Federal Pensions

The Judicial Survivors' Annuities System (JSAS) is one of several survivor benefit plans applicable to specific groups of federal workers. JSAS provides annuities to the surviving spouse and dependent children of deceased federal judges and other judicial officials. GAO is required to review JSAS' costs every three years and determine whether the participants' contributions covered one-half of the costs. If the contributions are less than one-half of these costs, GAO is to determine what adjustments would be needed to achieve the 50-percent figure. GAO issued its first report on this subject in 1997. (See GAO/GGD-97-87.)

GAO noted that: (1) the participating judges did not pay one-half of the JSAS normal cost during fiscal years 1996 through 1998; (2) they paid on average about 40 percent over the 3-year period; (3) however, the participating judges' contributions represented an increasing share of normal costs over the period, starting at about 36 percent in fiscal year 1996 and growing to about 45 percent in fiscal year 1998; (4) on the basis of information contained in JSAS' 1998 actuarial report, to cover one-half of the future costs, the judges'contribution would need to increase 0.3 percentage points above the 2.2 percent of salary currently paid by retired judges; and (5) increasing required contributions could affect the judges' rate of participation, which was one of the major reasons for enhancing JSAS' benefits and reducing the judges contributions in 1992.