Obama “Pay Freeze”: 1.1 Million Federal Employees to Receive $2.5 Billion in Raises

Monday December 6th, 2010   •   Posted by David Theroux at 7:03pm PDT   •  

The Federal Times reports in “Federal pay freeze plan wouldn’t stop raises” that President Obama’s claimed, 2-year “pay freeze” does nothing of the sort, but instead will result in 1.1 million employees receiving from 2.6 to 3.3 percent increases in wages or more than $2.5 billion in pay raises. (Military and legislative branch personnel are also exempted from the “freeze.”) Nevertheless, federal unions denounced the move with American Federation of Government Employees president John Gage calling it “scapegoating.”

President Obama spoke of the need for sacrifice last week when he announced a two-year pay freeze for federal employees.

But feds won’t be too terribly deprived in 2011 and 2012. Despite the freeze, some 1.1 million employees will receive more than $2.5 billion in raises during that period.

Congress is expected to approve Obama’s proposal, which cancels only cost-of-living adjustments for two years. Regularly scheduled step increases for the 1.4 million General Schedule employees — who make up two-thirds of the civilian work force — will continue. The size of those increases ranges from 2.6 percent to 3.3 percent and by law kick in every one, two or three years, depending on an employee’s time in grade.

John Gage, national president of the American Federation of Government Employees, called Obama’s plan “wrongheaded” and driven by politics. But he said the news that step increases will not be affected takes some of the sting out of the decision.

“They’re doing this as a symbol, but it’s the wrong type of symbol to take it out on working people making basic wages,” Gage said.

But Rep. Jason Chaffetz, R-Utah, called the retention of step increases a hole in Obama’s plan. He also said the administration should freeze hiring and reduce the federal payroll from $447 billion to $400 billion.

“Somehow, someway I think this country can survive on just a $400 billion payroll,” Chaffetz said. He is the ranking Republican on the House Oversight and Government Reform subcommittee on the federal work force, and could become chairman when Republicans take control of the House next year.

In addition to General Schedule employees receiving step increases, some of the government’s roughly 187,000 wage-grade employees also will receive step increases.

And many employees will receive promotions, which also come with salary increases, Jeffrey Zients, the Office of Management and Budget’s deputy director for management, said last week.

Many senior employees won’t get raises, but will receive bonuses for good performance, although OMB and the Office of Personnel Management are telling agencies to cap bonuses at 2010 levels. OPM said it does not yet have information on fiscal 2010 bonuses, but the Asbury Park Press of New Jersey reported in June that the government paid $408 million in bonuses to 359,400 people, an average $1,135 each, in fiscal 2009.

The White House specifically exempted military service members from the freeze. And OMB said Obama’s freeze will not apply to legislative branch employees.

Spokesman Mark Saunders said the U.S. Postal Service froze senior management’s pay on Nov. 15.

“At this point, we have done everything under our control to limit salary increases, and the rest will be addressed through collective bargaining,” Saunders said.

The Administrative Office of the U.S. Courts said judicial branch employees don’t get cost-of-living adjustments unless GS employees do, so the freeze will cover them. But more than 25,000 judicial employees will receive step increases.

Federal Times calculated the $2.5 billion cost of step increases using OPM data on the number of employees at each GS grade level and step, and the within-grade increases those employees will receive over the next two years by advancing to the next step. . . .

Click here to read the full article…

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