Health Care Coverage: Job Lock and the Potential Impact of the Patient Protection and Affordable Care Act

[Excerpt] The majority of Americans—about 55 percent in 2010—rely on employer-sponsored health care coverage, which is largely subsidized by most employers and thus less costly to employees than coverage purchased by individuals on their own. Although a valued employee benefit, many believe that having health coverage tied to employment can influence workers to stay in jobs they might otherwise leave, a phenomenon generally known as “job lock.” The Patient Protection and Affordable Care Act (PPACA), enacted in 2010, includes provisions that are designed to increase the accessibility and affordability of health coverage, particularly for individuals with preexisting health conditions. PPACA implementation is phased; though some provisions went into effect during the year of enactment, many provisions are scheduled to take effect in 2014. Some suggest that one benefit of PPACA may be a decrease in the occurrence of job lock. You asked us to examine job lock and the specific ways PPACA may affect it. Accordingly, we examined two key questions: 1. What has research shown about whether and the extent to which workers stay in jobs they might otherwise leave out of fear of losing health care coverage and the impact of those decisions on the labor market? 2. What are expert views on the ability of PPACA to mitigate job lock

Women in Management: Analysis of Female Managers\u27 Representation, Characteristics, and Pay

[Excerpt] Although women\u27s representation across the general workforce is growing, there remains a need for information about the challenges women face in advancing their careers. In 2001, using 1995 and 2000 data from the Current Population Survey, we found women were less represented in management than in the overall workforce in 4 of the 10 industries reviewed. We also found differences in the characteristics and pay of male and female managers, which we explored using statistical modeling techniques. To respond to your request that we update this information to 2007, this report addresses the following three questions: (1) What is the representation of women in management positions compared to their representation in nonmanagement positions by industry? (2) What are the key characteristics of women and men in management positions by industry? and (3) What is the difference in pay between women and men in full-time management positions by industry

Retirement Security: Better Information on Income Replacement Rates Needed to Help Workers Plan for Retirement

[Excerpt] Part of DOL’s mission is to promote the retirement security of America’s workers, a goal that has become increasingly challenging. One tool for assessing the adequacy of retirement income is the replacement rate. However, recommendations for the replacement rate that a household should target vary widely, in part because of the diverse underlying assumptions used to develop the rates. GAO was asked to review what consumption in retirement looks like and how target replacement rates are developed. GAO examined (1) whether and how spending patterns vary by age, (2) key factors used to develop target replacement rates, and (3) the usefulness of information on such rates provided by DOL. GAO analyzed data from the BLS’s 2013 Consumer Expenditure Survey, the most recent available; analyzed 59 articles and reports that discussed how to develop, calculate, or evaluate replacement rates; collected non-generalizable information from 14 retirement services firms and financial planners recommended by researchers and actuaries who have studied replacement rates; and reviewed DOL materials and interviewed officials

State and Local Government Retiree Health Benefits: Liabilities Are Largely Unfunded, but Some Governments Are Taking Action

[Excerpt] The total unfunded OPEB liability reported in state and the largest local governments’ CAFRs exceeds $530 billion. However, as variations between studies’ totals show, totaling unfunded OPEB liabilities across governments is challenging for a number of reasons, including the way that governments disclose such data. The unfunded OPEB liabilities for states and local governments GAO reviewed varied widely in size. Most of these governments do not have any assets set aside to fund them. The total for unfunded OPEB liabilities is higher than$530 billion because GAO reviewed OPEB data in CAFRs for the 50 states and 39 large local governments but not data for all local governments or additional data reported in separate financial reports. Also, the CAFRs we reviewed report data that predate the market downturn. Finally, OPEB valuations are based on assumptions about the health care cost inflation rate and discount rates for assets, which also affect the size of the unfunded liability. Some state and local governments have taken actions to address liabilities associated with retiree health benefits by setting aside assets to prefund the liabilities before employees retire and reducing these liabilities by changing the structure of retiree health benefits. Approximately 35 percent of the 89 governments for which GAO reviewed CAFRs reported having set aside some assets for OPEB liabilities, but the percentage of the OPEB liability funded varied. Among the 10 selected governments whose actions GAO reviewed in more detail, officials from the governments that were prefunding at least a portion of their retiree health liability reported using irrevocable trusts. However, these governments varied with regard to the source of the money used to prefund their retiree health liabilities and how they determined the level or amount to commit to prefunding each year. To address their retiree health liabilities, the governments GAO selected made three key types of changes to their retiree health benefits: changes to the type of retiree health benefit plan, to the level of government contribution, and to the eligibility requirements employees need to meet to qualify for retiree health benefits. Changes to the level of government contribution, such as reductions to the amount or proportion of health insurance premiums paid for by the government, was the most common benefit change reported. Some of the selected governments made more than one change to their retiree health benefit structure. The changes were most often applied to the retiree health benefits of newly hired employees or currently active employees. State and local governments face unfunded OPEB liabilities and decisions about addressing liabilities amid increasing fiscal pressure. Assuming the continuation of current policies, by 2050 the size of the projected operating budget imbalance for the state and local government sector is 4.7 percent of gross domestic product, attributable largely to increases in health-related spending. Though Medicaid is the largest health- elated expenditure, spending on state and local government retirees’ health benefits is projected to more than double as a share of total operating revenues to 2.1 percent by 2050

Capitol Police: Retirement Benefits, Pay, Duties, and Attrition Compared to Other Federal Police Forces

[Excerpt] The Washington, D.C. metropolitan (DC metro) area is home to many federal police forces, including the United States Capitol Police (USCP), which maintain the safety of federal property, employees, and the public. Officials are concerned that disparities in pay and retirement benefits have caused federal police forces to experience difficulties in recruiting and retaining officers. In 2010, the USCP Labor Committee proposed six changes to enhance the USCP benefit structure. GAO was asked to review USCP’s pay and retirement benefits and compare them to other federal police forces in the DC metro area. GAO (1) compared USCP to other forces with respect to retirement benefits, minimum entry-level salary, duties, and employment requirements; (2) compared attrition at USCP to other forces, and determined how, if at all, USCP and other forces used human capital flexibilities (e.g., retention bonus); and (3) determined what level of retirement income USCP benefits provide and the costs associated with the proposed benefit enhancements. GAO chose nine other federal police forces to review based on prior work, inclusion in the Office of Personnel Management (OPM) police occupational series, and officer presence in the DC metro area. GAO analyzed laws, regulations, OPM data from fiscal years 2005 through 2010, and human capital data from the 10 police forces. GAO also surveyed the 10 forces

Four Free Trade Agreements GAO Reviewed Have Resulted in Commercial Benefits, but Challenges on Labor and Environment Remain

[Excerpt] Since 2001, Congress has approved free trade agreements (FTA) with 14 countries. Most were negotiated under Trade Promotion Authority (TPA), which aims to lower trade barriers while strengthening the capacity of trading partners to promote respect for workers’ rights and to protect the environment. The Office of the United States Trade Representative (USTR) is responsible for overseeing implementation of the FTAs, and the Departments of Labor (Labor) and State (State) have responsibilities for implementing and managing FTA cooperation projects. GAO was asked to assess progress through FTAs in (1) advancing U.S. economic and commercial interests, (2) strengthening labor laws and enforcement in partner nations, and (3) strengthening partners’ capacity to improve and enforce their environmental laws. GAO focused on Jordan, Chile, Singapore, and Morocco, chosen because of their economic, social, and geographic diversity and relatively older FTAs. GAO analyzed relevant trade laws and trends, met with U.S. agencies and foreign government officials, conducted fieldwork in the four countries, and solicited input from the private sector. GAO recommends that agencies update plans for implementing and overseeing FTAs to make the FTAs more effective in producing results. Agencies intend to do so but saw important progress

Employee Misclassification: Improved Coordination, Outreach, and Targeting Could Better Ensure Detection and Prevention

[Excerpt] The national extent of employee misclassification is unknown; however, earlier and more recent, though not as comprehensive, studies suggest that it could be a significant problem with adverse consequences. For example, for tax year 1984, IRS estimated that U.S. employers misclassified a total of 3.4 million employees, resulting in an estimated revenue loss of $1.6 billion (in 1984 dollars). DOL commissioned a study in 2000 that found that 10 percent to 30 percent of firms audited in 9 states misclassified at least some employees. Although employee misclassification itself is not a violation of law, it is often associated with labor and tax law violations. DOL\u27s detection of misclassification generally results from its investigations of alleged violations of federal labor law, particularly complaints involving nonpayment of overtime or minimum wages. Although outreach to workers could help reduce the incidence of misclassification, DOL\u27s work in this area is limited, and the agency rarely uses penalties in cases of misclassification. IRS enforces worker classification compliance primarily through examinations of employers but also offers settlements through which eligible employers under examination can reduce taxes they might owe if they maintain proper classification of their workers in the future. IRS provides general information on classification through its publications and fact sheets available on its Web site and targets outreach efforts to tax and payroll professionals, but generally not to workers. IRS faces challenges with these compliance efforts because of resource constraints and limits that the tax law places on IRS\u27s classification enforcement and education activities. DOL and IRS typically do not exchange the information they collect on misclassification, in part because of certain restrictions in the tax code on IRS\u27s ability to share tax information with federal agencies. Also, DOL agencies do not share information internally on misclassification. Few states collaborate with DOL to address misclassification, however, IRS and 34 states share information on misclassification-related audits, as permitted under the tax code. Generally, IRS and states have found collaboration to be helpful, although some states believe information sharing practices could be improved. Some states have reported successful collaboration among their own agencies, including through task forces or joint interagency initiatives to detect misclassification. Although these initiatives are relatively recent, state officials told us that they have been effective in uncovering misclassification. GAO identified various options that could help address the misclassification of employees as independent contractors. Stakeholders GAO surveyed, including labor and employer groups, did not unanimously support or oppose any of these options. However, some options received more support, including enhancing coordination between federal and state agencies, expanding outreach to workers on classification, and allowing employers to voluntarily enter IRS\u27s settlement program

Unemployment Insurance: Economic Circumstances of Individuals Who Exhausted Benefits

[Excerpt] The recession of 2007 to 2009 was the most severe in the United States since the 1930s, resulting in a net loss of 7.5 million jobs. Workers who lose a job through no fault of their own (referred to as “displaced workers” in this report) may turn to financial assistance offered through the Unemployment Insurance (UI) program. Currently, through benefit extensions authorized by Congress, eligible displaced workers can receive UI benefits for up to 99 weeks in certain states. However, with the slow economic recovery, some may exhaust UI benefits without finding a new job. This raises questions about how Temporary Assistance for Needy Families (TANF), a program that provides cash assistance to low-income families with children, and other support programs are aiding those who have exhausted UI benefits. GAO was asked to examine: (1) how many of the workers who lost jobs in the recession received and exhausted UI; (2) what are the economic circumstances of those who exhausted UI, and how many received support from TANF and other programs; and (3) the extent to which UI agencies refer those exhausting UI to other support programs. GAO analyzed data from the Current Population Survey’s 2008 and 2010 Displaced Worker Supplements and the 2010 Annual Social and Economic Supplement and data from the Departments of Labor and Health and Human Services. GAO also surveyed 51 state UI agencies and conducted interviews with 16 state TANF agencies, selected to reflect a range of unemployment rate changes in recent years. GAO is making no recommendations in this report

Recovery Act: One Year Later, States\u27 and Localities\u27 Uses of Funds and Opportunities to Strengthen Accountability

[Excerpt] This report responds to two ongoing GAO mandates under the American Recovery and Reinvestment Act of 2009 (Recovery Act). It is the fifth in a series of reports since passage of the Recovery Act on the uses of and accountability for Recovery Act funds in 16 selected states, certain localities in those jurisdictions, and the District of Columbia (District). These jurisdictions are estimated to receive about two-thirds of the intergovernmental assistance available through the Recovery Act. It is also the second report in which GAO is required to comment on the jobs created or retained as reported by recipients of Recovery Act funds. GAO collected and analyzed documents and interviewed state and local officials and other Recovery Act award recipients. GAO also analyzed federal agency guidance and spoke with officials at federal agencies overseeing Recovery Act programs

TROUBLED ASSET RELIEF PROGRAM: Continued Stewardship Needed as Treasury Develops Strategies for Monitoring and Divesting Financial Interests in Chrysler and GM

Oversight report detailing the conditions of the support provided to the automotive industry and evaluating the government\u27s actions in the auto rescue through November 2009. This includes the first mention by the GAO of Chrysler Financial\u27s wind-down