Benefits and beneficiaries under public employee retirement systems, fiscal year 1989.

The Federal Government. the 50 States, and many localities maintain programs that provide retirement, disability, and survivor benefits to their employees. In fiscal year 1989, the amount paid out in such benefits at all levels of government was $83.2 billion, while the number of beneficiaries totaled 7.7 million (table 1). Federal retirement systems a,%counted for 60 percent of the benefitc, paid in 1989 and for 49 percent of the beneficiaries (table 2). The large programs for civil service and military personnel are responsible for the vast majority (99 percent) of Federal retirement payments. The Civil Service Retirement System (CSRS) was the major program covering Federal civilian workers from 1920 through 1986. In 1986, Congress enacted the Federal Employees Retirement System (FERS). which covers all workers hired on or after January 1, 1984, and any workers previously covered by CSRS who elected to change to FERS. The majority of Federal workers hired before January 1, 1984, continue to be covered under CSRS. The CSRS is a retirement system separate from the Social Security program. Workers covered under CSRS contribute a fixed percent of their salary to the program and receive benefits based on their earnings and length of service. Since 1983. CSRS employees have also been covered by and contribute to the Medicare program. Unlike CSRS, the FERS program was designed to coordinate with the