When a Congressional Research Service report requested by Senator Tom Coburn was released it made headlines with its assertion that some federal employees made more than the governor in the state where they lived and work. Much ado was made of the 7283 federal employees in Maryland who made more than Governor Martin O’Malley’s $150,000 salary. If a salary to salary comparison is made the argument holds but the heat that federal employees are feeling from many Republican lawmakers deserves a more thorough analysis.
Pay and benefits equals total compensation
What was left out of this analysis are some of the benefits that Governor O’Malley enjoys that federal employees do not or must work for a much longer period of time in order to enjoy a similar benefit. One of the first benefits of being Governor of Maryland, along with 43 other states is that the office comes with residence in the governor’s mansion. While putting a rental value on a mansion in Annapolis (or any other state capital) can be difficult it is probably safe to say that it is at least equal to what a military general or admiral gets for a housing allowance in a similar area. In Annapolis, Maryland this is $3057 monthly or $36,684 annually which brings the governor’s compensation up to $186,684 and it is doubtful that the governor has to provide for his own landscaping. Add to this the benefit of getting a driver in either a limo or a smaller vehicle (Maryland’s governor has two!) and total compensation is likely more than $200,000 annually. It is worth noting that only two civilian federal employees get housing as part of their benefit of federal service and that is the President and the Vice-president.
Another area where federal employees have come under fire is the pension that federal employees earn. Some studies place a value on this pension and add it to the federal employees “compensation” and some studies have placed the average federal employee’s total compensation at $123,000 annually when benefits are included. Given this, it is only logical to provide a similar process to the total compensation to state governors. A federal employee under the Federal Employee Retirement System (FERS) pays 0.8 percent of his or her pay into the system to earn a pension equal to 1 percent of high three average pay for each year of service. The Governor of Maryland has a much more generous pension plan and without ANY contribution, earns a pension equal to one-third of pay immediately upon leaving office after just one term. If the governor stays for two terms then the pension is equal to one-half of the governor’s salary. In both cases, this pension is protected from inflation by annual adjustment equal to the Consumer Price Index annual adjustment up to 3 percent annually. It is worth noting that a federal employee under FERS would need to work for 30 or 45 years to earn a similar percentage pension. In order to get the same dollar value, the federal employee would need to be a GS-15, Step 10 in one of the high cost of living areas and not all that many federal employees make it to GS-15.
Comparing Apples and Oranges
Conducting a salary comparison between an elected official such as governor, who in all likelihood is already a millionaire to a federal employee who has managed to navigate the serpentine hiring process does little to advance anything other than a partisan viewpoint. Compound this with the expense that the Congressional Research Service incurred in conducting this study it could cause the average citizen to question just how the American citizen’s tax dollars are being spent or if they are being spent wisely.
Congress, as an example of belt tightening is proposing numerous revisions to federal employee hiring, staffing, pay and retirement. Some proposals include cutting the federal workforce by 10 percent through attrition and hiring two new employees for every three departures. There are also proposals to eliminate any federal pension for new hires and there is also a proposal to have federal employees pay a greater portion toward their pension. There have even been calls for an across the board pay cut for federal employees. Some adjustments are certainly necessary but to engage in a race to the bottom for working class professionals will result in truly making the U.S. Government an employer of last resort as the best and brightest will seek employment elsewhere.
Despite the efforts of some politicians to paint federal employees as some sort of leach on American society it is time for Congress to realize and recognize that federal employees are the very people who manage, administer and execute the laws and regulations that the people of the United States elected Congress to legislate. With the constant partisan bickering and finger-pointing, along with attempts to place the blame for deficit spending on someone other than both houses of Congress, is it any wonder that Congress as a whole has the worst approval rating of any section of the United States government?
Of course all those congressional politicians may have a point after all: Each state has at least three employees who make more than Maryland’s governor and more than a large portion of the governor’s salaries throughout the United States. The two Senators and at least one Representative who earns $174,000 annually and that has a retirement plan that is much better than any rank and file federal employee. Members of Congress also have a much more generous pension plan that they can draw as early as 50 years of age for the rest of their life. Perhaps Congress should set the example on this but based on the number of scandals that have come out of our elected officials it could be argued that the only interest that they have is self interest and the rest of us should just look out!
Mark Butler - Mark Butler is a Navy veteran and the author of The Coffee Break Guide for Veterans Seeking Federal Employment.
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