Pay and Benefits Watch: Bigger surplus, higher pay?

ksaldarini@govexec.com

National Treasury Employees Union President Colleen M. Kelley is trying to capitalize on the recent news that the federal budget surplus will be even larger than anticipated.

The head of one of the largest unions for federal employees has pitched President Clinton a proposal to increase the 2001 federal pay raise to a minimum of 4.2 percent.

Kelley argues that if anyone deserves credit for the stellar surplus, it's federal employees, saying they have been denied some $220 billion in pay and benefits increases over the past dozen years or so as a means of contributing to deficit reductions.

In a letter to the President, Kelley also demanded that the 0.5 percent retirement contribution increase imposed on federal employees last year be repealed.

The temporary increase in employee contributions began in January 1999 and is scheduled to end in 2002. Extending the increase beyond 2002 would save the government about $1 billion a year through 2010, according to Congressional Budget Office estimates.

"Clearly, any justification for such a penalty on federal workers has passed," Kelley said.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by eSignLive by VASCO

    Mobile E-Signatures for Government

    Learn 5 key trends that accelerate government demand for mobile signing.

    Download
  • Sponsored by Management Concepts

    SPONSORED: Successful Change Management Practices in the Public Sector

    How governmental agencies implement organizational change management.

    Download
  • Sponsored by Kronos

    Solving the Workforce Compliance Challenge

    Download this eBook to learn how data and automation can help state and local agencies.

    Download

When you download a report, your information may be shared with the underwriters of that document.