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122326 1 (1983-09-14)

handle is hein.gao/gaobactdd0001 and id is 1 raw text is: 
109  M


                   U.S. GENERAL ACCOUNTING OFFICE
                      WASHINGTON, D.C.  20548

Iiih~llI il
                                     FOR RELEASE ON DELIVERY
  122326                             Expected at 10:30 a.m.
                                     Wednesday, September 14, 1983


                  STATEMENT OF CHARLES A. BOWSHER
              COMPTROLLER GENERAL OF THE UNITED STATES

                             BEFORE THE

            SUBCOMMITTEE ON CIVIL SERVICE, POST OFFICE,
                        AND GENERAL SERVICES
                 COMMITTEE ON GOVERNMENTAL AFFAIRS
                        UNITED STATES SENATE

                                 ON

                RETIREMENT CONTRIBUTION REQUIREMENTS
                     FOR NEW FEDERAL EMPLOYEES



 Mr. Chairman and Members of the Subcommittee:

      I appreciate the opportunity to appear today to present our

 views on the effects of temporarily requiring new Federal employ-

 ees to contribute to both social security and the civil service

 retirement system.  We are pleased that your committee has under-

 taken these hearings to remedy this situation.  We have been con-

 cerned that the extra contributions would place the Government at

 a competitive disadvantage in recruiting and retaining employees

 because they would result in a substantial reduction in take-home

 pay.  While employees in the private sector must pay social

 security taxes, few are required to contribute to their

 employer-sponsored retirement programs.

      Most employees in the civil service system must .pay 7 per-

 cent of their salary into the retirement fund.  Some participants

 contribute even higher amounts, and all employees pay an

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