CBO: Workers value job security, and federal employment offers more of it than many jobs in the private sector. Image: Congressional Budget Office
By: FEDweek StaffThe Congressional Budget Office’s latest report comparing federal employee pay and benefits against the private sector’s is likely to revive a political debate that a similar report from 2017 stirred.
Federal employee unions on one side questioned the CBO’s methodology and pointed to figures from the Federal Salary Council, based on data from the Labor Department, showing federal employees behind in salary — the “pay gap” — by about 27 percent. They annually cite that figure, compiled under methods specified in federal pay law and the official word from the government, in support of substantial boosts in federal salary rates.
Meanwhile, many Republicans in Congress — as well as Trump administration appointees on the Salary Council during that administration — used the report to argue against the pay law’s formula and to argue that federal employees are ahead overall, after taking into account the value of benefits.
Unions prevented taking that into account, since they hold a majority of the seats on that council. However, those same arguments became part of Trump administration justifications for its proposals to lessen the value of benefits — in particular health insurance and retirement — and have continued since, for example being repeated in a recent budgetary proposal from House Republicans.
The latest CBO report did not specifically mention those disputes but it did caution that “Differences in average wages and average benefits are not the only factors that are likely to affect the federal government’s ability to recruit and retain a highly qualified workforce. Most workers are willing to accept jobs that offer less in wages and benefits if they have more of the other attributes that they value. An employer who offers more of those attributes can spend less on wages and benefits and still recruit and retain a highly qualified workforce.
“Workers value job security, and federal employment offers more of it than many jobs in the private sector. Conversely, a greater share of federal compensation is deferred until retirement, which many workers find less valuable than wages. And allowing employees to work from home can boost recruitment and retention,” it said.
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See also,
How Do Age and Years of Service Impact My Federal Retirement
The Best Ages for Federal Employees to Retire
