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Ch. 3 · OPM / MSPB·Proposed·

Cut federal pay/benefits toward private-sector ‘market’ levels

Mandate claims federal total compensation exceeds private equivalents by large premiums and urges moving toward market-based pay/benefits, neutral OPM special-rate control, and further retirement reforms closer to private plans.

Mandate

Mandate Ch. 3 (Central Personnel Agencies) — Market-Based Pay and Benefits: Heritage/AEI studies claim large federal pay and total-compensation premiums; solution is move closer to market model; OPM should set initial schedules by occupation/region and adjust; OPM should advocate true equality of benefits; consider further retirement reforms toward private plans.

Undo plan

1) Reject across-the-board cuts that ignore recruitment shortfalls in hard-to-fill occupations. 2) Use occupation-specific special rates and retention incentives instead of wholesale benefit stripping. 3) Protect defined-benefit/FERS and FEHB structures pending transparent CBO scoring of alternatives. 4) Bargain major compensation changes with employee representatives where required. 5) Verify: OPM/BLS comparability methodology peer review; agency vacancy and quit-rate dashboards.

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