Problems in Developing and Implementing a Total Compensation Plan for Federal Employees

Legislation has been introduced which would give the President authority to adjust the rates of pay, benefits other than retirement, or both in order to achieve total compensation comparability between Federal employees and employees in the private sector. GAO and others have recommended that both pay and benefits be compared so that Federal total compensation can be equated to private sector total compensation. Currently, pay for Federal employees is based on pay in the private sector but does not take into account benefits such as retirement, insurance, and paid time off. The Office of Personnel Management (OPM) is testing a method to achieve total compensation comparability. GAO reviewed the proposed legislation and the OPM policies and techniques for measuring benefits and what impact they could have on the final comparability results.