The Effects of Workforce-Shaping Incentives on Civil Service Retirements

Evidence from the Department of Defense

by Beth J. Asch, Steven Haider, Julie Zissimopoulos

Download

Download eBook for Free

FormatFile SizeNotes
PDF file 0.3 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback34 pages $20.00 $16.00 20% Web Discount

An increasing number of retirements from federal employment is predicted over the next decade owing to the aging of the federal workforce. Most of these retirements will be among workers covered by the Civil Service Retirement System (CSRS). To influence the timing of these retirements, federal agencies could use a variety of financial incentives. This research provides estimates of the effects of early retirement incentives, buyout incentives, and retention allowances on the retirement rates of federal employees CSRS in the Department of Defense (DoD). The first two programs are intended to increase the financial incentive to leave voluntarily; the third is intended to increase the financial incentive to stay in the civil service. The authors found that these workforce-shaping polices would have sizable effects on the financial incentive to retire or separate from the civil service and on predicted retirement behavior. The predicted effects of early retirement benefits were especially large, more than doubling the separation rates of those age 50 with more than 20 years of service Thus, these polices could have important effects on the retirement and separation behavior of federal civil service personnel covered by the CSRS.

This report is part of the RAND Corporation documented briefing series. RAND documented briefings are based on research presented to a client, sponsor, or targeted audience in briefing format. Additional information is provided in the documented briefing in the form of the written narration accompanying the briefing charts. All RAND documented briefings undergo rigorous peer review to ensure that they meet high standards for research quality and objectivity. However, they are not expected to be comprehensive and may present preliminary findings. Major research findings are published in the monograph series; supporting or preliminary research is published in the technical report series.

This research in the public interest was supported by RAND, using discretionary funds made possible by the generosity of RAND's donors, the fees earned on client-funded research, and independent research and development (IR&D) funds provided by the Department of Defense.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.