited employees' lack of trust in some aspects of FERS; (3) 22 officials indicated that employees felt that they could not afford to contribute to the thrift plan component of FERS; (4) 13 officials reported that employees were waiting for Congress to act on proposals to change FERS provisions relating to social security and survivor benefits; and (5) 10 officials reported that employees felt that FERS was too complex.

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