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The President's Proposal to Accrue Retirement Costs for Federal Employees [i] (June 2002)

handle is hein.congrec/cbo0711 and id is 1 raw text is: THE PRESIDENT'S PROPOSAL TO ACCRUE RETIREMENT COSTS FOR FEDERAL EMPLOYEES June 2002 PREFACE This report is a supplement to the Analysis of thePresident's Bdgetqry ProposalsfqrFiscal Year 2003, issued by the Congressional Budget Office (CBO) in March 2002. It analyzes the President's proposal that federal agencies pay the full cost of their employees' pension benefits and health benefits in retirement as such benefits accrue. David Torregrosa of CBO's Microeconomic and Financial Studies Division prepared the analysis under the supervision of Roger Hitchner and Marvin Phaup. Ed Callicot, Ron Gresh, and Mike Virga, all of the Office of Personnel Management, supplied data on health care and pension costs as well as liability estimates. Barry Anderson, Russ Beland, Paul Cullinan, Pete Fontaine, William Gainer, Geoffrey Gerhardt, Mark Grabowicz, Arlene Holen, Deborah Lucas, David Moore, Robert Murphy, and Mark Musell, all of CBO, provided valuable comments. Christine Bogusz edited the report, and John Skeen proofread it. Rae Roy prepared the manuscript for publication, and Rae Wiseman produced the figure with assistance from Kathryn Winstead. Annette Kalicki prepared the electronic versions for CBO's Web site. Dan L. Crippen Director June 2002 CONTENTS SUMMARY AND INTRODUCTION ACCOUNTING FOR RETIREMENT BENEFITS IN TIlE FEDERAL BUDGET SOME POTENTIAL IMPLICATIONS.. OFTIlE PRESIDENT.T',S= P.ROPOSAL Advantages Potential Limitations and Policy Implications APPENDIX: FEDERAL RETIREMENT PLANS

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