Effect of Requiring New Federal Employees To Be Temporarily Covered by Both Social Security and Civil Service Retirement
Gao ID: OCG-83-1 August 31, 1983GAO analyzed the potential effects of requiring federal employees hired on or after January 1, 1984, to be temporarily covered by both social security and the civil service retirement system.
GAO found that covered employees would be contributing about 14 percent of their salary to these programs, and only a small number would receive any benefits from the civil service system before the new supplemental system is established. Further, the required contributions would adversely affect government recruitment and retention efforts, since it would be placed at a disadvantage when competing with private industry. GAO concluded that requiring employees to temporarily contribute to both systems appears to be an inequity, and resolution of this problem would relieve new employees from an unfair burden. GAO also evaluated several alternatives to the contribution requirement.