IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

Congressional Research Service (CRS)

Federal Employees’ Retirement System: Benefits and Financing

Katelin P. Isaacs,  Analyst in Income Security

January 30, 2014

https://www.fas.org/sgp/crs/misc/98-810.pdf

[full-text, 23 pages]

Summary

Most civilian federal employees who were hired before 1984 are covered by the Civil Service

Retirement System (CSRS). Federal employees hired in 1984 or later are covered by the Federal

Employees’ Retirement System (FERS). Both CSRS and FERS require participants to contribute

toward the cost of their pensions through a payroll tax. Employees who are covered by CSRS

contribute 7.0% of pay to the Civil Service Retirement and Disability Fund (CSRDF). They do

not pay Social Security taxes or earn Social Security benefits. Employees enrolled in FERS and

first hired before 2013 contribute 0.8% of their pay to the CSRDF. Employees enrolled in FERS

and first hired in 2013 contribute 3.1% of pay to the CSRDF. Employees enrolled in FERS and

first hired after 2013 contribute 4.4% of pay to the CSRDF. All employees enrolled in FERS

contribute 6.2% of wages up to the Social Security taxable wage base ($117,000 in 2014) to the

Social Security trust fund.

The minimum retirement age (MRA) under CSRS is 55 for workers who have at least 30 years of

service. The FERS MRA is 55 for employees born before 1948. The MRA for employees born

between 1953 and 1964 is 56, increasing to the age of 57 for those born in 1970 or later. Both

FERS and CSRS allow retirement with an unreduced pension at the age of 60 for employees with

20 or more years of service and at the age of 62 for employees with at least 5 years of service.

The Thrift Savings Plan (TSP) is a retirement savings plan similar to the 401(k) plans provided by

many employers in the private sector. In 2014, employees covered under either CSRS or FERS

can contribute up to $17,500 to the TSP. Employees aged 50 and older can contribute an

additional $5,500 to the TSP. Employees under FERS receive employer matching contributions of

up to 5% of pay from the federal agency by which they are employed. Federal workers covered

by CSRS also can contribute to the TSP, but they receive no matching contributions from their

employing agencies.

The Office of Personnel Management (OPM) estimates the cost of CSRS to be an amount equal

to 26.0% of employee pay. The federal government pays 19.0% of this amount and the other

7.0% is paid by employees. OPM estimates the cost of the FERS basic annuity at an amount

equal to 12.7% of pay. For FERS employees first hired before 2013, the federal government

contributes 11.9% of this amount and the other 0.8% is paid by employees. For FERS employees

first hired in 2013 or later, the federal government contributes 9.6% of this amount; employees

hired in 2013 pay the remaining 3.1% and employees hired after pay 4.4% (with the additional

sums above the cost of FERS going to pay down the CSRS unfunded liability). There are three

other employer costs for employees under FERS. Both the employer and employee pay Social

Security taxes equal to 6.2% of pay up to the maximum taxable amount; agencies automatically

contribute an amount equal to 1% of employee pay to the TSP; and agencies make matching

contributions to the TSP equal to up to 4% of pay.

At the end of FY2011, the CSRDF had an unfunded liability of $761.5 billion, consisting of a

$741.4 billion deficit for CSRS and a $20.1 billion deficit for FERS. Although the civil service

trust fund has an unfunded liability, it is not in danger of becoming insolvent. OPM projects that

the balance of the CSRDF will continue to grow through at least 2080, at which point it will hold

assets equal to more than 5.3 times total payroll and about 20 times total annual benefit payments.

This report also summarizes relevant legislation in the 113th Congress that would make significant

changes to federal benefits and financing, including P.L. 113-67, S. 18, S. 1678, and H.R. 3639.

Contents

Background ...................................................................................................................................... 1

Origins of the Federal Civilian Retirement System ................................................................... 1

Two Types of Retirement Plans ................................................................................................. 2

Eligibility and Benefit Amounts Under FERS and CSRS ............................................................... 3

Retirement Age and Years of Service ........................................................................................ 3

Retirement Income Adequacy .......................................................................................................... 4

Replacement Rates .................................................................................................................... 4

Determinants of the Replacement Rate ............................................................................... 4

Salary Base .......................................................................................................................... 4

Accrual Rates ...................................................................................................................... 5

Replacement Rates for Federal Retirees ............................................................................. 5

Social Security and the “FERS Supplement” ...................................................................... 6

Cost-of-living Adjustments ....................................................................................................... 6

The Thrift Savings Plan ................................................................................................................... 6

TSP Investment Options ............................................................................................................ 7

TSP Withdrawal Options ........................................................................................................... 9

Employer and Employee Contributions to CSRS and FERS ........................................................ 10

Pension Funding in the Private Sector vs. the Federal Government ....................................... 10

Employee Contributions .......................................................................................................... 11

Employee Contributions from a Budgetary Perspective ................................................... 11

Employee Contributions in Actuarial Terms ..................................................................... 11

Financing Pension Benefits for Federal Employees ...................................................................... 13

Federal Trust Funds and Pre-Funding of Benefits ................................................................... 14

Investment Practices of Federal Trust Funds ........................................................................... 15

Enacted Legislation in the 113th Congress ..................................................................................... 16

P.L. 113-67, the Bipartisan Budget Act of 2013 ...................................................................... 16

Legislative Proposals in the 113th Congress .................................................................................. 17

S. 18, the Sequester Replacement and Spending Reduction Act of 2013 ................................ 17

S. 1678, the Public-Private Employee Retirement Parity Act ................................................. 17

H.R. 3639, the Provide for the Common Defense Act of 2013 ............................................... 18

Figures

Tables

Table 1. Minimum Retirement Age Under FERS ............................................................................ 3

Table 2. Government Matching Rate on TSP Contributions by FERS Participants ........................ 7

Table 3. Annual Rates of Return for Thrift Savings Plan Funds ...................................................... 8

Table 4. FERS Employee Contribution Rates by Date of Hire ...................................................... 17

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

WorldatWork (Total Rewards Association)

WorldatWork Releases List of the 10 Most-Watched HR Videos of 2013 [23 January 2014]

Trend Shows Merit Matrixes Continue to be Critical Comp Tool
http://www.worldatwork.org/waw/adimLink?id=74637&from=press4

WASHINGTON, D.C., Jan. 23, 2014 — WorldatWork, a nonprofit human resources association focused on total rewards, has released its second annual list of the top 10 videos based on its page views in 2013.

"This list confirms a trend we've been seeing in recent years," said Alison Avalos, CCP, CBP, GRP, WorldatWork's manager of community, content deployment and research. "We know that a merit matrix is a primary tool for compensation professionals as they allocate funds for pay increases. The interest in these and other top videos shows that most companies continue to place a high value on paying for performance."

Top 10 Videos for 2013

Getting the Most Out of Merit Matrixes: Part 1
This video provides an overview of merit matrixes and then digs into rewarding high performers; using position in range in a pay-for-performance environment; ensuring future increases for employees; and guiding managers in best practices of merit matrix use.

Using Research and Technology to Improve Recognition at Google
Learn from three members of Google Inc.'s total rewards team as they share why and how the company chose to review and revise its recognition programs, all beginning with measuring "Googler happiness."

Where Have the Ratings Gone? A New Approach to Managing Performance and Compensation at Expedia
Based on employee and manager feedback, Expedia Inc. decided to eliminate performance ratings for the majority of its employees. Watch and learn why the organization made this decision.

"WorldatWork 2013-2014 Salary Budget Survey" Insights
WorldatWork Practice Leader Kerry Chou discusses the odds of organizations hitting 2014 projections for U.S. salary increase budgets and salary structure adjustments as well as what's happening with bonuses and incentives.

Getting the Most Out of Merit Matrixes: Part 2 — Communication
In part two, WorldatWork Practice Leader Kerry Chou discusses how to effectively use merit matrixes to motivate employees and facilitate understanding of their increase, how to deal with employees at the top of their range or those who are paid over market, and using merit matrixes to help determine salary increase budgets.

Pay for Performance at Nokia
Standing on a burning platform, in 2011 Nokia was forced to make radical decisions to change behaviors. Critical to success was a pay-for-performance program revamp. Necia Lightbourne, GRP, and Lynn Millar share their experience.

Creating a Global Total Rewards System at Unilever
Learn from Keith Williams, reward manager at Unilever, how a giant global company created one of the largest personalized total rewards online portals attempted in the marketplace. Unilever has engaged its organization with this homegrown total rewards system and communicated a refreshed value unique to each employee.

"WorldatWork 2013-2014 Salary Budget Survey" Global Data Insights
WorldatWork practice leaders discuss salary budget survey findings for 16 countries, addressing which countries saw the greatest movement in salary budgets and the effects of global economic and financial challenges.

The Importance of Career Management in Total Rewards
Career management is becoming an increasingly important piece of total rewards in organizations. Gary Starzmann, vice president at Aon Hewitt, discusses how employees navigate their life paths within organizations €- and share that ownership responsibility with both supervisors and the organization.

Employee Wellness Programs: Understanding the Stages of Change
Employee readiness and behavior modification and change are often-overlooked components when implementing wellness programs. WorldatWork Practice Leaders Rose Stanley and Lenny Sanicola talk about the stages of change that are critical for success.

WorldatWork videos feature progressive organizations and thought leaders in compensation, benefits and work-life and are free for members and nonmembers.

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

Congressional Research Service (CRS)

Overview of the Federal Tax System

Molly F. Sherlock, Specialist in Public Finance

Donald J. Marples, Specialist in Public Finance

January 23, 2014

https://www.fas.org/sgp/crs/misc/RL32808.pdf

[full-text, 29 pages]

Summary

The major sources of federal tax revenue are individual income taxes, Social Security and other

payroll taxes, corporate income taxes, excise taxes, and estate and gift taxes. This report describes

the federal tax structure, provides some statistics on the tax system as a whole, and presents

analysis of selected tax concepts.

The federal income tax is levied on an individual’s taxable income, which is adjusted gross

income (AGI) less deductions and exemptions. Tax rates, based on filing status (e.g., married

filing jointly or single individual) determine the level of tax liability. Tax rates in the United

States are progressive, such that higher levels of income are taxed at higher rates. Once tax

liability is calculated, tax credits can be used to reduce tax liability. Tax deductions and tax credits

are tools available to policymakers to increase or decrease the after-tax price of undertaking

specific activities. Individuals with high levels of exemptions, deductions, and credits relative to

income may be required to file under the alternative minimum tax (AMT).

Corporate taxable income is also subject to varying rates, where those with higher levels of

income pay higher levels of taxes. Social Security and Medicare tax rates are, respectively, 12.4%

and 2.9%. In 2013, Social Security taxes are levied on the first $113,700 of wages. In 2014, the

Social Security wage base is inflation-adjusted to $117,000, reflecting increases in average wages

in the economy. Medicare taxes are assessed against all wage income. Federal excise taxes are

levied on specific goods, such as transportation fuels, alcohol, tobacco, and telephones.

In FY2012, individual income taxes accounted for 46% of total federal revenue. Social Security

taxes accounted for 35%. Corporate income taxes accounted for 10% while excise taxes

accounted for 3%. Estate and gift, customs, and miscellaneous taxes accounted for the remaining

6% of total revenue. Over time, the corporate income tax has become much less important as a

revenue source while Social Security taxes have provided a larger share of total revenues.

Analysis of tax statistics from the federal tax system as a whole leads to three conclusions: (1)

federal revenue as a percentage of GDP is in line with historical trends; (2) the U.S. fiscal

position is in line with the fiscal position of other industrialized nations (revenues and

expenditures as a percentage of GDP are relatively low); and (3) over the past decade, effective

tax rates have fallen for individuals at all income levels, but have fallen more for lower-income

individuals, reducing their share of overall tax liabilities.

The final sections of this report analyze a number of tax concepts. Tax expenditures are revenue

losses from special tax deductions, credits, and other benefits. Capital gains warrant special

attention, as there is debate about their being taxed at a lower rate. Marriage tax penalties and

bonuses, while reduced following legislation enacted in 2001 and 2003, still pose an inequity in

the tax system. Tax deferral, or the timing of taxes, poses problems related to the timing of

taxation, specifically with respect to capital gains. Depreciation is important, as accelerated

depreciation schemes or expensing can influence firm behavior. Tax liability also depends on

form of business organization. Finally, the issue of whether taxes can influence firms’

competitiveness is reviewed.

This report will be updated on enactment of major changes in the federal tax system.

Contents

Federal Taxes: A Description ........................................................................................................... 1

The Structure of the Federal Individual Income Tax ................................................................. 1

Gross Income and Adjustments ........................................................................................... 3

Deductions and Exemptions ................................................................................................ 4

Tax Rates ............................................................................................................................. 5

Tax Credits .......................................................................................................................... 7

Alternative Minimum Tax ................................................................................................... 8

The Corporate Income Tax ........................................................................................................ 9

Payroll Taxes ........................................................................................................................... 11

Estate and Gift Tax .................................................................................................................. 11

Excise Taxes ............................................................................................................................ 13

Tax Statistics .................................................................................................................................. 14

Composition and Size of the Federal Tax System ................................................................... 14

The U.S. Fiscal Position Compared to Other Nations ............................................................. 16

Distribution of the U.S. Federal Tax Burden Across Income Classes ..................................... 17

Selected Tax Concepts ................................................................................................................... 18

Tax Expenditures ..................................................................................................................... 18

Capital Gains ........................................................................................................................... 19

Marriage Penalties and Bonuses .............................................................................................. 20

Tax Deferral ............................................................................................................................. 22

Depreciation ............................................................................................................................ 22

Forms of Business Organization .............................................................................................. 23

Taxes and Competitiveness ..................................................................................................... 24

Figures

Figure 1. Computing Taxable Income.............................................................................................. 2

Figure 2. Federal Revenue as a Percentage of GDP ...................................................................... 15

Tables

Table 1. Statutory Personal Exemptions and Standard Deductions ................................................ 4

Table 2. Statutory Marginal Tax Rates, 2013 ................................................................................... 6

Table 3. Corporate Tax Rate Schedule ............................................................................................. 9

Table 4. U.S. Fiscal Position Compared to Other Industrialized Nations, 2013 ............................ 16

Table 5. Average Federal Tax Rates for All Households: 2000 and 2010 ...................................... 17

Table 6. Largest Tax Expenditures for Individuals, FY2013 ......................................................... 18

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

PERSONAL INCOME AND OUTLAYS, DECEMBER 2013 [31 January 2014]

http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm

or

http://www.bea.gov/newsreleases/national/pi/2014/pdf/pi1213.pdf

[full-text, 11 pages]

or

http://www.bea.gov/newsreleases/national/pi/2014/xls/pi1213.xls

[spreadsheet]

and

Highlights

http://www.bea.gov/newsreleases/national/pi/2014/pdf/pi1213_fax.pdf

Personal income increased $2.3 billion, or less than 0.1 percent, and disposable personal income (DPI)

decreased $3.8 billion, or less than 0.1 percent, in December according to the Bureau of Economic Analysis.

Personal consumption expenditures (PCE) increased $44.1 billion, or 0.4 percent. In November, personal income

increased $29.8 billion, or 0.2 percent, DPI increased $14.4 billion, or 0.1 percent, and PCE increased

$74.8 billion, or 0.6 percent, based on revised estimates.

Real disposable personal income decreased 0.2 percent in December, in contrast to an increase of 0.1 percent

in November. Real PCE increased 0.2 percent in December, compared with an increase of 0.6 percent in November.

AND MUCH MORE...including TABLES....

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

EMPLOYMENT COST INDEX - DECEMBER 2013 [31 January 2014]

http://www.bls.gov/news.release/eci.nr0.htm

or

http://www.bls.gov/news.release/pdf/eci.pdf

[full-text, 21 pages]

and

Supplemental Files Table of Contents

http://www.bls.gov/web/eci.supp.toc.htm

Compensation costs for civilian workers increased 0.5 percent, seasonally adjusted, for the 3-month

period ending December 2013, the U.S. Bureau of Labor Statistics reported today. Wages and salaries

(which make up about 70 percent of compensation costs) increased 0.6 percent, and benefits (which

make up the remaining 30 percent of compensation) increased 0.6 percent.

Civilian Workers

Compensation costs for civilian workers increased 2.0 percent for the 12-month period ending

December 2013, essentially unchanged from the December 2012 increase of 1.9 percent. Wages and

salaries increased 1.9 percent for the current 12-month period. In December 2012 the increase was

1.7 percent. Benefit costs increased 2.2 percent for the 12-month period ending December 2013. In

December 2012 the increase was 2.4 percent.

                                  Updated Employment Weights

Beginning with this release, Employment Cost Index measures are based on 2012 fixed employment

counts, rather than 2002 counts. For additional information, see the Technical Note on page 4.

Private Industry Workers

Compensation costs for private industry workers increased 2.0 percent over the year. In

December 2012 the increase was 1.8 percent. Wages and salaries increased 2.1 percent for the current

12-month period.  In December 2012 the increase was 1.7 percent. The increase in the cost of benefits

was 1.9 percent for the 12-month period ending December 2013, essentially unchanged from the

December 2012 increase of 2.0 percent. Employer costs for health benefits increased 3.0 percent over

the year.  In December 2012 the increase was 2.1 percent.

Among occupational groups, compensation cost increases for private industry workers for the

12-month period ending December 2013 ranged from 1.4 percent for service occupations to 2.3 percent

for sales and office occupations.

Among industry supersectors, compensation cost increases for private industry workers for the current

12-month period ranged from 0.8 percent for information to 2.9 percent for other services, except public

administration. 

State and Local Government Workers

Compensation costs for state and local government workers increased 1.9 percent for the 12-month

period ending December 2013, unchanged from December 2012. Wages and salaries increased

1.1 percent for the 12-month period ending December 2013, unchanged from December 2012. Prior

values for this series, which began in June 1982, ranged from 0.9 percent to 8.5 percent. Benefit costs

increased 3.3 percent in December 2013. In December 2012, the increase was 3.4 percent.

_____________

The Employment Cost Index for March 2014 is scheduled to be released on

Wednesday, April 30, 2014, at 8:30 a.m. (EDT).

AND MORE...including TABLES....

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

U.S. Government Accountability Office (GAO)

Federal Workforce: Recent Trends in Federal Civilian Employment and Compensation GAO-14-215, Jan 29, 2014

http://www.gao.gov/products/GAO-14-215

or

http://www.gao.gov/assets/670/660449.pdf

[full-text, 38 pages]

What GAO Found

From 2004 to 2012, the federal non-postal civilian workforce grew by 258,882 employees, from 1.88 million to 2.13 million (14 percent). Permanent career employees accounted for most of the growth, increasing by 256,718 employees, from 1.7 million in 2004 to 1.96 million in 2012 (15 percent). Three agencies--the Departments of Defense (DOD), Homeland Security (DHS), and Veterans Affairs (VA)--accounted for about 94 percent of this increase. At DOD, officials said that converting certain positions from military to civilian, as well as the growth of the agency's acquisition and cybersecurity workforce, contributed to this overall increase. At VA, officials said the increased demand for medical and healthrelated services for military veterans drove most of the growth in personnel levels. DHS officials said the increase in employment was due in large part to the nation's border security requirements. (In contrast, ten agencies had fewer career permanent employees in 2012 than they did in 2004). Government-wide, most of the increase in employment from 2004 to 2012 occurred within occupational categories that require higher skill and educational levels. These categories include professional occupations (e.g., doctors and scientists), and administrative occupations (e.g., financial and program managers), as opposed to clerical, technical, and blue collar occupations (which remained stable). In terms of turnover, retirement rates remained relatively flat (at around 3.5 percent) from 2004 until the start of the recession in December 2007. Retirement rates fell to a low of around 2.5 percent during the recession in 2009, and then increased to pre-recession rates in 2011 and 2012. With respect to retirement eligibility, of the 1.96 million permanent career employees on board as of September 2012, nearly 270,000 (14 percent) were eligible to retire. By September 2017, nearly 600,000 (around 31 percent) will be eligible to retire, government-wide.

Spending on total government-wide compensation for each full-time equivalent (FTE) position grew by an average of 1.2 percent per year, from $106,097 in 2004 to $116,828 in 2012. Much of this growth was driven by increased personnel benefits costs, which rose at a rate of 1.9 percent per year. Other factors included locality pay adjustments, as well as a change in the composition of the federal workforce (with a larger share of employees working in professional or administrative positions, requiring advanced skills and degrees). In terms of employee pay per FTE, spending rose at an average annual rate of 1 percent per year (a 7.9 percent increase overall). However, as a proportion of governmentwide federal discretionary spending, spending on compensation remained constant from 2004 to 2010 (at 14 percent), with slight increases in 2011 and 2012.

While the federal civilian workforce grew in size from 2004 to 2012, most of the growth was concentrated in three federal agencies and was driven by the need to address some of the nation's pressing priorities. At the same time--as GAO reported in February 2013--large numbers of retirement-eligible employees in the years ahead may be cause for concern: Their retirement could produce mission critical skills gaps if left unaddressed. As GAO reported in its February 2013 High Risk update, strategic human capital planning that is integrated with broader organizational strategic planning will be essential for ensuring that-- going forward--agenices have the talent, skill, and experience mix they need to cost-effectively execute their mission and program goals.

Why GAO Did This Study

Skilled federal workers are critical to the successful operation of government. At the same time, personnel costs for current and former federal civilian employees represented about 26 percent of total discretionary spending in 2012; these personnel costs are outlays from budget authority authorized by appropriations acts. Given the need to control agencies' personnel costs while also maintaining agencies' high performance, a thorough understanding of employment and compensation trends is a critical component of strategic workforce planning.

GAO was asked to provide data on federal employment and compensation trends. This report examines (1) employment trends of federal civilian personnel from 2004 to 2012 and some factors that affect these trends, and (2) the extent to which federal civilian employee compensation has changed (as a percentage of total discretionary spending) and some reasons for this change.

For this report, GAO analyzed government-wide executive branch civilian personnel data from 2004 to 2012. GAO also interviewed Office of Personnel Management (OPM), Office of Management and Budget (OMB), and other selected agency officials. GAO also reviewed relevant literature, such as studies on attrition.

GAO is not making any recommendations in this report. GAO received technical comments on a draft of this report from OMB, OPM, and the Departments of Defense, Homeland Security, and Veterans Affairs; comments were incorporated as appropriate.

For more information, contact Robert Goldenkoff at (202) 512-2757 or goldenkoffr@gao.gov.

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

European Foundation for the Improvement of Living and Working Conditions [Dublin Foundation]

European Working Conditions Observatory (EWCO)

EUROPEAN LEVEL

TOO FEW WOMEN IN LEADERSHIP POSITIONS ACROSS THE EU [20 January 2014]

http://www.eurofound.europa.eu/ewco/2013/11/EU1311031I.htm

A new report from the European Commission looks at the number of women in leadership positions in the European Union. While the Commission points to the evidence that more women are reaching top positions, it underlines the fact that more needs to be done to tackle a significant disparity across EU Member States. It says the under-representation of women in corporate decision-making represents a significant economic cost to companies and to the economy as a whole. Regulation at EU level may be the only way to solve the problem.

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

European Foundation for the Improvement of Living and Working Conditions [Dublin Foundation]

European Monitoring Centre on Change [EMCC]

European Restructuring Monitor [ERM]

ERM QUARTERLY, Quarter 4, January 2014

http://www.eurofound.europa.eu/emcc/erm/templates/displaydoc.php?docID=82

IN THIS ISSUE

• Job creation and job loss at a glance

• Support instruments for restructuring in Greece

• Cases in focus: Radio Television Valenciana, Spain and Liepajas Metallurg, Latvia

• Sector in focus: Transport and storage – Amazon’s expansion in Central and East Europe

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

Towers Watson

Benefit strategies to attract and retain talent [30 January 2014]

| MALAYSIA

http://www.towerswatson.com/en/Insights/IC-Types/Reprints/2014/01/Benefit-strategies-to-attract-and-retain-talent

or

http://www.towerswatson.com/DownloadMedia.aspx?media={2B46D729-017A-4AF3-9E3F-4C8E58F1DA23}

[full-text, 1 page]

In an increasingly competitive market, job seekers look for a company that can offer them the right “package”. This includes career development, job satisfaction and fulfilment, and of course, pay and benefits. A benefits strategy is one of the tools that employers have up their sleeves to utilise in their war for talent. With a limited talent pool that operates as a common source for more and more organisations to fill their employee needs, a comprehensive benefits strategy can be the answer for attracting the right kind of employees, and improving engagement and retention.

What follows here is drawn from Towers Watson study conducted between February and March last year called the 2013 Asia Pacific Benefit Trends – Optimising Benefits for Competitive Advantage. The study includes responses from 1,066 employers around Asia-Pacific and includes regional as well as country specific data for China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Taiwan and Thailand. This is the third time the study has been conducted in this region by Towers Watson.

The study looked at a variety of topics related to compensation and benefits in order to identify company attitudes, and also the benefits and challenges faced while researching and implementing such strategies/packages. Additionally, the study aimed to better understand what is included in packages offered by companies.

This article was published by Leaderonomics (leaderonomics.com) and The Star, MyStarJob pullout, Saturday December 7, 2013. Please click on DOWNLOAD PDF for the full article.

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

Baker & McKenzie

THE GLOBAL EMPLOYER: MONTHLY eALERT [January 2014]

http://www.bakermckenzie.com/alemploymenttheglobalemployerjan14/

or

http://bakerxchange.com/rv/ff0014b1fda76cd1a5dbd5feaa44b177e27eb787

Welcome to the twenty second edition of Baker & McKenzie's The Global Employer: Monthly eAlert. The Global Employer: Monthly eAlert is a publication by Baker & McKenzie's Global Employment & Labor Law group designed to keep our clients and friends ahead of the curve on legal developments in labor and employment law around the world.

Global headlines

Canada: 2014 AODA Requirements for Large Private Sector Employers

Spain: New Benefits for Intracompany Transfers and Highly Skilled Professionals in Spain

UK: UKBA Publishes New Guidance on Preventing Illegal Working in the UK

Vietnam: New Guidance on Management of Foreign National Employees in Vietnam

Updates by region

Global

Asia Pacific

Europe, Middle East & Africa

North America

Latin America

Global Equity Questions?

There's an app for that.

Baker & McKenzie's free Global Equity Matrix app puts the answers you need at your fingertips before you make the grant to employees, with info on the key tax and securities, exchange control, labor, and data privacy issues in nearly 50 countries.

For more information or to download the app, click here.

Feature articles

UK 2014 Pensions Planner

US Employer Update: 2013 Year in Review and 2014 Challenges

Global employment & labour publications

Global Labour Relations Law Newsletter (Issue 4 2013)

Europe and Middle East Quarterly Update, December 2013

The Global Employer: Showcasing New Developments for Multinational Employers

China Employment Law Guide 2013

The Global Mobility Handbook 2013  

The Global Employer December 2013 Monthly eAlert

Multinational Post-Acquisition Integration: A Roadmap for a Successful International Integration

The Global Employer: Focus on Termination, Employment Discrimination and Workplace Harassment Laws

The Global Employer: Focus on Trade Unions and Works Councils

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

European Foundation for the Improvement of Living and Working Conditions (Dublin Foundation)

European Industrial Relations Observatory (EIRO)

COMPARATIVE STUDY

REPRESENTATIVENESS OF THE EUROPEAN SOCIAL PARTNER ORGANISATIONS: ELECTRICITY SECTOR [23 January 2014]

http://www.eurofound.europa.eu/eiro/studies/tn1305028s/index.htm

or

http://www.eurofound.europa.eu/eiro/studies/tn1305028s/tn1305028s.htm

or

http://www.eurofound.europa.eu/docs/eiro/tn1305028s/tn1305028s.pdf

[full-text, 87 pages]

This study provides information designed to aid sectoral social dialogue in the electricity sector. The study is divided into three parts: a summary of the sector’s economic and employment background; an analysis of the social partner organisations in all EU Member States, with emphasis on their membership, their role in collective bargaining, social dialogue and public policy, and their national and European affiliations; and finally, an analysis of the relevant European organisations, particularly their membership composition and their capacity to negotiate. The aim of the EIRO series of representativeness studies is to identify the relevant national and supranational social partner organisations in the field of industrial relations in selected sectors. The impetus for these studies arises from the European Commission’s desire to recognise the representative social partner organisations to be consulted under the provisions of the Treaty on the Functioning of the European Union (TFEU).

The study was compiled on the basis of individual national reports submitted by the EIRO correspondents. The text of each of these national reports is available below. The national reports were drawn up in response to a questionnaire and should be read in conjunction with it.

Contributing articles:

See additional studies at

http://www.eurofound.europa.eu/eiro/representativeness.htm

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep resear/ahers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.