Federal Workforce:

Implementation of the Executive Exchange Program Voluntary Services Act of 1986

GGD-89-62: Published: Mar 31, 1989. Publicly Released: Mar 31, 1989.

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Pursuant to a legislative requirement, GAO reviewed an experimental component of the President's Commission on Executive Exchange (PCEE) Program to identify advantages and disadvantages of private-sector employers paying their participants' salaries, instead of the government.

GAO found that: (1) prior to implementation of the experimental component, the government paid the salaries of private-sector participants up to a maximum, while the private-sector employers paid the salaries of federal participants; (2) the experimental component enabled higher-salaried private-sector executives to participate in PCEE; (3) the experimental component will save the government about $1.5 million during fiscal years 1988 and 1989; (4) some government agencies would not have participated in PCEE if they had to pay the private-sector participants' salaries; (5) PCEE followed adequate procedures for eliminating potential conflicts of interest resulting from allowing private-sector employers to pay federal participants' salaries; and (6) federal participants' leave-without-pay status resulted in the reduction of such benefits as retirement credit, within-grade increases, and savings plan contributions, while private-sector participants continued to receive most of their benefits.

Matters for Congressional Consideration

  1. Status: Closed - Not Implemented

    Comments: The President abolished PCEE, effective September 30, 1991.

    Matter: Congress should include in legislation authorizing this authority a statement that it is enacted "notwithstanding any other law" in order to preclude the need to amend any other existing statutes that may be relevant to the PCEE program and for which exemptions for federal participants may be necessary.

  2. Status: Closed - Not Implemented

    Comments: The President abolished PCEE, effective September 30, 1991.

    Matter: Congress should authorize the corporate host companies to reimburse the sponsoring federal agencies for the executives' salaries.

  3. Status: Closed - Not Implemented

    Comments: This was accomplished with the enactment of P.L. 101-416, October 22, 1990. However, the President abolished PCEE, effective September 30, 1991.

    Matter: Congress should authorize federal executives assigned to private-sector companies, as part of the PCEE program, to be placed on detail to the private sector during the exchange assignment. This would allow executives to remain in federal pay status and continue to receive all benefits which, as federal employees, they would normally be entitled to receive.

  4. Status: Closed - Not Implemented

    Comments: The President abolished PCEE, effective September 30, 1991.

    Matter: Congress should expand the authority to permit more corporate executives to be paid their full salaries by their corporate employers.

  5. Status: Closed - Not Implemented

    Comments: The President abolished PCEE, effective September 30, 1991.

    Matter: Congress should extend the authority provided by Public Law 99-424 to permit private-sector executives assigned to government agencies in the PCEE program to be paid their full salaries by their corporate employers.

  6. Status: Closed - Not Implemented

    Comments: The President abolished PCEE, effective September 30, 1991.

    Matter: Congress should include in legislation authorizing this authority an enumeration of those statutes that should continue to apply to the PCEE program, such as applicable statutes relating to compensation, benefits, travel and relocation, conflict of interest, standards of ethical conduct for government officers and employees, post-employment restrictions for exchange executives, and authority for agencies to accept reimbursements for executives' salaries from private-sector companies. The applicable statutes should be listed and incorporated by reference into the PCEE program statute.

 

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