BACKGROUND DOCUMENT ON COMPENSATION PRACTICES IN THE FEDERAL, NON-FEDERAL PUBLIC SECTOR AND NOT-FOR-PROFIT COMPENSATION SYSTEMS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00530R000200340001-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 19
• Document Creation Date: December 27, 2016
• Document Release Date: January 14, 2013
• Sequence Number: 1
• Publication Date: August 30, 1984
• Content Type: MEMO

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Llnited States Government
--- Office of
NCEIVIORAMMil%1- Personnel Management
Background Document on Compensation Practices in the
Federal, Non-Federal Public Sector and Not-for-Profit AU G 30 284
Compe ation Systems Date:
In Reply Refer To:
Bar 'a L. Fiss, Deputy Assistant Director
Office of Performance Management/WED
Subject:
From:
To:
All OPerM Staff
Your Reference:
Attached is an excellent document prepared by Pete Rymshaw which
I believe you will find useful as a reference guide. As the
OPerM role expands and we look at new approaches to performance
management and related issues, it is important to remain current
and to be aware of developments in the general area of personnel
management.
More organizations, including a number in the public sector are
beginning to explore areas such as flexible benefits and 401(k)
plans as ways not only of attracting and retaining a qualified
work force but also controlling costs. Because the area in which
we work is a dynamic one, I think you'll find it useful to review
the attached document and add it to your reference library.
Again, a special thanks to Pete for a job well done.
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CON 101-67-2
OPM Form 631
August 1980
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INFORMATION ON
FEDERAL PUBLIC SECTOR, PON-FEDERAL PUBLIC SECTOR
AND NOT FOR PROFIT COMPENSATION SYSTEMS
Prepared by:
Peter G. Rymshaw
Office of Performance Management
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FEATURES OF FEDERAL PUBLIC SECTOR COMPENSATION (PAY) ?
I. BASIC PAY POLICIES
- overall policy is governed by law and regulation
- except for merit pay, white collar pay is entirely centralized
- pay for blue collar set by results of survey conducted by "lead agency"
Pay Structure
- 6 rates of pay for executives (Senior Executive Service)
- open range for merit pay
- range with steps for white collar and blue collar
Differentials Between Ranges
- between 12% and 17% for white collar
- blue collar dependent on survey results
Span of Rate Range
- approx. 30% for white collar
- approx. 16% for blue collar
Steps
- used outside of merit pay
- 10 steps of equal size for white collar
- 5 steps of equal size for blue collar
Taking Pay Action
-generally white collar and blue collar step increases come after meeting
waiting period and having supervisor designate that performance has been
acceptable
- merit pay increases must include 2nd level review
- senior executive pay increases and bonuses require involvement of a
performance review board
II. RAISES AND ADJUSTMENTS
Reviewing Schedules
- annually
What Determines Size of Schedule Adjustment
- white collar pay based on "comparability" with private sector, or an
alternative amount
- blue collar pay based on survey of prevailing rates in local area (unless
otherwise limited)
Differentials Between Grades
- maintained automatically for white collar employees since increase amount
usually applies to all grades
- not set for blue collar
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Length of Service
- addressed through step advancements
COLAs (as oppos.ed to other kinds of general increases)
- not used
III. HIRING RATES
New Employees Brought in at Higher Rates
- shortage occupations have rate ranges that are shifted upward
- other individuals may be hired at advanced rate as an exception
- advanced hire rate only pertains to upper grades of the General Schedule
(white collar)
IV. JOB CHANGES
Job Up-Grading
- incumbent is either automatically promoted or is eligible to be considered
for a promotion to the higher level position
Job Down-grading
- employee is usually assigned to other position at same grade; otherwise
red-circled
Demotion
- employee's pay may be set at any rate which does not exceed his or her
present one
V. OVERTIME AND PREMIUM PAY
Unusual or Hazardous Duty
- environmental differentials
Premium Pay as a Percent of Salary
- yes, 150%
Holiday Premium Pay
- yes, double time
Staniby Duty
- yes
VI. MERIT PAY PROVISIONS
History
- Civil Service Reform Act (CSRA), 1978, brought merit pay and the Senior
Executive Service (SES) for supervisors, managers and management officials
and a new performance appraisal system
- performance is to be appraised against objective, job-related standards
- merit pay increases are to be paid out of funds formerly used for automatic
increases and longevity increases
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Coverage
- limited to managers, supervisors and management officials in General
Schedule grades, GS-13, 14 and 15. (Upper middle management)
- higher levelexecutives are in Senior Executive Service (SES), an entirely
separate personnel system; they can receive bonuses each year based on their
performance
Funding
- fixed pool concept; overall, no more nor less than would have been spent in
non-merit increases
When Do Employees See Merit Increases
- usually effective beginning of October
- most agencies pay out at that time; a few do so retroactively in December
Eligibility for Merit Increases
- all eligible based on performance
- all fully successful employees receive some increase
Size of Increases
- varies according to agency
- OPM has approved agency plans that are expected to provide minimum increases
equal to the annual increase other employees receive; maximum increases are
limited to 10% above the general increase
Importance of Performance in Setting.Pay (all employees)
- merit increases are based on annual performance ratings
- other employees must be fully successful (white collar) or satisfactory
(blue collar) to receive step increase
Bonuses
- merit pay employees can also receive cash awards for superior performance
Promotions (all employees)
- give raise immediately
- size of raise: white collar 6-9%; blue collar 4%
- white collar employees cannot be promoted again within year
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The Federal Merit Pay Experience
_History
- CSRA, 1979, brought merit pay and SES for supervisors and managers, and a
new performance appraisal system.
- performance is to be appraised against objective, job-related standards.
- merit pay increases are to be paid out of funds formerly used for automatic
increases and longevity increases.
Problems
First, there was a lack of confidence in the performance appraisal system,
particularly as it would be used to set pay.
Then, there developed rather general opposition to the idea of funding merit
increases out of what used to be automatic. Many felt that the base for Fully
Successful performers should be at least the full general increase equivalent
- even step increase equivalents.
Fixes
New merit pay regulations were proposed to guarantee the full general increase
to Fully Successful performers. Also, many changes would have been made to
clean up the performance appraisal system. However, regs were stopped as a
result of political process.
Recently, Senator Trible proposed legislation that would make substantial
changes to the merit pay system, using most salary increase monies to provide
equity with other white collar employees, but providing for "performance
awards" as bonuses for high level performance.
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FEATURES OF NON-FEDERAL PUBLIC SECTOR COMPENSATION (PAY)
Source: PubliC-Personnel Administration
Policies and Practices for Personnel
Special Survey Report: Compensation Practices
12-20-82
Responses from 116 city governments
34 state governments
32 county governments
I. BASIC PAY POLICIES
- 95% have formal, written policy
- except regarding uniformed services, almost as many jurisdictions
allowed for moderate supervisory discretion as did not
Pay Structures
- rate range used by 90% (as opposed to single rate)
Differentials Between Ranges
- average 5% for blue collar, 6% for white collar, 7% for police and
firefighters
Span of Rate Range
- general constant throughout structure of each plan
- average 26% for police and firefighters, 27% for blue collar, 28% for
white collar workers, 29% for white collar supervisors, and 20% for
professionals and administrators
Steps
- Used by 80% for blue collar and police
75% for white collar
67% for professionals and administrators
- most common number of steps is 5, 6, or 7,
- number of steps held constant, in some cases size of step increase
(dollars) increased at higher part of range
Taking Pay Action
- usually two levels of approval needed, sometimes 3, rarely only 1 level
- even so, two thirds of respondents said a "designated Personnel
official" can still disapprove.
II. RAISES AND ADJUSTMENTS
Reviewing Schedules
- anually by 60% of respondents
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What Determines Size of Schedule Adjustment
- more than half said "ability to pay"
- 26% said internal collective bargaining
- only 20% use pay survey data
*
Differentials Between Grades
- maintained automatically according to 75%
- 10% said part automatic, part performance
- almost none used performance alone, or length of service
Length of Service
- 35% of respondents give increases based on length of service only
- jurisdictions range from 3% to 6% on size of increase
COLAs (as opposed to other kinds of general increases)
- only 26% give COLAs, and only half of those use CPI solely
- very few have an established ceiling for COLA increases
- most do adjustment annually
III. HIRING RATES
New Employees Brought in at Nigher Rates
- about 80% allow hiring above minimum rate
- about 75% said they actually do it
- less than 18% of employees are brought in above minimum rate, of whom
most are supervisors and professionals
- higher offers were made mostly to candidates in physical sciences,
engineering and computer science
Reason
- work experience first, then critical skills
- very few use housing costs, etc.
Former employees
- 75% have specific policy for setting pay on return
- of these, 25% treat as any other employee, 33% hire back into same
relative position in the range
IV. JOB CHANGES
Job Up-grading
- 60% immediately adjust pay, most to new range minimum or by 4% if pay
is above minimum
Job Down-grading
- 40% red circle pay
- 20% immediately reduce pay to new maximum
Demotion
- about half to 40% immediately reduce pay to range maximum, 20% do it
gradually
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V. OVERTIME AND PREMIUM PAY
Unusual or, Hazardous Duty
- 20% give-special premiums to police and blue collar; 10% to
firefighters.; only 5-7% to white collar
- generally, these conditions are "factored in" to white collar
classification; in about 1/3 of cases it is factored into blue collar
as well
- when factored in it is rare that it changes grade level
Premium Pay as a Percent of Salary
- range from average of 10-19% based on occupation and supervisory status
Holiday Premium Pay
- 40-50% provide it
- usual premium is 150% of straight time
- those not paying premiums give compensatory time off, usually on 1:1
basis
- holiday overtime is also usually paid at 150% (40% of respondents);
Under 10% pay either 100%, 200% or 250%
Standby Duty
- most jurisdictions reported that employees are subject to, but little
responses as to how compensated
VI. MERIT PAY PROVISIONS
Merit Pay
- 70% use for all but police and firefighters
- 54% for firefighters
- 58% for police
When Do Employees See Merit Increases?
- about half use fixed time period; most "immediately" or 1 month after
Eligibility for Merit Increases
- almost none said it was controlled
- average of 87% receive them
Size of Increases
- two-fifths have minimums (usually 3%) and maximums (usually 9%)
Importance of Performance in Setting Pay
- Two-thirds said most important
- one-third said position in range
- one-quarter said time since last increase
Promotions
- almost all give raise immediately
- size of raise: minimum 4%, maximum 6%
- only about 20% have minimum period to be considered for another
promotion, usually 8 or 9 months.
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FEACEURES CF FERAL RELIC SECItR DIPLOME BENEFIT PLANS
Paid Holidays
? 9 per year
Annual Leave
? beginning, 13 days per year
? after 3 years, 1.91/2 days per year
? after 15 years, 26 days per year
Sick Leave
? earn 13 days per year
? no limit on accumulation
? emplcyees are not paid for unused sick leave at termination or separation
Other Leave
? jury leave
? military leave
Health Insurance
? employees are able to select frcm a large number of plans
? Government contributes an amount egual to about half of the cost of family
coverage
Life Insurance
? Goverment pays 1/3 of basic (salary .+ $2,000)
Disability
? none
Ibrtious Acts
? none
Retirement System
? mandatory participation
? emplcyees contribute 7%
? Government also contributes 7%
? vest into system after 5 years
? full benefits after: twenty years service at age 62
thirty years service at age 55
? retirement benefits--uses high three years salary and years of service as
factors
? all employees hired after January 1, 1984 are under Social Security System
Deferred Cmpersation
? none
Legal Services
? none
Other Benefits
? most agencies prcvide free parking, although car-pools may be reguired
? health facilities are common
? paid recreation facilities are rare (except on military bases)
? cost of relocation can be reimbursed to employees changing jobs
? employees are eligible for suggestion and performance wards
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FEATURES OF NON-FEDERAL PUBLIC SECTOR
EMPLOYEE BENEFIT PLANS
Sources: Public Personnel Administration
Policies and Practices for Personnel
Special Survey Report: Compensation Practices
12/20/82
A Study of State Government Employee Benefits
Assembly of Governmental Employees (AGE)
January, 1984
Paid Holidays
- average 10 1/2 per year
Annual Leave (state governments)
- varies quite a lot
- 12 days, first year most typical
- 15 days after 5 years
- 18 days after 10 years
- 21 days after 20 years
Sick Leave (state governments)
- average I31/2earned per year
- 36 states have no limit on accumulation
- employees are generally not paid for unused sick leave
at termination or separation
Other Leave (state governments)
- jury duty is universal
- military leave is universal
- 47 states grant education leave
Health Insurance (state governments)
- 24 states pay the entire individual (not family) premium
- 48 states make insurance available to retirees
- 25 states have dental coverage, all or most paid
Life Insurance
- 90 percent of jurisdictions provide at no employee cost (amount
based on employee salary and sometimes age)
- 11 states have fixed amount for all employees ranging from
$2,000 to $18,000.
Disability (state governments)
- Only 15 states provide for short tem disability
- 20 states provide for long term disability
Tortious Acts (state governments)
- 27 states provide liability protection for tortious acts
committed during performance of official duties.
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Retirement Systems
- 96% of public employers provide a pension plan; only 40%
integrate it with Social Security
- mandatory participation in all 50 states
- employee must Contribute in 39 states (average 5.1% of salary)
state contribution average 9.8%
- average time for vesting into system -- 7.5 years (states)
- average age for full benefits -- 59 years (states)
- retirement benefits average 1.75% x years of experience x high
3 or 5 years compensation (states)
- employees of 43 states also participate in SSS
- 40% of public plans are integrated with SSS
- according to 1982 survey: 40% of public pension plan were last
adjusted in 1981, 20% in 1980
Deferred Compensation
- 46 states either have a system or plan one; systems also prevalent
- in municipal and county government, and especially educational and
health institutions
Legal Services
- Not widely adopted. One example would be Thomas Jefferson University
in Philadelphia, where it is an option under the flexible benefits
plan
Other Benefits
- about 80% of public employers provide parking facilities while
only 10% ask the employee to share cost
- less than 10% provide recreational facilities; less than 20%
provide health facilities
- 30% of jurisdictions give relocation allowances to white collar
supervisors and professionals and administrators; far fewer provide
it for other employee groups
- private sector benefits - bonuses, discounts on goods and services,
non-cash/non-production gifts, savings or "thrift" plans, stock
purchase plans - rare
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DIFFERENZES Di PRIVATE (PROFIT PND NOT li)R PR:VIT)
VS. PUBLIC CCKEENSATION PIANS
Private Public
About half of new hires are brought in
above the minimum rate.
Standby duty musual.
Savings/thrift plans are camron.
40% give employee discounts.
Many enployers allow personal use of
company car.
ReOreational facilities at about 40% of
companies.
Less than 18% are.
Required in some occupations
(particularly uniformed
employees).
No.
No.
No.
Less than 10% of employers
have recreational facilities.
Note: This comparison excludes those canpensation features which are tnique
to "for profit organizations e.g. profit sharing ani stock purchase plans of
all types.
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COMPARISON OF LEVEL OF BENEFITS
' INDUSTRY vs. MUNICIPAL GOVERNMENTS
- See attached extract from 1979 National Survey.
- cities expend a higher percent of pay for fringe benefits.
- the trend shows the gap to be widening, but not necessarily because absolute
benefits are growing, but because total pay (the base on which the percent
is calculated) is growing more slowly than in industry.
- many states, cities and health and education institutions have had to absorb
Federal revenue cuts and are not expanding benefits.
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summary
1979 NATIONAL SURVEY OF EMPLOYEE BENEFITS FOR
FULL-TIME PERSONNEL OF U.S. MUNICIPAUTIES
(Including Forecast to 1981)
by EDWARD H. FRIEND dud LORRAINE A. LUFKIN with assistance from STEVEN P. YAROCH
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FRINGE BENEFITS: CITIES CONTINUE
TO SPEND MORE THAN INDUSTRY-AND
DIFFERENCES WIDEN
Survey results indicate that cities continue to expend a
higher percentage of working pay for "fringe benefits" on
behalf of all categories of municipal workers than private
industry pays on behalf of its workers, and, in fact, the gap
is widening. Comparative figures are as follows:
FRINGE BENEFITS AS A PERCENTAGE
OF PAY FOR HOURS WORKED
Municipal
Percentage of Pay
1977 Survey 1979 Survey
? "composite" average for sworn (police
and fire) personnel
46.0%
47.5%
? "composite" average for general
(sanitation and other) personnel
42.7%
43.8%
Percentage of Pay
Industry
1977 Surrey
1979 Survey
? average for non-manufacturing
industry personnel
41.0%
41.4%
? average for all industry personnel
41.9%
42.2%
For non-manufacturing industry personnel, "pay for hours
worked" increased by 7.5% per annum between the 1977
survey and the 1979 survey. In cofitrast, fringe benefit
expenditures increased by 8.1% per annum. The combina-
tion was responsible for an increase in the percentage of
pay for hours worked expended on fringe benefits from
41.0% to 41.4%.
In contrast, municipal general personnel (sworn person-
nel) "pay for hours worked" increased by 6.8% (7.1%)
while corresponding fringe benefit expenditures increased
by 8.3% (9.0%). These combinations were responsible for
increases in percentage expenditures on fringe benefits
from 42.7% to 43.8% (46.0% to 47.5%).
Differences between relative expenditures by cities and
industry have widened because of the higher "spread"
between the annual rate of growth of fringe benefit
expenditures vs. the annual rate of growth in pay for hours
worked, i.e., 1.5% per annum for general (1.9% per annum
for sworn) vs. 0.6% per annum for non-manufacturing
industry.
Comparative rate of growth figures for fringe benefits
and pay for hours worked illustrate these differences.
ANNUAL RATE OF GROWTH IN FRINGE BENEFIT
EXPENDITURES
Municipal
Percent per annum
1977 Survey
1979 Survey
? "composite" average for sworn personnel
7.2%
9.0% ?S
? "composite" average for general personnel
9.0%
8.3% -.7
Percent per annum
Industry
1977 Survey
1979 Survey
? average for non-manufacturing industry
personnel
8.4%
8.1% -.3
? average for all industry personnel
9.30/0
8.8% -
ANNUAL RATE OF GROWTH IN PAY FOR HOURS WORKED
Percent per annum
Municipal 1977 Survey 1979 Survey
? "composite." average for sworn personnel 7.8%
? "composite" average for general personnel 6.8%
7.1% -?
6.8%
Percent per annum
Industry 1977 Survey 1979 Survey
? average for non-manufacturing industry 6.7% 7.5%
personnel
? average for all industry personnel 6.6% 8.3% I. 7
Proportion of Nation's Cities Responding to Survey
The nation's municipalities with population size over
10,000 were approached for information on fringe benefits
for full-time personnel. Of the 2,480 municipalities that
received the questionnaire, 991 cities or 40% of the surveys
were included in the current results.
Survey Results Actually Understate the Value of
Employee Benefits Provided by Municipalities
Many cities are inadequately financing their pension plans
and, consequently, report pension costs which are lower
than the value of accruing benefits. Only actual amounts
contributed to these plans were included in the survey
(not the real cost). Accordingly, it would not be unrea-
sonable to adjust in an upward direction the percentages
of pay determined to have been expended by municipalities
for fringe benefits. The size of the adjustment is likely
to be of the order of magnitude of three to six percent
of pay for hours worked.
3
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IIWORMATICNci HMLTH SERVICES Ik:aiiirrICINS
Source: American dampensation Association/Prentice Hall
Survey, 1982
- Institutions generally review and adjust pay schedules anrually.
- 70-80% of institutions grant pay increases under merit system.
- Cost of living and length or service increases are granted by 10-20%
of institutions.
- Premium pay is generally not granted for Sunday work, but is for
holidays.
OMER IPPOINATICIN
- Although not 401(k) plans, hospitals and health institutions have used
TSA's (Tax Sheltered Anruities) for years.
- 300 hospitals participated in the ACA/prentice Hall/CPM survey.
(Private sector)
- Recent strike by nurses in Minneapolis-St. Paul was about job
security. The Federal Goverment's moves to try to reduce health care
costs has prompted hospitals to reduce their staffs. Thus, there has
been no large employee-pranpted movement toward progressive benefits
plans.
- There has been a great deal of industry interest in performance
appraisal. However, just as there has been when the subject was
raised for teachers, there is a great deal of concern about
objectivity.
- The health care area used to he a "single industry." Ncw it is very
different depending on whether the institution is Federal; city,
county or state; not for profit; or prcpriatary (private, profit
making).
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SPECIAL FEATURES IN PUBLIC AND NOT FOR PROFIT COMPENSATION
Sources: Bureau of National Affairs, Personnel Management Manual.
Personnel Administrator, June 1983
I. Child Care
This is an expanding employee benefit, particularly with employers in
the Health Care sector. Some examples are:
Baptist Hospital, Miami, Florida
- Day Care Center is subsidized by hospital
employees pay only $20 per week per child
hospital supplies space and picks up rest of expenses
for children aged 6 weeks to 6 years
Edgewater Hospital, Chicago, Illinois
- for children of doctors and registered nurses
- parents pay $5 per day per child
? children between 21/2 and 5 years admitted
- existed for 10 years now
Prince Georges General Hospital, Cheverly, Maryland
- Center is treated as a department of the hospital
- tuition is charged, although hospital susidizes it to some extent
- two shifts--open from 6:45 a.m._ to 12:15 a.m.
Arlington Hospital, Arlington, Virginia
- non-funded on-site center for children of all employees
- operates from 6:30 a.m. to 11:30 p.m.
- for children 6 weeks to 2 years, to be expanded up to age 6 years
also:
The U.S. Air Force
child care offered for military and civilian employees at 122 Air
Force bases
11 bases operate pre-school programs
programs/centers in 1982 served over 18,000 children per day in
the child care centers; 9,000 in the pre-schools
hours usually include after school and summer care, in many cases
evening and weekends
ages of children usually span from infant up to school age
meals and snacks also provided
centers are "affordably priced"
new initiatives being tested: 24 hour service, advanced training
for child care directors
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New York State Government
- Children's Place at the Plaza set up in Albany in 1979 was first
for state employees
State provides space, renovations and maintenance; parents pay all
operating costs
^ ages eight weeks through kindergarten
- operates from 7:00 a.m. to 5:30 p.m.
? breastfeeding--mothers may nurse their infant during work breaks
mainstreaming--children with handicaps are accepted and integrated
into the programs
close-by field trips
II. Flexible Benefit Plans
There are a number of examples of plans where employees can select from
among various levels and types of benefits, as well as cash options in
some cases.
City of Dallas, Texas
- employees choose among six "bundled" benefits packages
variables include medical, dental, vision care, dependent care,
and life insurance
? options can be changed once per year or when there is a change in
family status
Ulster County, New York
- instituted plan when unable to compete against IBM and others
- became self-insured to cut costs and improve benefits
- flexible management compensation plan on January 1, 1984
- spending account will eventually cover 2,500 county and community
college employees
Lincoln, Nebraska Public Schools
^ adopted in 1975
^ original plan was not meeting needs of employees, 70 percent of
whom are female
permits cash options instead of benefits
? employees can choose among Blue Cross, HMO's, life insurance,
disability, dental care, vision care, and cash
^ unions like it
State of Alaska
? State withdrew from Social Security System in 1980
- State contributes 12.26 percent of salary, up to the SSS wage
base, to the Supplemental Benefits Program on behalf of the
employee
each year, or when there is a change in family status, employee
purchases survival benefits, disability benefits, death benefits,
health benefits, and annuity benefits
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? Declassified and Approved For Release 2013/01/14: CIA-RDP90-00530R000200340001-7
IIP
Maricopa Community College, Phoenix, Arizona
- employees may choose any or none of the following:
health care (3 options)
dental care (2 options)
short-term disability (3 options)
vision care (2 options)
health evaluation (3 options)
^ employees may decline all but $5,000 in life insurance and take a
sizable cash option
Hudson Memorial Hospital, Wisconsin
- salary reductions and employer contributions are used for
"reimbursement account"
employees pay for health insurance, child care, dental, vision,
hearing from the account
Thomas Jefferson University, Philadelphia, Pennsylvania
- plan to begin October 1, 1984
^ included are options for medical care coverage and life and
disability insurance
- additional flexible spending account for health care benefits,
legal services and dependent care assistance
^ employees may contribute, prior to the plan year, pre-tax salary
amounts to their accounts (there will be a maximum)
^ lowest option choices would credit spending accounts with as much
as $2,000
State of Minnesota
? employees may choose from among several options each in the areas
of health insurance, dental insurance, and life insurance
III. Deferred Compensation
Section 401(k) Deferred or Cash Profit Sharing Plan
- IRS has defined "profit" as excess receipts over expenditures.
- State of Tennessee has 401(k) plan. This is the only state to
have one.
- Tennessee Valley Authority (TVA) and Federal Reserve System are
federally connected non-profit organizations with 401(k)s.?
Section 403(b) Tax Sheltered Annuities
- well established in public and non profit sectors. Health care
and educational institutions have used them for years.
Section 457 State and Local Government Deferred Compensation Plans
- US Conference of Mayors (in Labor-Management Relations Service
Newsletter) reports that 284 cities (47,000 employees) under their
Deferred Compensation Plan. Public Employees Benefit Services
Corporation (PEBSCO), who administers it, also administers a
similar program for counties and 13 states. All tolled PEBSCO
covers 1,000 jurisdictions, 200,000 employees.
Declassified and Approved For Release 2013/01/14: CIA-RDP90-00530R000200340001-7