U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

Appendix A

COMPARISON OF LEO AND NON-LEO ANNUITIES

This appendix provides graphical comparisons between regular and LEO retirement benefits. Appendix A1 compares the relative value of CSRS regular retirement versus CSRS LEO retirement, and a chart that compares the value of an annuity of a CSRS GS-13/7 LEO receiving 25 percent availability pay and an annuity of a regular CSRS GS-13/7 employee.

Appendix A2 contains a chart that compares the relative value of FERS regular retirement versus FERS LEO retirement, and includes an example chart that compares the value of an annuity of a FERS GS-13/7 LEO receiving 25 percent availability pay and an annuity of a regular FERS GS-13/7 employee. These charts show the value of FERS defined benefits only. The value of Thrift Savings Plan and Social Security benefits are not shown. Since the FERS defined benefit is at a lower accrual rate and because it is one of three parts of retirement, the actual amount of the defined benefit is a less significant part of retirement for a FERS retiree than the CSRS defined benefit is for a CSRS retiree.

Appendix A3 contains charts showing the age distribution of selected LEO and non-LEO employee groups. The data in this chart are from the March 2003 Central Personnel Data File.

This appendix is organized as follows:

A1- CSRS Retirement Benefits

A1-1 CSRS regular formula vs. CSRS LEO formula.

A1-2 Chart comparing the value of an annuity of a CSRS GS-13/7 LEO receiving 25 percent availability pay and an annuity of a regular CSRS GS-13/7 employee.

A2- FERS Retirement Benefits

A2-1 FERS regular formula vs. FERS LEO formula.

A2-2 Chart comparing the value of an annuity of a FERS GS-13/7 LEO receiving 25 percent availability pay and an annuity of a regular FERS GS-13/7 employee.

A3- LEO and non-LEO Age Distribution

A3-1 Age Distribution of selected LEO and non-LEO employee groups.

A3-2 Age Distribution of selected LEO and non-LEO employee groups (continuation of chart A3-1).

APPENDIX A1-1

APPENDIX A1-2

The annual annuity rates shown in this chart are derived from the 2001-2003 average pay of a GS-13/7 in the Washington-Baltimore, DC-MD-VA-WV locality pay area. The 2001-2003 average pay of a non-LEO GS-13/7, or a LEO GS-13/7 without availability pay in the Washington-Baltimore locality pay area is $79,399. The 2001-2003 average pay of a GS-13/7 Criminal Investigator receiving availability pay in the Washington-Baltimore locality pay area is $99,249.

APPENDIX A2-1

This chart shows the value of FERS defined benefits only. The value of Thrift Savings Plan and Social Security benefits are not shown. Since the FERS defined benefit is at a lower accrual rate and because it is one of three parts of retirement, the actual amount of the defined benefit is a less significant part of retirement for a FERS retiree than the CSRS defined benefit is for a CSRS retiree.

APPENDIX A2-2

The annual annuity rates shown in this chart are derived from the 2001-2003 average pay of a GS-13/7 in the Washington-Baltimore, DC-MD-VA-WV locality pay area. The 2001-2003 average pay of a non-LEO GS-13/7, or a LEO GS-13/7 without availability pay in the Washington-Baltimore locality pay area is $79,399. The 2001-2003 average pay of a GS-13/7 Criminal Investigator receiving availability pay in the Washington-Baltimore locality pay area is $99,249.

This chart shows the value of FERS defined benefits only. The value of Thrift Savings Plan and Social Security benefits are not shown. Since the FERS defined benefit is at a lower accrual rate and because it is one of three parts of retirement, the actual amount of the defined benefit is a less significant part of retirement for a FERS retiree than the CSRS defined benefit is for a CSRS retiree.

APPENDIX A3-1

The table and charts above present certain statistical characteristics of selected relevant employee groups with LEO retirement coverage (LEOs) and without LEO retirement coverage (non-LEOs). While the sample is quite large, it is not the entire universe of LEOs and non-LEOs. The table indicates that individuals in the LEO category have an average age of nearly 40 years, while individuals in the non-LEO category have an average age of nearly 43 years. Three-fourths (75.1 percent) of the LEO group is 45 or younger, while just over one-half (57.4 percent) of the non-LEO group is 45 or under.

APPENDIX A3-2

It is apparent that the two groups have two distinctly different age distributions. The LEO group is more clustered around its average age, and the distribution indicates a younger population than the GS group. The GS group has a more even distribution of ages.