Are federal workers overpaid?

SAM HANANEL, Associated Press

Thursday, April 7, 2011

WASHINGTON (AP) — Are federal employees overpaid?

Republican leaders in Congress think so, and they are calling for an overhaul of the entire federal pay system to help slash government spending.

Democrats and other defenders of the government work force say federal workers are actually underpaid compared with their private counterparts.

A closer look at the data shows that both sides have a point. The debate has heated up since the GOP budget blueprint unveiled this week calls for federal pay “to be reformed to be in line with the private sector.” It says average wages “far eclipse” those in the private industry.

At a congressional hearing last month, Rep. Dennis Ross, R-Fla., said the average federal worker earns $101,628 in total compensation — including wages and benefits— compared with $60,000 for the average private employee. He was citing data from the federal Office of Personnel Management.

“Our taxpayers can no longer be asked to foot the bill for these federal employees while watching their own salaries remain flat and their benefits erode,” said Ross, chairman of the House Oversight subcommittee on the federal work force.

But federal employee advocates claim a straight-up comparison of average total compensation is misleading. A disproportionate number of federal employees are professionals, such as managers, lawyers, engineers and scientists. Over the years, the federal government has steadily outsourced lower-paying jobs to the private sector so that blue-collar workers cooking meals or working in mailrooms now make up just 10 percent of federal employees.

That argument is backed up by a 2002 study of the nonpartisan Congressional Budget Office. It found that federal salaries for most professional and administrative jobs lagged well behind compensation offered in the private sector.

The CBO study concluded that the best way to measure the difference is to compare government jobs with those in the private sector that match the actual work performed. The CBO found that salaries for 85 percent of federal workers in professional and administrative jobs lagged their private sector counterparts by more than 20 percent.

Among lawyers, for example, the average pay in the federal government was about $127,500 a year in 2009, according to the Bureau of Labor Statistics. The average lawyer in the private sector earned $137,540. And the starting salary at large law firms in Washington, D.C. — where most government lawyers work — is $160,000, and can grow to hundreds of thousands of dollars a year, according to the National Association for Law Placement.

At the lower end of the pay scale, the CBO said 30 percent of federal employees in technical and clerical fields earned salaries above those doing comparable work in the private sector. But the differences were mostly within about 10 percent — plus or minus — of private levels.

The government does offer, on average, more generous benefits to workers than the private sector. OPM data shows the federal employees earned an average of $27,317 in pension and health benefits in 2010. That’s more than double the average private sector benefits of $10,589, according to statistics from the federal Bureau of Economic Analysis.

The CBO report pointed to what it called a “long-standing concern” with the federal pay system — it allows no variation in pay raises based on occupation. That means federal workers in professional and administrative jobs may get smaller pay increases than needed to match the private sector, while technical and clerical workers get higher raises than needed.

President Barack Obama is seeking a two-year federal pay freeze, but that’s not enough for some Republicans. The GOP budget plan offered this week by House Budget Committee Chairman Paul Ryan, R-Wis., would impose a five-year pay freeze on federal employees, cut the federal work force by 10 percent and increase employee contributions to retirement plans.

Rep. Darrell Issa, R-Calif., chairman of the House Oversight and Government Reform Committee, said he wants to see Obama’s pay freeze include a ban on step increases — automatic adjustments within pay grades that are part of the federal pay system.

OPM Director John Berry says eliminating step increases would hasten the departure of valuable federal employees for the private sector.

Asked about the prospect of federal employees losing their jobs in the push to curb government spending, House Speaker John Boehner of Ohio angered Democrats earlier this year when he said, “So be it.”

“I don’t want anyone to lose their job, whether they’re a federal employee or not,” Boehner said. “But come on, we’re broke.”

More like this story

Graceful 2 years, 1 month ago

Yes, federal workers are overpaid. Obama wants a pay freeze? he jacked up the py the last twwo years. He needs to cut pay back to at 2008 levels.

asb 2 years, 1 month ago

In every large organization there are those being paid more than they really earn, but the federal pay scale in most areas of the country is 20% to 30% below the private sector for equivalent jobs. State pay is even lower. Take care painting fat cats, there is no small amount of private sector deadwood, and competition isn't up to the job of cleansing it.

asb 2 years, 1 month ago

Yep, the propaganda of every major wage index, except FOX news of course.

asb 2 years, 1 month ago

'cause they were eating them . . .

3blindmice 2 years, 1 month ago

I love how the republican leadership likes to cry about government employees but will never mention their own pay or benefits

TheRickster 2 years, 1 month ago

Nothing of this magnitude can be done overnight! We got this mess over time so take it a step at a time or there will be a revolt and crash of our social system. I am sick of this grandstanding! Put your money where your mouth is. A government official like senators are immune to this. Lets throw them into the mix and see how far they are willing to go. Graceful,,Bush administration never spoke of this. Taxes were his only slasher statements. And look where we are. We do need government jobs in most areas. They keep making new laws,,somebody has to enforce them. With that statement I am not just talking about the police. Courts, lawyers, prosecutors,and all city, county, state and yes federal workers that must tie up the loose ends.Less government, means less laws being made everyday. Restricting our rights and lefts! What some officials would like you to believe is shut down everything, except them, and start from scratch!! It doesn't work that way.

Daddy 2 years, 1 month ago

The reason you never heard of this before was because private sector workers were doing far better than public sector workers. While public workers toiled away and didn't complain the public sector made astronomical salaries. Then the crash came and the only good jobs left were still those public sector jobs. So, all these out of work angry private sector employess got what was called job envy. They are angry that someone out there who is giving their life to public service is actually doing well salary wise. The bottome line is you are seeing envious people who want to take down everyone around them complain. If it were up to the Republicans they would be rich while everyone else is forced to work 3 jobs at 8 dollars an hour just to get by. Any middle class person who votes Republican is simply voting to have their salaries, benefits, and lifestyle raped by millionairs!

Daddy 2 years, 1 month ago

Graceful your envy is evident and that sums up this whole fiasco, envy! As far as unqualified workers I have worked with many federal workers over the years all had advanced degrees and most were vets. Not sure what your idea of qualified is but we sure can see what gets you envious lol!

Daddy 2 years, 1 month ago

Graceful it's not a personal attack it's an observation. Instead of getting envious over what a federal worker makes maybe those in the private sector that are angry should get some qualifications and make a run at a federal job themselves. Again what we are seeing is envy plain and simple. The Republicans would love for the general public to put the budget problems on the worker just like they did in Wisconsin. What the Republicans don't want to be the center of attention is the billions they give to big business just like Walker gave hundreds of millions in tax cuts to big business but then turned around and said 50,000 a year workers were to blame for the budget. What the Republicans count on are people like you Graceful that fall hook line and sinker for their rhetoric.

Daddy 2 years, 1 month ago

LOL graceful every expert says we are where we are because of business bailouts and sub prime mortgages, in other words business not workers is what got us here. No where will you be able to find any type of proof that workers salaries are to blame for where we are. We gave big business billions of dollars more than the entire public sector workers salaries combined and business blew it. We are where we are because of business not workers I would love to see proof otherwise lol!

whatif 2 years, 1 month ago

Do you realize the top people of a corporation are getting paid millions in wages and then on top of that they get bonuses in the millions. And even if they are not performing their jobs in a way that keeps the corporation going they still can get a job at the same level elsewhere because they have acquired corporate knowledge that big business doesn't want us citizens to know about. Have you ever stopped to think who is really running this country...and how .... and that they are buying politicians. Why would anyone want to be in politics - money, money, money. JUST SAYING.....

Mr_Grimm 2 years, 1 month ago

where did that come from? and how is it even relevant? thanks for taking the conversation to a personal slander level. mature....pfffttt....

justaword 2 years, 1 month ago

Mr. Grimm have you not heard how much money is raised to run for office- federal and state? Have you not heard how much money called campaign donations the rich give to office holders? Have you not heard how much money the rich give to foundations, who in turn give to our political system?

If money is free speech, more money is louder free speech. Every politician is figuratively somebody’s lap dog. One’s political perspective is based on a simple question: are politicians, figuratively speaking, "our" or "their" lap dog?

Whatif, above said “Have you ever stopped to think who is really running this country...and how .... and that they are buying politicians.” The threader you found so immature was taking whatif’s thought to the state level.

This is the the truth based on my teaching experience. Once in a while, usually-but not always on a Friday, and usually from junior high students, I heard a “pfffttt.” As “pfffttt...I’m bored,” or “I’m bored... pfffttt.”

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