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GGD-96-34R 1 (1995-10-30)

handle is hein.gao/gaobackzf0001 and id is 1 raw text is: United States GX )on General Accounting Office Washington, D.C. 20548 General Government Division B-261763 October 30, 1995 The Honorable James P. Moran Ranking Minority Member Subcommittee on Civil Service Committee on Government Reform and Oversight House of Representatives Dear Mr. Moran: We are responding to your request for a review of the report published by the American Legislative Exchange Council entitled America's Protected Class: The Excess Value of Public Employment (June 1994). The authors of this report, Messrs. Wendell Cox and Samuel A. Brunelli, conclude that federal civilian employees receive about 51 percent more in total compensation (salaries, wages, and benefits) over their careers than employees in the private sector. The report's conclusions are at odds with those of other studies of federal versus nonfederal compensation. Three studies have reported that total federal benefits are more generous than those in the private sector, but federal total compensation (benefits plus pay) is less generous than that of the private sector because of lower salaries and wages.' These studies also identified more valuable benefits for private iThe Office of Personnel Management (OPM) prepared an analysis of total compensation comparability in 1981 that indicated a federal pay increase of 8.8 percent was needed to ensure total compensation comparability. Similarly, a 1984 review of federal pay and benefits conducted by a private firm for the House Post Office and Civil Service Committee concluded that federal workers' total compensation was 7.2 percent behind private compensation. A 1995 study by the Congressional Research Service reported that federal employees under the Federal Employees Retirement System have a more generous benefits package but less total compensation than their private counterparts based on Bureau of Labor Statistics' data reflecting a gap between federal and private-sector pay. GAO/GGD-96-34R Review of Compensation Comparability Report

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