Federal Pensions: Judicial Survivors' Annuities System Costs and Benefit
Levels (Letter Report, 06/26/97, GAO/GGD-97-87).

Pursuant to a legislative requirement, GAO reviewed certain aspects of
the Judicial Survivors' Annuities System (JSAS), focusing on: (1) the
system's costs; (2) whether the participants' contributions covered
one-half of the costs; and (3) the adjustments needed to achieve the
50-percent figure if the contributions are less than one half of the
system's costs.

GAO noted that: (1) the participating judges did not pay one-half of the
JSAS normal cost during fiscal years 1994 and 1995, they paid about 36
percent; (2) based on information contained in JSAS' 1995 actuarial
report, to cover one-half of the future costs, the judges' contribution
would need to increase 0.9 percentage points above the 2.2 percent of
salary currently paid by active and senior judges and the 3.5 percent of
annuities paid by retired judges; (3) however, increasing required
contributions could affect the judges' rate of participation, and
increasing participation was one of the major reasons for enhancing
JSAS' benefits and reducing the judges' contributions in 1992; (4) JSAS'
benefits are greater than those available to the majority of federal
employees; (5) JSAS provides greater spousal and children benefits,
expressed as a percentage of salary, than those for employees under the
Civil Service Retirement System (CSRS), the Federal Employees Retirement
System (FERS), and the military's Survivor Benefit Plan; (6) JSAS
benefits also are greater than those for Members of Congress; (7) while
a direct comparison of contribution rates for active participants among
the plans could not be made because of differing program designs,
retired judges under JSAS contributed a smaller percentage of their
annuities for survivor benefits than retired general employees and
Members of Congress under CSRS and FERS and retired members of the
military; (8) two judicial plans in GAO's study provided spousal and
children benefits that were similar to JSAS; and (9) also, JSAS included
features that were not available in the other survivor plans GAO
studied.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  GGD-97-87
     TITLE:  Federal Pensions: Judicial Survivors' Annuities System 
             Costs and Benefit Levels
      DATE:  06/26/97
   SUBJECT:  Federal employee retirement programs
             Employee survivors benefits
             Pension plan cost control
             Cost sharing (finance)
             Fringe benefit costs
             Future budget projections
             Judges
             Social security benefits
             Retirement pensions
             Comparative analysis
IDENTIFIER:  Judicial Survivors' Annuity System
             Civil Service Retirement System
             Federal Employees Retirement System
             Military Retirement System
             Survivor Benefit Plan
             U.S. Tax Court Survivors' Annuity Plan
             U.S. Court of Veterans Appeals Judges Retirement Plan
             Judicial Retirement System
             Judicial Officers' Retirement Fund
             Court of Federal Claims Judges' Retirement System
             Social Security Program
             
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Cover
================================================================ COVER


Report to Congressional Committees

June 1997

FEDERAL PENSIONS - JUDICIAL
SURVIVORS' ANNUITIES SYSTEM COSTS
AND BENEFIT LEVELS

GAO/GGD-97-87

Federal Pensions

(410001)


Abbreviations
=============================================================== ABBREV

  AOUSC - Administrative Office of the U.S.  Courts
  COLA - cost-of-living adjustment
  CPI - Consumer Price Index
  CSRS - Civil Service Retirement System
  FERS - Federal Employees Retirement System
  JSAS - Judicial Survivors' Annuities System
  OPM - Office of Personnel Management
  SBP - Survivor Benefit Plan
  TSP - Thrift Savings Plan

Letter
=============================================================== LETTER


B-270286

June 27, 1997

The Honorable Orrin G.  Hatch, Chairman
The Honorable Patrick J.  Leahy
Ranking Minority Member
Committee on the Judiciary
United States Senate

The Honorable Henry J.  Hyde, Chairman
The Honorable John Conyers, Jr.
Ranking Minority Member
Committee on the Judiciary
House of Representatives

This report was prepared in response to the requirements of the
Federal Courts Administration Act of 1992 (P.  L.  102-572)
specifying that we review certain aspects of the Judicial Survivors'
Annuities System (JSAS).  JSAS is one of several survivor benefit
plans applicable to particular groups of federal employees.  It
provides annuities to the surviving spouses and dependent children of
deceased federal judges and other judicial officials who participate
in JSAS. 

The 1992 Act enhanced the benefits available from JSAS and reduced
the amounts participating judges and other judicial officials were
required to contribute toward the plan's costs.  The act requires us
to review the system's costs every 3 years and to determine whether
the participants' contributions covered one-half of the costs.  If
the contributions are less than half of these costs, we are to
determine what adjustments would be needed to achieve the 50-percent
figure.  The act also requires us to compare JSAS to the survivor
benefit plans for other federal employees. 

To respond to this requirement, we reviewed JSAS' 1993 to 1995 annual
reports submitted by the Administrative Office of the U.S.  Courts
(AOUSC) to Congress and the Comptroller General.  Such reports are
required by Public Law 95-595 and contain financial and actuarial
information indicative of JSAS' cost and financial status.  Our
analysis of the judges' share of JSAS costs was done for the first 2
full years of the 1992 Act, fiscal years 1994 and 1995.  We did not
use the fiscal year 1993 cost information for this part of our
analysis because it was based on actuarial information as of
September 30, 1992, and did not reflect the changes in participant
benefits and contributions resulting from the 1992 Act, which became
effective on October 29, 1992.  The costs we examined were "normal
costs." Normal cost is a term used to describe the annual cost of
funding a pension or survivor plan, expressed as a percentage of
payroll.  Our comparison of JSAS to other federal survivor benefit
plans was based on a review of applicable federal statutes,
regulations, and agency guidance as well as interviews with agency
specialists.  For this comparison, we chose those plans previously
compared to JSAS in developing the 1992 Act--the Civil Service
Retirement System (CSRS), including Members of Congress, the Military
Retirement System's Survivor Benefit Plan (SBP), the U.S.  Tax Court
Survivors' Annuity Plan, and the U.S.  Court of Veterans Appeals
Judges Retirement Plan.  We also included the Federal Employees
Retirement System (FERS) because it covers a large number of federal
employees.  The Tax Court and Veterans Appeals judges plans are not
administered by AOUSC. 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

The participating judges did not pay one-half of the JSAS normal cost
during fiscal years 1994 and 1995; they paid about 36 percent.  Based
on information contained in JSAS' 1995 actuarial report, to cover
one-half of the future costs, the judges' contribution would need to
increase 0.9 percentage points above the 2.2 percent of salary
currently paid by active and senior judges and the 3.5 percent of
annuities paid by retired judges.  However, increasing required
contributions could affect the judges' rate of participation, and
increasing participation was one of the major reasons for enhancing
JSAS' benefits and reducing the judges' contributions in 1992. 

JSAS' benefits are greater than those available to the majority of
federal employees.  JSAS provides greater spousal and children
benefits, expressed as a percentage of salary, than those for
employees under CSRS, FERS, and the military's SBP.  JSAS benefits
also are greater than those for Members of Congress.  While a direct
comparison of contribution rates for active participants among the
plans could not be made because of differing program designs, retired
judges under JSAS contributed a smaller percentage of their annuities
for survivor benefits than retired general employees and Members of
Congress under CSRS and FERS and retired members of the military. 
Two judicial plans in our study provided spousal and children's
benefits that were similar to JSAS.  Also, JSAS included features
that were not available in the other survivor plans we studied. 


   BACKGROUND
------------------------------------------------------------ Letter :2

Most federal civilian employees are covered by CSRS or FERS.  Both
these retirement plans include survivor benefit provisions.  Three
separate retirement plans apply to various groups of judges in the
federal judiciary, with JSAS being available to participants in all
three retirement plans to provide annuities to their surviving
spouses and children.  AOUSC administers all four of these plans. 
The Judicial Retirement System automatically covers U.S.  Supreme
Court Justices, federal circuit and district court judges, and
territorial district court judges, and is available, at their option,
to the Administrative Assistant to the Chief Justice, the Director of
AOUSC, and the Director of the Federal Judicial Center.  The Judicial
Officers' Retirement Fund is available to bankruptcy and full-time
magistrate judges, and the Court of Federal Claims Judges' Retirement
System is available to Court of Federal Claims judges.  Except for
judges who are automatically covered under the Judicial Retirement
System, judges and judicial officials may opt to participate in CSRS
or FERS rather than one of the other judicial plans if they were in
either CSRS or FERS at the time of their appointment. 

Judges who retire\1 under any of the three judicial retirement plans
generally continue to receive the full salary amounts that they were
paid immediately before retirement, assuming they met the age and
service requirements.  Retired territorial district court judges
receive the same cost-of-living adjustment (COLA) increase that CSRS
retirees receive, except that their annuities cannot exceed 95
percent of an active district court judge's salary.  Court of Federal
Claims judge retirees continue to receive the same salary payable to
active Court of Federal Claims judges.  Those in the Judicial
Retirement System and the Court of Federal Claims Judges' Retirement
System are eligible to retire at age 65 with 15 years of service. 
Those in the Judicial Officers' Retirement Fund are eligible to
retire at age 65 with 14 years of service.  The judicial officers
under the Judicial Retirement System can retire with 80 percent of
full salary at age 65 with 15 years of service.  Participants in all
three judicial retirement plans are required to contribute to Social
Security and receive benefits. 

JSAS was created in 1956 to ensure financial security for the
families of federal judges.  It provides benefits to eligible spouses
and dependent children of judges who elect coverage within 6 months
of taking office or within 6 months after getting married, if they
are not married when they take office.  Active and senior judges
contribute 2.2 percent of their salaries, and retired judges
contribute 3.5 percent of their annuities to JSAS.  Upon a judge's
death, the surviving spouse is to receive an annual annuity equal to
1.5 percent of the judge's average annual salary during the 3 highest
paid years (known as the "high 3") times years of creditable service. 
The annuity may not exceed 50 percent of high 3 and is guaranteed to
be no less than 25 percent.  Separately, an unmarried dependent child
under age 18, or 22 if a full-time student, receives a survivor
annuity equal to 10 percent of the judge's high 3.  COLAs are paid to
surviving spouses and children based on annual increases in the
Consumer Price Index (CPI).  Spouses and children are also eligible
for Social Security survivor benefits.  Appendix I provides more
details on these and other features of JSAS. 

Since its inception in 1956, JSAS has changed several times.  Because
of concern that too few judges were participating in the plan (74
percent of federal judges participated in 1985, down from 90 percent
in 1976),\2 Congress made broad reforms effective in 1986 with the
Judicial Improvements Act of 1985 (P.  L.  99-336).  The act (1)
increased the annuity formula for surviving spouses from 1.25 percent
to the current 1.5 percent of high 3 for each year of creditable
service and (2) changed the provisions for surviving children's
benefits to relate benefit amounts to judges' high 3 rather than the
specific dollar amounts provided by the Judicial Survivors' Annuities
Reform Act (P.  L.  94-554) in 1976.  In recognition of the
significant benefit improvements that were made, the 1985 Act
increased the amounts judges were required to contribute from 4.5
percent to 5 percent of their salaries and retirement annuities. 

The 1985 Act also changed the requirements for government
contributions to the plan by specifying that the government would
contribute whatever amounts were necessary (up to a maximum of 9
percent of participating judges' salaries and annuities) to keep the
plan fully funded.  Under the 1976 Act, the government matched the
judges' contributions of 4.5 percent of salaries and annuities. 
Despite the benefit improvements in the 1985 Act, the rate of
participation in JSAS continued to decline.  In 1991, it was about 40
percent overall and 25 percent for newly appointed judges. 

In response to concerns that required contributions of 5 percent may
have been creating a disincentive to participation,\3 Congress
enacted the Federal Courts Administration Act of 1992.  Under the
act, participants' contribution requirements were reduced to 2.2
percent of salary for active and senior judges and 3.5 percent of
annuities for retired judges.  For those already enrolled in JSAS,
the new rates were further reduced by 0.5 percentage point for every
month, not to exceed 18 months, during which they had contributed 5
percent.  In other words, the rate for an active judge could be
reduced to 1.7 percent and 3 percent for a retired judge for up to 18
months.  Another significant change was an increase in benefits for
survivors of retired judges.  This increase was accomplished by
including years spent in retirement\4 in the calculation of
creditable service and high-3 salary averages.  The act also allowed
the judges to stop contributing to the plan upon divorce or the
spouse's death and granted benefits to survivors of any judge who
died in the interim between leaving federal service and the
commencement of a deferred annuity.\5 As of September 30, 1995, there
were 1,263 active and senior judges, 109 retired judges, and 221
survivor annuitants covered under JSAS.  About 67 percent of all
eligible judges participated in the system in 1995, including 73
percent of all new judges who began service in 1995. 

One objective of the change in contribution requirements contained in
the 1992 Act was to preclude the circumstances that had frequently
occurred under the 1985 Act, whereby the participating judges paid
all of the plan's cost.  In 3 of the 4 years before the 1992 Act, the
government made no contributions to JSAS because the participants' 5
percent of salary and annuity contributions were sufficient to cover
the costs for those years.  In 1991, the cost of JSAS was estimated
to be 3.2 percent of salary and annuity.  Proponents of lowering the
contribution rates contended that participants in CSRS, including
Members of Congress, were paying about one-half of the costs of their
survivor benefits, and Congress intended to make JSAS comparable to
the cost of participation by a Member of Congress. 


--------------------
\1 There is a distinction between retired judges who resign their
offices and those who retire to a status designated as "senior."
Judges who retire by resignation are entitled for life to the salary
of the office at time of resignation and may engage in private law
practice.  Judges who retire to senior status receive the current
salary of the office and generally may perform reduced judicial
duties.  Senior judges may not engage in private law practice. 

\2 H.  Rep.  99-423, 99th Congress. 

\3 H.  Rep.  102-1006, 102d Congress. 

\4 Includes senior judges and judges who resign their offices. 

\5 A judge who is not entitled to receive an immediate retirement
annuity upon leaving office, but is eligible to receive a deferred
retirement annuity at a later date, may remain in JSAS by
contributing 3.5 percent of the deferred retirement annuity that the
judge would be entitled to receive. 


   SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :3

To determine whether the contributions by the participating judges
for the 3-year period ending in fiscal year 1995 accounted for 50
percent of JSAS' costs, we first identified the costs for plan years
1993 to 1995.  We used the normal cost amounts determined by
actuarial valuations of the system for each of the 3 fiscal years. 
Normal cost is the term used to describe the annual cost of a pension
or survivor plan.  It is expressed as a percentage of payroll and
represents the amount of money that should be set aside during
employees' working years that, with investment earnings, will be
sufficient to cover future benefit payments.  It applies to future
benefits being earned during current employment, not payments to
current annuitants.  Therefore, if participating judges were to pay
one-half the cost of JSAS, they would pay one-half the plan's normal
cost. 

Information on JSAS' normal cost and other actuarial and financial
matters is contained in annual reports submitted by AOUSC to Congress
and the Comptroller General.  Such reports are required by Public Law
95-595 for all federal retirement plans.  These reports (595 Reports)
are due 210 days after the end of each plan's fiscal year.  AOUSC
provided to us a final version of the 595 Report for fiscal year 1995
on April 8, 1997.\6 We discussed the contents of the reports with
officials from AOUSC but otherwise relied on the data presented in
the annual reports for the 3 fiscal years without independent
verification.  We also obtained the services of an enrolled actuary,
Mr.  Jess Feinman, to assist us in analyzing the reports and making
the required determinations about the share of costs covered by
participant contributions, including the adjustment needed to achieve
the 50-percent figure for the participating judges. 

To compare the features of JSAS with those of other federal survivor
benefit plans, we reviewed applicable federal statutes, regulations,
and agency guidelines and interviewed agency specialists for the
various plans.  We also met with actuaries at the Office of Personnel
Management (OPM) and the Department of Defense.  We reviewed the
annual reports filed under Public Law 95-595 for all plans in the
comparison. 

We identified and compared the benefit levels, contribution rates,
and other features of JSAS and five other federal survivor benefit
plans.  We compared JSAS benefit levels to the other plans' survivor
benefit levels without Social Security survivor benefits.  Total
survivor benefit levels for those eligible to receive Social Security
benefits will be greater than those levels reported in our
comparison.  We compared retiree contribution rates only.  The
differing designs of the various programs precluded us from making a
comparison of total employee and retiree contribution rates.  Two of
the plans in our study do not have separate and identifiable employee
contribution rates for survivor benefits.  Appendix I describes the
features of the six federal survivor benefit plans in our study. 

The five plans in our comparison were CSRS and FERS (including
Members of Congress), the Military Retirement System's SBP, the U.S. 
Tax Court Survivors' Annuity Plan, and the U.S.  Court of Veterans
Appeals Judges Retirement Plan.  We selected these five plans because
(1) four of them (not FERS) were compared to JSAS in the legislative
history of the Federal Courts Administration Act of 1992 and (2)
CSRS, FERS, and the Military Retirement System cover about 97 percent
of all participants in federal retirement plans and, like JSAS, the
U.S.  Tax Court and U.S.  Court of Veterans Appeals plans cover
judicial workforces. 

We made our review from October 1995 to February 1997, in accordance
with generally accepted government auditing standards.  We made a
draft of this report available to the Director of AOUSC for review
and comment.  AOUSC's comments are reprinted in appendix II. 
Although we did not obtain comments from the other agencies on the
survivor benefit plans included in our review, we asked officials
responsible for each of these other plans to verify the accuracy of
the information presented on their respective plans.  Their views
were considered in preparing this report. 


--------------------
\6 Although the Federal Courts Administration Act of 1992 mandated us
to report to Congress by November 29, 1995 (60 days after the end of
fiscal year 1995), we informed the addressees of our report in
November 1995 that the 595 Report for fiscal year 1995 would not be
available until after our statutory reporting date (the 595 Report
was due by Apr.  28, 1996).  We were unable to complete our work
until we received the 595 Report for fiscal year 1995.  In February
1997, we again informed the addressees that the 595 Report had not
been finalized, and we would fulfill our reporting requirement using
the draft 595 Report provided to us by AOUSC on October 24, 1996, if
the final 595 Report was not provided by the end of February 1997. 


   JUDGES DID NOT CONTRIBUTE
   ONE-HALF OF JSAS' COST
------------------------------------------------------------ Letter :4

For JSAS' first 2 full years (1994 and 1995) under the Federal Courts
Administration Act of 1992, the participating judges contributed
about 36 percent of the plan's costs.  Fiscal year 1993 cost did not
reflect the changes in contribution rates and benefits incorporated
by the 1992 Act.  To cover one-half of JSAS' costs, the participating
judges' contribution would have to increase 0.9 percentage points
above the current rates.  This could be achieved by distributing the
increase equally among those contributing 2.2 percent and 3.5 percent
or adding the increase solely to those paying 2.2 percent.  However,
increasing the judges' contribution rates could adversely affect
participation in the plan, which would be contrary to one of the
major reasons for the changes to JSAS in 1992. 


      DEFINING COST FOR JSAS
---------------------------------------------------------- Letter :4.1

The cost of a retirement or survivor benefit plan is generally not
measured by annual expenditures.  Such expenditures are not an
indicator of the overall long-term total cost of a plan.  For the
3-year period ending September 30, 1995, the participating judges
paid $12.5 million, and the government's actual outlays were $6.9
million.  Although judges' payments were made in the same year they
were accrued, the government's payments were based on actuarial
valuations that occurred 1 to 2 years before the appropriation year. 
The government's contribution of $6.9 million in fiscal year 1995 was
based on the actuarial calculation for employer normal cost as of
September 30, 1993.  There were no government contributions for 1993
and 1994 because the actuarial valuation for the applicable prior
years (before the 1992 changes to participant benefits and
contributions) showed that the participants' contributions covered
the entire normal cost of JSAS. 

The more complete and acceptable calculation of a plan's cost is the
total projected outlays to retirees or survivors, considering the
current participants and allocating such cost on an annual basis. 
This annual cost allocation is the normal cost.  Normal cost,
expressed as a percentage of payroll, for JSAS represents the amount
of money that should be set aside during the judges' working and
retirement years that, with investment earnings, will be sufficient
to cover future survivor benefit payments.  Normal cost calculations,
prepared by an actuary, require that many actuarial assumptions be
made about the future, including mortality rates, quit rates, return
on investments, salary increases, and COLA increases over the
lifespans of current and future participants. 

There are many acceptable actuarial methods for calculating normal
cost.\7 JSAS uses the aggregate cost method.  Regardless of which
cost method is chosen, the total long-term cost of the plan will be
the same; however, year-to-year costs may differ depending on the
cost method used.  The aggregate method ordinarily incurs higher
annual cost in the early years and lower cost in the later years,
whereas the more commonly used entry-age normal method gives a level
annual cost over the years.  One of the principal reasons for this is
that the aggregate method includes the unfunded liability for
participants' past service (for which no contributions were made at
the time service was performed) as part of its normal cost, while the
entry-age normal method treats the unfunded liability separately from
the normal cost. 


--------------------
\7 Acceptable actuarial cost methods for preparing the annual reports
required under Public Law 95-595 include the accrued benefit (unit
credit), entry-age normal, individual level premium, aggregate,
attained-age normal, and frozen initial liability. 


      JSAS COSTS FOR THE 3-YEAR
      PERIOD
---------------------------------------------------------- Letter :4.2

On the basis of data from the first 2 full years under the Federal
Courts Administration Act of 1992, fiscal years 1994 and 1995, the
participating judges contributed about 36 percent of JSAS' normal
cost; and the government's share amounted to about 64 percent.  For
fiscal year 1993, the government's normal cost was based on an
actuarial valuation that preceded changes in participant benefits and
contributions.  Thus, the fiscal year 1993 normal cost was not
indicative of the government's share of JSAS' cost under the 1992
Act.  Table 1 shows the judges' and government's contribution rates
and share of JSAS' normal cost (using the aggregate cost method), for
the period covered in our study.\8



                                     Table 1
                     
                       Share of JSAS' Normal Cost Borne by
                       Participating Judges and Government,
                              Fiscal Years 1993-1995

                                          Contributions to JSAS
                          ------------------------------------------------------
                                                                          Fiscal
                                                                          years
                           Fiscal year     Fiscal year     Fiscal year    1994-
                               1993            1994            1995        1995
                          --------------  --------------  --------------  ------
                                  Share\          Share\          Share\  Share\
Source of contributions   Rate\a       b  Rate\a       b  Rate\a       b       b
------------------------  ------  ------  ------  ------  ------  ------  ------
Judges                     2.35%   74.6%   2.24%   37.7%   2.23%   34.2%   35.8%
Government                0.8%\c   25.4%    3.7%   62.3%    4.3%   65.8%   64.2%
================================================================================
Totals                     3.15%  100.0%   5.94%  100.0%   6.53%  100.0%  100.0%
--------------------------------------------------------------------------------
\a Normal cost expressed as a percentage of payroll. 

\b Percentage of total normal cost. 

\c The government's normal cost for fiscal year 1993 was based on the
September 30, 1992, actuarial valuation that preceded benefit and
contribution changes to JSAS on October 29, 1992. 

Source:  JSAS actuarial reports, 1993-1995. 

The judges' and government's contribution rates for each of the 3
years, shown in table 1, were based on the actuarial valuation that
occurred at the end of the prior year.  For example, the judges'
contribution of 2.23 percent and the government's contribution of 4.3
percent in fiscal year 1995 were based on the September 30, 1994,
valuation contained in the fiscal year 1994 actuarial report.  The
contribution rates for the judges were the expected contributions for
the upcoming year excluding any purchase of prior creditable service
at 3.5 percent or any reduction of 0.5 percentage point in the
contribution rates, up to 18 months, for those judges who were
enrolled in JSAS on October 29, 1992, the effective date of the 1992
Act. 

Although JSAS uses the aggregate cost method to determine normal
cost,\9 officials from AOUSC contended that the entry-age normal cost
method was a more appropriate measure to determine whether the
participating judges were paying one-half of JSAS' costs.  Their
reasoning was that when the judges' share of the costs was determined
in 1992, comparable costs were calculated for general employees and
Members of Congress under the CSRS survivor benefit programs.  It was
estimated that these CSRS participants were paying about one-half of
the costs.  CSRS uses the entry-age normal cost method, which treats
separately the unfunded liability for participants' past service and
provides a relatively constant year-to-year annual cost. 

Based on information provided by JSAS' enrolled actuary, if the
entry-age normal cost method were used to determine JSAS' normal
cost, the participating judges would have contributed 38 percent of
JSAS' normal cost, or 2 percentage points more than under the
aggregate cost method, for the same 2-year period.  This calculation
was based on an estimated entry-age normal cost of 5.96 percent for
1994 and 1995. 


--------------------
\8 Although outside the scope of our study, the fiscal year 1996
normal cost was 6.26 percent, a drop of 0.27 percentage points from
fiscal year 1995.  However, the judges' contributions to JSAS for
fiscal year 1996 remained at about 36 percent of normal cost. 

\9 AOUSC selected the aggregate cost method for JSAS in 1982. 


      ADJUSTMENT THAT WOULD BE
      NEEDED IN JUDGES'
      CONTRIBUTION RATES
---------------------------------------------------------- Letter :4.3

How much of an adjustment that would be needed to the judges'
contribution rates depends on which actuarial method for calculating
normal cost is used and the distribution of the adjustment among the
active and retired judges.  Based on the information contained in
JSAS' 1995 actuarial report, as of September 30, 1995, the
participating judges' future contributions would have to increase a
total of 0.9 percentage points above the current 2.2 percent of
salary for active and senior judges and 3.5 percent of annuity for
retired judges to cover one-half of JSAS' costs.  If the increase
were distributed equally among the judges, those contributing 2.2
percent would have to increase to 3.1 percent; and those contributing
3.5 percent would have to increase to 4.4 percent. 

If the entry-age normal cost method were used to determine normal
cost, the participating judges' contributions would have to increase
a total of 0.7 percentage points to achieve the 50-percent figure. 
To ensure that the increase is distributed equally among the judges,
those contributing 2.2 percent would have to increase to 2.9 percent;
and those contributing 3.5 percent would have to increase to 4.2
percent. 

Because of the relatively small number of judges contributing 3.5
percent (109 compared to 1,263 of those contributing 2.2 percent as
of September 30, 1995), the entire increase could be added solely to
those contributing 2.2 percent.  Therefore, the 2.2 percent could be
increased by 0.9 percentage points under the aggregate method and 0.7
percentage points under the entry-age normal method. 


      POTENTIAL DRAWBACK TO
      INCREASING JUDGES'
      CONTRIBUTION RATES
---------------------------------------------------------- Letter :4.4

A potential impact associated with increasing the contribution rates
could be a decline in the participation rate for JSAS.  Increasing
participation was a major reason for the changes to JSAS over the
years.  The participation rate had increased from 38 percent before
the 1992 Act was enacted to 67 percent as of September 30, 1995. 
Increasing the contribution rates now, along with the potential for
changing them every 3 years, could have an impact on the judges'
decision to participate in JSAS.  In a booklet describing retirement
benefits to the judges, AOUSC said that, if the contribution rates
were to change, it would ask Congress for an opt-out provision for
the judges already covered under JSAS.  Currently, the only way that
participation for an active or retired judge may be revoked is upon
dissolution of the marriage, and there are no contribution refunds
until the judge's death, if there are no survivors. 


   COMPARISON OF JSAS TO OTHER
   FEDERAL SURVIVOR PLANS
------------------------------------------------------------ Letter :5

Based on our comparison of JSAS to the five other federal survivor
benefit plans in our study, we found that JSAS generally provides
greater benefits.  JSAS provides greater survivor spousal and
children's benefits than the nonjudicial survivor plans in our
study--CSRS, FERS, and the military's SBP.  Members of Congress earn
greater spousal benefits than general employees under CSRS and FERS,
but these benefits are still less than JSAS benefit levels. 
Moreover, while a direct comparison of JSAS participant contributions
to the other survivor plans in our study cannot be made because of
differing program designs, we found that retired judges under JSAS,
Tax Court, and Court of Veterans Appeals survivor plans contributed a
smaller percentage of their retirement annuities than retirees under
CSRS and FERS, including Members of Congress and the military's SBP. 

We also found other JSAS features that were unique to JSAS or not
available in all of the other plans.  These included counting
retirement years in the spousal benefit formula, refunding
contributions to the participants' estates if there are no survivors,
and lower interest rates on purchasing prior years creditable
service. 


      JSAS SPOUSAL AND CHILDREN'S
      BENEFITS ARE GREATER THAN
      THOSE OF NONJUDICIAL PLANS
---------------------------------------------------------- Letter :5.1

JSAS spousal survivor benefits are greater than those provided by
CSRS, FERS, or the military's SBP.  Children's benefits are also
higher under JSAS.  The Tax Court and Court of Veterans Appeals plans
provide spousal and children benefit levels that are similar to those
of JSAS because the benefits formulas are basically the same. 

Figure 1 shows the spousal benefit replacement rates at various years
of creditable service for JSAS and the nonjudicial survivor plans
that we studied.  The replacement rate is the initial survivor
annuity computed as a percentage of annual salary before retirement. 
For participants with comparable years of service, JSAS always
provides greater survivor benefits.  While Members of Congress earn
greater survivor benefits than do general employees in CSRS or FERS,
Members' survivor benefits are still less than JSAS benefits. 

   Figure 1:  Comparison of
   Spousal Benefit Replacement
   Rates Among Selected Plans

   (See figure in printed
   edition.)

\a Does not include Social Security survivor benefits.  Thus, total
benefit levels to JSAS, CSRS Members of Congress, and FERS survivors
will be greater than the levels reported in this table.  Social
Security provides a higher replacement rate for the survivors of
lower wage earners than higher wage earners. 

\b Maximum amount based on survivors' benefit formula for active or
retired employee. 

\c Computations are based on (1) member's service beginning after
July 31, 1986, (2) surviving spouse under age 62 (at age 62, SBP
benefits are reduced to 35 percent of retirement pay to reflect
availability of Social Security benefits), and (3) regular military
compensation, which is considered to be the military equivalent of
federal civilian pay.  Regular military compensation includes basic
pay, tax-free subsistence and housing allowances, and the federal tax
advantages accruing from the tax-free allowances. 

\d Minimum guaranteed amount.  In CSRS, the guaranteed minimum
surviving spouse benefit applies only to active employees and
Members.  There is no guaranteed minimum surviving spouse benefit for
CSRS retirees. 

\e No SBP benefits are available to survivors of military members
with fewer than 20 years of service unless the member is retired for
disability or a specially enacted early retirement program. 

\f Maximum allowable amount. 

Source:  Survivor benefit plans data. 


         JSAS SURVIVOR BENEFITS
-------------------------------------------------------- Letter :5.1.1

JSAS spousal survivor benefits are equal to 1.5 percent of the
judge's average annual salary received during the 3 highest paid
years (known as the "high 3") for each year of creditable service,
which includes employment and retirement.  Regardless of years of
service credits, the minimum benefit is 25 percent of high 3, and the
maximum benefit is 50 percent of high 3.  It takes 33 years and 4
months of creditable service to earn a survivor benefit equal to 50
percent of high 3.  It would take 16 years and 8 months of creditable
service to earn a survivor benefit of 25 percent of high 3 were it
not for the guaranteed minimum.  Judges and their survivors are also
eligible for Social Security benefits in addition to JSAS benefits. 


         CSRS SURVIVOR BENEFITS
-------------------------------------------------------- Letter :5.1.2

CSRS survivor benefits for general employees are based on actual or
accrued annuity amounts, not high-3 salaries.  The maximum retirement
annuity is 80 percent of high 3, which can be reached with 41 years
and 11 months of service.  The survivor benefit is 55 percent of the
annuity.  Therefore, the maximum survivor benefit is 44 percent of
high 3.  If an employee worked 33 years and 4 months--the creditable
years of service required for JSAS survivors to receive 50 percent of
high 3--the CSRS survivor benefit would be 34.6 percent of high 3. 

Unlike JSAS, CSRS does not guarantee a minimum survivor benefit for
retirees.  However, it does have a minimum for active employees, 22
percent of high 3.  Survivor benefits greater than 22 percent of high
3 are available only after about 21 years and 10 months of service,
compared with 16 years and 8 months a JSAS participant must work
and/or be retired to earn survivor benefits greater than 25 percent
of high 3.  It would take a CSRS employee 24 years and 8 months of
service to earn a survivor benefit of 25 percent of high 3.  Unlike
the other five survivor plans in our study, CSRS general employees
generally receive no Social Security benefits (regular or survivor)
from their federal service.\10


--------------------
\10 Relatively few federal employees are covered by CSRS and Social
Security at the same time.  These employees participate in the "CSRS
Offset" plan.  They are employees who were rehired into federal
service after 1983 with a break in service of more than 1 year but
had at least 5 years of creditable civilian service at the time they
separated from service and chose not to participate in FERS. 
Employees pay the Social Security tax plus a small contribution to
CSRS, which equates to the regular CSRS employee contribution of 7
percent.  At age 62, CSRS Offset retiree annuities are reduced to
reflect the availability of Social Security benefits. 


         CSRS MEMBER OF CONGRESS
         SURVIVOR BENEFITS
-------------------------------------------------------- Letter :5.1.3

The maximum retirement annuity for Members of Congress under CSRS is
80 percent of the higher of high 3 or final salary.  The survivor
benefit formula is the same for Members as for general employees;
therefore, 44 percent of high 3 or final salary is also the maximum
survivor benefit for Members.  However, a Member can reach the 80
percent annuity maximum after 32 years of service because the
percentage of salary used in the retirement formula is higher. 
Therefore, even though a Member can never earn a survivor benefit as
large as a judge under JSAS, he or she can earn the maximum survivor
benefit 1 year and 4 months sooner than the judge.  Under CSRS,
Members can earn more than the guaranteed 22 percent minimum survivor
benefit by working longer than 16 years.  Members would have to work
18 years and 2 months to earn a survivor benefit equal to the 25
percent of high 3 guaranteed by JSAS. 


         FERS SURVIVOR BENEFITS
-------------------------------------------------------- Letter :5.1.4

The FERS defined benefit plan for general employees has no maximum or
minimum survivor benefits.  FERS is a three-part retirement package
that includes (1) a defined benefit plan, (2) a Thrift Savings
Plan\11 (TSP), and (3) Social Security.  For deceased employees, the
survivor benefit is a lump-sum payment, currently $21,335 plus
one-half the higher of the employee's high 3 or salary at the time of
death, and, if the employee had at least 10 years of service, an
annuity equal to 50 percent of the employee's accrued annuity. 
Survivors of retirees receive either 50 or 25 percent of the
retiree's annuity, depending on the amount of annuity reduction the
retiree elects.  For the FERS defined benefit plan to provide a
survivor benefit equal to 25 percent of high 3--the minimum
guaranteed by JSAS--an employee would have to work 45 years and 6
months.  It would take over 90 years of service to provide a survivor
benefit equal to 50 percent of high 3--the maximum available after 33
years and 4 months in JSAS. 

The TSP component of FERS, to which most employees and the government
contribute, has no survivor benefits as such.  If a participant dies
before withdrawing all his or her account balance, the survivors
receive the remainder.  A spousal waiver is generally required for
withdrawals other than a joint life annuity.  If the retiree
purchases a 100 percent joint life annuity with spouse,\12 the
retiree's annuity is actuarially reduced to cover the full cost of
the survivor benefit.  In any event, TSP pays the same total amounts
to retirees and survivors as would have been paid to the retiree
alone. 

FERS employees and their survivors also receive Social Security
benefits.  If the surviving spouse is not eligible for Social
Security benefits, a special supplementary annuity is provided that
approximates the value of FERS service in a Social Security benefit. 
Like JSAS, Social Security spousal survivor benefits are completely
additive to spousal survivor benefits under the FERS defined benefit
plan.  However, unlike JSAS, Social Security benefits for surviving
children are deducted, dollar-for-dollar, from FERS benefits. 


--------------------
\11 TSP is a tax-deferred retirement savings and investment plan,
similar to what private corporations offer their employees under
401(k) plans.  For each employee covered by FERS, including Members
of Congress, the government contributes 1 percent of salary to the
employee's TSP account.  The government contributes additional
amounts to match any contributions the employee makes to TSP.  The
government matches, dollar-for-dollar, employee contributions up to 3
percent of salary and 50 cents on the dollar for each of the next 2
percent of salary the employee contributes.  Employees may contribute
another 5 percent of salary to TSP with no government matching.

Most judges and Members of Congress and general employees in CSRS may
participate in TSP.  They can contribute up to 5 percent of their
salaries to TSP, but the government makes no contribution to their
accounts.  Tax Court judges and military members cannot participate
in the TSP. 

\12 A 50 percent joint life annuity is available whereby the monthly
payment to the survivor, retiree or spouse, is one-half of the
annuity payment made while both retiree and spouse were alive. 


         FERS MEMBER OF CONGRESS
         SURVIVOR BENEFITS
-------------------------------------------------------- Letter :5.1.5

Similarly, the FERS defined benefit plan for Members of Congress has
no maximum or minimum survivor benefits.  It would take 36 years of
service for a Member to earn survivor benefits equal to the
guaranteed minimum of 25 percent of high 3 available under JSAS.  It
would take 86 years of service for a Member to earn survivor benefits
of 50 percent of high 3--the maximum under JSAS--that a judge can
earn in 33 years and 4 months of work and retirement. 


         MILITARY SBP SURVIVOR
         BENEFITS
-------------------------------------------------------- Letter :5.1.6

Under the military's SBP, if the member dies with 20 years or more of
service, the full spousal annuity is 55 percent of the member's
retirement pay, with a minimum of 35 percent and maximum of 55
percent of retirement pay.  After the surviving spouse reaches age
62, SBP benefits are reduced to 35 percent of retirement pay to
reflect the availability of Social Security benefits.  For those
members who die before completing 20 years, protection is available
through a survivors' program for service-related deaths administered
by the Department of Veterans Affairs, Social Security benefits,
and/or life insurance. 


         CHILDREN'S BENEFITS UNDER
         THE VARIOUS PLANS
-------------------------------------------------------- Letter :5.1.7

Children's benefits under JSAS, expressed as a percentage of salary,
are higher than those under CSRS and FERS except where the high-3
salary of a CSRS or FERS employee falls below $40,440.  Under the
military's SBP, children's benefits must be purchased separately. 
For a surviving spouse with children under JSAS, each child receives
an annuity of the lesser of 10 percent of average salary or 20
percent of high-3 salary divided by the number of children.\13 Under
CSRS, each child receives a fixed dollar amount--the lesser of
$4,044, $12,132 divided by the number of children, or 60 percent of
the high-3 salary divided by the number of children.  FERS provides
similar dollar amounts.  The amounts under CSRS and FERS are adjusted
annually for inflation.  If there is no surviving spouse, the amounts
increase under both plans. 


--------------------
\13 At the end of fiscal year 1995, the average salary/retirement pay
for participating active and retired judges was about $126,500. 


         DIFFERING PROGRAM DESIGNS
         PRECLUDE DIRECT
         COMPARISONS OF
         CONTRIBUTIONS AMONG PLANS
-------------------------------------------------------- Letter :5.1.8

The survivor benefit contributions for employees and Members of
Congress in CSRS and FERS are incorporated into their basic
retirement plans, whereas JSAS, the Tax Court, and the U.S.  Court of
Veterans Appeals plans have separate and identifiable contribution
rates for survivor benefits.  Because OPM does not report the
survivor portion of retirement contributions for CSRS and FERS,
direct comparisons of employee contribution requirements among the
plans cannot be made.  Participants in all the programs except
CSRS\14 are also covered by Social Security to which they must
contribute and from which survivor benefits are available. 

While the differing designs of the various plans preclude definitive
comparisons of employee contributions toward survivor benefit costs,
it is clear that retirees under CSRS, FERS, and the military's SBP
must contribute larger percentages of their annuities than retired
judges must contribute under JSAS in order for their survivors to
receive benefits upon the retirees' deaths.  Retired Tax Court and
Court of Veterans Appeals judges contribute at the same rate as
retired judges under JSAS.  Table 2 shows the participants'
contribution rates for the six federal survivor plans in our study. 



                                Table 2
                
                 Participants' Contributions to the Six
                     Federal Survivor Benefit Plans

                                                     Participants'
                                                   contribution rate
                                                    (expressed as a
                                                  percentage of salary
                                                      or annuity)
                                                  --------------------
Federal survivor plans                            Active       Retired
------------------------------------------------  ------  ------------
JSAS                                                2.2%          3.5%
Tax Court Survivors' Annuity Plan                   3.5%          3.5%
Court of Veterans Appeals Judges Retirement Plan    3.5%          3.5%
CSRS                                                  \a       2.5% of
                                                           $3,600 plus
                                                                10% of
                                                              excess\c
FERS                                                  \a         10%\d
Military's SBP                                        \b        6.5%\c
----------------------------------------------------------------------
\a No portion of participants' contributions to the retirement plan
is designated for survivors' benefit costs. 

\b Military members do not contribute to their retirement plan, and
survivor benefits are not available until the member is eligible to
retire. 

\c For reduced survivor benefits, a lesser portion of the retirement
annuity may be designated as the base for the survivor benefit
computation. 

\d Maximum contribution rate for full survivor benefits, 5 percent
for reduced survivor benefits. 

Source:  Survivor benefit plans data. 

JSAS requires active and senior status judges to contribute 2.2
percent of their salaries towards the costs of JSAS.  Retired judges
must contribute 3.5 percent of their retirement annuities to JSAS. 
In contrast, survivor benefit plans for judges under the Tax Court
and Court of Veterans Appeals require all participating judges,
active and retired, to contribute 3.5 percent of their salaries and
annuities toward plan costs. 

Judges in the three retirement plans that are associated with JSAS
have varying participant contribution requirements.  Judges in the
Judicial Officers' Retirement Fund contribute 1 percent of their
salaries for no more than 14 years toward the cost of their
retirement benefits, while judges in the Judicial Retirement System
and the Court of Federal Claims Judges' Retirement System make no
contributions toward retirement benefits.  Additionally, Tax Court
judges do not contribute toward their retirement benefits while Court
of Veterans Appeals judges contribute 1 percent of their salaries for
no more than 15 years toward their retirement benefits. 

Most employees in CSRS contribute 7 percent of their salaries to the
retirement plan during their working years.  Certain groups with
special benefits not available to general employees contribute
amounts greater than 7 percent.  For example, Members of Congress
receive more generous retirement benefits and must contribute 8
percent of their salaries.  While annuities are available to the
survivors of employees and Members who die before retirement, no
portion of the required contribution is designated as being the
employee's or Member's share of survivor benefit costs.  Rather, the
contributions represent the share of all system costs, including
survivor benefit costs, that participants must pay.  Similarly, the
retirement plan portion of FERS requires employees to contribute 0.8
percent of their salaries and Members to contribute 1.3 percent of
their salaries toward total plan costs, with no specified portion of
these contributions being designated as contributions toward survivor
benefit costs.  Active military personnel do not contribute toward
the cost of the Military Retirement System; however, the plan
provides no survivor benefits to personnel who die before they are
eligible to retire. 

Active judges in all of the above-mentioned judicial retirement
systems and participants in FERS and the Military Retirement System
must make Social Security contributions.  In 1997, the required
Social Security contribution is 6.2 percent of earnings up to
$65,400.  Social Security benefits are available to the survivors of
deceased participants in all of these systems, but like CSRS and
FERS, no portion of the Social Security contribution is designated as
being for survivor benefit costs.  CSRS participants, except for
Members of Congress, are not covered by Social Security. 

CSRS retirees who wish to provide annuities to surviving spouses upon
their deaths must accept reductions in their annuity amounts.  They
may designate any portion of their annuities as the base for spousal
survivor benefits and then accept reductions equal to 2.5 percent of
the first $3,600 of the designated annuity amount and 10 percent of
any designated amount greater than $3,600.  Retirees under FERS have
somewhat different options for providing benefits to their surviving
spouses.  They may have their annuities reduced by either 10 percent
or 5 percent, depending on the level of spousal survivor benefits
they desire to provide.  Regardless of whether CSRS and FERS retirees
elect to have their annuities reduced to provide benefits to their
surviving spouses, benefits are payable to any eligible surviving
children without an annuity reduction. 

Military retirees may designate their retirement annuity or a lesser
elected base amount as the base for survivor benefits.  Military
retirees accept annuity or lesser elected base reductions of 6.5
percent to provide spousal survivor benefits and further reductions
to provide benefits to surviving children.  The amount of annuity
reduction for children's survivor benefits varies, depending on the
age of the youngest child and whether there is a surviving spouse. 

The varying contribution requirements among JSAS, CSRS, FERS, and
military retirees who provide survivor benefits to their survivors
are best illustrated with an actual computation.  A U.S.  District
Court judge who retired in 1996 would receive an annual annuity of
$133,600.  To provide survivor coverage under JSAS, the retired judge
would contribute 3.5 percent of annuity or $4,676.  If the judge were
subject to the annuity reduction requirements of CSRS or FERS and
wished to provide the maximum survivor benefits, the required
reduction would be $13,090 under CSRS and $13,360 under FERS, or at
least $8,414 a year more than the contribution required by JSAS. 
Similarly, if the judge were subject to the military SBP reduction
requirements, the reduction would be $8,684 for the basic package,
and $4,008 more than required by JSAS. 


--------------------
\14 CSRS Members of Congress are covered by Social Security. 


      OTHER DIFFERENCES AMONG THE
      SURVIVOR'S BENEFIT PLANS
---------------------------------------------------------- Letter :5.2

In addition to the spousal and children's benefits, other features of
the survivor's plans in our study are different, but there are
similarities.  Table 3 shows a summary comparison of these other
features of the six federal survivors plans in our study. 

   Figure 3:  Summary features of
   the Six Federal Survivor
   Benefit Plans

   (See figure in printed
   edition.)

\a No mandatory years of service if member retires under disability
or early retirement. 

\b Applies only to marriage after retirement; there is no minimum
marriage duration before retirement. 

\c Coverage is automatic for employees/members after meeting the
eligibility requirements; retirees can elect to continue survivor
benefit coverage. 

\d Years of service other than judicial may be included at 0.75
percent of pay. 

\e Benefits are reduced to 35 percent of retirement pay at survivor's
age 62 to reflect availability of Social Security benefits. 

\f Minimum survivor benefits for deceased employees; there is no
guaranteed minimum for retirees' survivors. 

\g Minimum survivor benefits are 55 percent of a minimum $300 base
amount and the maximum survivor benefits are 55 percent of full
retirement pay. 

Source:  Survivor benefit plans data. 

Under JSAS, the judges' years of service in the survivor benefit
formula include those years in retirement.  The survivor benefit
formulas for the other five plans do not include the retirement
years, even though participants under all six plans make
contributions in retirement. 

Refunding of the contributions to participants' estates, if there are
no survivors, varies among the three judicial and three nonjudicial
plans.  Those who choose to participate in the survivor plans must
contribute a designated amount to the plan.  Under the JSAS, Tax
Court, and Court of Veterans Appeals plans, contributions plus 3
percent interest are paid to the judges' estates if there are no
survivors.  Conversely, there are no refunds to the estates of CSRS,
FERS, and military SBP participants.  While participants in all six
plans may stop their contributions upon the dissolution of the
marriage, only the participants in the three judicial plans can
receive refunds upon leaving office.  However, JSAS participants
cannot receive refunds on those contributions of 2.2 percent of
salary under the 1992 Act. 

Creditable service rendered in prior years, for which contributions
were withdrawn or not withheld, may be purchased under all of the
plans, except the Military Retirement System and FERS for service
performed after 1988 or any contribution withdrawal, with differing
rates of interest paid by the participants.  The years of creditable
service are used in the formula for determining retirement and/or
survivor benefit amounts.  Survivor annuities under the three
judicial plans and retirement annuities under CSRS, for work
performed before October 1982, may be reduced by 10 percent of the
unpaid contributions for prior service at the time of the
participant's death.  JSAS, Tax Court, and Court of Veterans Appeals
participants pay 3.5 percent of the salary earned during the earlier
service plus 3 percent interest.  CSRS and FERS participants pay 7
percent and 1.3 percent, respectively, of salary earned during the
earlier service at current interest determined by the Secretary of
the Treasury.  CSRS participants may be required to make payment to
receive credit for prior military service.  For FERS participants to
receive credit for prior military service, 3 percent of the earned
military base pay plus current interest determined by the Secretary
of the Treasury must be paid.  The other plans do not require payment
to receive credit for prior military service. 

All six plans have employee minimum-service requirements before
survivors become eligible for benefits, ranging from 18 months to 5
years with the military's requirement set at 20 years.  There is a
minimum marriage duration before the employee's death, ranging from 9
months to 2 years for all of the plans except the military's SBP;
however, a child of the marriage overrides the marriage tenure. 
Although two of the plans, Tax Court and Court of Veterans Appeals,
have a minimum-age requirement before a surviving spouse can begin
receiving benefits, there is no age requirement if there are eligible
dependent children of the marriage.  Electing to participate in these
optional survivor plans varies from the time of taking office with
JSAS to the time of retirement with CSRS, FERS, and the military's
SBP; employees in the latter three plans are automatically covered
after meeting the eligibility requirements.  Two plans, JSAS and
FERS, and Members of Congress under CSRS provide for a deferred
annuity for a surviving spouse.  All six plans have some type of
COLA, with four of them tied to the yearly changes in the CPI. 

Details on the various features of the six plans are provided in
appendix I. 


   AGENCY COMMENTS AND OUR
   EVALUATION
------------------------------------------------------------ Letter :6

The Director of AOUSC provided written comments on a draft of this
report.  AOUSC's comments and our detailed responses to them are
contained in appendix II. 

In general, AOUSC believed that we should have (1) stressed more that
the judges' contributions have exceeded the government's
contributions, (2) used the entry-age normal cost method with a
different weighting for retired judges' contributions to determine
the judges' future costs, and (3) included Social Security and TSP
benefits in the comparison of the survivor plans that we studied. 

AOUSC believed that we should have highlighted that the judges have
actually contributed more than the government to JSAS during the
3-year period covered by our study and, as a matter of record, more
than the government over the last 10 years.  Our report did provide
this context, pointing out that the judges have paid more into JSAS
than the government before and after the 1992 Act.  However, as
directed by statute, our objective was to determine whether the
judges were paying one-half of JSAS' future costs, as opposed to
comparing the judges' and government's share of total JSAS
contributions in any particular year. 

AOUSC believed that we overstated the adjustment needed for the
judges to cover one-half of JSAS' future costs.  AOUSC said that the
adjustment would have been less had it been computed using the
entry-age normal cost method, rather than the aggregate normal cost
method, and a different weighted contribution rate for the judges. 
AOUSC provided a revised table based on the entry-age normal method
and its proposed new weights for the judges' contributions.  We
recognize that the entry-age and aggregate approaches are both
acceptable methods for determining normal cost and have shown in the
report that the adjustment would have been smaller using the
entry-age method.  However, we used the aggregate cost method as our
primary cost comparison approach for consistency reasons. 
Specifically, this was the method that was used in JSAS' 595 Reports
and in comparing JSAS' normal costs to other federal survivor benefit
plans in the report of the House Judiciary Committee accompanying the
1992 Act.\15 With respect to using a different weighted contribution
rate for the judges, at issue are AOUSC's past and current
assumptions about the rate at which judges retire.  In its comments,
AOUSC asserted a higher retirement rate than the one that was used in
preparing the JSAS 595 Reports and that AOUSC made available during
our review.  We recognize that actuarial assumptions vary from
year-to-year and can yield different results.  However, we believe it
is appropriate to rely on the weighted contribution rate for the
judges that AOUSC presented in its published JSAS 595 Reports, which
are the official public record of JSAS' fiduciary soundness. 

AOUSC also said that our comparison of federal survivor plans should
have included any benefits available to survivors from Social
Security and TSP.  While we recognized and have noted in our report
that Social Security survivor benefits and TSP investments can
contribute to a surviving spouse's income, we disagree that they
should have been included in our comparison of the federal survivor
benefit plans.  In the House Judiciary Committee report accompanying
the 1992 Act, Social Security benefits were not included in the
comparison of JSAS to the other federal survivor benefit plans. 
Also, the act specifically required us to compare JSAS to the other
federal survivor plans, and--as noted in the report--Social Security
contributions and benefits are separate and apart from such plans. 
Finally, had we added Social Security benefits into our comparison,
we believe the most appropriate comparison would have been between
the judges in JSAS and Members of Congress and higher-graded FERS
general employees because of Social Security's benefit structure.  In
this regard, Members in either CSRS and FERS, higher-graded FERS
general employees, and JSAS survivors should receive about the same
level of Social Security survivor benefits because the salary levels
of judges, Members of Congress, and higher-graded FERS general
employees are similar. 

We also do not agree that TSP investments should have been included
in our comparison because TSP does not provide survivor benefits.  As
stated in the report, TSP is a tax-deferred retirement savings and
investment plan.  If an employee or retiree dies and has a TSP
account, the surviving spouse can receive the proceeds from the
account or an annuity if one had been purchased with the TSP proceeds
at retirement.  However, survivors generally have no statutory
entitlement to TSP account balances as they do to the federal plans'
survivor benefits.  Spouses of retired FERS employees must waive
their rights to any TSP withdrawal option other than a 50-percent
joint life annuity.  Moreover, just as with Social Security benefits,
TSP was not included in the federal survivor benefit plans'
comparison in the House Judiciary Committee report on the 1992 Act. 

Based on its view that we should have used the entry-age normal
method and different retirement rate assumptions to determine the
adjustment that would be necessary for the judges to pay one-half of
JSAS' future costs, AOUSC prepared an alternative table to ours using
its preferred cost method and retirement assumptions.  It also
prepared alternative tables comparing survivor benefits and
participant contributions that included TSP and Social Security.  Our
detailed responses to these tables are provided in appendix II. 
Caution should be exercised in drawing conclusions from these tables
because of technical errors in the tables and because the assumptions
underlying them appear to underestimate the shortfall in the judges'
contributions and survivor benefits. 


--------------------
\15 H.  Rep.  102-1006, 102d Congress. 


---------------------------------------------------------- Letter :6.1

We are sending copies of this report to the Chairmen and Ranking
Minority Members of the Senate Subcommittee on Administrative
Oversight and the Courts and the House Subcommittee on Courts and
Intellectual Property of the Committees on the Judiciary, the
Director of AOUSC, and other interested parties.  Copies will also be
made available to others upon request. 

Major contributors to this report are listed in appendix III.  If you
have any questions, please call me at (202) 512-9039. 

Michael Brostek
Associate Director, Federal Management
 and Workforce Issues


FEATURES OF SELECTED FEDERAL
SURVIVOR BENEFIT PLANS
=========================================================== Appendix I

This appendix lists the various features of the six selected federal
survivor benefit plans.  Two of the survivor plans, the Judicial
Survivors' Annuities System (JSAS) and the U.S.  Tax Court Survivors'
Annuity Plan, are stand-alone plans.  For those judges who
participate in the JSAS, the companion retirement and disability
benefits plans include the Judicial Retirement System, the Judicial
Officers' Retirement Fund, and the Court of Federal Claims Judges'
Retirement System.  The Tax Court judges' retirement and disability
plan is called the U.S.  Tax Court Retirement Plan.  The remaining
four survivor plans are part of larger retirement systems that also
provide retirement and disability benefits to participants.  The six
plans are as follows: 

  -- Judicial Survivors' Annuities System

  -- U.S.  Tax Court Survivors' Annuity Plan

  -- U.S.  Court of Veterans Appeals Judges Retirement Plan

  -- Civil Service Retirement System

  -- Federal Employees Retirement System

  -- Military Retirement System's Survivor Benefit Plan


   JUDICIAL SURVIVORS' ANNUITIES
   SYSTEM
--------------------------------------------------------- Appendix I:1


      CONTRIBUTION RATES
------------------------------------------------------- Appendix I:1.1

Employee/retiree contribution rate.  Active and "senior status"
judges and other judicial officials contribute 2.2 percent of salary
and retired judges and judicial officials contribute 3.5 percent of
retirement annuity to participate in JSAS.  Prior creditable service
may be credited to JSAS if deposits equal to 3.5 percent of salary
earned during the earlier service plus 3 percent interest are paid. 
No deposits are required for prior military service. 

Government contribution rate.  The government's share of contribution
is the amount required to reduce the unfunded liability to zero, not
to exceed 9 percent of salary or retirement annuity. 


      ELIGIBILITY REQUIREMENTS FOR
      SURVIVOR BENEFIT COVERAGE
------------------------------------------------------- Appendix I:1.2

Years of service.  A judicial official must have at least 18 months
of judicial service and contributions to JSAS before becoming vested
in the plan. 

Marriage Duration.  A surviving spouse must have been married to the
judicial official at least 1 year before the official's death or be a
parent of a child of the marriage.  A former spouse must have been
married to the judicial official at least 9 months. 

Commencement/termination of benefits.  Benefits commence on the date
of the judicial official's death.  If a surviving or former spouse
remarries before age 55, benefits for that spouse are terminated. 


      PARTICIPATION ELECTION
------------------------------------------------------- Appendix I:1.3

The election must be made within 6 months of taking office or getting
married. 

Former spouse.  The judicial official's election must have been in
effect at the time of divorce.  An election to provide a survivor
annuity must be made at the time of retirement or, if later, within 2
years after the marriage was dissolved. 

Insurable interest.\16 Not applicable. 

Deferred retirement.  The judicial official must file a written
notification, within 90 days before leaving office, of the intent to
remain under JSAS and contribute 3.5 percent of the deferred
retirement annuity amount. 


--------------------
\16 An insurable interest beneficiary is one who can reasonably
expect to receive financial benefit from the continued life of the
retiree. 


      WITHDRAWAL OF PARTICIPATION
------------------------------------------------------- Appendix I:1.4

Participation may be revoked upon the dissolution of the marriage. 
The contributions plus 3 percent interest, minus those paid at 2.2
percent of salary and 3.5 percent of salary for prior creditable
service, may be paid to the judge upon leaving office.  If there is
no eligible surviving spouse or child upon the death of the judicial
official, the contributions plus 3 percent interest are paid to the
judicial official's estate. 


      SURVIVOR BENEFIT FORMULA
------------------------------------------------------- Appendix I:1.5

After retirement.  The annual spousal annuity is 1.5 percent of
average salary\17 for each year of creditable judicial service
(including years in retirement) and as a Member of Congress and up to
15 years of combined congressional staff and executive branch service
and up to 5 years of military service, plus 0.75 percent of average
salary for congressional staff and executive branch service over 15
years.  Creditable years include those where deductions or
contributions were made to the plan, except for military service. 

Before retirement.  Same as after retirement. 

Insurable interest.  Not applicable. 

Deferred retirement.  Same as after retirement.  Benefit formula
includes time between leaving office and starting spousal annuity. 

Minimum/maximum amount of benefit.  Spousal annuity may not be
greater than 50 percent or less than 25 percent of average annual
salary. 


--------------------
\17 Average salary is the average annual salary and/or retirement
annuity received during the 3 highest paid years. 


      REDUCTION OF ANNUITY FOR
      UNPAID CONTRIBUTIONS FOR
      PRIOR SERVICE
------------------------------------------------------- Appendix I:1.6

Spousal annuity is reduced by 10 percent of any judicial and
nonjudicial service deposits that are still unpaid on the date of the
judicial officer's death.  The survivor may elect not to count years
for which contributions were not paid for prior service and not incur
a reduced annuity. 


      CHILDREN'S BENEFITS
------------------------------------------------------- Appendix I:1.7

Age of children.  Surviving unmarried dependent children must be
under age 18 or age 22 if full-time student or incapable of
self-support due to a disability incurred before age 18 or age 22 if
a student. 

Benefit computation.  If the judicial official is survived by a
spouse, each child's annual annuity is the lesser of

  -- 10 percent of average salary or

  -- 20 percent of average salary divided by number of children. 

If the judicial official is not survived by a spouse, each child's
annual annuity is the lesser of

  -- spousal annuity divided by number of children,

  -- 20 percent of average salary, or

  -- 40 percent of average salary divided by number of children. 


      COST-OF-LIVING ADJUSTMENTS
------------------------------------------------------- Appendix I:1.8

Survivors' annuities are increased for full annual increase in the
Consumer Price Index (CPI).  The adjustment measures yearly change in
third quarter to third quarter CPI for urban wage earners and
clerical workers. 


      SOCIAL SECURITY ELIGIBILITY
      AND BENEFITS
------------------------------------------------------- Appendix I:1.9

A surviving spouse with children or children only are generally
eligible for Social Security benefits if the employee paid Social
Security taxes and worked at least 18 months in the 3 years preceding
death.  Benefits are paid to the surviving spouse at age 60 (age 50
if disabled) or at any age if there are surviving children under age
16 or children who were disabled before age 22.  Benefits are also
paid to unmarried children under age 18 and up to age 19 if they are
full-time students. 

Former spouses, with marriages lasting 10 years or more, are eligible
for benefits similar to those of surviving spouses as well as those
former spouses with children who are under age 16 or at any age if
disabled before age 22. 

A surviving spouse or minor children may receive a one-time payment
of $255 and monthly benefits.  The monthly benefit is a percentage of
the deceased employee's or retiree's basic Social Security benefit
ranging from 75 to 100 percent for each beneficiary.  The maximum
amount that a family may receive is generally equal to about 150 to
180 percent of the employee's or retiree's benefit rate. 


   U.S.  TAX COURT SURVIVORS'
   ANNUITY PLAN
--------------------------------------------------------- Appendix I:2


      CONTRIBUTION RATES
------------------------------------------------------- Appendix I:2.1

Employee/retiree contribution rate.  Active and retired judges
contribute 3.5 percent of salary and retirement annuity to
participate in the plan.  Credit is given under the Tax Court plan
for any deposits that were made and not withdrawn during any earlier
service under CSRS or FERS.  Prior creditable service for which
contributions were not made or withdrawn may be credited to the Tax
Court plan if deposits equal to 3.5 percent of salary earned during
the earlier service plus 3 percent interest are paid.  No deposits
are required for prior military service. 

Government contribution rate.  The government's share of contribution
is the amount required to reduce the unfunded liability to zero, not
to exceed 11 percent of salary. 


      ELIGIBILITY REQUIREMENTS FOR
      SURVIVOR BENEFIT COVERAGE
------------------------------------------------------- Appendix I:2.2

Years of service.  A judge must have at least 5 years of creditable
service and contributions before becoming vested in the plan. 
Creditable service for vesting purpose includes judicial,
congressional, and executive branch. 

Marriage duration.  A surviving spouse must have been married to the
judge at least 2 years before the judge's death or be a parent of a
child of the marriage. 

Commencement/termination of benefits.  Benefits commence on the date
of the judge's death, for a surviving spouse beginning at age 50 or
any age if there are dependent children.  If a surviving spouse
remarries before age 55, benefits for the spouse are terminated. 


      PARTICIPATION ELECTION
------------------------------------------------------- Appendix I:2.3

The election must be made while the judge is still in office or no
later than the day after the judge's successor takes office, if the
judge is not reappointed. 

Former spouse.  Not applicable. 

Insurable interest.  Not applicable. 

Deferred retirement.  Not applicable. 


      WITHDRAWAL OF PARTICIPATION
------------------------------------------------------- Appendix I:2.4

Participation may be revoked upon the dissolution of the marriage. 
The contributions plus 3 percent interest may be paid to the judge
upon leaving office or dissolution of the marriage.  If there is no
eligible surviving spouse or child upon the death of the judge, the
contributions plus 3 percent interest are to be paid to the judge's
estate. 


      SURVIVOR BENEFIT FORMULA
------------------------------------------------------- Appendix I:2.5

After retirement.  The annual spousal annuity is 1.5 percent of
average salary\18 for each year of judicial, congressional (member
and/or staff), and military service, excluding any service greater
than 15 years as a congressional staff employee and greater than 5
years in the military service, plus 0.75 percent of average salary
for executive branch service. 

Before retirement.  Same as after retirement. 

Insurable interest, Not applicable. 

Deferred retirement.  Not applicable. 

Minimum/maximum amount of benefit.  Spousal annuity may not be
greater than 50 percent or less than 25 percent of average annual
salary. 

Reduction of Annuity for Unpaid Contributions for Prior Service
Spousal annuity is reduced by 10 percent of any judicial and
nonjudicial service deposits still unpaid on the date of the judicial
officer's death.  The survivor may elect to not count years for which
no contributions were paid for prior service and not incur a reduced
annuity. 


--------------------
\18 Average salary is the average of the highest 3 consecutive years
of annual salary and/or retirement annuity. 


      CHILDREN'S BENEFITS
------------------------------------------------------- Appendix I:2.6

Age of children.  Surviving unmarried dependent children must be age
18 or incapable of self-support due to a disability. 

Benefit computation.  If the judge is survived by a spouse, each
child's annual annuity is the lesser of

  -- 10 percent of average annual salary or

  -- 20 percent of average annual salary divided by number of
     children. 

If the judge is not survived by a spouse, each child's annual annuity
is the lesser of

  -- 20 percent of average annual salary or

  -- 40 percent of average annual salary divided by number of
     children. 


      COST-OF-LIVING ADJUSTMENTS
------------------------------------------------------- Appendix I:2.7

Survivor's annuities increase by 3 percent for each 5 percent
increase in judges' salaries on the day the salary increase becomes
effective. 


      SOCIAL SECURITY ELIGIBILITY
      AND BENEFITS
------------------------------------------------------- Appendix I:2.8

Survivors' eligibility and benefits under the U.S.  Tax Court
Survivors' Annuity Plan are the same as those described under JSAS. 


   U.S.  COURT OF VETERANS APPEALS
   JUDGES RETIREMENT PLAN
--------------------------------------------------------- Appendix I:3


      CONTRIBUTION RATES
------------------------------------------------------- Appendix I:3.1

Employee/retiree contribution rate.  Active and retired judges
contribute 3.5 percent of salary or retirement annuity to participate
in the survivor plan.  Credit is given under the plan for any
deposits that were made and not withdrawn during any earlier service
under CSRS or FERS.  Prior creditable service for which contributions
were not made or withdrawn may be credited to the plan if deposits
equal to 3.5 percent of salary earned during the earlier service plus
3 percent interest are paid.  No deposits are required for prior
military service. 

Government contribution rate.  The government's share is the amount
required to reduce the unfunded liability to zero. 


      ELIGIBILITY REQUIREMENTS FOR
      SURVIVOR BENEFIT COVERAGE
------------------------------------------------------- Appendix I:3.2

Years of service.  A judge must have at least 5 years of creditable
service and contributions before becoming vested in the plan. 
Creditable service for vesting purpose includes judicial,
congressional, and executive branch. 

Marriage duration.  A surviving spouse must have been married to the
judge at least 2 years before the judge's death or must be a parent
of a child of the marriage. 

Commencement/termination of benefits.  Benefits commence on the date
of the judge's death for a surviving spouse beginning at age 50 or
any age if there are dependent children.  If a surviving spouse
remarries before age 55, benefits for the spouse are terminated. 


      PARTICIPATION ELECTION
------------------------------------------------------- Appendix I:3.3

The election must be made while in office. 

Former spouse.  Not applicable. 

Insurable interest.  Not applicable. 

Deferred retirement.  Not applicable. 


      WITHDRAWAL OF PARTICIPATION
------------------------------------------------------- Appendix I:3.4

Participation may be revoked at any time.  Revocation of the election
to participate in retirement program automatically revokes
participation in the survivor plan.  The contributions plus 3 percent
interest may be paid to the judge upon leaving office.  If there is
no eligible surviving spouse or child upon the judge's death, the
contributions plus 3 percent interest shall be paid to the judge's
estate. 


      SURVIVOR BENEFIT FORMULA
------------------------------------------------------- Appendix I:3.5

After retirement.  The annual spousal annuity is 1.5 percent of
average salary\19 for each year of judicial, congressional (member
and/or staff), and military service, excluding any service greater
than 15 years as a congressional staff employee and greater than 5
years in the military service, plus 0.75 percent of average salary
for executive branch service. 

Before retirement.  Same as after retirement. 

Insurable interest.  Not applicable. 

Deferred retirement.  Not applicable. 

Minimum/maximum amount of benefit.  Spousal annuity may not be
greater than 50 percent or less than 25 percent of average salary. 


--------------------
\19 Average salary is the average of the highest 3 consecutive years
of annual salary and/or retirement annuity. 


      REDUCTION OF ANNUITY FOR
      UNPAID CONTRIBUTIONS FOR
      PRIOR SERVICE
------------------------------------------------------- Appendix I:3.6

Spousal annuity is reduced by 10 percent of any judicial and
nonjudicial service deposits still unpaid on the date of the judicial
officer's death.  The survivor may elect not to count years for which
no contributions were paid for prior service and not incur a reduced
annuity. 


      CHILDREN'S BENEFITS
------------------------------------------------------- Appendix I:3.7

Age of children.  Surviving unmarried dependent children must be
under age 18 or age 22 if full-time student or incapable of
self-support due to a disability incurred before age 18 or age 22 if
a student. 

Benefit computation.  If the judge is survived by a spouse, each
child's annual annuity is the lesser of

  -- 10 percent of average annual pay or

  -- 20 percent of average annual pay divided by number of children. 

If the judge is not survived by a spouse, each child's annual annuity
is the lesser of

  -- 20 percent of average annual pay or

  -- 40 percent of average annual pay divided by number of children. 


      COST-OF-LIVING ADJUSTMENTS
------------------------------------------------------- Appendix I:3.8

Survivors' annuities are increased by 3 percent for each 5 percent
increase in judges' salaries on the day the salary increase becomes
effective provided some of the last 18 months of federal service was
service on the Court. 


      SOCIAL SECURITY ELIGIBILITY
      AND BENEFITS
------------------------------------------------------- Appendix I:3.9

Survivors' eligibility and benefits under the U.S.  Court of Veterans
Appeals Judges Retirement Plan are the same as those described under
JSAS. 


   CIVIL SERVICE RETIREMENT SYSTEM
--------------------------------------------------------- Appendix I:4


      CONTRIBUTION RATES
------------------------------------------------------- Appendix I:4.1

Employee/retiree contribution rate.  Employees generally contribute 7
percent\20 toward the retirement program with no designated amount
for survivor benefits.  For retirees, 2.5 percent of the first $3,600
of annuity plus 10 percent over $3,600 are deducted to cover costs of
full survivors' benefits.  For less than full survivor's benefits,
the contribution rate remains the same, but the base amount is any
amount less than the full retiree's annuity.  Insurable interest
premiums are 10 to 40 percent of retirement annuity, depending on the
age difference between the employee and the person named as
beneficiary.  Prior creditable service for which there are no
contributions may be credited if deposits equal to 7 percent of prior
salary (since January 1970) plus interest as determined by the
Secretary of the Treasury are paid.  No deposits are required for
pre-1957 military service or any military service if first employed
by the federal government before October 1982.\21

Government contribution rate.  The government pays all of the
remaining cost; there is no specified maximum. 


--------------------
\20 Although most employees contribute 7 percent, law-enforcement
officers, firefighters, and congressional employees contribute 7.5
percent, and Members of Congress contribute 8 percent towards the
retirement program.  Bankruptcy, magistrate, Court of Federal Claims,
and Court of Military Appeals judges also contribute 8 percent. 

\21 Deposits for any post-1956 military service can be made to avoid
a reduction in retirement annuity at age 62 or a reduction in spousal
survivor annuity, if the employee becomes eligible for Social
Security benefits. 


      ELIGIBILITY REQUIREMENTS FOR
      SURVIVOR BENEFIT COVERAGE
------------------------------------------------------- Appendix I:4.2

Years of service.  An employee must have at least 18 months of civil
service and contributions before becoming vested in the plan. 

Marriage duration.  A surviving spouse must have been married to the
current or former employee or retiree at least 9 months or be a
parent of a child of the marriage; however, accidental death of an
employee overrides the marriage duration.  A former spouse must have
been married to the employee or retiree at least 9 months. 

Commencement/termination of benefits.  Benefits commence on the date
after the employee or retiree's death.  If a surviving or former
spouse remarries before age 55, benefits for that spouse are
terminated.  The benefits may be reinstated if the remarriage
terminates. 


      PARTICIPATION ELECTION
------------------------------------------------------- Appendix I:4.3

Full surviving spouse benefits are effective at the time of
retirement, unless waived or reduced jointly by retiree and spouse or
the Office of Personnel Management (OPM) waives the spouse's consent
when all reasonable attempts have been made to obtain such consent
for the surviving spouse benefit.  If married after retirement, an
election to participate must be within 2 years of the marriage.  An
employee may change the survivor annuity no later than 30 days after
the date of the first regular monthly retirement annuity payment.  If
no survivor benefits or less than full benefits are selected, the
retiree may elect to increase benefits up to 18 months after
retirement but may not elect to decrease the benefits. 

Former spouse.  The election must be made at time of retirement.  If
the marriage terminates after retirement, a change in the
participation election must be made within 2 years after the marriage
is dissolved. 

Insurable interest.  The election must be made at time of retirement
and does not require spousal consent. 

Deferred retirement.  For a Member of Congress eligible for deferred
retirement annuity, a surviving or former spouse is eligible for an
immediate survivor annuity.  There is no spousal annuity for a former
employee who is eligible for a deferred retirement annuity and dies
before the deferred retirement annuity begins or before reaching age
62. 


      WITHDRAWAL OF PARTICIPATION
------------------------------------------------------- Appendix I:4.4

The surviving spouse or former spouse annuity and insurable interest
elections may not be revoked later than 30 days after the date of the
first regular monthly retirement annuity payment, except, in the case
of a spouse, when OPM waives the spouse's consent when all reasonable
attempts have been made to obtain such consent for the surviving
spouse benefit or where the employee ceases to be married.  The
exception to the 30-day rule, in the case of insurable interest, is
when the beneficiary dies or the surviving spouse benefit is elected
after retirement.  There is no refund of contributions to the retiree
even if there is no eligible surviving spouse, child, or beneficiary. 


      SURVIVOR BENEFIT FORMULA
------------------------------------------------------- Appendix I:4.5

After retirement.  The full survivor spousal annuity is 55 percent of
the retiree's annuity before the survivor contribution reduction. 
Less than a full survivor annuity is 55 percent of the base amount
selected, which is any amount less than the full retiree's annuity. 
The retiree's annuity formula is 1.5 percent of average salary\22 for
the first 5 years, plus 1.75 percent for the next 5 years, plus 2
percent for the remaining years.  For a Member of Congress, the
retiree's annuity formula is generally 2.5 percent of average salary
or final salary times years of service.  The maximum retiree's
annuity is generally 80 percent of average salary. 

Before retirement.  The survivor spousal annuity is 55 percent of the
employee's accrued retirement benefits at time of death, or if
higher, 55 percent of the disability formula, the lesser of (1) 40
percent of average salary or (2) the amount attained if the employee
had worked until age 60. 

Insurable interest.  The beneficiary receives 55 percent of the
retiree's self-only annuity after insurable interest reduction. 

Deferred retirement.  For a Member of Congress, the survivor spousal
annuity is 55 percent of a Member's deferred retirement annuity.  For
a former employee who dies before the deferred annuity begins or
before reaching age 62, the surviving spouse receives a refund of the
retirement contributions.  For a former employee who dies after the
deferred retirement annuity begins or reaches age 62 and has filed an
application for retirement, the survivor spousal annuity is 55
percent of the deferred retirement annuity. 

Minimum/maximum amount of benefit.  For a full survivor spousal
annuity, the minimum amount of benefit is generally 22 percent and
the maximum is 44 percent of employee's average salary.  There is no
guaranteed minimum for employees dying after retirement. 


--------------------
\22 Average salary is the highest basic pay over 3 consecutive years
of creditable service. 


      REDUCTION OF ANNUITY FOR
      UNPAID CONTRIBUTIONS FOR
      PRIOR SERVICE
------------------------------------------------------- Appendix I:4.6

The retirement annuity is reduced by 10 percent of any prior service
deposits that were never withheld for service performed before
October 1982.  To not incur the reduced annuity and to receive credit
for service after September 30, 1982, the deposits plus interest must
be paid by the employee prior to retirement.  The survivor may elect
to not count years for which no contributions were paid or to pay for
prior service and not incur a reduced survivor annuity. 


      CHILDREN'S BENEFITS
------------------------------------------------------- Appendix I:4.7

Age of children.  Surviving unmarried dependent children must be
under age 18 or age 22 if full-time student or incapable of
self-support due to a disability incurred before age 18. 

Benefit computation.  If there is a surviving spouse, each child is
to receive annually the lesser of

  -- 60 percent of average salary divided by the number of children,

  -- $4,044 (as of 12/01/96) for each child, or

  -- $12,132 (as of 12/01/96) divided by the number of children. 

If there is no surviving spouse, each child is to receive annually
the lesser of

  -- 75 percent of average salary divided by the number of children,

  -- $4,824 (as of 12/01/97) for each child, or

  -- $14,472 (as of 12/01/96) divided by the number of children. 


      COST-OF-LIVING ADJUSTMENTS
------------------------------------------------------- Appendix I:4.8

Survivors' annuities are increased for full annual increase in CPI as
described under JSAS. 


      SOCIAL SECURITY ELIGIBILITY
      AND BENEFITS
------------------------------------------------------- Appendix I:4.9

Under CSRS for a Member of Congress, the survivors' eligibility and
benefits are the same as described under JSAS.  An employee/retiree's
survivor is not eligible for Social Security benefits under CSRS. 


   FEDERAL EMPLOYEES RETIREMENT
   SYSTEM
--------------------------------------------------------- Appendix I:5


      CONTRIBUTION RATES
------------------------------------------------------- Appendix I:5.1

Employee/retiree contribution rate.  Employees generally contribute
0.8 percent\23 (7 percent minus 6.2 percent for Social Security) of
salary toward the defined benefit plan part of the retirement
program,\24 with no designated amount for survivor benefits. 
Retirees contribute 10 percent of their annuities to receive full
survivor benefits and 5 percent for reduced survivor benefits. 
Insurable interest premiums are 10 percent of annuity plus 5 percent
for each full 5 years the beneficiary is younger than the retiree. 
The total reduction for insurable interest may not exceed 40 percent. 
Only service performed before 1989 for which there are no
contributions may be credited if deposits equal to 1.3 percent of
prior salary plus interest as determined by the Secretary of the
Treasury are paid.  Deposits of 3 percent of military base pay plus
interest, as determined by the Secretary of the Treasury, are
required to receive credit for post-1956 military service. 

Government contribution rate.  The government pays all remaining
cost; there is no specified maximum. 


--------------------
\23 Although most employees contribute 0.8 percent, law-enforcement
officers, firefighters, air traffic controllers, congressional
employees, and Members of Congress contribute 1.3 percent. 
Bankruptcy, magistrate, Court of Federal Claims, and Court of
Military Appeals judges also contribute 1.3 percent. 

\24 FERS is a three-part retirement program that includes (1) a
defined benefit plan, (2) a Thrift Savings Plan, and (3) Social
Security. 


      ELIGIBILITY REQUIREMENTS FOR
      SURVIVOR BENEFIT COVERAGE
------------------------------------------------------- Appendix I:5.2

Years of service.  An employee must have at least 18 months of civil
service and contributions before becoming vested in the plan. 

Marriage duration.  A surviving spouse must have been married to the
current or former employee or retiree at least 9 months or be a
parent of a child of the marriage; however, accidental death of an
employee overrides the marriage duration.  A former spouse must have
been married to the employee/retiree at least 9 months. 

Commencement/termination of benefits.  Benefits commence on the date
after the employee/retiree's death.  For the surviving or former
spouse of a former employee who is eligible for a deferred annuity,
benefits commence on the date after death or the earliest eligible
retirement date.  If a surviving or former spouse remarries before
age 55, benefits for that spouse are terminated.  The benefits may be
reinstated if the remarriage terminates. 


      PARTICIPATION ELECTION
------------------------------------------------------- Appendix I:5.3

Full surviving spouse benefits are effective at the time of
retirement, unless waived or reduced jointly by retiree and spouse. 
If married after retirement, an election to participate must be made
within 2 years of the marriage.  An employee may change the survivor
annuity no later than 30 days after the date of the first regular
monthly retirement annuity payment.  If no survivor benefits or less
than full benefits are selected, the retiree may elect to increase
benefits up to 18 months after retirement but may not elect to
decrease the benefits. 

Former spouse.  The election must be made at time of retirement.  If
the marriage terminates after retirement, the change in the
participation election must be made within 2 years after the marriage
is dissolved. 

Insurable interest.  The election must be made at time of retirement
and does not require spousal consent. 

Deferred retirement.  If the former employee was eligible for a
deferred annuity, the surviving or former spouse, as of date of
separation from service, may receive a spousal survivor annuity. 


      WITHDRAWAL OF PARTICIPATION
------------------------------------------------------- Appendix I:5.4

The surviving spouse or former spouse annuity and insurable interest
elections may not be revoked later than 30 days after the date of the
first regular monthly retirement annuity payment, except, in the case
of a spouse, when OPM waives the spouse's consent when all reasonable
attempts have been made to obtain such consent for the surviving
spouse benefit or where the employee ceases to be married.  The
exception to the 30-day rule, in the case of insurable interest, is
when the beneficiary dies or the surviving spouse benefit is elected
after retirement.  There is no refund of contributions even if there
is no eligible surviving spouse, child, or beneficiary. 


      SURVIVOR BENEFIT FORMULA
------------------------------------------------------- Appendix I:5.5

After retirement.  A full survivor spousal annuity is 50 percent of
the retiree's unreduced benefits plus a special supplementary
annuity, which approximates the value of FERS service in a Social
Security benefit, payable until age 60 if the spouse will not be
eligible for Social Security survivor benefits until then.  A reduced
survivor spousal annuity is 25 percent of the retiree's unreduced
benefits. 

The retiree's unreduced benefit formula is 1 percent of average
salary\25 times years of creditable service.  If employee retires at
age 62 with at least 20 years of service, the factor is 1.1 percent. 
For a Member of Congress, the retiree's formula is generally 1.7
percent of average salary for each of the first 20 years of
congressional service and 1 percent for each subsequent year of
creditable service. 

Before retirement.  If the employee has less than 10 years of
service, the survivor spousal benefit is the lump-sum payment of
$21,335.30 (as of 12/01/96) plus the greater of one-half of annual
pay rate at death or one-half of high-3 average pay.  If the employee
had 10 years or more service, there is an additional survivor spousal
annuity of 50 percent of the employee's accrued benefits. 

Insurable interest.  The beneficiary receives 55 percent of the
retiree's self-only annuity after insurable interest reduction. 

Deferred retirement.  The survivor spousal annuity is 50 percent of
the retirement annuity that would have been paid if the former
employee had been eligible for an unreduced deferred annuity on the
date of his/her death.  A surviving or former spouse may elect to
receive a reduced survivor annuity on the day after the former
employee dies if the former employee did not meet the age and service
requirements for the deferred retirement annuity.  The formula for
the reduced survivor annuity includes a factor to account for the
number of years after the death of an employee before being eligible
for the unreduced deferred retirement annuity. 

Minimum/maximum amount of benefit.  There is no guaranteed minimum or
maximum survivor annuity. 


--------------------
\25 Average salary is the highest basic pay over 3 consecutive years
of creditable service. 


      REDUCTION OF ANNUITY FOR
      UNPAID CONTRIBUTIONS FOR
      PRIOR SERVICE
------------------------------------------------------- Appendix I:5.6

To receive credit for unpaid service, the deposits must be paid by
the employee prior to retirement.  The survivor may elect not to
count years for which no contributions were paid or to pay for prior
service and not incur a reduced survivor annuity; however, credit is
not allowed for prior years of service after 1988 if no contributions
were withheld or any contributions withdrawn. 


      CHILDREN'S BENEFITS
------------------------------------------------------- Appendix I:5.7

Age of children.  Surviving unmarried dependent children must be
under age 18 or age 22 if full-time student or incapable of
self-support due to a disability incurred before age 18. 

Benefit Computation.  If there is a surviving spouse, each child is
to receive annually the lesser of

  -- $4,044 (as of 12/01/96) for each child or

  -- $12,132 (as of 12/01/96) divided by the number of children. 

If there is no surviving spouse, each child is to receive annually
the lesser of

  -- $4,824 (as of 12/01/96) for each child or

  -- $14,472 (as of 12/01/96) divided by the number of children. 

Children's annuities are reduced dollar-for-dollar by any Social
Security children's benefits that may be payable. 


      COST-OF-LIVING ADJUSTMENTS
------------------------------------------------------- Appendix I:5.8

Survivors' annuities are increased annually for increase in CPI. 
Spousal survivors, unlike retirees who must be age 62, receive either
full or partial COLAs regardless of age.  If the CPI increase is
equal to or greater than 3 percent, the COLA is 1 percentage point
less than CPI increase.  If CPI is at least 2 percent but less than 3
percent, the COLA is 2 percent.  If the CPI is less than 2 percent,
the COLA is equal to the CPI increase.  Children's benefits are
increased for the full annual increase in the CPI. 


      SOCIAL SECURITY ELIGIBILITY
      AND BENEFITS
------------------------------------------------------- Appendix I:5.9

Survivors' eligibility and benefits under FERS are the same as those
described under JSAS. 


   MILITARY RETIREMENT SYSTEM'S
   SURVIVOR BENEFIT PLAN
--------------------------------------------------------- Appendix I:6


      CONTRIBUTION RATES
------------------------------------------------------- Appendix I:6.1

Employee/retiree contribution rate.  Active members do not contribute
toward the retirement program or the Survivor Benefit Plan (SBP). 
Retired members contribute 6.5 percent of retirement annuity or a
lesser elected base amount (cannot be less than $300 monthly) to
provide for a surviving spousal annuity in SBP.  If monthly
retirement pay or base amount is less than $930 (as of 01/01/97), the
contribution is 2.5 percent of the first $434 plus 10 percent of
remaining amount.  Supplemental SBP premiums for former spouse,
children coverage with spousal coverage, or children only coverage
are based on age of the retired member, spouse, and youngest child. 
Insurable interest premiums are 10 percent of retirement annuity,
plus 5 percent for each 5 years the retired member is older than the
beneficiary, with a maximum premium of 40 percent. 

Government contribution rate.  The government pays all the remaining
cost of SBP; there is no specified maximum.  The government does not
contribute to the Supplemental SBP or insurable interest coverage. 


      ELIGIBILITY REQUIREMENTS FOR
      SURVIVOR BENEFIT COVERAGE
------------------------------------------------------- Appendix I:6.2

Years of service.  A member must have 20 years of military service
unless retired for disability or specially enacted early retirement. 

Marriage duration.  A surviving spouse must be married to member at
retirement or, after retirement, at least 1 year before death or be a
parent of a child of the marriage.  A former spouse must have been
married to the member at least 1 year. 

Commencement /termination of benefits.  Benefits commence on the
first day after the member's death.  If a surviving or former spouse
remarries before age 55, benefits for that spouse are terminated. 
The benefits may be reinstated if the remarriage terminates. 


      PARTICIPATION ELECTION
------------------------------------------------------- Appendix I:6.3

SBP and Supplemental SBP elections must be made at the time of
retirement.  Full SBP benefits are in effect at time of retirement
unless waived or reduced jointly by the retiree and spouse.  If
member marries or acquires a dependent child after retirement, the
election must be made within 1 year of the occurrence. 

Former spouse.  The election must be made at time of retirement.  If
the marriage terminates after retirement, the change in the
participation election must be made within 1 year after the marriage
is dissolved.  If married after retirement and the marriage
dissolves, the marriage must have lasted at least 1 year or the
former spouse must be a parent of a child of the marriage. 

Insurable interest.  The election must be made at time of retirement. 
Only unmarried members with no dependent children may elect insurable
interest coverage. 

Deferred retirement.  Not applicable. 


      WITHDRAWAL OF PARTICIPATION
------------------------------------------------------- Appendix I:6.4

SBP and Supplemental SBP may be suspended upon dissolution of the
marriage or if children become ineligible for benefits.  Insurable
interest may be revoked at any time, except for a former spouse. 
There are no refunds of contributions even if there is no eligible
surviving spouse, child, or beneficiary. 


      SURVIVOR BENEFIT FORMULA
------------------------------------------------------- Appendix I:6.5

After retirement.  The monthly survivor spousal annuity is 55 percent
of member's retirement annuity or the lesser elected base amount. 
The monthly base amount, elected by member, cannot be less than $300
or greater than full retirement annuity.  The survivor annuity is
reduced to 35 percent of base amount at survivor's age 62 when Social
Security benefits are available.  Supplemental SBP annuity is
available in increments of 5 percent up to 20 percent of retirement
annuity for a survivor who is age 62 and older with full SBP.  There
is a Department of Veterans Affairs' Dependency and Indemnity
Compensation survivors' program for service-related deaths.  The
Veterans Affairs' program reduces the SBP benefit dollar-for-dollar,
but not Supplemental SBP. 

There are three different retirement annuity formulas depending upon
when military service began: 

  -- Before September 8, 1980, retirement annuity is basic pay times
     (2.5 percent times years of service). 

  -- After September 7, 1980, but before August 1, 1986, retirement
     annuity is the average of the highest 36 months of basic pay
     times (2.5 percent times years of service). 

  -- After July 31, 1986, retirement annuity is the average of the
     highest 36 months of basic pay times (2.5 percent times years of
     service minus one percentage point for each year of service
     under 30).  At age 62, the penalty is removed and the retirement
     annuity is recomputed. 

The multiplier (2.5 percent times years of service) cannot be greater
than 75 percent.  Basic pay does not include quarters, subsistence,
or housing allowances. 

Before retirement.  No SBP benefits are available to survivors of a
member with less than 20 years of service unless retired for
disability or special Temporary Early Retirement Authority.  The
Department of Veterans Affairs' Dependency and Indemnity Compensation
survivors' program protects against the service-related death of a
member; and Social Security benefits and life insurance, if purchased
by the member, are available to survivors.  Monthly payments (as of
12/01/96) under the Veterans Affairs' program begin at $833 to a
surviving spouse and $211 for each child under age 18.  If there is
no surviving spouse, the monthly payment for one child is $354, $510
for two, $662 for three, and an additional $130 for each child in
excess of three. 

Insurable interest.  The beneficiary receives 55 percent of the
member's retirement annuity after premiums for SBP are subtracted. 

Deferred retirement.  Not applicable. 

Minimum/maximum amount of benefit.  The survivor spousal annuity may
not be greater than 55 percent of the retirement annuity before
survivor's age 62 or 35 percent of the retirement annuity beginning
at age 62.  The minimum spousal annuity may not be less than 55
percent of the minimum elected $300 base amount before survivor's age
62 or 35 percent of the minimum elected $300 base amount beginning at
age 62. 


      REDUCTION OF ANNUITY FOR
      UNPAID PRIOR SERVICE
------------------------------------------------------- Appendix I:6.6

Not applicable. 


      CHILDREN BENEFITS
------------------------------------------------------- Appendix I:6.7

Age of children.  Surviving unmarried dependent children must be
under age 18 or 22 if full-time student or incapable of self-support
due to a disability incurred before age 18 or 22 if a student. 

Benefit computation.  If spouse and child coverage is selected and
the member is survived by a spouse, there is no separate children's
annuity.  If a surviving spouse dies and spouse and children coverage
was selected, children equally divide the survivor annuity equal to
55 percent of the base amount.  If children only coverage was
selected, children equally divide the annuity equal to 55 percent of
the base amount. 


      COST-OF-LIVING ADJUSTMENTS
------------------------------------------------------- Appendix I:6.8

Survivors annuities are increased each year for the full increase in
the CPI for those members entering service before August 1, 1986. 
For members entering service after July 31, 1986, survivors receive
the CPI minus 1 percentage point.  On the member's 62nd birthday,
survivors receive a one-time restoral of the less than full COLAs;
then the annual partial COLAs continue. 


      SOCIAL SECURITY ELIGIBILITY
      AND BENEFITS
------------------------------------------------------- Appendix I:6.9

At age 62, SBP benefits are reduced from 55 percent of base amount to
35 percent when Social Security benefits become available and are
expected to be at least 20 percent of base amount. 

If member dies before 20 years of service, Social Security survivors'
eligibility and benefits are the same as described under the JSAS. 




(See figure in printed edition.)Appendix II
COMMENTS FROM THE ADMINISTRATIVE
OFFICE OF THE U.S.  COURTS
=========================================================== Appendix I



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)


The following are GAO's comments on AOUSC's April 25, 1997, letter. 

GAO COMMENTS

1.  AOUSC prepared a revised table 2 (our original table 2 is now
figure 1 in the report) that included Social Security survivor
benefits and TSP investments in the replacement rates for surviving
spouses.  As described below, the table minimized the difference in
Social Security survivor benefits between JSAS and FERS general
employees, double-counted Social Security benefits for military
members' surviving spouses, included Department of Veterans Affairs'
survivor benefits that are not part of the military's SBP plan, and
implied that a large number of JSAS participants were receiving
matching TSP government contributions. 

Social Security retirement and survivor benefits computations are
complicated and vary widely, depending on many factors.  These
factors include the employee's date of birth, earnings averaged over
an employee's working years, the ages of the deceased employee and
surviving spouse, and the presence of dependent children.  Social
Security is designed to provide benefits that replace a greater
percentage of earnings for lower-paid employees than for higher-paid
employees.  Therefore, unlike the specific spousal benefit
replacement rates for the various federal survivor benefit plans that
we provided in figure 1 in the report, replacement rates for Social
Security survivor benefits for each of the years of service in figure
1 would vary widely because of the many factors noted above. 

The information presented in AOUSC's revised table 2 required that
certain assumptions be made in order to estimate Social Security
survivor benefits.  AOUSC's assumptions maximized benefits to the
surviving spouse of FERS general employees and therefore minimized
the difference between JSAS and FERS general employees' surviving
spouses.  AOUSC's assumptions included that (1) JSAS and Members of
Congress under FERS and CSRS would be receiving benefits based on the
maximum taxable earnings under Social Security, and FERS general
employees would be receiving benefits based on one-half of Social
Security taxable earnings and (2) participants for all these plans
are age 62 or older--because JSAS participants' average age is 63. 

Based on these AOUSC assumptions, JSAS and Members of Congress
surviving spouses would have received the maximum Social Security
benefits, and their replacement rates of salary from Social Security
alone would be lower than for FERS general employees because of the
Social Security formula.  The Social Security formula provides a
higher replacement rate for lower-salaried workers.  The magnitude of
the effect that earnings can have on replacement rates is best
illustrated with an example.  The Social Security replacement rate of
final salary for a FERS general employee at age 62 with 30 years of
service is 26 percent with final year earnings of $30,000 and 14
percent with final year earnings of $100,000.\26

The range of Social Security replacement rates, for this example, is
14 to 26 percent, depending on the earnings levels of the employee. 
Therefore, the replacement rate should decrease by 12 percentage
points in AOUSC's revised table 2 for a higher-salaried FERS general
employee with 30 years of service. 

AOUSC also assumed that the participants for its Social Security
computations were age 62 or older.  This assumption provided a higher
benefit level to FERS general employees than would be expected.  In
reality, JSAS surviving spouses are more likely than FERS surviving
spouses to receive the full survivor benefits because the JSAS
participants on average are older than FERS participants.  While the
average age of JSAS participants is 63, the average age of FERS
general employees is 40, and the average age of death for employed
FERS participants is 51.  Under Social Security guidelines, a
surviving spouse age 65 or older receives 100 percent of the
employee's Social Security benefits, and those ages 60 to 64 receive
about 71 to 94 percent.  A surviving spouse under age 60 with a
dependent child receives 75 percent of the employee's Social Security
benefits.  A surviving spouse under age 60 with no dependent child
generally receives no benefits until age 60. 

AOUSC's revised table 2 also double-counted Social Security survivor
benefits for the surviving spouses of military members.  AOUSC added
the Social Security benefits on top of the military's SBP benefits to
arrive at their revised replacement rates.  Throughout the report, we
noted that the military's SBP benefits are reduced to 35 percent of
the military member's retirement pay when the surviving spouse
reaches age 62 to reflect the availability of Social Security
benefits.  Therefore, the Social Security benefits should not have
been added to the military's SBP benefits; they should have replaced
a portion of them when the surviving spouse reached age 62. 
Including Social Security benefits overstated the military's
replacement rates, increasing them, for instance, from 16 to 43
percent for a member with 20 years of creditable service. 

Additionally, AOUSC added an amount for the Department of Veterans
Affairs' Dependency and Indemnity Compensation survivors' program
benefits for service-related deaths if a military member has less
than 20 years of service.  We acknowledged the availability of these
survivor benefits in the report, but we did not include them in the
replacement rate computations because they are not part of the
military's SBP survivor benefit plan. 

AOUSC's revised table 2 also included JSAS judges participating in
TSP with matching 5 percent government contributions.  Although AOUSC
noted that most JSAS judges may participate in TSP by contributing up
to 5 percent of their salary with no matching government
contributions, a lesser number of JSAS judges--those who are also
covered by FERS--may participate in TSP up to 10 percent of salary or
a maximum of $9,500 with matching government contributions up to 5
percent.  According to an AOUSC official, there are 143 Bankruptcy,
Magistrate, and Court of Federal Claims judges who currently
participate in both JSAS and FERS.  AOUSC's presentation in the
revised table 2 did not note that only about 10 percent of JSAS
participants receive the 5 percent government matching, and thus
implied that a large number of JSAS participants receive the matching
government contributions, when in fact, the numbers are relatively
small. 

2.  AOUSC prepared a revised table 3 (our original table 3 is now
table 2 in the report) to show participants' combined contributions
to Social Security, TSP, and the federal survivor benefit plans. 
There are flaws in AOUSC's revised table 3.  Its revised table (1)
did not include, as it should have, participant contributions to the
survivorship portion of Social Security for active
participants--except for CSRS general employees' who do not
contribute to Social Security--and (2) did include, when it should
not have, the Tax Court judges' contributions to TSP because--as
stated in the report--Tax Court judges cannot participate in TSP. 
Additionally, JSAS' enrolled actuary provided AOUSC with estimates of
the percentages of employee contributions attributable to FERS and
CSRS survivor benefits.  However, OPM, the plan administrator of CSRS
and FERS, does not identify the portion of CSRS and FERS
contributions that are attributable to survivor benefits, as we had
also stated in the report. 

3.  AOUSC prepared a new table 2a to replace its own revised table 2
to show a comparison of surviving spouse benefits derived solely from
the contributions of the federal government for the federal survivor
benefit plans, including Social Security benefits and TSP
investments.  We believe that the same reasons for caution, as stated
in our comment 1 and 2, should be used in drawing conclusions from
this table because AOUSC's underlying methodology was the same. 


--------------------
\26 Federal Pensions:  Thrift Savings Plan Has Key Role in Retirement
Benefits (GAO/HEHS-96-1, Oct.  19, 1995). 


MAJOR CONTRIBUTORS TO THIS REPORT
========================================================= Appendix III

GENERAL GOVERNMENT DIVISION,
WASHINGTON, D.C. 

Margaret T.  Wrightson, Assistant Director, Federal Management and
 Workforce Issues
Robert E.  Shelton, Assistant Director, Federal Management and
Workforce
 Issues
Ronald J.  Cormier, Assignment Manager
Jeffery A.  Bass, Evaluator-in-Charge

OFFICE OF GENERAL COUNSEL,
WASHINGTON, D.C. 

Robert J.  Heitzman, Senior Attorney


*** End of document. ***