Obama Issues Plan to Give Feds a 1 Percent Pay Raise

Abel Tumik/Shutterstock.com

President Obama issued an alternative pay plan late Friday, setting an across-the-board increase for civilian federal employees of 1 percent in 2015.

The figure matches the amount the president requested in his fiscal 2015 budget proposal. Obama issued a separate plan providing a 1 percent boost in monthly basic pay rates for military service members. 

Obama alluded to a desire to give feds a larger raise, but said he was not at liberty to do so due to budgetary concerns.

“Civilian Federal employees have already made significant sacrifices as a result of a three-year pay freeze that ended in January 2014 with the implementation of a 1.0 percent pay increase -- an amount lower than the private sector pay increases and statutory formula for adjustments to the base General Schedule. However, as the country's economic recovery continues, we must maintain efforts to keep our Nation on a sustainable fiscal course. This is an effort that continues to require tough choices and each of us to do our fair share."

Under Obama’s plan, locality pay levels would remain at their 2014 levels. Locality pay has been frozen since 2010.

Obama declared that his pay proposal “will not materially affect the federal government's ability to attract and retain a well-qualified federal workforce.”

Federal labor unions had supported measures in both the House and Senate that would have given feds a 3.3 percent raise, though those measure have not yet received a vote in either house.

If the president had not informed Congress of his alternative pay plan for feds by the end of August, then the increase mandated by the 1990 Federal Employees Pay Comparability Act would have kicked in. Under FEPCA, the raise would be determined by the change in the Employment Cost Index minus 0.5 percent. 

Presidents largely have ignored the FEPCA formula in their federal pay raise proposals, preferring to offer their own figure. Congress created FEPCA, which provides an annual across-the-board salary boost and a locality pay adjustment for General Schedule employees, to close the public and private sector pay gap. The Federal Salary Council has said that federal employees are underpaid relative to private sector workers by approximately 34.6 percent.

The reality, however, is that Congress will end up determining whether federal employees receive a pay raise next year.

So far, lawmakers have remained mum on the issue of a federal employee pay raise. The House has passed a bill that would allow a 1 percent raise to go into effect. Unless Congress proactively alters the proposal, Obama’s 1 percent recommendation will become law. 

(Image via Abel Tumik/Shutterstock.com)

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:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    Download
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    Download
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    Download
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    Download
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    Download

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