Federal Employment: Impact of President's Economic Plan on Federal Employees' Pay and Benefits

GAO discussed the impact of the President's economic plan on federal employees. GAO noted that: (1) the government needs to attract and retain employees of high caliber to meet the challenges facing the government; (2) it has identified the importance of federal pay reform to attract and retain quality employees; (3) the President's proposals represent a reversal of positive steps taken to address the federal pay problem; (4) between 1978 and 1990, federal pay rates were less than the amounts needed to maintain average pay comparability with the private sector; (5) federal pay rates were 25 to 30 percent lower than private-sector pay for similar jobs, until passage of the Federal Employees Pay Comparability Act of 1990; and (6) the President made three proposals to change retirement provisions for federal civilian employees, but further analysis may be necessary to ensure savings are achieved while maintaining competitive retirement benefits.