This reports presents the case for reviewing the current pay structure under which 1.2 million general schedule federal employees are paid. Without recommending a specific solution, the paper highlights the importance of developing a contemporary pay system that will help the federal government’s efforts to recruit, retain and manage a 21st century work force. The white paper notes that the current compensation system was created soon after the end of World War II for a predominantly clerical work force. While appropriate in its time, it fails to recognize the fundamental changes that have occurred in the nature of government work or the increased levels of professional and technical skills among employees.