24. FEDERAL EMPLOYMENT AND COMPENSATION
This section provides information on civilian and military
employment in the Executive, Legislative, and Judicial
branches. It also provides information on personnel
compensation and benefits.
Measuring Federal Employment
For budgetary purposes, civilian employment is measured
on the basis of full-time equivalents (FTEs). One
FTE is equal to one work year (see OMB Circular A–11,
Section 32). Put simply, one full-time employee counts
as one FTE, and two half-time employees also count
as one FTE. Data shown for military personnel are
average strengths, not FTEs. Tables 24–1 and 24–3
show FTE data, while Table 24–2 shows end strength
or ‘‘positions filled’’ data as of September 30th.
Significant Changes in Civilian Employment
Although immediate security requirements cause
near-term increases in Federal employment, the Administration
continues its efforts to improve government
effectiveness and efficiency in order to better serve the
American people with a smaller Federal workforce.
While current projections show an increase in the number
of employees in the Executive Branch, it is expected
that efforts to improve government effectiveness and
efficiency will result in a reduction in the number of
Federal government employees over the next four years.
The Department of Commerce grows 4,400 FTE between
FY 2004 and FY 2006 due to increased workload
associated with the American Community Survey in
the Bureau of the Census. The U.S. Patent and Trademark
Office (PTO) is also increasing personnel in an
effort to reduce a large backlog of patent and trademark
submissions. The increase in PTO FTEs is fee funded.
At the Department of Health and Human Services,
an increase of over 2,800 FTEs between FY 2004 and
FY 2006 is due to the following: 1) Additional staff
to provide actuarial, health administration, and contracting
expertise to support the implementation of the
Medicare Modernization Act (MMA) at the Centers for
Medicare and Medicaid Services; 2) Expanded staff at
the Indian Health Service health care facilities; 3) Increase
in scientific research positions at the National
Institutes of Health; 4) Pre-market review of new drugs,
medical devices, animal drugs, and other products regulated
at the Food and Drug Administration (FDA) and
the FDA Office of Drug Safety; and 5) Work related
to Medicare appeals and health information technology
at the Office of the Secretary.
Total FTEs for the Department of Homeland Security
increase by six percent between FY 2004 and FY 2006
as this new department’s employment settles into a
more steady state. The new growth of 8,500 FTE is
primarily driven by increases in U.S. Customs and Border
Protection Officers, Border Patrol Agents, and
Transportation Security Administration screener personnel.
Department of Justice FTEs increased by 18 percent
between FY 2004 and FY 2006 due to increases in
security-related programs. Growth of 18,100 FTE is
largely driven by increases in the Federal Bureau of
Investigation, federal prison system, legal activities,
Bureau of Alcohol, Tobacco, Firearms, and Explosives,
and the U.S. Marshals.
Department of State FTE increases are principally
within their diplomatic and consular programs, the Department’s
main operating account. Total Department
FTEs increase by over 600 between FY 2004 and FY
2006. These new positions are for additional security
personnel, consular personnel to facilitate new visa security
requirements, staffing for new requirements
overseas, such as Iraq, Sudan, and Libya, and to
strengthen reconstruction and stabilization capabilities.
The Office of Personnel Management’s increases in
FY 2005 and FY 2006 FTE, as compared to FY 2004,
include the transfer of approximately 1,800 DOD’s Defense
Security Service investigative personnel to OPM.
The roughly 500 FTE increase reflected in the Smithsonian
Institution (encompassing the Smithsonian Institution,
National Gallery of Art, John F. Kennedy Center
for the Performing Arts and the Woodrow Wilson Center
for International Scholars) between FY 2004 and
FY 2006 primarily reflect additional staff for security
and facilities operations. Both the National Gallery of
Art and the Smithsonian Institution are working to
reduce the turnover associated with their respective security
forces and hire a force sufficient to accommodate
today’s homeland security challenges. In FY 2005, the
Smithsonian will continue to supplement its security
and facility operations staff to support the recent openings
of the National Museum of the American Indian
on the National Mall and the National Air and Space
Museum’s Steven F. Udvar-Hazy Center.
The Social Security Administration is projecting
growth in hiring of about 1,700 FTE between FY 2004
and FY 2006. The agency requires new hires to meet
its responsibilities in implementing the Medicare prescription
drug benefit. SSA is in charge of determining
eligibility for low-income subsidies for the drug benefit.
Significant Changes in Military Employment
As shown in Table 24–3, the Department of Defense
estimate reduces over 55,000 FTE by FY 2006. The
Services continue to increase their use of technology
resulting in less military personnel requirements. In
addition, contracted labor is on the rise within the Services.
Lastly, personnel retention was previously high
among those military members with aircraft-related
382 ANALYTICAL PERSPECTIVES
skills due to reduced hiring by the commercial airlines.
However, the Services anticipate this retention rate will
decrease as the economy continues to improve.
Personnel Compensation and Benefits
Table 24–4 displays personnel compensation and benefits
(in millions of dollars) for all branches of Government,
to include military personnel.
Direct compensation of the Federal work force includes
base pay and premium pay, such as overtime.
In addition, it includes other cash components, such
as geographic pay differentials (i.e., locality pay, and
special pay adjustments for law enforcement officers),
recruitment and relocation bonuses, retention allowances,
performance awards, and cost-of-living and overseas
allowances.
In the case of military personnel, compensation includes
basic pay, special and incentive pays (including
enlistment and reenlistment bonuses), and allowances
for clothing, housing, and subsistence.
Related compensation in the form of personnel benefits
for current employees consists of the cost to Government
agencies (as an employer) primarily for health
insurance, life insurance, Social Security (old age, survivors,
disability, and health insurance) and contributions
to the retirement funds to finance future retirement
benefits. Compensation for former personnel includes
outlays for retirement pay benefits, and the Government’s
share of the cost of health and life insurance.
Table 24–1. FEDERAL EMPLOYMENT IN THE EXECUTIVE BRANCH
(Civilian employment as measured by Full-Time Equivalents, in thousands)
Agency
Actual Estimate Change: 2002 to 2006
2002 2003 2004 2005 2006 FTE’s Percent
Cabinet agencies:
Agriculture ..................................................................................................................................... 97.0 101.4 100.5 103.3 100.5 3.5 3.6%
Commerce .................................................................................................................................... 34.9 34.5 34.6 37.9 39.0 4.1 11.7%
Defense—Military functions ........................................................................................................... 649.9 648.9 650.4 659.9 664.6 14.7 2.3%
Education ...................................................................................................................................... 4.5 4.5 4.4 4.5 4.4 –0.1 –2.2%
Energy ........................................................................................................................................... 15.8 15.6 15.1 15.9 15.8 .................. ................
Health and Human Services ......................................................................................................... 59.0 60.0 59.3 62.3 62.1 3.1 5.3%
Homeland Security ........................................................................................................................ 81.3 144.5 137.3 143.9 145.8 64.5 79.3%
Housing and Urban Development ................................................................................................ 10.0 10.4 10.2 10.0 9.9 –0.1 –1.0%
Interior ........................................................................................................................................... 70.3 71.0 70.7 71.0 70.9 0.6 0.9%
Justice ........................................................................................................................................... 97.3 99.4 101.4 116.5 119.5 22.2 22.8%
Labor ............................................................................................................................................. 17.0 16.9 16.5 16.8 16.9 –0.1 –0.6%
State .............................................................................................................................................. 28.6 29.5 30.0 30.3 30.6 2.0 7.0%
Transportation ............................................................................................................................... 61.2 59.0 57.3 57.4 57.7 –3.5 –5.7%
Treasury ........................................................................................................................................ 115.9 115.4 113.6 113.0 113.6 –2.3 –2.0%
Veterans Affairs ............................................................................................................................. 208.9 211.8 218.7 221.9 218.1 9.2 4.4%
Other agencies—excluding Postal Service:
Agency for International Development ......................................................................................... 2.4 2.3 2.2 2.3 2.6 0.2 8.3%
Broadcasting Board of Governors ................................................................................................ 2.4 2.4 2.3 2.3 2.4 .................. ................
Corps of Engineers—Civil Works ................................................................................................. 25.0 24.5 23.5 23.5 23.5 –1.5 –6.0%
Environmental Protection Agency ................................................................................................. 17.5 17.5 17.3 17.6 17.6 0.1 0.6%
EEOC ............................................................................................................................................ 2.8 2.6 2.5 2.4 2.4 –0.4 –14.3%
FDIC/RTC ..................................................................................................................................... 6.0 5.4 5.3 5.2 4.9 –1.1 –18.3%
General Services Administration ................................................................................................... 12.4 12.9 12.6 12.7 12.2 –0.2 –1.6%
NASA ............................................................................................................................................ 18.7 18.7 18.8 19.4 19.0 0.3 1.6%
National Archives and Records Administration ............................................................................ 2.8 2.8 2.8 2.9 2.9 0.1 3.6%
National Labor Relations Board .................................................................................................... 1.9 1.9 1.9 1.9 1.8 –0.1 –5.3%
National Science Foundation ........................................................................................................ 1.2 1.2 1.3 1.3 1.3 0.1 8.3%
Nuclear Regulatory Commission .................................................................................................. 2.8 2.9 3.0 3.1 3.2 0.4 14.3%
Office of Personnel Management ................................................................................................. 2.8 2.8 2.8 4.1 5.0 2.2 78.6%
Peace Corps ................................................................................................................................. 1.0 1.0 1.1 1.2 1.2 0.2 20.0%
Railroad Retirement Board ........................................................................................................... 1.2 1.1 1.1 1.0 1.0 –0.2 –16.7%
Securities and Exchange Commission ......................................................................................... 3.0 3.1 3.6 3.9 3.9 0.9 30.0%
Small Business Administration ...................................................................................................... 4.0 3.8 3.4 4.2 3.3 –0.7 –17.5%
Smithsonian Institution .................................................................................................................. 5.0 5.2 5.1 5.6 5.6 0.6 12.0%
Social Security Administration ...................................................................................................... 63.1 63.1 63.9 64.2 65.6 2.5 4.0%
Tennessee Valley Authority .......................................................................................................... 13.5 13.1 12.0 12.0 12.1 –1.4 –10.4%
All other small agencies ................................................................................................................ 15.0 15.1 14.9 15.7 15.7 0.7 4.7%
Total, Executive Branch civilian employment * ........................................................................... 1,755.9 1,826.2 1,821.1 1,871.2 1,876.8 120.9 6.9%
Subtotal, Defense .............................................................................................................................. 649.9 648.9 650.4 659.9 664.6 14.7 2.3%
Subtotal, Non-Defense ...................................................................................................................... 1,106.0 1,177.3 1,170.7 1,211.3 1,212.2 106.2 9.6%
* Totals may not add due to rounding.
383 24. FEDERAL EMPLOYMENT AND COMPENSATION
Table 24–2. TOTAL FEDERAL EMPLOYMENT
(As measured by total positions filled)
Description
Actual as of September 30 Change: 2002 to 2004
2002 2003 2004 Positions Percent
Executive branch civilian employment:
All agencies except Postal Service and Postal Rate Commission:
Full-time permanent ........................................................................................................................................... 1,632,663 1,646,688 1,662,990 30,327 1.9%
Other than full-time permanent .......................................................................................................................... 185,597 220,288 218,953 33,356 18.0%
Subtotal .......................................................................................................................................................... 1,818,260 1,866,976 1,881,943 63,683 3.5%
Postal Service: 1
Full-time permanent ........................................................................................................................................... 645,758 634,709 609,579 –36,179 –5.6%
Other than full-time permanent .......................................................................................................................... 165,933 164,539 158,083 –7,850 –4.7%
Subtotal .......................................................................................................................................................... 811,691 799,248 767,662 –44,029 –5.4%
Subtotal, Executive branch civilian employment ....................................................................................... 2,629,951 2,666,224 2,649,605 19,654 0.7%
Military personnel on active duty: 2
Department of Defense ..................................................................................................................................... 1,411,634 1,434,377 1,426,836 15,202 1.1%
Department of Transportation (Coast Guard) .................................................................................................... 38,238 37,472 40,230 1,992 5.2%
Commissioned Corps (HHS, NOAA, EPA) ........................................................................................................ 6,221 6,200 6,357 136 2.2%
Subtotal, military personnel ............................................................................................................................ 1,456,093 1,478,049 1,473,423 17,330 1.2%
Subtotal, Executive Branch ........................................................................................................................ 4,086,044 4,144,273 4,123,028 36,984 0.9%
Legislative branch:
full-time permanent ............................................................................................................................................ 12,097 12,044 11,614 –483 –4.0%
Other than full-time permanent .......................................................................................................................... 18,789 19,070 18,435 –354 –1.9%
Subtotal, Legislative Branch .......................................................................................................................... 30,886 31,114 30,049 –837 –2.7%
Judicial Branch:
Full-time permanent ........................................................................................................................................... 31,286 30,955 30,537 –749 –2.4%
Other than full-time permanent .......................................................................................................................... 3,413 3,304 3,324 –89 –2.6%
Subtotal, Judicial Branch ............................................................................................................................... 34,699 34,259 33,861 –838 –2.4%
Grand total 3 ..................................................................................................................................................... 4,151,629 4,209,646 4,186,938 35,309 0.9%
ADDENDUM
Executive branch civilian personnel (excluding Postal Service):
DOD civilians—Military functions ............................................................................................................................ 644,817 636,454 644,251 –566 –0.1%
All other executive branch ..................................................................................................................................... 1,173,443 1,230,522 1,237,692 64,249 5.5%
Total ................................................................................................................................................................... 1,818,260 1,866,976 1,881,943 63,683 3.5%
1 Includes Postal Rate Commission.
2 Excludes reserve components.
3 Includes Summer Aides, Stay-in-school, Junior Fellowship, Worker-Trainee Opportunity, and disadvantage youth programs.
384 ANALYTICAL PERSPECTIVES
Table 24–3. TOTAL FEDERAL EMPLOYMENT
(As measured by Full-Time Equivalents)
Description 2004 Actual
Estimate Change: 2004 to 2006
2005 2006 FTE’s Percent
Executive branch civilian personnel:
All agencies except Postal Service and Defense ...................................................................................................... 1,170,678 1,211,305 1,212,216 41,538 3.5%
Defense—Military functions (civilians) ........................................................................................................................ 650,441 659,889 664,569 14,128 2.2%
Subtotal, excluding Postal Service ......................................................................................................................... 1,821,119 1,871,194 1,876,785 55,666 3.1%
Postal Service 1 .......................................................................................................................................................... 755,260 740,974 729,395 –25,865 –3.4%
Subtotal, Executive Branch civilian personnel ....................................................................................................... 2,576,379 2,612,168 2,606,180 29,801 1.6%
Executive branch uniformed personnel: 2
Department of Defense .............................................................................................................................................. 1,430,607 1,404,918 1,375,250 –55,357 –3.9%
Department of Homeland Security (Coast Guard) ..................................................................................................... 40,230 40,706 41,332 1,102 2.7%
Commissioned Corps ................................................................................................................................................. 6,357 6,503 6,515 158 2.5%
Subtotal, uniformed military personnel ................................................................................................................... 1,477,194 1,452,127 1,423,097 –54,097 –3.7%
Subtotal, Executive Branch ................................................................................................................................... 4,053,573 4,064,295 4,029,277 –24,296 –0.6%
Legislative Branch: 3 Total FTE 3 .................................................................................................................................. 31,764 32,240 32,737 973 3.1%
Judicial branch: Total FTE ............................................................................................................................................. 33,802 33,505 34,728 926 2.7%
Grand total ............................................................................................................................................................ 4,119,139 4,130,040 4,096,742 –22,397 –0.5%
1 Includes Postal Rate Commission.
2 Military personnel on active duty. Excludes reserve components. Data shown for military are average strengths, not FTEs.
3 Actual 2004 FTE data not available for the Senate (positions filled were used).
385 24. FEDERAL EMPLOYMENT AND COMPENSATION
TABLE 24–4. PERSONNEL COMPENSATION AND BENEFITS
(In millions of dollars)
Description 2004
Actual
2005
Estimate
2006
Request
Change: 2004 to 2006
Dollars Percent
Civilian personnel costs:
Executive Branch (excluding Postal Service):
Direct compensation:
DOD—Military functions .................................................................................................................................... 39,139 40,139 41,758 2,619 6.7%
All other executive branch ................................................................................................................................ 79,711 85,770 87,696 7,985 10.0%
Subtotal, direct compensation ....................................................................................................................... 118,850 125,909 129,454 10,604 8.9%
Personnel benefits:
DOD—Military functions .................................................................................................................................... 10,008 10,419 10,898 890 8.9%
All other executive branch ................................................................................................................................ 32,627 34,332 34,902 2,275 7.0%
Subtotal, personnel benefits .......................................................................................................................... 42,635 44,751 45,800 3,165 7.4%
Subtotal, executive branch ........................................................................................................................ 161,485 170,660 175,254 13,769 8.5%
Postal Service:
Direct compensation .............................................................................................................................................. 37,921 38,447 39,134 1,213 3.2%
Personnel benefits ................................................................................................................................................. 12,854 13,220 14,488 1,634 12.7%
Subtotal .............................................................................................................................................................. 50,775 51,667 53,622 2,847 5.6%
Legislative Branch: 1
Direct compensation .............................................................................................................................................. 1,761 1,805 1,918 157 8.9%
Personnel benefits ................................................................................................................................................. 460 481 517 57 12.4%
Subtotal .............................................................................................................................................................. 2,221 2,286 2,435 214 9.6%
Judicial Branch:
Direct compensation .............................................................................................................................................. 2,494 2,604 2,799 305 12.2%
Personnel benefits ................................................................................................................................................. 682 728 807 125 18.3%
Subtotal .............................................................................................................................................................. 3,176 3,332 3,606 430 13.5%
Total, civilian personnel costs ....................................................................................................................... 217,657 227,945 234,917 17,260 7.9%
Military personnel costs:
DOD—Military Functions:
Direct compensation .............................................................................................................................................. 75,729 67,137 69,103 –6,626 –8.7%
Personnel benefits ................................................................................................................................................. 32,517 34,930 37,377 4,860 14.9%
Subtotal .............................................................................................................................................................. 108,246 102,067 106,480 –1,766 –1.6%
All other executive branch, uniformed personnel:
Direct compensation ................................................................................................................................................... 2,343 2,487 2,628 285 12.2%
Personnel benefits ...................................................................................................................................................... 571 615 653 82 14.4%
Subtotal .................................................................................................................................................................. 2,914 3,102 3,281 367 12.6%
Total, military personnel costs 2 ......................................................................................................................... 111,160 105,169 109,761 –1399 –1.3%
Grand total, personnel costs ...................................................................................................................................... 328,817 333,114 344,678 15,861 4.8%
ADDENDUM
Former Civilian Personnel:
Retired pay for former personnel ............................................................................................................................... 53,412 56,896 59,883 6,471 12.1%
Government payment for Annuitants:
Employee health benefits .................................................................................................................................. 7,326 7,831 8,401 1,075 14.7%
Employee life insurance .................................................................................................................................... 35 36 36 1 2.9%
Total Former Civilian Personnel.
Former Military personnel:
Retired pay for former personnel ............................................................................................................................... 37,153 39,135 40,915 3,762 10.1%
Military annuitants health benefits .............................................................................................................................. 5,197 5,887 6,254 1,057 20.3%
1 Excludes members and officers of the Senate.
2 Excludes reserve components not on active duty.
