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FPCD-82-39 1 (1982-08-04)

handle is hein.gao/gaobabdnx0001 and id is 1 raw text is: 

                              Il the

BY THE COMPTROLLER GENERAL



Report To The Congress


OF THE UNITED STATES




Updating Interest Rates Charged On

Outstanding Civil Service Retirement

Contributions Would Save Millions



Federal employees covered by the civil serv-
ice retirement system are required to con-
tribute toward meeting the system's costs.
However, many retiring employees owe the
retirement fund for periods of prior civilian
service for which contributions were
not made. GAO estimates that if the interest
charged on prior service contributions had
been 5 percent rather than 3 percent over
the past 20 years, the fund would have real-
ized a long-term savings of $79.6 million for
fiscal year 1980 retirees alone. Significant
savings could be realized each year if the Con-
gress amends the system's provisions on
interest charges as GAO is recommending.


















                                                       GAO/FPCD-82-39
                                                       AUGUST 4, 1982

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