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FPCD-80-82 1 (1980-09-03)

handle is hein.gao/gaobabbcn0001 and id is 1 raw text is: 
RELESED      RESTRICTED  - Not to be c;,ea d outside the General
             Accounting Office except on the basis of specific approval
             by the Office of Congressional Relations.

                   COMPTROLLER GENERAL OF THE UNITED STATES
                            WASHINGTON, D.C. 20548



    B-200152                                     SEPTEMBER 3,1980



    The Honorable Gladys Noon Spellman
    Chair, Subcommittee on Compensation
      and Employee Benefits
    Committee on Post Office and
      civil Service                                   113499
    House of Representatives

    Dear Madam Chair:

         Subject: (Total Compensation Comparability for Federal
                   Employees(FPCD-80-82)

         On August 7, 1979, you requested us to review the
    Administration's proposed total compensation comparability
    system (S. 1340 and H.R. 4477) and determine how it will
    affect Federal employees. In our assessment of the feasi-
    bility of total compensation comparability, you asked that
    we address the appropriateness of benefits included in the
    Office of Personnel Management's (OPM's) analysis, the as-
    sumptions OPM used in its actuarially based benefit evalua-
    tion models, and the methodology to be used in making annual
    compensation comparability adjustments.

         As arranged with your office, we are sending you this
    interim report on the results of our review. It includes
    our concerns over the methods used by OPM in its full-scale
    test of the total compensation system. Our conclusions and
    recommendations will be included in the full report to be
    issued in October 1980. We believe that, if these concerns
    are not considered, the credibility and soundness of the
    total compensation comparability system will be affected.

         Our review has shown that:

         1. Secondary benefits are important.

                  --Some benefits received by many private sec-
                    tor employees are not included in OPM's
                    formal benefit models. Our national survey
                    of these secondary benefits showed that


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