Return to Article: House appropriators approve 3.9 percent civilian pay raise
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53439
COLA, Raise Are Two Separate Things
The annual COLA announcement always sets off a round of confusion in the federal community involving raises and COLA's. The COLA goes to those who are retired, and is an automatic adjustment linked to a consumer price index. The raise goes to those who are active employees and is determined through the congressional budget process. The raise is in part linked to the employment cost index, which is a measure of private sector wage growth - NOT LIVING COSTS - and that is based on a different measuring period than the CPI figure used for the COLA. The raise and the COLA adjustments do not directly affect each other. However, there is often confusion on that point, in part because many employees refer to their raises as COLAs, and some retirees refer to their COLA's as raises.
There you have it. Now stop whining about economic conditions if you're an active federal employee.
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53438
One More Time on Raises vs. COLA's
There appears to be considerable confusion regarding the relationship between pay raises and COLA's now that both have kicked in for 2008. The two increases are separate, are determined in different ways, and have no direct connection with each other. Retirees who are eligible for COLA's received them with their January annuity payments - 2.3 percent for those retired under CSRS, 2 percent for those retired under FERS and who are eligible for COLAs (generally, FERS doesn't pay COLA's until age 62). The COLA's are paid to retirees, not active employees, and are determined by a cost of living formula whose final tabulation came out in October. The pay raise goes to active employees, not retirees. The pay raise is negotiated during the annual budget process and is linked to an employment cost index measure of labor costs - NOT LIVING COSTS. Thus, while many employees call the raise a COLA, it isn't one.
Do any of you read before posting? Obviously not.
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53412
I don't understand the complaints about the increased cost of living. We voted for it a year and half ago and I expect we will vote to extend the increases this November. We should all look to what our favorite candidates actually say and have actually done in the past to raise or cut our cost of living before we vote. the problem with the American system of government is that we usually get what we vote for. We did last election and we will this next election.
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53331
With all the other companies raising their prices because of the cost of gasoline this is still inadequate. From the utility companies to the grocery stores prices on everything has raised due to the delivery of products to them (all affected by the gas prices)this increae will disappear before we see it at the bank.
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53321
To Dan- What the tax payers will get is a workforce who is supporting your military and making sure they have what they need when they need to help people like you. We deserve a increase in pay just like the rest of the country.
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53303
Maybe the whiners are working overtime because they have to work overtime to make up for the sudden increase in the general cost of living. Not that I'm not grateful, but I'm earning twenty five percent more than I was twenty five years ago and despite virtually no change in my fixed living costs (rent, car payment), my paycheck actually covers LESS than it did in 2005 because of high medical deductables and now doubling the cost of commuting.
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53283
Rick, I'm glad that you appreciate the average 3.9% for next year's pay increase (exact amount to be determined by your geographic location and whether or not you are under NSPS). Certainly any increase that might help keep up with inflation will be appreciated. However, 3.9% seems small where I live compared to the 50% gasoline price increases, 32% natural gas increase, 18% electricity increase, 15% food increase, 12% health care cost increases, 6% university tuition increases, and property tax increases that have averaged 12% for the last 6 years. As the inflation band wagon takes off we can expect more double/triple digit price increases. With the impending wave of inflation starting to hit, in response to the last seven years of government political fiscal mismanagement, the flexibilities of pay constraints of NSPS may have come just in the nick of time.
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53276
Rick,
I don't think "whining" is the best descriptor for the comments made regarding the cost of living adjustment (COLA). Please remember, this is a COLA, not a pay raise as so many articles/people assert. This COLA is simply an offset for increased cost of living, and a weak one at that considering that CPI as of May 2008 is 4.1% and will surely grow as we progress though the year. 3.9% is better than what we have received in recent years, but when it doesn't cover the actual rise in our out of pocket costs for living, it simply doesn't cut the mustard. Another year will go by without congress fully implementing the 1990 Federal Employees Pay Comparability Act and Federal employees will fall further and further behind our private sector counterparts both in salary and benefits. Does Federal employment have to be the job of last resort?
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53275
Barry, I totally agree with you. I'm currently a PB3 (GS11 step 3 equiv) and I already earn below the cost of living in my area despite the govt attempt to alleviate this pressure through locality pay. And it's depressing to realize that even when I do make it to the higher PB/GS levels, I will still be below COL because economic turnaround doesn't happen overnight. Sigh.
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53245
Every year we hear of the proposed raises and it never surprises me of the complaining federal employees can dish out. I'm almost embarassed to be associated these whiners. 3.9 percent pay raise? I'd take it! How about anybody else?
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53220
To "Barry B. Copeland" and "Sue Ann":
Why are you both comparing the 3.9 COLA increase to econimic conditions? COLA for those currently employed is tied to the ECI (Employment Cost Index). COLA for those retired is tied to the CPI (Consumer Price Index). Therefore, economic conditions have absolutely nothing to do with COLA as it relates to those currently employed.
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53205
Once again the whiners are working overtime, just what is wrong with a 3.9 increase? Huh, there's nothing wrong with it. I appreciate it anyway. You clowns just keep whining about NSPS, its here to stay so deal with it or leave civil service if you so miserable.
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53196
I'm sure my post will not receive much sympathy for those not affected by the salary cap but here goes anyway. In several areas around the country many GS-15s and some GS-14s have reached the legislatively set salary cap. As such, a few thousand Federal employees will receive far less than 3.9% unless the Executive Level pay cap is raised (the two caps are identical and linked).
Again, not a big deal for most Federal workers but every year the salary cap limits more and more employees to something like half the cost-of-living increase. This year some areas of the country have only 15 step 10 salaries affected whereas in other locales all 15s and some 14s are impacted. It won't be long until it reaches the 13s.
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53192
Neither the House or the posters have said what they have done to justify a 3.9% increase. Just what are the taxpayers getting for the expense?? Productivity is down, serve is at an all time low, this is just throwing money in a pit and burning it
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53168
On the topic of NSPS, there are some important proposed changes to the system (none of them good) that are reflected in a May 22, 2008 Federal Register notification. But guess what, no one at any level with in DoD or in my case the Army alerted/notified any one that the NSPS program office were proposing making changes let alone telling us that these changes were published and available to the public for comment. Can you believe that? Our leadership is playing the game of "I have got a secret". Why on earth would they try to keep these changes a secret from all of us???? Oh by the way, the time frame for comments has passed. You wonder why no one has warmed up to the system yet. You just can't trust those implementing the system.
Now, I have done some quick analysis of NSPS vs. GS and have determined that in the long run those under NSPS will lose money. I prepared a rough spread sheet which, if nothing else, reflects clearly the impact of not getting a step increase. If you annualize your step increase (based upon a 14 or 15 level GS worker) it works out to be 1.6% bump in your salary. So, if under NSPS you get a 4% raise and our GS friends get a 3.4% raise, don't celebrate quite yet as they still are getting step increases and those under NSPS are not. You (under NSPS) would need to get a 5% raise to keep up with them (3.4% + 1.6% = 5%)
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53162
We under NSPS will see it (as a whole), just the rules of distribution have changed. I'm lucky enough to work in an installation with high trust between management and production personnel and we here will be just fine. I feel for you folks working in the good-ol'-boy system, I believe NSPS will be gamed, the perps may have to work a bit harder to do it, though (cooked accomplishmnet rpts?). 3.9 may be slim in relation to recent inflation but a lot of taxpayers are walking the streets wishing they were "only" getting 3.9%. Count your blessings, folks.
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53158
The way I look at it. It sure beats a pay increase of 2.9%. Hopefully the lucky amongst us who aren't on NSPS wont
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53150
That's great for folks in the civil service system. How will this be dealt out to those of us unfortunate enough to be stuck in Rumsfeld's NSPS legacy?
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53147
This story is incomplete. What is the status in the related Senate committee? What happens next, and what is the overall likelihood of this making it's way into next year's appropriations?
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53132
Doesn't 3.9 percent seem a bit shallow, considering what we've been through this year, from an economic point of view?
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53121
Let's see, gas prices have gone up over $1.00 a gallon since last year, food prices are up, what almost 50%, can't sell your house for what you paid for it, the feds won't take a little off the top of their 18.6 per gallon, the states get their cut and we're supposed to be happy about 3.9?
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