| Abstract: | The president's 2003 budget proposed that federal agencies pay the full cost of their employees' pension and retiree health benefits as such benefits are earned starting in 2003. The main reason for the proposed change is to provide policymakers and agency managers with a more complete measure of the cost of providing current services. The main disadvantage of the proposal is that estimates of the accrual costs of retiree health benefits are subject to large errors. The proposed change would not increase total outlays, nor would it affect the budget deficit or surplus. |
