How Do Federal Civilian Pay Freezes and Retirement Plan Changes Affect Employee Retention in the Department of Defense?

How Do Federal Civilian Pay Freezes and Retirement Plan Changes Affect Employee Retention in the Department of Defense?

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RAND has begun to extend the dynamic retention model to federal civil service employment. Using this capability, this study assesses the effect on retention of pay freezes, unpaid furloughs, and changes to civil service retirement. Permanent pay freezes decrease the workforce retained by 7.3 percent. A mandated increase in employee contributions to the federal retirement plan decreases the workforce retained by as much as 8.6 percent.