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FPCD-78-60 1 (1978-07-21)

handle is hein.gao/gaobaaxqu0001 and id is 1 raw text is: DOCUMENT REELME 06574 - [320870971 Federal Cospenv*tion Comparanility: Need for Ccngressicnal action. FPCD-78-60; B-167266. July ;1, 1978. '4 pp. * 6 appendices (23 pp.). Report to the ConqresA; by Elmer E. Stiats, Comptrcller General. Issue Area: Personnel Management and Compensaticn: Compensation (305). Contact: Federal Personnel and Compensation Div. Budqet Function: Income Security: Federal Employee Retirement and L.sability (602). Orqanization Concerned: Civil Service Commissicn; Departent of Labor. Conqressional Relevance: Housp Coquittee cn Post Ctfice and Civil Service; Conqress1. Authority: (P.L. 92-392; 5 U.S.C. 53). Federal Salary Act ot 1967 (2 U.S.C. 351). Most Federal employees' pay is governed by the leqislated principle of comparability with pay in tte private sector. Non-Federal pay rates vary amcng gecgraphic areas, types of industries, size of establishmints, and occupations. Provisions of the Federal pay-setting processes generally prevent the Government from considerirg such variances. 1his results in overpayment or underpayment of Federal ezFloyees ir. specific occupations or localities and affects the credikility of the concept of comparability. Findings/Conclusions: 1he President plans to set a 5.5% cap on the 1S78 ccmparability adjustment for Federal white-collar employees, tut Eay increases could also be reduced ty improving ccapazability processes. changes have been made to the Federal white-collar pay-setting process which have saved about $3.7 killiom annually, tut congressional action is needed to include State and local government employees in the pay surveys and to compare tenefits and pay with private sector comnensaticn. For Federal white-collar employees under the general schedule, action is needed to: establish salary schedules that are more in line with labor market characteristics, eliminate cost-of-living allowances paid to employees in nonforeign areas, develcp a method to reduce or compensate for the 6-mcnth time lag between the reference date of comparability data and the date cf the pay adjustment, and develop a method for granting within-grade salary increases based on merit. For Federal blue-coliar employees under the Federal wage system, action is needed to revise the five-step system for ncnsupervisory grades, wage rates based on private sector rates paid in ancther wage area, and night-shift differentials. Action is also needid tc establish a new salary system for tcF Federal executives. (HTW)

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