Federal Workforce

In response to a congressional request, GAO discussed the federal government's practice of providing fringe benefits to federal employees while they are absent from work in a nonpay leave status.

GAO found that: (1) in 1985, the average number of employees in nonpay status was 58,513; (2) employees can receive up to 6 months of service credit each calendar year of nonpay status; and (3) costs associated with nonpay status result from the continuation of credit toward fringe benefits to employees while they are in a nonpay status. GAO also found that: (1) in 1985, the federal government paid an estimated $463 million for retirement credit, $4.3 million for life insurance benefits, and $63.3 million in health insurance coverage; and (2) since severance pay is based on an employee's ending salary and years of service, the cost of these benefits is relatively small.