Summary: Pursuant to a congressional request, GAO commented on federal pay, focusing on issues it raised in various audit reports over a 12-year period. GAO noted that: (1) the differential between federal and private sector pay rates averaged about 19 percent in 1985 and is expected to increase; (2) while the Bureau of Labor Statistics (BLS) will start to gather state and local government pay data for information purposes in 1986, it cannot use such data in its survey without new legislation; and (3) BLS could stop performing the survey annually if it used the Employment Cost Index to update pay comparability data. GAO also noted that the structure of the General Schedule hinders pay comparability because: (1) pay rates for occupations in the same federal work level can vary substantially; and (2) the Schedule does not recognize geographic pay variability. In addition, GAO noted that: (1) the use of special pay rates to recruit and retain well-qualified individuals has increased; (2) the pay comparability principle should be expanded to include benefits as well as salary; (3) there is little information available on the impact of the pay differential on recruiting and retention; and (4) various alternatives to the Schedule are being developed and tested, but studies have shown that some alternatives may be more costly than the Schedule.
