TOPICS
TOPICS
Bush administration unveils 2005 pay raise
President Bush issued an executive order Thursday evening formally implementing a 3.5 percent average pay raise in 2005 for General Schedule employees.
The pay increase, which will take effect on Jan. 9, will be divided between a 2.5 percent base pay increase for all employees and an average 1 percent locality pay adjustment that varies according to where employees work.
Employees in the San Francisco area will receive the largest total pay hike, 4.3 percent. Employees in New York City will receive a 3.96 percent increase and Hartford, Conn. employees will get a 3.93 percent increase.
Employees in the Washington, D.C., area will receive a 3.71 percent increase. Employees in cities not designated as locality pay areas, will get a raise of at least 3.26 percent.
Locality-based raises became a fixture of federal pay in 1994, following implementation of the 1990 Federal Employees Pay Comparability Act. The act's proponents identified a gap between public and private sector salaries of about 30 percent. The act was designed to close the gap to about 5 percent, but raises under the law have never been fully funded.
The 3.5 percent pay increase veers from a proposal included in the president's fiscal 2005 budget proposal, which recommended holding civilian pay raises at an average 1.5 percent and giving military service members a 3.5 percent pay increase. The president has said that ongoing military conflicts make uniformed personnel more deserving of a higher pay raise.
A bipartisan bloc of lawmakers fought for military-civilian pay parity and the fiscal 2005 omnibus spending bill passed by Congress earlier this month directed President Bush to give employees the larger pay increase.
COMMENTS
- I have to somewhat agree with Honolulu. Unless this pay-for-performance isn't carefully managed and executed without any prejudice there will be so many grievances and ultimate lawsuits another change down-the-road is inevitable. As far as the voting goes there is much I adamantly disagree with in concerns with President Bush to include the implementation of NSPS. But there was no way I could ever support Mr. Kerry who did and said anything to bash our country and our president regardless just to win. He had no plan, he has no morals, and he had no business being in charge of this country! David Posted January 10, 2005 1:48 PM
- Pay banding is a sure fire way to allow favoritism and step on average loyal governement workers. Nothing but a good old boy network and secret handshakes to get the big salary adjusts. In with the boss don't worry but if you don't see eye to eye they will reduce you raises to dust. If you voted for President Bush (and Def. Sec. Rumsfield) you voted for pay banding. Hope you are all proud of yourselves. Hopefully unions will dig in deep and protect us. Without attention an agency could easily get out of control. It allows favoritism and will most like be a temporary injustice and will be get overturned by a new President in 2008. Change is good except if you work for the government. GS Worker in Hawaii GovExec.com reader Posted January 9, 2005 11:46 PM
- The situation in DHS will be even worse. At least with the General Schedule, you knew you would get a yearly increase, or COLA, unless you were really useless. Exceptional performers were eligible for quality step increases (QSI) or other performance awards. However, DHS will be leaving the General Schedule and going to pay banding, which will be catastrophic. No matter how good your performance, management can still provide no raise at all, citing a lack of funds in the budget. DHS employees will fall far behind their counterparts at DEA, ATF, and other agencies who will still receive step, grade and COLA increases under the existing GS system. Employees who are hired on the same day will find substantial differences in their pay after a few years, depending on whether they work for DHS or an agency still under the GS system. I forsee a severe recruiting and retention problem for DHS as a result, as prospective employees go elsewhere, and current employees leave for more lucrative positions at other agencies. DHS solicited comments on pay banding, and received thousands. Approximately 99% were negative, but most of these were sincere, and even offered real solutions and suggestions. They were ignored, and this mess is proceeding full speed ahead. Those of you who are still in the General Schedule should be grateful that you're not being subjected to this impending disaster! GovExec.com reader Posted January 6, 2005 4:05 PM
