Federal Employee Awareness of Benefits Program Content and Value

FPCD-79-53: Published: May 14, 1979. Publicly Released: May 14, 1979.

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Based on informal surveys, federal employees substantially underestimate the value of their benefits. The present method of providing general announcements and descriptive brochures aimed at large groups of employees does little to inform individuals about the specific value of their benefits.

The disclosure practices of public employee retirement systems at the federal, state, and local level fall considerably short of the standard set for private pension plans under existing legislation. It is required that all private pension plans provide covered employees, upon request, a statement showing total benefits accrued and the vested or nonforfeitable portion. The cost of providing federal employees personalized annual benefits statements is nominal. The cost varies depending on the amount of detail in the statements, the kind of records available, and the size of the work force receiving the statements.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Director of the Office of Personnel Management should take the lead in ensuring that federal employees understand the value of their benefits, provide its employees with personalized annual benefits statements, publicize the advantages and success that federal agencies have had with benefits statements, and strongly urge other federal agencies to provide benefits statements to their employees. An offer to work with the interested agencies should also be extended to maintain maximum standardization among statements.

    Agency Affected:


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