The federal government has become one of the best places to work, paying more in salary and benefits than the private sector, offering up to 43 days off, funding a high retirement match, and providing a healthcare system that gives workers some 300 plan choices, according to a new analysis.
But instead of bragging about the situation, a new Heritage Foundation report is joining with the Trump administration in calling for major reforms to reduce the annual $276 billion price tag for 2 million workers.
“The current system is long overdue for a thoroughgoing makeover,” said the report written by Reagan-era personnel director Donald J. Devine.
His analysis supports efforts in the administration to modernize the federal workforce, provide more automation for easy jobs, refocus on IT, and make it easier to replace – or fire – a poorly performing employee. That effort is a key goal of Budget Director Mick Mulvaney, now slated to become President Trump’s chief of staff.
“Employee performance should come first when it comes to basic human resources decisions. The federal government should remove red tape that prevents agencies from hiring, promoting, and retaining top talent,” said the report.
Devine produced a lengthy list of federal worker pay and benefits. Among his highlights:
- Federal workers earn 22 percent to 40 percent more than private sector workers in pay and benefits.
- Employees get cost of living and scheduled pay increases.
- Paid time off include 20 vacation days, 13 paid sick days, 10 federal holidays.
- The government pays 72 percent of healthcare premiums and offers some 300 healthcare plans.
- Retirement with benefits comes at age 55 for those with 30 years.
- Matches to retirement contributions range from 15 percent to 18 percent, far higher than the typical 3 percent to 5 percent in the private workforce.
Devine’s report urges a shift from the over-weighted civil service to political appointees, a system begun decades ago in a move pushed by progressives.
“Our current system, largely implemented during the New Deal, was designed to replace the amateurism and corruption endemic to the old spoils system, wherein government jobs were used to reward loyal partisan foot soldiers, with professionalized, scientific, and politically neutral administration. While Progressives designed the merit system to promote expertise and shield bureaucrats from partisan political pressure, it now insulates civil servants from accountability,” he wrote.
Devine added, “The modern merit system has made it impossible to fire all but the most incompetent civil servants. Complying with arcane rules regarding recruiting, rating, hiring, and firing has replaced the goal of cultivating competence and expertise.”
Despite the benefits of working for Uncle Sam, a federal-wide employee survey found that some 40 percent are not satisfied with their compensation, and that morale is low.
Many critics of federal compensation point to a handful of surveys showing that private benefits and salary are better, but Devine dismissed those. He wrote:
